Document:

Exhibit 4.6

 

	

    	
 
    	
CLIFFORD   CHANCE STUDIO LEGALE

IN ASSOCIAZIONE CON CLIFFORD CHANCE
    
	
 
    	
 
    	
Conformed Copy
    

 

GTECH S.P.A.

AS PARENT

 

GTECH CORPORATION

GTECH S.P.A.

AS BORROWERS

 

J.P. MORGAN LIMITED

MEDIOBANCA — BANCA DI CREDITO FINANZIARIO S.P.A.

AS GLOBAL COORDINATORS, BOOKRUNNERS AND MANDATED LEAD ARRANGERS

 

THE ENTITIES LISTED IN PART III OF SCHEDULE 1

AS BOOKRUNNERS AND MANDATED LEAD ARRANGERS

 

THE ENTITIES LISTED IN PART IV OF SCHEDULE 1

AS MANDATED LEAD ARRANGERS

 

THE ENTITIES LISTED IN PART V OF SCHEDULE 1

AS ARRANGERS

 

THE ROYAL BANK OF SCOTLAND PLC

AS AGENT

 

KEYBANK NATIONAL ASSOCIATION

AS SWINGLINE AGENT

 

AND

 

OTHERS

 

 

US$1,800,000,000 AND €1,050,000,000 MULTICURRENCY REVOLVING CREDIT FACILITIES FOR GTECH CORPORATION AND GTECH S.P.A.

 

 

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CONTENTS

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS AND   INTERPRETATION
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
THE FACILITIES
    	
 
    	
51
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
PURPOSE
    	
 
    	
53
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
CONDITIONS OF   UTILISATION
    	
 
    	
53
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
UTILISATION —   REVOLVING FACILITY LOANS
    	
 
    	
55
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
UTILISATION —   LETTERS OF CREDIT
    	
 
    	
56
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
UTILISATION -   US DOLLAR SWINGLINE LOANS
    	
 
    	
62
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
LETTERS OF   CREDIT
    	
 
    	
65
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
REPAYMENT
    	
 
    	
69
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
OPTIONAL   CURRENCIES
    	
 
    	
70
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
US DOLLAR   SWINGLINE FACILITY
    	
 
    	
70
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
ILLEGALITY,   VOLUNTARY PREPAYMENT AND CANCELLATION
    	
 
    	
73
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
MANDATORY   PREPAYMENT
    	
 
    	
76
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
RESTRICTIONS
    	
 
    	
77
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
INTEREST
    	
 
    	
77
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
INTEREST   PERIODS
    	
 
    	
79
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
CHANGES TO THE   CALCULATION OF INTEREST
    	
 
    	
79
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
FEES
    	
 
    	
81
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
TAX GROSS UP   AND INDEMNITIES
    	
 
    	
83
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
INCREASED COSTS
    	
 
    	
98
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
OTHER   INDEMNITIES
    	
 
    	
100
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
MITIGATION
    	
 
    	
101
    
	
 
    	
 
    	
 
    	
 
    
	
23.
    	
COSTS AND   EXPENSES
    	
 
    	
101
    
	
 
    	
 
    	
 
    	
 
    
	
24.
    	
GUARANTEE AND   INDEMNITY
    	
 
    	
102
    
	
 
    	
 
    	
 
    	
 
    
	
25.
    	
REPRESENTATIONS
    	
 
    	
108
    
	
 
    	
 
    	
 
    	
 
    
	
26.
    	
INFORMATION   UNDERTAKINGS
    	
 
    	
114
    
	
 
    	
 
    	
 
    	
 
    
	
27.
    	
FINANCIAL COVENANTS
    	
 
    	
118
    
	
 
    	
 
    	
 
    	
 
    
	
28.
    	
GENERAL   UNDERTAKINGS
    	
 
    	
120
    
	
 
    	
 
    	
 
    	
 
    
	
29.
    	
EVENTS OF   DEFAULT
    	
 
    	
130
    
	
 
    	
 
    	
 
    	
 
    
	
30.
    	
CHANGES TO THE   LENDERS
    	
 
    	
136
    
	
 
    	
 
    	
 
    	
 
    
	
31.
    	
CHANGES TO THE   OBLIGORS
    	
 
    	
143
    

 

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32.
    	
ROLE OF THE   AGENT, THE ARRANGING PARTIES, THE GLOBAL COORDINATORS, THE SWINGLINE AGENT,   THE ISSUING AGENT AND OTHERS
    	
145
    
	
 
    	
 
    	
 
    
	
33.
    	
CONDUCT OF   BUSINESS BY THE FINANCE PARTIES
    	
154
    
	
 
    	
 
    	
 
    
	
34.
    	
SHARING AMONG   THE FINANCE PARTIES
    	
154
    
	
 
    	
 
    	
 
    
	
35.
    	
PAYMENT   MECHANICS
    	
155
    
	
 
    	
 
    	
 
    
	
36.
    	
SET-OFF
    	
160
    
	
 
    	
 
    	
 
    
	
37.
    	
NOTICES
    	
160
    
	
 
    	
 
    	
 
    
	
38.
    	
CALCULATIONS   AND CERTIFICATES
    	
163
    
	
 
    	
 
    	
 
    
	
39.
    	
TAX   CHARACTERIZATION
    	
164
    
	
 
    	
 
    	
 
    
	
40.
    	
PARTIAL   INVALIDITY
    	
164
    
	
 
    	
 
    	
 
    
	
41.
    	
REMEDIES AND   WAIVERS
    	
164
    
	
 
    	
 
    	
 
    
	
42.
    	
AMENDMENTS AND   WAIVERS
    	
164
    
	
 
    	
 
    	
 
    
	
43.
    	
NEGOTIATED   AGREEMENT
    	
168
    
	
 
    	
 
    	
 
    
	
44.
    	
CONFIDENTIALITY
    	
168
    
	
 
    	
 
    	
 
    
	
45.
    	
COUNTERPARTS
    	
171
    
	
 
    	
 
    	
 
    
	
46.
    	
GOVERNING LAW
    	
171
    
	
 
    	
 
    	
 
    
	
47.
    	
ENFORCEMENT
    	
171
    
	
 
    	
 
    
	
SCHEDULE 1 THE   ORIGINAL PARTIES
    	
173
    
	
 
    	
 
    
	
SCHEDULE 2   CONDITIONS PRECEDENT
    	
183
    
	
 
    	
 
    
	
SCHEDULE 3   REQUESTS
    	
188
    
	
 
    	
 
    
	
SCHEDULE 4 FORM OF   TRANSFER CERTIFICATE
    	
191
    
	
 
    	
 
    
	
SCHEDULE 5   FORM OF ASSIGNMENT AGREEMENT
    	
194
    
	
 
    	
 
    
	
SCHEDULE 6 FORM OF   ACCESSION LETTER
    	
196
    
	
 
    	
 
    
	
SCHEDULE 7 FORM OF   RESIGNATION LETTER
    	
197
    
	
 
    	
 
    
	
SCHEDULE 8 FORM OF   COMPLIANCE CERTIFICATE
    	
198
    
	
 
    	
 
    
	
SCHEDULE 9   TIMETABLES - LOANS - NOTICES TO THE AGENT
    	
199
    
	
 
    	
 
    
	
SCHEDULE 10 FORM OF   LETTER OF CREDIT
    	
202
    
	
 
    	
 
    
	
SCHEDULE 11   AGENTS’ DETAILS
    	
208
    
	
 
    	
 
    
	
SCHEDULE 12   ORIGINAL BORROWERS’ DETAILS
    	
209
    
	
 
    	
 
    
	
SCHEDULE 13   AGREED SECURITY PRINCIPLES
    	
210
    
	
 
    	
 
    
	
SCHEDULE 14   FORM OF AFFIDAVIT
    	
214
    
	
 
    	
 
    
	
SCHEDULE 15   FORM OF SUBSTITUTE AFFILIATE LENDER DESIGNATION NOTICE
    	
221
    
	
 
    	
 
    
	
SCHEDULE 16   SELF DECLARATION FORM
    	
223
    

 

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THIS SENIOR FACILITIES AGREEMENT (this “Agreement”) is dated 4 November 2014, amended on 2 April 2015 and made

 

BETWEEN:

 

(1)                                 GTECH S.p.A., a company incorporated in Italy as a società per azioni (“GTECH”);

 

(2)                                 GTECH CORPORATION, a Delaware corporation (“GTECH Corporation” and together with GTECH, the “Original Borrowers”);

 

(3)                                 THE ENTITIES listed in Part I of Schedule 1 as original guarantors (the “Original Guarantors”);

 

(4)                                 J.P. MORGAN LIMITED AND MEDIOBANCA — BANCA DI CREDITO FINANZIARIO S.p.A. (directly or by way of their Affiliates) as global coordinators, bookrunners and mandated lead arrangers (the “Global Coordinators, Bookrunners and Mandated Lead Arrangers”);

 

(5)                                 THE ENTITIES listed in Part III of Schedule 1 as bookrunners and mandated lead arrangers (the “Bookrunners and Mandated Lead Arrangers”);

 

(6)                                 THE ENTITIES listed in Part IV of Schedule 1 as mandated lead arrangers (the “Mandated Lead Arrangers”);

 

(7)                                 THE ENTITIES listed in Part V of Schedule 1 as arrangers (the “Arrangers”);

 

(8)                                 THE FINANCIAL INSTITUTIONS listed in Part IIA of Schedule 1 (The Original Parties) as lenders (the “Original Lenders”);

 

(9)                                 THE ROYAL BANK OF SCOTLAND PLC as facility agent of the other Finance Parties (the “Agent”);

 

(10)                          THE ROYAL BANK OF SCOTLAND PLC as issuing agent of the Lenders (the “Issuing Agent”);

 

(11)                          KEYBANK NATIONAL ASSOCIATION as agent of the US Dollar Swingline Lenders (the “Swingline Agent”); and

 

(12)                          THE FINANCIAL INSTITUTIONS listed in Part IIB of Schedule 1 (The Original US Dollar Swingline Lenders) as US Dollar Swingline Lenders (the “Original US Dollar Swingline Lenders”).

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

In this Agreement:

 

“Acceptable Bank” means:

 

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(a)                                 a bank or financial institution which has a rating for its long term unsecured and non credit-enhanced debt obligations of BBB- or higher by S&P or Fitch or Baa3 or higher by Moody’s or a comparable rating from an internationally recognised credit rating agency; or

 

(b)                                 an Original Lender or any of its Affiliates; or

 

(c)                                  any other bank or financial institution approved by the Agent, the Swingline Agent and the Issuing Agent.

 

“Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of Accession Letter) or in any other form acceptable to the Parent and the Agent.

 

“Accounting Principles” means generally accepted accounting principles in the United States, the United Kingdom and Italy or IFRS.

 

“Additional Borrower” means a company which becomes a Borrower in accordance with Clause 31 (Changes to the Obligors).

 

“Additional Guarantor” means a person which becomes a Guarantor in accordance with Clause 31 (Changes to the Obligors).

 

“Additional Obligor” means an Additional Borrower or an Additional Guarantor.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent.

 

“Affidavit” means the affidavit substantially in the form set out in Schedule 14 (Form of Affidavit) as approved by the Italian Revenues Agency and made available on the website www.agenziaentrate.gov.it.

 

“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.  Notwithstanding the foregoing, in relation to The Royal Bank of Scotland plc, the term “Affiliate” shall include The Royal Bank of Scotland N.V. and each of its subsidiaries or subsidiary undertakings, but shall not include (i) the UK government or any member or instrumentality thereof, including Her Majesty’s Treasury and UK Financial Investments Limited (or any directors, officers, employees or entities thereof) or (ii) any persons or entities controlled by or under common control with the UK government or any member or instrumentality thereof (including Her Majesty’s Treasury and UK Financial Investments Limited) and which are not part of The Royal Bank of Scotland Group plc and its subsidiaries or subsidiary undertakings.

 

“Agent’s Fee Letter” means the fee letter dated on or about the date of this Agreement between the Agent and the Borrowers.

 

“Agent’s Spot Rate of Exchange” means, for a currency, the rate determined by the Agent, the Swingline Agent or the Issuing Agent (as applicable) to be the rate quoted by the person acting in such capacity as the spot rate for the purchase by such person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two (2) Business Days prior to the date as of which the foreign exchange computation is made; provided that the Agent, the Swingline

 

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Agent or the Issuing Agent may obtain such spot rate from another financial institution designated by the Agent, the Swingline Agent or the Issuing Agent if the person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency; and provided further that the Issuing Agent may use such spot rate quoted on the date as of which the foreign exchange computation is made in the case of any Letter of Credit denominated in an Optional Currency.

 

“Agreed Security Principles” means the principles set out in Schedule 13 (Agreed Security Principles).

 

“Anti-Corruption Laws” means all laws, rules and regulations of any jurisdiction applicable to a Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

 

“Anti-Terrorism Law” means each of:

 

(a)                                 the Executive Order;

 

(b)                                 the USA PATRIOT Act;

 

(c)                                  the Money Laundering Control Act of 1986, Public Law 99-570;

 

(d)                                 the Foreign Asset Control Laws;

 

(e)                                  the Bank Secrecy Act (31 U.S.C. §§ 5311 et seq.);

 

(f)                                   the Money Laundering Control Act of 1986 (18 U.S.C. §§ 1956 et seq.);

 

(g)                                  the International Emergency Economic Powers Act (50 U.S.C. §§ 1701 et seq.);

 

(h)                                 the Trading with the Enemy Act (50 U.S.C. App. §§1 et seq.); and

 

(i)                                     any similar law enacted in the United States of America subsequent to the date of this Agreement.

 

“Arrangement Fee Letter(s)” means each arrangement fee letter dated on or about the date of this Agreement among the Original Borrowers and the Arranging Parties.

 

“Arranging Parties” means the Global Coordinators, Bookrunners and Mandated Lead Arrangers, the Bookrunners and Mandated Lead Arrangers, the Mandated Lead Arrangers and the Arrangers.

 

“Assignment Agreement” means an agreement substantially in the form set out in Schedule 5 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.

 

“Auditors” means PricewaterhouseCoopers or any other firm approved in advance by the Agent (such approval not to be unreasonably withheld or delayed).

 

“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

 

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“Availability Period” means:

 

(a)                                 in relation to Revolving Facility A, the period from and including the date of this Agreement to and including the date falling one (1) Month prior to the Final Maturity Date; and

 

(b)                                 in relation to Revolving Facility B, the period from and including the date of this Agreement to and including the date falling one (1) Month prior to the Final Maturity Date.

 

“Available Revolving Commitment” means, in relation to:

 

(a)                                 Revolving Facility A (but without limiting Clause 7.5 (Relationship with Revolving Facility A), a Lender’s Revolving Facility A Commitment less:

 

(i)                                     the Base Currency Amount of its participation in any outstanding Utilisations (including any Revolving Facility A Loan deemed as such pursuant to Clause 8.3 (Claims under a Letter of Credit)); and

 

(ii)                                  in relation to any proposed Utilisation, the Base Currency Amount of its participation in any Utilisations (other than the proposed Utilisation) that are due to be made under Revolving Facility A on or before the proposed Utilisation Date; and

 

(b)                                 Revolving Facility B, a Lender’s Revolving Facility B Commitment less:

 

(i)                                     the Base Currency Amount of its participation in any outstanding Utilisations (including any Revolving Facility B Loan deemed as such pursuant to Clause 8.3 (Claims under a Letter of Credit)); and

 

(ii)                                  in relation to any proposed Utilisation, the Base Currency Amount of its participation in any Utilisations (other than the proposed Utilisation) that are due to be made under Revolving Facility B on or before the proposed Utilisation Date,

 

it being understood in each case that for the purposes of calculating the “Available Revolving Commitment”, any Revolving Facility Commitment of Wells Fargo Bank, NA shall only be deemed to be a Revolving Facility A Commitment or a Revolving Facility B Commitment, as the case may be, from and including the Target Accession Date.

 

For the purposes of calculating a Lender’s Available Revolving Commitment in relation to any proposed Utilisation of Loans, such Lender’s participation in any Loans under Revolving Facility A or as the case may be, Revolving Facility B that are due to be repaid or prepaid on or before the proposed Utilisation Date as well as such Lender’s US Dollar Swingline Commitments to the extent that they are due to be reduced or cancelled on or before the proposed Utilisation Date shall not be deducted from a Lender’s Commitment under such Revolving Facility.

 

For the purposes of calculating a Lender’s Available Revolving Commitment in relation to any proposed Utilisation under a Revolving Facility, such Lender’s participation in any Letters of Credit issued under such Revolving Facility that are due to be reduced or cancelled on or

 

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before the proposed Utilisation Date under such Revolving Facility shall not be deducted from a Lender’s Commitment under the relevant Revolving Facility.

 

“Available Revolving Facility” means, in relation to each Revolving Facility, the aggregate for the time being of each Lender’s Available Revolving Commitment in respect of that Revolving Facility.

 

“Available US Dollar Swingline Commitment” of a US Dollar Swingline Lender means (but without limiting Clause 7.5 (Relationship with Revolving Facility A)) that Lender’s US Dollar Swingline Commitment minus:

 

(a)                                 the amount of its participation in any outstanding US Dollar Swingline Loans; and

 

(b)                                 in relation to any proposed Utilisation under the US Dollar Swingline Facility, the amount of its participation in any US Dollar Swingline Loans that are due to be made under the US Dollar Swingline Facility on or before the proposed Utilisation Date,

 

other than that Lender’s participation in any US Dollar Swingline Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date.

 

“Available US Dollar Swingline Facility” means the aggregate for the time being of each US Dollar Swingline Lender’s Available US Dollar Swingline Commitment.

 

“B&D Holding” means B&D Holding di Marco Drago e C. S.a.p.a., a company incorporated in Italy as a società in accomandita per azioni.

 

“Base Currency” means, in relation to Revolving Facility A, US Dollars and, in respect of Revolving Facility B, Euro.

 

“Base Currency Amount” means in relation to a Utilisation, the amount specified in the Utilisation Request delivered by the relevant Borrower for that Utilisation (or, if the amount requested is not denominated in the Base Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on the date which is two (2) Business Days before the Utilisation Date or, if later, on the date the Agent receives the Utilisation Request in accordance with the terms of this Agreement and, in the case of a Letter of Credit, as adjusted under Clause 6.10 (Revaluation of Letters of Credit) to reflect any repayment (other than a repayment arising from a change of currency), prepayment, cancellation or reduction (as applicable) of the Utilisation, as adjusted to reflect any repayment, prepayment, consolidation or division of a Utilisation.

 

“Base Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four (4) decimal places) as supplied to the Agent at its request by the Base Reference Banks:

 

(a)                                 in relation to LIBOR, as the rate at which the relevant Base Reference Bank could borrow funds in the London interbank market; or

 

(b)                                 in relation to EURIBOR, as the rate at which the relevant Base Reference Bank could borrow funds in the European interbank market,

 

in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period.

 

8

 

“Base Reference Banks” means in relation to LIBOR, the principal London offices of Banca IMI S.p.A., Milan  and Bank of America, N.A., London Branch and the principal Milan office of Mediobanca — Banca di Credito Finanziario S.p.A., Milan  and, in relation to EURIBOR, the principal office in London of Banca IMI S.p.A., Milan and Bank of America, N.A., London Branch and the principal Milan office of Mediobanca — Banca di Credito Finanziario S.p.A., Milan or such other banks as may be appointed by the Agent (acting on the instructions of the Majority Lenders) in consultation with the Parent.

 

“Blacklisted Resident Entity” means any person that is resident, domiciled, located for Tax purposes, or acting through a lending office qualifying as a Permanent Establishment to which any payment under the Finance Document is effectively connected, in a Blacklisted Jurisdiction.

 

“Blacklisted Jurisdiction” means:

 

(a)                                 any country or territory listed as having a privileged tax regime in the Italian Ministerial Decree dated 23 January 2002 and issued by the Italian Minister of Finance, as amended or updated from time to time; or

 

(b)                                 (as from the fiscal year in which the decree to be issued pursuant to article 168-bis of Italian Presidential Decree of 22 December 1986, No. 917 is effective, any country or territory which is not included in the list of countries and territories (the “White List”) allowing an adequate exchange of information with the Italian Tax authorities (for the five (5) years starting on the date of publication of such decree in the Official Gazette, countries and territories that are not included in the current black-lists set forth by Italian Ministerial Decrees of 4 May 1999, 21 November 2001 and 23 January 2002, nor in the current white list set forth by Italian Ministerial Decree of 4 September 1996 or included under article 2 of Ministerial Decree 21 November 2001, with regards to the persons therein enclosed, and under article 3 of Ministerial Decree 21 November 2001, with the exclusions of the persons therein enclosed, are deemed to be included in the White List); or

 

(c)                                  upon the occurrence of any Change of Tax Law, any country or territory listed in any regulation referred to under Article 110, Paragraph 10 of Italian Presidential Decree of 22 December 1986, No. 917, as from time to time amended or restated, as not allowing an adequate exchange of information with the Italian Tax authorities.

 

“Borrower” means an Original Borrower or an Additional Borrower, unless it has ceased to be a Borrower in accordance with Clause 31 (Changes to the Obligors).

 

“Borrower DTTP Filing” shall have the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Borrower Materials” shall have the meaning ascribed thereto in Clause 26.7 (Posting on electronic system).

 

“Break Costs” means the amount (if any) by which:

 

(a)                                 the interest (excluding the Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had

 

9

 

the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

 

exceeds:

 

(b)                                 the amount which such Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

 

“Bridge Facilities” means the 364-day senior bridge facility to be entered into in accordance with the terms of the commitment letter dated 15 July 2014 among inter alios the Parent and Credit Suisse AG, Cayman Islands Branch, Barclays Bank PLC, Citigroup Global Markets Limited and Citibank N.A., London Branch, as joint lead bookrunners and joint lead arrangers.

 

“Business” means, with respect to the Group:

 

(a)                                 the design, manufacture, sale, lease, delivery, installation, operation or maintenance of hardware and equipment (e.g. computers, computer terminals, on-line lottery terminals, instant ticket vending and dispensing machines, self-service terminals, gaming devices and machines, video lottery terminals, slot machines and amusement with prize machines) (collectively, “Gaming Hardware”) and the design, development, sale, licensing, delivery, installation, operation or maintenance of software or game content (collectively, “Gaming Software”) pertaining to the operation of games of chance or skill or pari-mutuel or fixed odds games (including lotteries (e.g. on-line, off-line, passive ticket, instant/scratch ticket, break-open ticket and video), pari-mutuel betting, bingo, race tracks, jai alai, legalized bookmaking, off-track betting, casino games, racino, keno, lotto and sports betting) (collectively, “Games”) and the provision of any type of ancillary service or product related to or connected with the foregoing;

 

(b)                                 the management, ownership or operation of (i) Games; (ii) Gaming Hardware; (iii) Gaming Software; and (iv) sales channels (retail, interactive and mobile) and the exercise of any governmental power or authority granted to any member of the Group in connection with any of the foregoing businesses set out at (i) to (iv) (including acting as operator/private manager of legal gaming licenses and concessions) and the provision of any products or services related to any of the foregoing businesses set out at (i) to (iv) (including, without limitation, marketing activities and services, player tracking activities and loyalty management, back-office software (player management tools), field service, field sales force management and security and consulting services to customers including software, telecommunications, marketing and other related advisory services or other ancillary tools and platform related services);

 

(c)                                  (i) the provision of any type of government or state benefits processing or eligibility, or payment processing (including tax, utility, fines, fees and duties payment processing) and any products or services related to any of the foregoing businesses set out at paragraphs (a) and (b) and this paragraph (c); and (ii) the exercise of any governmental power or authority granted to any member of the Group in connection with the foregoing businesses described in paragraphs (a) and (b) above and in this paragraph (c);

 

10

 

(d)                                 the provision of any type of commercial transaction processing or distribution services, including (i) debit, credit and bill payment transactions and money transfer transactions; (ii) distribution services such as electronic top-up services for pre-paid mobile and fixed-line telephone accounts and ticketing services for sporting, musical and other events; (iii) stored value services such as pre-paid cards for pay TV channels and debit cards; and (iv) any products or services related to the foregoing businesses described in paragraphs (a) through (c) above and in this paragraph (d);

 

(e)                                  the provision of any type of information technology or any services derived from the technical, management, operational or other expertise developed or used by any member of the Group in connection with any business described herein and any products or services related to the foregoing businesses described in paragraphs (a) through (d) above and in this paragraph (e);

 

(f)                                   the provision of any type of telecommunication services and other communications services similar to those or provided in connection with the businesses described in paragraphs (a) through (d) above;

 

(g)                                  the design, manufacture, printing, sale or distribution (whether physically, electronically or by any other method) of instant, scratch, traditional or other lottery tickets (whether such tickets are physical, electronic or expressed through any other medium and whether such tickets allow the player to remove a cover layer (or any semblance thereof) physically, electronically or by any other method, to reveal whether the ticket is a prize winner) and the provision of any products or services related to the foregoing business described in paragraphs (a) through (f) above and in this paragraph (g);

 

(h)                                 the employment of any hardware or software utilised in any of the businesses described in paragraphs (a) through (g) above whether by sale, lease, license or service in either government or commercial enterprises worldwide;

 

(i)                                     the provision of social games, including, without limitation, through Internet websites and applications for smart phones, tablets and other devices; and

 

(j)                                    any other business that is related to, or which is an extension, development or expansion of, any of the foregoing businesses described in paragraphs (a) through (i).

 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in Las Vegas, London, Milan and New York and:

 

(a)                                 (in relation to any date for payment or purchase of a currency other than Euro and US Dollars) the principal financial centre of the country of that currency; or

 

(b)                                 (in relation to any date for payment or purchase of Euro) any TARGET Day.

 

“Calculation Date” has the meaning given to it in Clause 27.1 (Financial definitions).

 

“Cancellation Date” means the date specified in the notice which cancels and prepays the Existing Facilities in full.

 

“Capital Securities” means the €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066 and issued on 17 May 2006 by GTECH.

 

11

 

“Cash Collateral Account” means:

 

(a)                                 an account to be established by the Agent in its name for the deposit of cash cover required to be posted pursuant to paragraph (b) of Clause 6.9 (Revaluation of Letters of Credit) and any replacement account thereof; and

 

(b)                                 an account to be established by the Issuing Agent in its name for the deposit of cash cover required pursuant to Clause 8.6 (Cash cover by Borrower) to be posted in respect of Issuing Agent or Lender exposure to a Borrower or a beneficiary and any replacement account thereof.

 

“Cash Equivalent Investments” means at any time:

 

(a)                                 demand or overnight deposits, time deposits, Eurodollar time deposits, bankers acceptances or certificates of deposit (in any case maturing within one (1) year after the relevant date of calculation):

 

(i)                                     with or issued by an Acceptable Bank; or

 

(ii)                                  with or issued by a Non-Acceptable Bank; provided that the amount of any such investments does not at any time exceed in the aggregate US$50,000,000 (or its equivalent in any other currencies);

 

(b)                                 any investment in marketable debt obligations issued or guaranteed by the government of the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State or by an instrumentality or agency of any of them having an equivalent credit rating and any auction rate, variable rate or demand securities issued or guaranteed by any federal, state or municipal governmental authority of the United States of America, in each case, having a credit rating equal to BBB or higher by S&P or Baa2 or higher by Moody’s, maturing or having a scheduled auction within one (1) year after the relevant date of calculation and not convertible or exchangeable to any other security;

 

(c)                                  commercial paper not convertible or exchangeable to any other security:

 

(i)                                     for which a recognised trading market exists;

 

(ii)                                  issued by an issuer incorporated in the United States of America, the United Kingdom, any member state of the European Economic Area or any Participating Member State;

 

(iii)                               which matures within one (1) year after the relevant date of calculation; and

 

(iv)                              which has a credit rating of either A-1 or higher by S&P or F-1 or higher by Fitch or P-1 or higher by Moody’s, or, if no rating is available in respect of the commercial paper, the issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt obligations, an equivalent rating;

 

(d)                                 sterling bills of exchange eligible for rediscount at the Bank of England and accepted by an Acceptable Bank (or their dematerialised equivalent);

 

12

 

(e)                                  any investment accessible within thirty (30) days in money market funds which have a credit rating of either A-1 or higher by S&P or F-1 or higher by Fitch Rating Ltd or P-1 or higher by Moody’s and which invest substantially all their assets in securities of the types described in paragraphs (a) through (d) above; or

 

(f)                                   any other debt security approved by the Majority Lenders,

 

in each case to which any member of the Group is beneficially entitled at that time and which is not issued or guaranteed by any member of the Group or subject to any Security.

 

“Change of Control” means any person or group of persons acting in concert (other than any of the entities or companies constituting the Principal Shareholders) gains control of the Parent.

 

For the purpose of the paragraph above “control” means:

 

(a)                                 the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

(i)                                     cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of GTECH (or, following the completion of the Mergers, of Holdco); or

 

(ii)                                  appoint or remove all, or the majority, of the directors or other equivalent officers of GTECH (or, following completion of the Mergers, of Holdco); or

 

(iii)                               give directions with respect to the operating and financial policies of GTECH (or, following completion of the Mergers, of Holdco) with which the directors or other equivalent officers of GTECH (or, following completion of the Mergers, of Holdco) are obliged to comply; or

 

(b)                                 the holding of more than thirty per cent. (30%) of the issued share capital of the Parent (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital) save in circumstances where the Principal Shareholders between them continue to hold directly or indirectly (whether by way of ownership of shares, proxy, contract, agency or otherwise) more of such issued share capital than the relevant person or group of persons.

 

For the purpose of the paragraph above “acting in concert” means, a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the acquisition by any of them, either directly or indirectly, of shares in GTECH (or, following completion of the Mergers, of Holdco), to obtain or consolidate control of GTECH (or, following completion of the Mergers, of Holdco).

 

“Change of Tax Law” shall have the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Code” means the United States Internal Revenue Code of 1986 (26 U.S.C. §§ 1 et seq.), as amended from time to time.

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

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“Compliance Certificate” means a certificate substantially in the form set out in Schedule 8 (Form of Compliance Certificate) or otherwise in form and substance satisfactory to the Agent.

 

“Confidential Information” means all information relating to the Parent, any Obligor, the Group, the Finance Documents or a Revolving Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or a Revolving Facility from either:

 

(a)                                 any member of the Group or any of its advisers; or

 

(b)                                 another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or any of its advisers,

 

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:

 

(i)                                     is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of the terms of this Agreement; or

 

(ii)                                  is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or

 

(iii)                               is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.

 

“Confidentiality Undertaking” means a confidentiality undertaking substantially in the recommended form of the LMA or in any other form agreed between the Borrowers and the Agent.

 

“Consolidated Interest Expense” has the meaning given to it in Clause 27.1 (Financial Definitions).

 

“Default” means an Event of Default or any event or circumstance specified in Clause 29 (Events of Default) which would (with the expiry of a grace period or the giving of notice, the making of any determination (where any provision of Clause 29 expressly requires a determination to be made) or any combination of any of the foregoing) be an Event of Default.

 

“Defaulting Lender” means any Lender:

 

(a)                                 which has failed to make its participation in a Loan available or has notified the Agent that it will not make its participation in a Loan available by the Utilisation Date of that Loan in accordance with Clause 5.4 (Lenders’ participation);

 

(b)                                 which has otherwise rescinded or repudiated a Finance Document; or

 

(c)                                  with respect to which an Insolvency Event has occurred and is continuing.

 

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Unless, in the case of paragraph (a) above:

 

(i)                                     its failure to pay is caused by:

 

(A)                               administrative or technical error; or

 

(B)                               a Disruption Event; and,

 

payment is made within one (5) Business Days of its due date; or

 

(ii)                                  the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.

 

“Designated Person” means a person or entity:

 

(a)                                 listed in the annex to, or otherwise subject to the provisions of, the Executive Order;

 

(b)                                 named as a “Specially Designated National and Blocked Person” on the most current list published by OFAC at its official website or any replacement website or other replacement official publication of such list; or

 

(c)                                  to the best of the Obligor’s knowledge, with which any Finance Party is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law.

 

“Designated Website” has the meaning given to that term in Clause 37.7 (Use of websites).

 

“Dispute” has the meaning given to that term in paragraph (a) of Clause 47.1 (Jurisdiction of English courts).

 

“Disruption Event” means either or both of:

 

(a)                                 a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facilities (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

 

(b)                                 the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party:

 

(i)                                     from performing its payment obligations under the Finance Documents; or

 

(ii)                                  from communicating with other Parties in accordance with the terms of the Finance Documents,

 

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

“Distribution” means:

 

15

 

(a)                                 any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of share capital (or any class of share capital); or

 

(b)                                 the payment or distribution of any dividend or share premium reserve.

 

“Double Taxation Treaty” means a double taxation agreement made between any Relevant Tax Jurisdiction and any other jurisdiction which makes provision for full exemption from, or a reduction in, Tax imposed by such Relevant Tax Jurisdiction on interest.

 

“EBITDA” has the meaning given to it in Clause 27.1 (Financial Definitions).

 

“ERISA” means the Employee Retirement Income Security Act of 1974 of the United States of America as amended from time to time and any applicable regulations promulgated thereunder.

 

“ERISA Affiliate” means, with respect to any Obligor, any person that for the purposes of Title IV of ERISA is from time to time a member of the controlled group of any Obligor or under common control with any Obligor within the meaning of Section 414 of the Code.

 

“ERISA Event” means:

 

(a)                                 the occurrence of a reportable event, within the meaning of Section 4043(c) of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC; or

 

(b)                                 the requirements of Section 4043(b) of ERISA applied with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following thirty (30) days;

 

(c)                                  the application for a minimum funding waiver with respect to a Plan;

 

(d)                                 the provision by the administrator of any Plan of a notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA);

 

(e)                                  the cessation of operations at a facility of any Obligor or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA;

 

(f)                                   the withdrawal by any Obligor or any ERISA Affiliate from a Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA;

 

(g)                                  the failure to make a required contribution to any Plan that would result in the imposition of an encumbrance under the Code or ERISA;

 

(h)                                 the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, such Plan;

 

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(i)                                     a determination that any Plan is, or is expected to be, in at-risk status (within the meaning of Title IV of ERISA); or

 

(j)                                    the receipt by any Obligor or ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from any Obligor or ERISA Affiliate of any notice that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 305 of ERISA).

 

“EURIBOR” means, in relation to any Loan in euro:

 

(a)                                 the applicable Screen Rate; or

 

(b)                                 (if no Screen Rate is available for the Interest Period of that Loan) the Interpolated Screen Rate for that Loan; or

 

(c)                                  if:

 

(i)                                     no Screen Rate is available for the currency of that Loan; or

 

(ii)                                  no Screen Rate is available for the Interest Period of that Loan and it is not possible to calculate an Interpolated Screen Rate for that Loan,

 

the Base Reference Bank Rate,

 

as of, in the case of paragraphs (a) and (c) above, the Specified Time on the Quotation Day for Euro and for a period equal in length to the Interest Period of that Loan and, if that rate is less than zero, EURIBOR shall be deemed to be zero.

 

“Euro” or “€” means the single currency of the Participating Member States.

 

“Event of Default” means any event or circumstance specified as such in Clause 29 (Events of Default).

 

“Excluded Assets” means (i) loans to and receivables from other members of the Group, (ii) investments in Subsidiaries and (iii) consolidation entries (e.g., purchase accounting entries for goodwill and fair value adjustments to assets and liabilities) and elimination entries.

 

“Excluded EBITDA Entries” means consolidation entries and elimination entries.

 

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of Security to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason not to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of such Guarantor or the grant of such Security becomes effective with respect to such related Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or Security is or becomes illegal.

 

17

 

“Executive Order” means the US Executive Order No. 13224 on Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit, or Support Terrorism.

 

“Exempt Lender” shall have the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Existing GTECH Facilities” means the revolving credit facilities and term loan facility made available under a senior facilities agreement dated 20 December 2010 and made among, inter alios, GTECH (formerly known as Lottomatica Group S.p.A.) as the Parent, GTECH and GTECH Corporation as Borrowers, Banc of America Securities Limited, Banca IMI S.p.A. and Mediobanca — Banca di Credito Finanziario as Global Coordinators, Bookrunners and Mandated Lead Arrangers and Banc of America Securities Limited as Agent (as amended from time to time).

 

“Existing GTECH Notes” means each of the following issuances of debt securities by GTECH:

 

(a)                                 €750,000,000 5.375% Guaranteed Notes due 2016;

 

(b)                                 €500,000,000 5.375% Guaranteed Notes due 2018;

 

(c)                                  €500,000,000 3.500% Guaranteed Notes due 2020; and

 

(d)                                 the Capital Securities.

 

“Existing Indebtedness” means any Financial Indebtedness outstanding at any time under the Bridge Facilities, the Existing GTECH Facilities, the Existing GTECH Notes and the Existing Target Facility.

 

“Existing Lender” has the meaning given to that term in Clause 30.1 (Assignments and transfers by the Lenders).

 

“Existing Target Facility” means the revolving credit facility made available under an amended and restated credit agreement dated as of 23 April 2013 and made among inter alios Target, as the Borrower, Wells Fargo Securities, LLC, RBS Securities Inc. and Union Bank, N.A., as Joint Lead Arrangers and Joint Book Runners and The Royal Bank of Scotland plc as Administrative Agent and Swing Line Lender.

 

“Expiry Date” means, for a Letter of Credit, the last day of its Term.

 

“Facility Office” means in respect of a Lender or an Issuing Agent, the office or offices notified by such Lender or an Issuing Agent to the Agent in writing on or before the date it becomes a Lender or an Issuing Agent (and, following that date, by not less than five (5) Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.

 

“Facilities” means Revolving Facility A, Revolving Facility B and the US Dollar Swingline Facility and “Facility” means any one of them.

 

“FATCA” means:

 

(a)                                 Sections 1471 to 1474 of the Code or any associated regulations;

 

18

 

(b)                                 any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

 

(c)                                  any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

 

“FATCA Application Date” means:

 

(a)                                 in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

 

(b)                                 in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources within the US), 1 January 2017; or

 

(c)                                  in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2017,

 

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.

 

“FATCA Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA.

 

“FATCA Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.

 

“Federal Funds Rate” means, in relation to any day, the rate per annum equal to:

 

(a)                                 the weighted average of the rates on overnight Federal funds transactions with members of the US Federal Reserve System arranged by Federal funds brokers, as published for that day (or, if that day is not a New York Business Day, for the immediately preceding New York Business Day) by the Federal Reserve Bank of New York; or

 

(b)                                 if a rate is not so published for any day which is a New York Business Day, the average of the quotations for that day on such transactions received by the Agent from three Federal funds brokers of recognised standing selected by the Agent.

 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States (or any successor thereto).

 

“Fee Letter” means each Arrangement Fee Letter, the Agent’s Fee Letter, the Swingline Agent’s Fee Letter and any letter or letters dated on or about the date of this Agreement between, inter alios, the Global Coordinators and the Borrowers (or the Agent and the Borrowers) setting out any of the fees referred to in Clause 18 (Fees).

 

19

 

“Final Maturity Date” means, in relation to each Facility, the date falling five (5) years after the date of this Agreement.

 

“Finance Document” means this Agreement, any Accession Letter, any Compliance Certificate, the Mandate Letter, any Fee Letter, any Resignation Letter, any Utilisation Request and any document, agreement or instrument entered into by an Issuing Agent and a Borrower or in favour of an Issuing Agent and relating to any Letter of Credit and any other document designated as a “Finance Document” by the Agent and the Borrowers.

 

“Finance Party” means the Agent, the Arranging Parties, any US Dollar Swingline Lender, the Lenders, the Swingline Agent and any Issuing Agent.

 

“Financial Indebtedness” means any indebtedness for or in respect of (without double counting):

 

(a)                                 monies borrowed;

 

(b)                                 any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent;

 

(c)                                  any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

 

(d)                                 the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with the Accounting Principles, be treated as a finance or capital lease;

 

(e)                                  receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

 

(f)                                   for the purposes of paragraph (e) of the definition of Permitted Guarantee, Clause 28.12 (Priority Financial Indebtedness) and an Event of Default only, any Treasury Transaction (and, when calculating the value of that Treasury Transaction, only the marked to market value as at the relevant date on which Financial Indebtedness is calculated (or, if any actual amount is due as a result of the termination or close-out of that Treasury Transaction, that amount) shall be taken into account);

 

(g)                                  any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution;

 

(h)                                 any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise finance or (ii) the agreement is in respect of the supply of assets or services and payment is due more than one hundred and fifty (150) days after the date of supply;

 

(i)                                     any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing; and

 

(j)                                    the amount of any liability in respect of any guarantee for any of the items referred to in paragraphs (a) through (i) above;

 

20

 

provided that any counter-indemnity obligation in respect of performance or similar bonds, letters of credit (including Letters of Credit) or guarantees, in each case, guaranteeing performance by a member of the Group in relation to a liability (other than a liability in respect of Financial Indebtedness) which arises in the ordinary course of those activities described in the definition of “Business” shall not constitute Financial Indebtedness unless and until, and to the extent that, such performance or similar bonds, letters of credit (including Letters of Credit) or guarantees are drawn or called (as applicable).

 

“Financial Quarter” means, with respect to the Parent, each of the quarterly periods ending on 31 March, 30 June, 30 September and 31 December in each Financial Year by reference to which the quarterly accounts of members of the Group are prepared.

 

“Financial Year” means each period ending on 31 December in respect of which annual audited consolidated financial statements of the Group are required to be prepared.

 

“Fitch” means Fitch Ratings Ltd.

 

“Foreign Asset Control Laws” means the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. §§ 1 et seq., any Executive Order or regulation promulgated thereunder and administered by OFAC.

 

“Fraudulent Transfer Law” means any applicable US Bankruptcy Law or any applicable US state fraudulent transfer or conveyance law.

 

“Group” means GTECH (or, following completion of the Merger, Holdco) and its Subsidiaries from time to time and “member of the Group” means any one of them.

 

“Guarantee Sub-limit” means:

 

(a)                                 with respect to Revolving Facility A, the lesser of:

 

(i)                                     US$200,000,000 (or its equivalent in other currencies); and

 

(ii)                                  the Total Revolving Facility A Commitments; and

 

(b)                                 with respect to Revolving Facility B, the lesser of:

 

(i)                                     €200,000,000 (or its equivalent in other currencies); and

 

(ii)                                  the Total Revolving Facility B Commitments.

 

“Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with Clause 31 (Changes to the Obligors).

 

“Hedging Bank” means any (i) Lender or (ii) Affiliate of a Lender which has delivered an Accession Letter in the form set out in Schedule 6 (Form of Accession Letter) in each case which has entered into a hedging arrangement with any member of the Group in respect of a Treasury Transaction.

 

“Hedging Document” means the documents entered into between a Hedging Bank and a member of the Group for the purposes of implementing a hedging arrangement in respect of a Treasury Transaction.

 

21

 

“Holdco” means Georgia Worldwide PLC, a public limited company organised under the laws of England and Wales and a wholly owned Subsidiary of GTECH.

 

“Holdco Merger” means the series of transactions which consist principally of (i) the merger of GTECH with and into Holdco and (ii) the payment to GTECH’s shareholders exercising withdrawal rights following such merger, each in accordance with the steps set out in the Structure Memorandum.

 

“Holding Company” means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary.

 

“IFRS” means international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

 

“Impaired Agent” means the Agent, the Swingline Agent or the Issuing Agent, as the context requires, at any time when:

 

(a)                                 it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment;

 

(b)                                 it otherwise rescinds or repudiates a Finance Document;

 

(c)                                  (if it is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of “Defaulting Lender”; or

 

(d)                                 an Insolvency Event has occurred and is continuing with respect to it;

 

(e)                                  unless, in the case of paragraph (a) above:

 

(i)                                     its failure to pay is caused by:

 

(A)                               administrative or technical error; or

 

(B)                               a Disruption Event; and

 

payment is made within five (5) Business Days of its due date; or

 

(ii)                                  it is disputing in good faith whether it is contractually obliged to make the payment in question.

 

“Increased Costs” has the meaning given to it in paragraph (b) of Clause 20.1 (Increased Costs).

 

“Initial Margin Trigger Event” means the first to occur of the following events:

 

(a)                                 the completion of the Transactions;

 

(b)                                 a change of at least one of the two Public Debt Ratings issued by S&P and Moody’s; and

 

(c)                                  termination of the Merger Agreement, or the public disclosure by the Parent that it no longer intends to proceed with the completion of the Mergers;

 

22

 

provided that if at any time after the date hereof three Public Debt Ratings have been issued, paragraph (b) shall be interpreted so as to mean a change of at least two of the three Public Debt Ratings.

 

“Insolvency Event” in relation to a Finance Party means that the Finance Party:

 

(a)                                 is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

(b)                                 becomes insolvent or is unable to pay its debts as they become due or fails or admits in writing its inability generally to pay its debts as they become due;

 

(c)                                  makes a general assignment, arrangement or composition with or for the benefit of its creditors generally;

 

(d)                                 institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;

 

(e)                                  has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

 

(i)                                     results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or

 

(ii)                                  is not dismissed, discharged, stayed or restrained in each case within thirty (30) days of the institution or presentation thereof;

 

(f)                                   has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

 

(g)                                  seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets;

 

(h)                                 has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within thirty (30) days thereafter;

 

(i)                                     causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) through (h) above; or

 

23

 

(j)                                    takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

 

“Insufficiency” means, with respect to any Plan, the amount, if any, of its unfunded liabilities, as defined in section 4001(a)(18) of ERISA.

 

“Intellectual Property” means:

 

(a)                                 any patents, trade marks, service marks, designs, business names, copyrights, design rights, moral rights, inventions, confidential information, know-how and other intellectual property rights and interests, whether registered or unregistered; and

 

(b)                                 the benefit of all applications and rights to use such assets of each member of the Group.

 

“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause 16 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 15.4 (Default interest).

 

“Interpolated Screen Rate” means, in relation to LIBOR or EURIBOR for any Loan, the rate which results from interpolating on a linear basis between:

 

(a)                                 the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Loan; and

 

(b)                                 the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan,

 

each as of the Specified Time on the Quotation Day for the currency of that Loan.

 

“IRAP” means the Italian Regional tax on productive activities set forth by Italian Legislative Decree of 15 December 1997, No. 446.

 

“ITA” means the Income Tax Act 2007 of the United Kingdom.

 

“Italian Borrower” means a Borrower which is resident in Italy for Tax purposes and not acting for the purposes of the Finance Documents through a Permanent Establishment located outside Italy.

 

“Italian Civil Code” means the Italian civil code, enacted by Royal Decree No. 262 of 16 March 1942.

 

“Italian Guarantor” means a Guarantor which is resident in Italy for Tax purposes pursuant to article 73 of Italian Presidential Decree No. 917 of 22 December 1986 not acting for the purposes of the Finance Documents through a Permanent Establishment located outside Italy.

 

“Italian Holdco” means Lottomatica Holding S.r.l., a company incorporated in Italy as a società a responsabilità limitata with its registered office at Viale del Campo Boario 56/D 00154 Rome, Italy, and having registration number 13044331000.

 

“Italian Insolvency Proceeding” means, with respect to the Parent, each Obligor incorporated in Italy and each Material Subsidiary incorporated in Italy (i) any proceeding concerning its

 

24

 

liquidation, bankruptcy, dissolution, reorganisation, moratorium or proceedings similar or analogous thereto including bankruptcy (fallimento), arrangements with creditors (concordato preventivo), forced administration liquidation (liquidazione coatta amministrativa), extraordinary administration of large companies in insolvency (amministrazione straordinaria delle grandi imprese in stato di insolvenza), assignments for the benefit of creditors (cessione di beni ai creditori), arrangements with creditors in the context of Article 67, paragraph 2, letter d) of the Italian Insolvency Law or restructuring arrangements pursuant to Article 182 bis of Italian Insolvency Law, out-of-court restructurings or winding-up (liquidazione) set out in the Italian Insolvency Law, the Italian Civil Code or any other applicable Italian laws, as well as any other proceeding defined as “procedura di risanamento” or “procedura concorsuale” under Legislative Decree no. 170 dated 21 May 2004, and (ii) any equivalent or analogous liquidation, insolvency or reorganisation proceedings under the applicable laws, legislation, rules and regulations of any other jurisdiction.

 

“Italian Insolvency Law” means Royal Decree No. 267 of 16 March 1942.

 

“Italian Obligor” means an Italian Borrower or an Italian Guarantor.

 

“Italian Opco” means an Italian newly incorporated Subsidiary of the Parent to which the operating assets and liabilities of the Parent are contributed pursuant to the Italian Reorganisation and in accordance with the Structure Memorandum.

 

“Italian Qualifying Lender” shall have the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Italian Reorganisation” means the series of transactions which consists principally of (i) the contribution of the operating assets of GTECH to Italian Opco, (ii) the assumption of the liabilities related to such assets by Italian Opco and (iii) the contribution of shares in the Italian Opco and certain other Subsidiaries of GTECH by GTECH into Italian Holdco, each in accordance with the steps set out in the Structure Memorandum.

 

“Italian Treaty Lender” shall have the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Joint Venture” means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity in which the Group has a 50 per cent. or a minority interest and which is accordingly not consolidated in the financial statements of that member of the Group as a Subsidiary, it being understood however that in each case the proportion of the Group’s interest in the joint venture entity may be consolidated in the financial statements of the relevant member of the Group on a proportional basis.

 

“L/C Proportion” means, in relation to a Lender in respect of any Letter of Credit, the proportion (expressed as a percentage) borne by such Lender’s Available Revolving Commitment to the Available Revolving Facility immediately prior to the issue of that Letter of Credit, adjusted to reflect any assignment or transfer under this Agreement to or by such Lender.

 

“Legal Opinion” means any legal opinion delivered to the Agent under Clause 4.1 (Initial Conditions Precedent) or Clause 31 (Changes to the Obligors).

 

“Legal Reservations” means any matters which are set out as qualifications or reservations as to matters of law of general application in the Legal Opinions.

 

25

 

“Lender” means:

 

(a)                                 any Original Lender; and

 

(b)                                 any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 30 (Changes to the Lenders),

 

which, in each case, has not ceased to be a Party in accordance with the terms of this Agreement.

 

“Letter of Credit” means:

 

(a)                                 a syndicated letter of credit substantially in the form set out in Schedule 10 (Form of Letter of Credit); or

 

(b)                                 any syndicated letter of credit, syndicated guarantee, syndicated indemnity or other instrument of a similar nature in a form requested by the Borrowers which meets the minimum requirements of Clause 6.6 (Form of Letters of Credit) and agreed by the Agent and the Issuing Agent (acting on the instructions of all the Lenders under the Revolving Facility pursuant to which it is requested),

 

in each case issued or deemed issued under this Agreement.

 

“Letter of Credit Fee” means the fee payable to the Agent (for the account of each Lender participating in the relevant Letter of Credit) in accordance with the provisions set out in Clause 18.6 (Fees payable in respect of Letters of Credit).

 

“LIBOR” means, in relation to any Loan in any currency other than Euro:

 

(a)                                 the applicable Screen Rate;

 

(b)                                 (if no Screen Rate is available for the Interest Period of that Loan) the Interpolated Screen Rate for that Loan; or

 

(c)                                  if:

 

(i)                                     no Screen Rate is available for the currency of that Loan; or

 

(ii)                                  no Screen Rate is available for the Interest Period of that Loan and it is not possible to calculate an Interpolated Screen Rate for that Loan,

 

the Base Reference Bank Rate,

 

as of, in the case of paragraphs (a) and (c) above, the Specified Time on the Quotation Day for the currency of that Loan and for a period equal in length to the Interest Period of that Loan and, if that rate is less than zero, LIBOR shall be deemed to be zero.

 

“LMA” means the Loan Market Association.

 

“Loan” means a Revolving Facility A Loan, a Revolving Facility B Loan or a US Dollar Swingline Loan.

 

26

 

“Majority Lenders” means a Lender or Lenders whose Revolving Facility Commitments aggregate more than 662/3 per cent. of the Total Facility Commitments (or, if the Total Facility Commitments have been reduced to zero, aggregated more than 662/3 per cent. of the Total Facility Commitments immediately prior to that reduction).

 

“Mandate Letter” means the appointment letter dated 5 September 2014 among GTECH, GTECH Corporation and the Global Coordinators.

 

“Margin” means:

 

(a)                                 at any time prior to an Initial Margin Trigger Event, 1.60 per cent. per annum; and

 

(b)                                 from and including an Initial Margin Trigger Event until the Termination Date for Revolving Facility A and Revolving Facility B, such percentage per annum as is set out below in the column “Applicable Margin” in respect of the Public Debt Rating applicable below:

 

	
Public Debt Ratings
    	
 
    	
Applicable Margin
    	
 
    
	
BBB/Baa2 or higher
    	
 
    	
1.00
    	
%
    
	
BBB-/Baa3
    	
 
    	
1.40
    	
%
    
	
BB+/Ba1
    	
 
    	
1.80
    	
%
    
	
BB/Ba2
    	
 
    	
2.20
    	
%
    
	
BB-/Ba3 or lower
    	
 
    	
2.75
    	
%
    

 

Provided that:

 

(a)                                 in the event of split Public Debt Ratings, the Applicable Margin shall be the average of the two (2) Applicable Margins;

 

(b)                                 in the event of withdrawal of a Public Debt Rating, the Applicable Margin shall be such rate which is the average of the applicable rate for the remaining Public Debt Rating and 2.75%; and

 

(c)                                  in the event of withdrawal of all Public Debt Ratings, the Applicable Margin shall be 2.75% until at least one Public Debt Rating is reinstated;

 

(d)                                 any increase or decrease in the Margin for a Loan shall take effect on the date which is the first day of the next Interest Period for that Loan following the occurrence of the relevant Margin Rating Event;

 

(e)                                  any increase or decrease in the Margin for a Loan for the purpose of calculation of the Commitment Fee shall take effect as of the date on which the relevant Margin Rating Event occurs;

 

27

 

(f)                                   in circumstances where there is no Loan outstanding, the Margin for the purposes of calculating any commitment fee shall nevertheless increase or decrease in accordance with the table set out in paragraph (b) above; and

 

(g)                                  notwithstanding paragraphs (a) through (f) above, when an Event of Default is continuing, the highest rate set out in the table in paragraph (b) above shall apply effective from the date on which the Event of Default occurs,

 

provided that if at any time after the date hereof three Public Debt Ratings have been issued, then the Public Debt Ratings in the table above and the references to Public Debt Ratings in paragraphs (a) through (c) above shall be interpreted on the basis of the three Public Debt Ratings such that references to “two (2)” shall be to “three (3)”.

 

“Margin Rating Event” means:

 

(a)                                 the Initial Margin Trigger Event; and

 

(b)                                 subsequently, a change of at least one of the two Public Debt Ratings issued by S&P and Moody’s;

 

provided that if at any time after the date hereof three Public Debt Ratings have been issued, paragraph (b) shall be interpreted so as to mean a change of at least two of the three Public Debt Ratings.

 

“Margin Stock” means “margin stock” as defined in Regulation U.

 

“Market Disruption Event” has the meaning given to it in Clause 17.2 (Market disruption).

 

“Material Adverse Effect” means a material adverse effect on:

 

(a)                                 the ability of the Obligors (taken as a whole) to perform in a timely manner their payment obligations arising under the Finance Documents, the obligations arising under Clause 27 (Financial Covenants) or any other material obligations under any of the Finance Documents;

 

(b)                                 the business, financial condition, assets or revenues of the Group taken as a whole; or

 

(c)                                  the legality, validity or enforceability against the Obligors of any Finance Document subject always to the Legal Reservations.

 

“Material Subsidiary” means a Subsidiary of the Parent whose:

 

(a)                                 total unconsolidated assets excluding the Excluded Assets are greater than or equal to ten per cent. (10%) (if the Subsidiary of the Parent is not a Guarantor) or five per cent. (5%) (if the Subsidiary is a Guarantor) of the total consolidated assets of the Group excluding the Excluded Assets, or

 

(b)                                 unconsolidated earnings before interest, taxes, depreciation and amortization (calculated on the same basis that EBITDA of the Group is calculated but excluding the Excluded EBITDA Entries are greater than or equal to ten per cent. (10%) (if the Subsidiary of the Parent is not a Guarantor) or five per cent. (5%) (if the Subsidiary is a Guarantor) of the EBITDA of the Group excluding the Excluded EBITDA Entries.

 

28

 

A Material Subsidiary will be determined by reference to the latest balance sheet and income statement (or, if available, audited financial statements) of such Subsidiary and the latest audited consolidated financial statements of the Group.  However, if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Group were prepared, the balance sheet and income statement (or, if available, audited financial statements) shall be deemed to be adjusted in order to take into account the acquisition of that Subsidiary (that adjustment being certified by an authorised officer of the Parent as representing an accurate reflection of the revised consolidated assets or EBITDA of the Group if so requested by the Agent).

 

“Maximum Amount” has the meaning given to it in Clause 24.13 (Guarantee limitations applicable to GTECH as Parent).

 

“Merger Agreement” means the agreement and plan of merger agreement dated 15 July 2014 and entered into among GTECH, GTECH Corporation (solely with respect to Section 5.02(a) and Article VIII), Holdco, Target Merger Sub and Target relating to the Mergers.

 

“Merger Capital Reduction” means the initial proposed court-approved reduction of capital of Holdco under the UK Companies Act 2006, to be implemented following completion of the Mergers as described in and effected in accordance with, the Structure Memorandum.

 

“Mergers” means the Holdco Merger and the Target Merger.

 

“Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

 

(a)                                 (subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

 

(b)                                 if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

 

(c)                                  if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end.

 

The above rules will only apply to the last Month of any period.  “Monthly” shall be construed accordingly.

 

“Moody’s” means Moody’s Investor Services Limited.

 

“Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, then or at any time during the previous five (5) years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of any Obligor or ERISA Affiliates.

 

29

 

“Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that:

 

(a)                                 is maintained for employees of any Obligor or any ERISA Affiliate and at least one person (other than the Obligors and the ERISA Affiliates); or

 

(b)                                 was so maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

 

“New Lender” has the meaning given to it in Clause 30.1 (Assignment and transfers by the Lenders).

 

“New York Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for general business in New York City.

 

“Non-Acceptable Bank” means any bank or financial institution that does not meet the requirements of paragraph (a) or (b) of the definition of “Acceptable Bank”.

 

“Non-Consenting Lender” has the meaning given to it in paragraph (c) of Clause 42.3 (Replacement of Lender).

 

“Obligor” means a Borrower or a Guarantor.

 

“Obligor’s Agent” means the Parent, appointed to act on behalf of each Obligor in relation to the Finance Documents pursuant to Clause 2.3 (Obligors’ Agent).

 

“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.

 

“Optional Currency” means, as applicable, US Dollars, Euro, Pounds Sterling and any other currency agreed by all Lenders and, in the case of a Letter of Credit, another currency (other than the Base Currency) which complies with the conditions set out in Clause 4.3 (Conditions relating to Optional Currencies).

 

“Original Financial Statements” means:

 

(a)                                 in relation to the Parent, the audited consolidated financial statements of the Group for the Financial Year ended 31 December 2013; and

 

(b)                                 in relation to GTECH Corporation, its audited financial statements for its financial year ended 31 December 2013.

 

“Original Guarantors” has the meaning given to it in the preamble of this Agreement.

 

“Original Lenders” has the meaning given to it in the preamble to this Agreement.

 

“Original Obligor” means an Original Borrower or an Original Guarantor.

 

“Original US Dollar Swingline Lenders” has the meaning given to it in the preamble to this Agreement.

 

“Overall Facility A Commitment” of a Lender means:

 

30

 

(a)                                 its Revolving Facility A Commitment; or

 

(b)                                 in the case of a US Dollar Swingline Lender which does not have a Revolving Facility A Commitment, the Revolving Facility A Commitment of a Lender which is its Affiliate.

 

“PBGC” means the Pension Benefit Guaranty Corporation of United States of America established pursuant to Section 4002 of ERISA (or any successor).

 

“Paper Form Lender” has the meaning given to it in paragraph (a) of Clause 37.7 (Use of Websites).

 

“Parent” means GTECH and, following completion of the Holdco Merger, Holdco.

 

“Pari Passu Indebtedness” has the meaning given to it in Clause 28.23 (Security following Debt Ratings decrease).

 

“Participating Member State” means any member state of the European Union that has the Euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

 

“Party” means a party to this Agreement.

 

“Permanent Establishment” means any fixed base of business (stabile organizzazione) regulated by article 162 of Presidential Decree No. 917 of 22 December 1986, Article 5 of the Organization for Economic Cooperation and Development Model Tax Convention and or any equivalent provision provided for by any relevant legislation.

 

“Permitted Acquisition” means any and all of the following:

 

(a)                                 any acquisition which constitutes a Permitted Transaction;

 

(b)                                 an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another member of the Group in circumstances constituting a Permitted Disposal;

 

(c)                                  an acquisition of shares or securities pursuant to a Permitted Acquisition Share Issue;

 

(d)                                 an acquisition of securities or other investments which are Cash Equivalent Investments;

 

(e)                                  an acquisition in circumstances constituting a Joint Venture or the incorporation of a Joint Venture;

 

(f)                                   the incorporation or other organization of a person who upon incorporation or other organization becomes a member of the Group (and such incorporation may be by way of subscription for shares in cash or a transfer of assets permitted by this Agreement in lieu of cash); or

 

(g)                                  an acquisition by way of purchase, merger, consolidation or otherwise, of (A) at least a controlling interest in a person or (B) a business, line of business, division, or other business unit of a person, or an undertaking carried on as a going concern, but only if:

 

31

 

(i)                                     no Default is continuing on the closing date for the acquisition or would occur as a result of the acquisition;

 

(ii)                                  the acquired company, business or undertaking is (A) principally engaged in any part of the Business or is a Holding Company with respect to a company which is principally engaged in any part of the Business or (B) is empowered under its constitutional documents or by-laws to be engaged in any part of the Business; and

 

either

 

(A)                               the consideration (including associated costs and expenses) for the acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in the acquired company (or any such business) at the date of acquisition (when aggregated with the consideration (including associated costs and expenses) for any other Permitted Acquisition and any Financial Indebtedness or other assumed actual or contingent liability, in each case remaining in any such acquired companies or businesses at the time of acquisition (A) does not exceed in aggregate in any Financial Year of the Parent, ten per cent. (10%) of the consolidated total assets of the Group and (B) does not exceed in aggregate at any time, US$2,250,000,000 (or its equivalent in other currencies) unless and until the Group obtains a Public Debt Rating upgrade to BBB by S&P and Baa2 by Moody’s, in which case the cap of US$2,250,000,000 (or its equivalent in other currencies) will cease to apply for such time as the Group retains such ratings upgrade;

 

or

 

(B)                               upon confirmation of the acquisition, each of Moody’s and S&P disclose publicly that the Group has a Public Debt Rating and its indebtedness has, in each case, a credit rating of at least Baa3 and BBB-, respectively;

 

provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (g) shall be interpreted so as to mean the date on which at least two of the three Public Debt Ratings issued by the Rating Agencies are so upgraded or disclosed.

 

“Permitted Acquisition Share Issue” means:

 

(a)                                 an issue of shares constituting a Permitted Transaction;

 

(b)                                 an issue of shares by one wholly owned Subsidiary of the Parent to its direct Holding Company which is another wholly owned Subsidiary of the Parent or to the Parent (or to another member of the Group which is the shareholder); or

 

(c)                                  an issue of shares by a Subsidiary of the Parent to the member of the Group which is its direct Holding Company and any minority shareholder in the relevant Subsidiary.

 

“Permitted Disposal” means any sale, lease, licence, transfer or other disposal:

 

(a)                                 which constitutes a Permitted Transaction;

 

32

 

(b)                                 of trading stock or inventory, supplies, materials, assets or cash made by any member of the Group in the ordinary course of business of the disposing entity;

 

(c)                                  of any asset by a member of the Group (the “Disposing Company”) to another member of the Group (the “Acquiring Company”), but if:

 

(i)                                     the Disposing Company is an Obligor, the Acquiring Company must also be an Obligor; and

 

(ii)                                  the Disposing Company is a Guarantor, the Acquiring Company must be a Guarantor guaranteeing at all times an amount no less than that guaranteed by the Disposing Company,

 

it being understood that (A) if any of the assets being sold, leased, licensed, transferred or otherwise disposed of are at such time subject to Security in favour of the Lenders, then the Agent is reasonably satisfied that the Lenders will continue to benefit from the same or equivalent Security; and (B) any disposal of assets by a member of the Group to another member of the Group which sale is made as an intermediate step for the purpose of effecting a subsequent disposal to a third party that is not a member of the Group and that is otherwise permitted under the definition of “Permitted Disposal” shall not be considered for the purposes of this sub-paragraph (c) or sub-paragraph (i) as long as such subsequent disposal is completed within a period of two (2) months from the date of such first disposal.  For the avoidance of doubt, any subsequent disposal to a third party that is not a member of the Group shall be considered for the purposes of sub-paragraph (i);

 

(d)                                 of assets (other than shares), in exchange for other assets substantially comparable or superior as to type, value or quality;

 

(e)                                  of (i) obsolete, worn out, inefficient or redundant vehicles, plant fixtures, equipment or other property or (ii) leases or subleases of Real Property (including surplus office and parking space);

 

(f)                                   of Cash Equivalent Investments for cash or in exchange for other Cash Equivalent Investments;

 

(g)                                  constituted by a licence of intellectual property rights permitted by Clause 28.14 (Intellectual Property);

 

(h)                                 by a member of the Group of any of its receivables on non-recourse terms where the relevant sale or disposal of such receivables does not constitute Financial Indebtedness for the purposes of the relevant applicable Accounting Principles and; provided that it is on normal commercial terms and in the ordinary course of business; or

 

(i)                                     of assets for cash where the greater of the fair market value and net consideration receivable (when aggregated with the greater of the fair market value and net consideration receivable for any other sale, lease, licence, transfer or other disposal not allowed under the preceding paragraphs or as a Permitted Merger) does not exceed (A) in any Financial Year of the Parent, five per cent. (5%) of the consolidated total assets of the Group or (B) at any time, US$1,125,000,000 (or its equivalent in other currencies),

 

33

 

it being understood that nothing in this Agreement will be taken to permit the disposal of a Guarantor or Borrower (whether by Third Party Disposal or otherwise) save in circumstances where prior to the disposal the relevant Guarantor or Borrower resigns as Guarantor or Borrower (or both, as they case may be) in accordance with paragraph (a) of Clause 31.3 (Resignation of an Obligor), satisfies the conditions set out in and has its resignation is accepted pursuant to, paragraph (b) of Clause 31.3 (Resignation of an Obligor).

 

“Permitted Guarantee” means:

 

(a)                                 any guarantee or counter-indemnity by a member of the Group which constitutes a Permitted Transaction;

 

(b)                                 the endorsement of negotiable instruments in the ordinary course of business;

 

(c)                                  any guarantee guaranteeing performance by a member of the Group in relation to an obligation or liability (other than an obligation or liability in respect of Financial Indebtedness) which arises in the ordinary course of business;

 

(d)                                 any counter-indemnities for performance or similar bond or letters of credit, or any guarantees, in each case guaranteeing performance by a member of the Group in relation to a liability (other than a liability in respect of Financial Indebtedness, save to the extent arising under the relevant performance or similar bond, letter of credit or guarantee itself) which arises in the ordinary course of business or by operation of law, including by way of example and without limitation, counter-indemnities for guarantees or bonds issued on behalf of any member of the Group in the ordinary course of business in respect of tax claims or otherwise as a result of any legal proceedings brought against any member of the Group, in each case which are being contested in good faith;

 

(e)                                  any guarantee by a Guarantor of Financial Indebtedness not restricted under Clause 28.12 (Priority Financial Indebtedness), including any guarantee issued pursuant to the terms of this Agreement;

 

(f)                                   any guarantee given in respect of the netting or set-off arrangements permitted pursuant to paragraph (d) of the definition of “Permitted Security”; or

 

(g)                                  any other guarantee made by any member of the Group so long as the aggregate amount of all such guarantees outstanding does not exceed US$75,000,000 (or its equivalent in other currencies) at any time.

 

“Permitted Loan” means:

 

(a)                                 any loan extended or made which constitutes a Permitted Transaction;

 

(b)                                 any trade credit extended by any member of the Group to its customers on normal commercial terms and in the ordinary course of business;

 

(c)                                  any financing extended in connection with the sale of products manufactured by a member of the Group by (i) a member of the Group or (ii) a distributor of products manufactured by a member of the Group to a customer, in each case on normal commercial terms and in the ordinary course of such member’s trade or business;

 

34

 

(d)                                 a loan extended or made by a member of the Group to another member of the Group;

 

(e)                                  a loan extended or made by a member of the Group to an employee or director of any member of the Group if the amount of that loan when aggregated with the amount of all loans outstanding to employees and directors by members of the Group does not exceed US$15,000,000 (or its equivalent in other currencies) at any time; and

 

(f)                                   loans extended or made by any member of the Group (other than a loan made by a member of the Group to another member of the Group) so long as the aggregate amount of all such loans outstanding does not exceed US$35,000,000 (or its equivalent in other currencies) at any time.

 

“Permitted Merger” means:

 

(a)                                 any solvent amalgamation, merger, consolidation, intra-group demerger, corporate reconstruction, liquidation or reorganisation which constitutes a Permitted Transaction;

 

(b)                                 any amalgamation, merger or consolidation by and between Obligors on a solvent basis or any intra-group demergers or corporate reconstructions by Obligors on a solvent basis; provided that in the case of a merger between a Borrower and an Obligor which is not a Borrower, such Borrower shall be the surviving entity, obtain all of the rights and assume all of the obligations and liabilities of the other Obligor and confirm all existing Security granted by such other Obligor and such Security is not materially and  adversely affected;

 

(c)                                  any amalgamation, merger or consolidation by and between an Obligor and any member of the Group on a solvent basis which is not an Obligor; provided that either (i) the Obligor is the surviving entity, obtains all of the rights and assumes all of the obligations and liabilities of the other member of the Group and confirms all existing Security granted by such other member of the Group or (ii) the non-Obligor is the surviving entity, accedes to this Agreement as a Borrower or a Guarantor, as applicable, obtains all of the rights and assumes all of the obligations and liabilities of the other member of the Group and confirms all existing Security previously granted by such Obligor and such Security is not materially and adversely affected;

 

(d)                                 any amalgamation, merger or consolidation by and between members of the Group which are not Obligors;

 

(e)                                  any intra-group de-merger, corporate reconstruction, liquidation or reorganisation of any member of the Group which is not an Obligor; and

 

(f)                                   the Merger Reduction of Capital.

 

“Permitted Restricted Payment” means the any of the following:

 

(a)                                 a Permitted Transaction;

 

(b)                                 subject to the proviso below, for the Financial Year ending on 31 December 2014, any Restricted Payments; provided that the aggregate amount of all Restricted Payments made in the Financial Year ending on 31 December 2014 shall not exceed the applicable limit set forth in paragraph (c) and which shall reduce the applicable limit set forth in paragraph (c) for the Financial Year ending on 31 December 2015;

 

35

 

(c)                                  subject to the proviso below, for the Financial Year ending on 31 December 2015 and each Financial Year thereafter, Restricted Payments in an aggregate amount up to:

 

(i)                                     US$400,000,000 for each Financial Year if the Public Debt Ratings are equal to or higher than BB+ and Ba1; provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (i) shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being equal to or higher than BB+ or Ba1 as applicable; and

 

(ii)                                  US$300,000,000 for each Financial Year if any Public Debt Rating is lower than BB+ or Ba1 or any Public Debt Rating is withdrawn; provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (ii) shall be interpreted to mean two of the three Public Debt Ratings issued by the Rating Agencies being lower than BB+ or Ba1 as applicable,

 

subject in each case to the Parent certifying pro forma compliance with ninety per cent (90%) of the Total Net Debt to EBITDA ratio applicable for the immediately preceding Relevant Period pursuant to Clause 27.2(b) (Financial Conditions);

 

(d)                                 subject to the proviso below, Rescission Payments in an aggregate amount which is greater than twenty per cent. (20%) of the aggregate share capital of GTECH and which, with respect to the period starting on the date of this Agreement and ending on 30 June 2015, do not exceed an aggregate amount (in addition to the limits set forth in paragraph (c) above) US$400,000,000;

 

provided that, for the period starting on the date of this Agreement and ending on 31 December 2015, the aggregate amount of Restricted Payments and Rescission Payments under paragraphs (b), (c) and (d) shall not exceed:

 

(i)                                     US$690,000,000 if the Public Debt Ratings are equal to or higher than BB+ or Ba1; provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (i) shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being equal to or higher than BB+ or Ba1 as applicable; and

 

(ii)                                  US$540,000,000 if the Public Debt Ratings are lower than BB+ or Ba1 or any Public Debt Rating is withdrawn; provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (ii) shall be interpreted to mean two of the three Public Debt Ratings issued by the Rating Agencies being lower than BB+ or Ba1 as applicable;

 

(e)                                  for the period starting on 1 January 2016 and ending on the Final Maturity Date and for so long as the Public Debt Ratings are equal to or higher than BB+ and Ba1 (in addition to amounts permitted under paragraphs (a) through (d) above), Share Buy Backs in an aggregate amount up to US$150,000,000; provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (e) shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being equal to or higher than BB+ or Ba1 as applicable;

 

(f)                                  any Shareholder Payments in the ordinary course of business and on market terms in an aggregate amount up to US$3,000,000 in any Financial Year; and

 

36

 

(g)                                  any Restricted Payments made in connection with share capital of the Parent owned by management of the Group as part of an employee compensation plan, including, without limitation, stock based compensation and management incentive plans.

 

“Permitted Security” means:

 

(a)                                 any Security granted pursuant to Clause 28.23(a) (Security following Debt Ratings Decrease);

 

(b)                                 any Security or Quasi-Security arising as a result of a Permitted Transaction and subject always to Clause 28.23(a) (Security following Debt Ratings Decrease);

 

(c)                                  any lien arising by operation of law and in the ordinary course of its trading and not as a result of any default or omission on the part of any member of the Group;

 

(d)                                 Security constituted by any netting or set off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances (other than cash collateral) of members of the Group; provided that such arrangement does not (i) permit or require credit balances of Obligors to be netted or set off against debit balances of non-Obligors or (ii) give rise to other Security over the assets of Obligors in support of the liabilities of non-Obligors;

 

(e)                                  any Security or Quasi-Security over or affecting any assets acquired by a member of the Group after the date of this Agreement if:

 

(i)                                     the Security or Quasi-Security was not created in contemplation of the acquisition of that asset by a member of the Group;

 

(ii)                                  the principal amount secured has not been increased in contemplation of or since the acquisition of that asset by a member of the Group and is not guaranteed by a member of the Group; and

 

(iii)                               the Security or Quasi-Security is removed or discharged within three (3) months of the date of acquisition of such asset;

 

(f)                                   any Security or Quasi-Security over or affecting any asset of any company which becomes a member of the Group after the date of this Agreement, where the Security or Quasi-Security is created prior to the date on which that company becomes a member of the Group if

 

(i)                                     the Security or Quasi-Security was not created in contemplation of the acquisition of that company;

 

(ii)                                  the principal amount secured has not increased in contemplation of or since the acquisition of that company; and

 

(iii)                               the Security or Quasi-Security is removed or discharged within three (3) months of the date of acquisition of such asset;

 

(g)                                  any Security arising under any retention of title, hire purchase or conditional sale arrangement in respect of goods or assets supplied to any member of the Group in the ordinary course of the trading of such Group member and on the supplier’s standard or

 

37

 

usual terms in respect of the goods or assets supplied (and not arising as a result of any default or omission by any member of the Group);

 

(h)                                 any Security or Quasi-Security arising as a result of any disposal which is a Permitted Disposal;

 

(i)                                     any Security constituted by rights of set off existing in the ordinary course of trading activities between any member of the Group and its respective suppliers or customers (and not as a result of any default or omission by any member of the Group);

 

(j)                                    any rights of set-off or netting on market standard terms arising under derivative transactions not prohibited by Clause 28.15 (No Speculative Hedging Arrangements);

 

(k)                                 any Security over cash or goods or documents of title to goods and insurances in favour of the Issuing Agent by a member of the Group arising in the ordinary course of its trade or as a result of Clause 8.6 (Cash cover by a Borrower) (and not by reason of a default or omission by any member of the Group);

 

(l)                                     any Security arising pursuant to an order of attachment or injunction restraining disposal of assets or similar legal process arising in connection with court proceedings which are contested by any member of the Group in good faith by appropriate proceedings with a reasonable prospect of success and which legal process does not constitute a Default;

 

(m)                             any Security arising (other than by way of affirmative action taken by or in favour of any taxation authority or any government authority or organization) in respect of Taxes, assessments or governmental charges which are either (i) being contested by the relevant member of the Group in good faith by appropriate proceedings and with a reasonable prospect of success, with respect to which appropriate reserves have been made on the relevant financial statement of the subject member of the Group, or (ii) not yet due and payable;

 

(n)                                 any Security arising in connection with, and deposits made to secure, the payment and performance of bids, trade contracts (other than for borrowed money), contracts with respect to the business of the Group, leases, statutory obligations, surety and appeal bonds, performance bonds, indemnity agreements in favour of issuers of bonds and other obligations of a like nature, and rights of usufruct and similar rights to continued use and possession of lottery equipment or other property in favour of lottery customers, in each case incurred in the ordinary course of business; and

 

(o)                                 any Security not permitted by Clause 28.7 (Negative Pledge) securing Financial Indebtedness incurred in the ordinary course of business of the Group which in aggregate does not at any time exceed US$125,000,000 (or its equivalent in other currencies).

 

“Permitted Transaction” means:

 

(a)                                 any transaction set out in the Structure Memorandum, as well as any other transaction which is necessary as a consequence of or ancillary to the implementation of such transactions, including, without limitation, the payment of any Rescission Payments in an aggregate amount which is less than or equal to twenty per cent. (20%) of the aggregate share capital of GTECH;

 

38

 

(b)                                 any loans, bond or other financing contracted or incurred by any member of the Group constituting Pari Passu Indebtedness, including, without limitation, pursuant to the Bridge Facilities, subject, always to Clause 28.25 (MFN to Financial Covenants and Mandatory Prepayments);

 

(c)                                  Security granted by any member of the Group in favour of the creditors of Pari Passu Indebtedness, subject always to Clause 28.23 (Security following Debt Ratings Decrease); and

 

(d)                                 any guarantee granted by any member of the Group in favour of the creditors of Pari Passu Indebtedness, subject always to Clause 28.24(c) (Guarantor Threshold Test and Additional Guarantors).

 

“Plan” means a Single Employer Plan or a Multiple Employer Plan.

 

“Platform” has the meaning given to it in Clause 26.7 (Posting on electronic system).

 

“Principal Shareholders” means De Agostini S.p.A. (a company incorporated in Italy as a società per azioni), its Subsidiaries or B&D Holding, or any other entity; provided that in each case, it is controlled by one or more of the beneficial holders, provided further that for the purposes of this definition, an entity or B&D Holding shall be treated as being controlled, directly or indirectly, by any such holder(s) if the latter (whether by way of ownership of shares, proxy, contract, agency or otherwise) have or has (as applicable) the power to (i) appoint or remove all, or the majority, of its directors or other equivalent officers or (ii) direct its operating and financial policies.  For the purpose of this definition, “beneficial holder” means each of the beneficial holders that directly or indirectly control B&D Holding as at 4 November 2014 (an “original beneficial holder”) and any spouse, legal or testamentary heir, legal or testamentary executor and legal or testamentary administrator of an original beneficial holder.

 

“Prohibited Jurisdiction” means:

 

(a)                                 the United States of America, Hong Kong, Israel and Turkey;

 

(b)                                 any jurisdiction in which a licence is required to conduct online gaming activities and in which the Group does not possess the relevant licence; and

 

(c)                                  each other jurisdiction which the Group reasonably believes, based on advice of reputable and experienced counsel, prohibits, or is reasonably capable of enforcing against any member of the Group prohibitions on, internet gaming.

 

“Protected Party” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Public Debt Rating” means each solicited long-term credit rating of the Parent issued by a Rating Agency for an issue of debt or debt securities issued or guaranteed by, the Parent, where such rating is based primarily on the unsecured credit risk of the Parent.

 

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding US$10,000,000 at the time the relevant Guarantee or grant of the relevant Security becomes effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible

 

39

 

contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Qualifying Lender” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Quasi-Security” has the meaning given to it in Clause 28.7 (Negative pledge).

 

“Quotation Day” means:

 

(a)                                 the second TARGET Day before the first day of a Revolving Facility for a Loan denominated in Euro; or

 

(b)                                 the second Business Day before the first day of a Revolving Facility for a Loan denominated in any currency other than Euro.

 

“Rating Agencies” means Fitch, Moody’s and S&P and “Rating Agency” means any of them.

 

“Real Property” means:

 

(a)                                 any freehold, leasehold or immovable property; and

 

(b)                                 any buildings, fixtures, fittings, fixed plant or machinery from time to time situated on or forming part of that freehold, leasehold or immovable property.

 

“Recovering Finance Party” has the meaning given to Clause 34.1 (Payments to Finance Parties).

 

“Regulation T”, “Regulation U” or “Regulation X” means Regulation T, U or X, as the case may be, of the Board of Governors of the Federal Reserve System of the United States, as from time to time in effect and all official rulings and interpretations thereunder or thereof.

 

“Related Fund” in relation to a trust, fund or other entity (the “first fund”), means another trust, fund or other entity which has the same fund manager or asset manager as is owned by the same person as the first trust, fund or other entity.

 

“Related Parties” means, with respect to any person, such person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such person and of such person’s Affiliates.

 

“Relevant Interbank Market” means, in relation to Euro, the European interbank market and, in relation to any other currency, the London interbank market.

 

“Relevant Jurisdiction” means, in relation to an Obligor:

 

(a)                                 its jurisdiction of incorporation; and

 

(b)                                 any jurisdiction where it conducts its business.

 

“Relevant Sub-Participant” means any sub-participant who, under Italian law or the application of the Organization for Economic Cooperation and Development’s guidance relating to the meaning of “beneficial ownership” as set out in the Organization for Economic Cooperation and Development’s Model Tax Convention (as amended from time to time), is

 

40

 

required to be treated for tax purposes as the beneficial owner of any interest payable under any Finance Document.

 

“Relevant Tax Jurisdiction” means, in relation to any Obligor, the jurisdiction where it is resident, or deemed to be resident for Tax purposes.

 

“Renewal Request” means a written notice delivered to the Agent in accordance with Clause 6.8 (Renewal of a Letter of Credit).

 

“Repeating Representations” means the representations in Clauses 25.2 (Status) to 25.7 (Governing Law and enforcement) (inclusive), Clause 25.10 (No Default), Clause 25.11 (No Misleading information), Clause 25.13 (No proceedings pending or threatened), Clause 25.16 (US Government Regulations), Clause 25.17 (ERISA), Clause 25.20 (US Anti-Terrorism Laws), Clause 25.21 (US Margin Regulations), Clause 25.22 (Sanctions, Anti-Corruption and other laws), and Clause 25.23 (Gaming).

 

“Replacement Lender” has the meaning given to it in Clause 42.3(c) (Replacement of Lender);

 

“Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

 

“Rescission Payments” mean any payments which GTECH is required to make to its shareholders in connection with the exercise of the right of rescission (recesso) by its shareholders in the context of the Holdco Merger.

 

“Resignation Letter” means a letter substantially in the form set out in Schedule 7 (Form of Resignation Letter).

 

“Restricted Payment” means a Distribution, a Share Buy Back or a Shareholder Payment.

 

“Retiring Guarantor” has the meaning given to it in Clause 24.9 (Release of Guarantors’ right of contribution).

 

“Revolving Facility” means Revolving Facility A or Revolving Facility B.

 

“Revolving Facility A” means the revolving credit facility made available under this Agreement as described in paragraph (a)(i) of Clause 2.1 (The Facilities).

 

“Revolving Facility B” means the revolving credit facility made available under this Agreement as described in paragraph (a)(ii) of Clause 2.1 (The Facilities).

 

“Revolving Facility A Commitment” means:

 

(a)                                 in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading “Revolving Facility A Commitment” in Part II (The Original Lenders) of Schedule 1 (The Original Parties) and the amount of any other Revolving Facility A Commitment transferred to it under this Agreement; and

 

(b)                                 in relation to any other Lender, the amount in the Base Currency of any Revolving Facility A Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this Agreement.

 

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“Revolving Facility A Loan” means a loan made or to be made under Revolving Facility A or the principal amount outstanding for the time being of that loan.

 

“Revolving Facility B Commitment” means:

 

(a)                                 in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading “Revolving Facility B Commitment” in Part IIA or Part IIB (The Original Lenders) of Schedule 1 (The Original Parties) and the amount of any Revolving Facility B Commitment transferred to it under this Agreement; and

 

(b)                                 in relation to any other Lender, the amount in the Base Currency of any Revolving Facility B Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this Agreement.

 

“Revolving Facility B Loan” means a loan made or to be made under Revolving Facility B or the principal amount outstanding for the time being of that loan.

 

“Revolving Facility Commitment” means a Revolving Facility A Commitment or a Revolving Facility B Commitment;

 

“Revolving Facility Loan” means a Revolving Facility A Loan or a Revolving Facility B Loan.

 

“Rollover Loan” means one or more Loans:

 

(a)                                 made or to be made on the same day that:

 

(i)                                     a maturing Loan is due to be repaid; or

 

(ii)                                  a demand by the Agent pursuant to a drawing in respect of a Letter of Credit is due to be met;

 

(b)                                 the aggregate amount of which is equal to or less than the maturing Loan or the relevant claim in respect of that Letter of Credit;

 

(c)                                  in the same currency as the maturing Loan (unless Clause 10.2 (Unavailability of a currency) applies) or the relevant claim in respect of that Letter of Credit; and

 

(d)                                 made or to be made to the same Borrower for the purpose of:

 

(i)                                     refinancing that maturing Loan; or

 

(ii)                                  satisfying the obligations of the relevant Borrower to pay the amount of a claim under the Letter of Credit to the Agent for the Issuing Agent (as agent for each of the Lenders).

 

“S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc.

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by a Sanctions Authority.

 

42

 

“Sanctions Authority” means (i) the US government; (ii) the European Union; (iii) the United Kingdom; (v) the respective governmental institutions and agencies of any of the foregoing, including without limitation, OFAC, the US Department of State and Her Majesty’s Treasury; or (vi) the United Nations Security Council.

 

“Sanctioned Country” means, at any time, a country or territory which is itself the subject or target of any country-wide or territory-wide Sanctions (at the time of this Agreement, Cuba, Iran, North Korea, North Sudan, South Sudan and Syria).

 

“Sanctioned Person” means, at any time, (a) any person listed in any Sanctions-related list of designated persons maintained by a Sanctions Authority, (b) any person operating, organized or resident in a Sanctioned Country or (c) any person owned or controlled by any such person or persons.

 

“Screen Rate” means:

 

(a)                                 in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate); and

 

(b)                                 in relation to EURIBOR, the euro interbank offered rate administered by the Banking Federation of the European Union (or any other person which takes over the administration of that rate) for the relevant period displayed on page EURIBOR01 of the Reuters screen (or any replacement Reuters page which displays that rate),

 

or in each case, on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters.  If such page or service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the Parent.

 

“Security” means a mortgage, charge, lien, encumbrance, pledge or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

 

“Self-Declaration Form” means the self-declaration form substantially in the form set out in Schedule 16 (Self Declaration Form) of this Agreement.

 

“Security Documents” has the meaning given to that term in Clause 28.23 (Security following Date Ratings Decrease).

 

“Separate Loan” has the meaning given to that term in Clause 9 (Repayment).

 

“Share Buy Back” means the redemption, repurchase, defeasement, retirement or repayment of any of the Parent’s share capital (including under any transaction pursuant to which shares issued to a third party are taken back into treasury) or the resolving to do so.

 

“Shareholder Payment” means the payment of any management, advisory or other fee to or to the order of any of the shareholders of the Parent.

 

43

 

“Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that:

 

(a)                                 is maintained for employees of any Obligor or any ERISA Affiliate and no person other than the Obligors and the ERISA Affiliates; or

 

(b)                                 was so maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated.

 

“Special Notice Currency” means, at any time, an Optional Currency other than the currency of a country that is a member of the Organization for Economic Cooperation and Development at such time located in North America or Europe.

 

“Specified Lender” means any Lender that notifies the relevant Borrower and the Agent that it is a Specified Lender.

 

“Specified Time” means a time determined in accordance with Schedule 9 (Timetables — Loans — Notices to the Agent).

 

“Structure Memorandum” means the “Project Cleopatra Structure Memorandum”, together with the annexes, dated 31 October 2014, as may be updated from time to time to reflect the implementation of the Transactions subject to the provisions of Clause 28.26 (Structure Memorandum).

 

“Subrogation Rights” has the meaning given to it in paragraph (a)(ii) of Clause 24.8 (Deferral of Guarantor’s rights).

 

“Subsidiary” means, in relation to any company, corporation or other legal entity (a “holding company”), a company, corporation or other legal entity:

 

(a)                                 which is controlled, directly or indirectly, by the holding company;

 

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

 

(c)                                  which is a subsidiary of another Subsidiary of the holding company; or

 

(d)                                 whose financial statements are in accordance with applicable law and generally accepted accounting principles applicable to the Parent consolidated with those of that company or corporation.

 

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

 

“Super Majority Lenders” means a Lender or Lenders whose Revolving Facility Commitments aggregate more than eighty five per cent. (85%) of the Total Facility Commitments (or, if the Total Facility Commitments have been reduced to zero, aggregated more than eighty five per cent. (85%) of the Total Facility Commitments immediately prior to that reduction).

 

44

 

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

 

“Swingline Agent’s Fee Letter” means the fee letter dated on or about the date of this Agreement between the Swingline Agent and the Borrowers.

 

“Target” means International Game Technology, a corporation organised under the laws of Nevada.

 

“Target Accession Date” means such date on which, following the completion of the Mergers, Target accedes to this Agreement as an Additional Borrower pursuant to Clause 31.2 (Additional Obligors).

 

“Target Merger” means the series of transactions which consist principally of the merger of Target Merger Sub with and into Target, in accordance with the steps set out in the Structure Memorandum.

 

“Target Merger Sub” means Georgia Worldwide Corporation, a corporation organized under the laws of Nevada and a wholly owned Subsidiary of Holdco.

 

“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single shared platform and which was launched on 19 November 2007.

 

“TARGET Day” means any day on which TARGET2 is open for the settlement of payment in Euro.

 

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

 

“Tax Credit” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Tax Deduction” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Tax Payment” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Term” means each period determined under this Agreement for which the Issuing Agent (as agent for each of the Lenders) or any Lender is under a liability under a Letter of Credit.

 

“Terminated Lender” has the meaning given to it in paragraph (d) of Clause 12.6 (Right of cancellation and repayment in relation to a single Lender or the Issuing Agent).

 

“Third Parties Act” has the meaning given to it in Clause 1.3 (Third Party Rights).

 

“Third Party Disposal” means the disposal of an Obligor to a person which is not a member of the Group (and the Borrowers have confirmed this is the case) where that disposal is permitted under Clause 28.8 (Disposals) or made with the approval of the Majority Lenders.

 

“Total Facility Commitments” means the aggregate of the Revolving Facility Commitments, being US$1,800,000,000 and €1,050,000,000  at the date of this Agreement.

 

45

 

“Total Net Debt” has the meaning given to it in Clause 27.1 (Financial definitions).

 

“Total Net Interest Costs” has the meaning given to it in Clause 27.1 (Financial definitions).

 

“Total US Dollar Swingline Commitments” means the aggregate of the US Dollar Swingline Commitments, being US$100,000,000 at the date of this Agreement.

 

“Transactions” means the Italian Reorganisation and the Mergers.

 

“Transfer Certificate” means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Agent and the Borrowers.

 

“Transfer Date” means, in relation to any assignment or transfer, the later of:

 

(a)                                 the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and

 

(b)                                 the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate.

 

“Treasury Transaction” means any derivative transaction entered into in connection with protection against or benefit from fluctuations in any rate or price including, for the avoidance of doubt, foreign exchange transactions; provided, however, that, with respect to any Guarantor, all obligations under Hedging Documents guaranteed by such Guarantor shall exclude all Excluded Swap Obligations.

 

“Treaty Lender” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“UK Borrower” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“UK Non-Bank Lender” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“UK Treaty Lender” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“UK Treaty State” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“United States Person” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance Documents.

 

“US” and “United States” means the United States of America, its territories and possessions.

 

“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 of the United States.

 

“US Bankruptcy Law” means the United States Bankruptcy Code (Title 11 of the United States Code), any other United States federal or state bankruptcy, insolvency or similar law.

 

“US Borrower” has the meaning ascribed thereto in Clause 19.1 (Definitions).

 

46

 

“US Dollars” or “US$” means the lawful currency for the time being of the United States of America.

 

“US Dollar Swingline Commitment” means:

 

(a)                                 in relation to an Original US Dollar Swingline Lender, the amount in US Dollars set opposite its name under the heading “US Dollar Swingline Commitment” in Part IIB of Schedule 1 (The Original Parties) and the amount of any other US Dollar Swingline Commitment transferred to it under this Agreement; and

 

(b)                                 in relation to any other US Dollar Swingline Lender, the amount of any US Dollar Swingline Commitment transferred to it under this Agreement,

 

to the extent not cancelled, reduced or transferred by it under this Agreement.

 

“US Dollar Swingline Facility” means the US Dollar swingline loan facility made available under this Agreement as described in Clause 11 (US Dollar Swingline Facility).

 

“US Dollar Swingline Lender” means:

 

(a)                                 an Original US Dollar Swingline Lender; or

 

(b)                                 any other person that becomes a US Dollar Swingline Lender after the date of this Agreement in accordance with Clause 30 (Changes to the Lenders),

 

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.

 

“US Dollar Swingline Loan” means a loan made or to be made under the US Dollar Swingline Facility or the principal amount outstanding for the time being of that loan.

 

“US Guarantor” means a Guarantor that is organized, incorporated or formed under the laws of the United States or any State thereof (including the District of Columbia).

 

“US Obligor” means a US Borrower or a US Guarantor.

 

“US Solvent” means, with respect to any person on a particular date, that on such date:

 

(a)                                 the fair value of the property of such person and its Subsidiaries on a consolidated basis is greater than the total amount of liabilities, including contingent liabilities, of such person and its Subsidiaries on a consolidated basis;

 

(b)                                 the present fair saleable value of the assets of such person and its Subsidiaries on a consolidated basis is not less than the amount that will be required to pay the liability of such person and its Subsidiaries on a consolidated basis on their debts as they become absolute and matured;

 

(c)                                  such person and its Subsidiaries on a consolidated basis do not intend to, and do not believe that they will, incur debts or liabilities beyond the ability of such person and its Subsidiaries on a consolidated basis to pay such debts and liabilities as they mature; and

 

47

 

(d)                                 such person and its Subsidiaries on a consolidated basis are not engaged in business or a transaction, and are not about to engage in business or a transaction, for which the property of such person and its Subsidiaries on a consolidated basis would constitute an unreasonably small capital.

 

The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

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

 

“US Tax Obligor” means:

 

(a)                                 a Borrower which is resident for tax purposes in the US; or

 

(b)                                 an Obligor some or all of whose payments under the Finance Documents are from sources within the US for US federal income tax purposes.

 

“Utilisation” means a Loan or a Letter of Credit (including a renewal of a Letter of Credit).

 

“Utilisation Date” means the date on which a Utilisation is made.

 

“Utilisation Request” means a notice substantially in the relevant form set out in Parts IA, IB  or IC of Schedule 3 (Requests).

 

“VAT” means:

 

(a)                                 any tax imposed in compliance with the council directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112) (including, in relation to the United Kingdom, value added tax imposed by the Value Added Tax Act 1994 and supplemental legislation and regulations and, in relation to Italy, value add tax imposed by Presidential Decree No. 633 of 26 October 1972 and Legislative Decree No. 331 of 30 August 1993 and supplemental legislation and regulations); and

 

(b)                                 any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or elsewhere.

 

“Website Lenders” has the meaning given to it in Clause 37.7 (Use of websites).

 

“Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV of ERISA.

 

1.2                               Construction

 

(a)                                Unless a contrary indication appears, a reference in this Agreement to:

 

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(i)                                     the “Agent”, any “Arranging Party”, any “Borrower”, any “Finance Party”, any “Guarantor”, and “Hedging Bank”, the “Issuing Agent”, any “Lender”, any “Obligor”, any “Party”, any “Swingline Agent” or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

 

(ii)                                  a document in “agreed form” is a document which is on terms previously agreed in writing by or on behalf of the relevant Obligors and the Agent or, if not so agreed, is in the form agreed by or on behalf of the relevant Obligors and the Agent;

 

(iii)                               “assets” includes present and future properties, revenues and rights of every description (including, without limitation shares and receivables);

 

(iv)                              a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

(v)                                 “guarantee” means (other than in Clause 24 (Guarantee and Indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

 

(vi)                              the words “including” and “in particular” shall be construed as illustrative and not as limiting the generality of any preceding words;

 

(vii)                           “indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

(viii)                        an “Interest Period” includes each period determined under this Agreement by reference to which interest on a US Dollar Swingline Loan is calculated;

 

(ix)                              a “Lender” includes a US Dollar Swingline Lender unless the context otherwise requires;

 

(x)                                 a “person” includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing;

 

(xi)                              “prepay” shall have the meaning given to it in Clause 6.1 (General);

 

(xii)                           a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation as well as guidelines or rules of conduct adopted by any member of the Group under applicable laws (including but not limited to “Modelli di organizzazione e gestione” and the 

 

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“Codici Etici” provided for under Legislative Decree no. 231 dated June 8, 2001 of Italy);

 

(xiii)                        “repay” shall have the meaning given to it in Clause 6.1 (General);

 

(xiv)                       a Borrower providing “cash cover” for a Letter of Credit means that Borrower paying an amount in the currency of the Letter of Credit to an interest-bearing account located in London or New York in the name of the relevant Borrower over which security has been granted for the benefit of the relevant Issuing Agent and the following conditions are met:

 

(A)                               the account is with the Agent or an Affiliate (if the cash cover is to be provided for all the Lenders) or the Issuing Agent or an Affiliate; and

 

(B)                               subject to paragraph (b) of Clause 8.6 (Cash Cover by Borrower) withdrawals from the account may only be made to pay the relevant Finance Party amounts due and payable to it under this Agreement in respect of that Letter of Credit until no amount is or may be outstanding under that Letter of Credit; and

 

(C)                               the relevant Borrower has executed a security document, in form and substance satisfactory to the Agent or the Finance Party with which the account is held, creating a first ranking security interest over that account; and

 

unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at any such time, provided however, that with respect to any Letter of Credit that, by its terms, or the terms of any issuer document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time;

 

(xv)                          the furtherance of any transaction that is not restricted under the terms of this Agreement shall, for the avoidance of doubt, be considered to fall within the general corporate purposes of the Group;

 

(xvi)                       a provision of law or regulation or an accounting standard is a reference to that provision or accounting standard as amended, replaced or re-enacted from time to time under applicable law or regulation;

 

(xvii)                    any reference to any consent to be given by any Finance Party shall be deemed to be given only to the extent the same is given in writing; and

 

(xviii)                 a time of day is a reference to London time unless otherwise stated.

 

(b)                                Section, Clause and Schedule headings are for ease of reference only.

 

(c)                                 Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

 

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(d)                                A Default or an Event of Default is “continuing” if it has not been remedied or waived.

 

1.3                               Third party rights

 

(a)                                Unless expressly provided to the contrary in a Finance Document, a person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the “Third Parties Act”) to enforce or enjoy the benefit of any term of this Agreement.

 

(b)                                Notwithstanding any term of any Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time.

 

2.                                      THE FACILITIES

 

2.1                               The Facilities

 

(a)                                Subject to the terms of this Agreement, the Lenders make available:

 

(i)                                     to GTECH Corporation and, (A) within ten (10) Business Days following completion of the Holdco Merger, and upon accession in accordance with Clause 31.2 (Additional Obligors), Holdco, and (B) within ten (10) Business Days following completion of the Target Merger and upon accession in accordance with Clause 31.2 (Additional Obligors), Target, a multicurrency revolving credit facility in an aggregate amount equal to the Revolving Facility A Commitments, being US$1,800,000,000 at the date of this Agreement; and

 

(ii)                                  to GTECH and, (A) within ten (10) Business Days following completion of the Italian Reorganisation and upon accession in accordance with Clause 31.2 (Additional Obligors), Italian Holdco, and (B) within ten (10) Business Days following completion of the Holdco Merger, and upon accession in accordance with Clause 31.2 (Additional Obligors), Holdco, a multicurrency revolving credit facility in an aggregate amount equal to the Revolving Facility B Commitments, being €1,050,000,000 at the date of this Agreement.

 

2.2                               Finance Parties’ rights and obligations

 

(a)                                The obligations of each Finance Party under the Finance Documents are several and not joint. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

(b)                                The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt.

 

(c)                                 A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents.

 

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2.3                               Obligors’ Agent

 

(a)                                Each Obligor (other than the Parent) by its execution of this Agreement or an Accession Letter irrevocably appoints the Parent to act on its behalf as the Obligors’ Agent in relation to the Finance Documents and irrevocably authorises:

 

(i)                                     the Obligors’ Agent on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions, to execute on its behalf any Accession Letter, to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Obligor notwithstanding that they may affect the Obligor, without further reference to or the consent of that Obligor; and

 

(ii)                                  each Finance Party to give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Obligors’ Agent,

 

and in each case the Obligor shall be bound as though the Obligor itself had given the notices and instructions or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication.

 

(b)                                Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Obligors’ Agent or given to the Obligors’ Agent under any Finance Document on behalf of another Obligor or in connection with any Finance Document (whether or not known to any other Obligor and whether occurring before or after such other Obligor became an Obligor under any Finance Document) shall be binding for all purposes on that Obligor as if that Obligor had expressly made, given or concurred with it.  In the event of any conflict between any notices or other communications of the Obligors’ Agent and any other Obligor, those of the Obligors’ Agent shall prevail.

 

2.4                               Lender Affiliates and Facility Office

 

(a)                                In respect of a Utilisation or Utilisations to a particular Borrower (“Designated Loans”) a Lender (a “Designating Lender”) may at any time and from time to time designate (by written notice to the Agent and the Parent):

 

(i)                                     a substitute Facility Office from which it will make Designated Loans (a “Substitute Facility Office”); or

 

(ii)                                  nominate an Affiliate to act as the Lender of Designated Loans (a “Substitute Affiliate Lender”).

 

(b)                                A notice to nominate a Substitute Affiliate Lender must be delivered in the form set out in Schedule 15 (Form of Substitute Affiliate Lender Designation Notice) and be countersigned by the relevant Substitute Affiliate Lender confirming that it will be bound as a Lender under this Agreement in respect of the Designated Loans in respect of which it acts as Lender.

 

(c)                                 The Designating Lender will act as the representative of any Substitute Affiliate Lender it nominates for all administrative purposes under this Agreement. The Obligors, the 

 

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Agent and the other Finance Parties will be entitled to deal only with the Designating Lender, except that payments will be made in respect of Designated Loans to the Facility Office of the Substitute Affiliate Lender.  In particular the Revolving Facility Commitments of the Designating Lender will not be treated as reduced by the designation of the Substitute Affiliate Lender for voting purposes under this Agreement or the other Finance Documents.

 

(d)                                Save as mentioned in paragraph (c) above, a Substitute Affiliate Lender will be treated as a Lender for all purposes under the Finance Documents and having a Commitment equal to the principal amount of all Designated Loans in which it is participating if and for so long as it continues to be a Substitute Affiliate Lender under this Agreement.

 

(e)                                 A Designating Lender may revoke its designation of an Affiliate as a Substitute Affiliate Lender by notice in writing to the Agent and the Parent; provided that such notice may only take effect when there are no Designated Loans outstanding to the Substitute Affiliate Lender.  Upon such Substitute Affiliate Lender ceasing to be a Substitute Affiliate Lender the Designating Lender will automatically assume (and be deemed to assume without further action by any Party) all rights and obligations previously vested in the Substitute Affiliate Lender.

 

(f)                                  If a Designating Lender designates a Substitute Facility Office or Substitute Affiliate Lender in accordance with this Clause 2.4:

 

(i)                                     any Substitute Affiliate Lender shall be treated for the purposes of Clause 19.2(d)(i) (Tax gross-up) as having become a Lender on the date of this Agreement; and

 

(ii)                                 the provisions of Clause 30.2(e) (Conditions of Assignment or Transfer) shall not apply to or in respect of any Substitute Facility Office or Substitute Affiliate Lender.

 

3.                                      PURPOSE

 

3.1                               Purpose

 

Each Borrower shall apply all amounts borrowed by it under the Facilities towards the general corporate purposes of the Group including, without limitation, the refinancing of Existing Indebtedness.

 

3.2                               Monitoring

 

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

 

4.                                      CONDITIONS OF UTILISATION

 

4.1                               Initial conditions precedent

 

(a)                                Subject to paragraph (b) below, the Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) in relation to any Utilisation if on or before the Utilisation Date for that Utilisation, the Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent) which documents, 

 

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shall be in form and substance satisfactory to the Agent.  The Agent shall notify each Borrower, the Parent and the Lenders promptly upon being so satisfied.

 

(b)                                Without prejudice to paragraph (a) above, Wells Fargo Bank, NA will only be obliged to comply with Clause 5.4 (Lenders’ participation) in relation to any Utilisation if on or before the Utilisation Date for that Utilisation the Target Accession Date has occurred.

 

(c)                                 For the avoidance of doubt, save for the purposes of Clause 42.2 (Exceptions) and for the definition of “Original Lenders”, Wells Fargo Bank, NA will only be deemed to be a Lender for the purposes of this Agreement after the Target Accession Date has occurred and shall not have any liability in respect of any Utilisations requested prior to the Target Accession Date or any claims under any indemnity or loss sharing provisions under this Agreement in each case in relation to any Utilisations requested or made prior to the Target Accession Date.

 

4.2                               Further conditions precedent

 

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation), if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

(a)                                in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan, and in the case of any other Utilisation, no Default is continuing or would result from the proposed Utilisation; and

 

(b)                                the Repeating Representations to be made by each Obligor are true in all material respects.

 

4.3                               Conditions relating to Optional Currencies

 

(a)                                A currency will constitute an Optional Currency in relation to a Revolving Facility A Utilisation if it is in Euro, Pounds Sterling or another currency agreed to by all Lenders.

 

(b)                                A currency will constitute an Optional Currency in relation to a Revolving Facility B Utilisation if it is in US$, Pounds Sterling or another currency agreed to by all Lenders.

 

(c)                                 A currency will constitute an Optional Currency in relation to a Letter of Credit Utilisation if with respect to a Letter of Credit issued under Facility A, it is in Euro or Pounds Sterling, or, with respect to a Letter of Credit issued under Facility B, it is in US Dollars or Pounds Sterling, or in either case it has been approved by the Issuing Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Agent of the relevant Utilisation Request for that Utilisation.

 

(d)                                If the Issuing Agent has received a written request from a Borrower for a currency to be approved under paragraph (c) above, the Agent will confirm to such Borrower by the Specified Time:

 

(i)                                     whether or not the Lenders have granted their approval; and

 

(ii)                                  if approval has been granted, the minimum amount for any subsequent Utilisation in that currency.

 

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4.4                               Maximum number of Utilisations

 

(a)                                A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation 26 or more Revolving Facility A Utilisations or 26 or more Revolving Facility B Utilisations would be outstanding.

 

(b)                                Any Loan made by a single Lender under Clause 10.2 (Unavailability of a currency) shall not be taken into account in this Clause 4.4.

 

(c)                                 Any Separate Loan shall not be taken into account in this Clause 4.4.

 

4.5                               Conditions precedent to the signing date

 

Each Party acknowledges that it has received, on or prior to the signing date of this Agreement, notification from the Agent whereby the Agent confirms that it has received all of the documents and other evidence listed in Part III of Schedule 2 (Conditions Precedent) and that such documents and other evidence are in form and substance satisfactory to it.

 

5.                                      UTILISATION — REVOLVING FACILITY LOANS

 

5.1                               Delivery of a Utilisation Request

 

The Borrowers may utilise a Revolving Facility by delivery to the Agent of a duly completed Utilisation Request, in each case not later than at the times specified below.

 

5.2                               Completion of a Utilisation Request for Revolving Facility Loans

 

(a)                                Each Utilisation Request for a Revolving Facility A Loan shall be made upon a Borrower’s notice to the Agent. Each such notice must be received by the Agent no later than 9:00 a.m. (New York time) three (3) Business Days prior to the requested date of any borrowing of Revolving Facility A Loans denominated in the Base Currency.

 

(b)                                Each Utilisation Request for a Revolving Facility B Loan shall be made upon a Borrower’s notice to the Agent. Each such notice must be received by the Agent no later than 11:00 a.m. (London time) three (3) Business Days prior to the requested date of any borrowing of Revolving Facility B Loans denominated in the Base Currency.

 

(c)                                 Each Utilisation Request for a Revolving Facility Loan is irrevocable and will not be regarded as having been duly completed unless:

 

(i)                                    it identifies the Facility to be utilised;

 

(ii)                                 the proposed Utilisation Date is a Business Day within the Availability Period applicable to that Facility;

 

(iii)                              the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount);

 

(iv)                              the proposed Interest Period complies with Clause 16 (Interest Periods); and

 

(v)                                 only one Utilisation may be requested in a Utilisation Request.

 

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5.3                               Currency and amount

 

(a)                                The currency specified in a Utilisation Request must be in relation to the Facilities, the Base Currency or an Optional Currency.

 

(b)                                The amount of the proposed Utilisation is:

 

(i)                                     with respect to Revolving Facility A, if the currency selected is the Base Currency, a minimum of US$5,000,000 or, if the currency selected is an Optional Currency, the applicable equivalent of US$5,000,000 in the relevant Optional Currency, or, in either case, if less, the Available Revolving Facility; or

 

(ii)                                  with respect to Revolving Facility B, if the currency selected is the Base Currency, a minimum of €5,000,000 or, if the currency selected is an Optional Currency, the applicable equivalent of €5,000,000 in the relevant Optional Currency, or, in either case, if less, the Available Revolving Facility.

 

5.4                               Lenders’ participation

 

(a)                                If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Revolving Facility Loan available by the Utilisation Date through its Facility Office not later than:

 

(i)                                   1:00 p.m. (London time) on the Utilisation Date for Revolving Facility Loans denominated in the Base Currency or an Optional Currency other than Dollars; or

 

(ii)                                1:00 p.m. (New York time) on the Utilisation Date for Revolving Facility Loans denominated in Dollars.

 

(b)                                The amount of each Lender’s participation in each Revolving Facility Loan will be equal to the proportion borne by its Available Revolving Commitment to the Available Revolving Facility immediately prior to making the Revolving Facility Loan.

 

(c)                                 The Agent shall determine the Base Currency Amount of each Revolving Facility Loan which is to be made in an Optional Currency and notify each Lender of the amount, currency and the Base Currency Amount of each Revolving Facility Loan and the amount of its participation in that Loan by the Specified Time.

 

6.                                      UTILISATION — LETTERS OF CREDIT

 

6.1                               General

 

(a)                                Any reference in this Agreement to:

 

(i)                                     the Interest Period of a Letter of Credit will be construed as a reference to the Term of that Letter of Credit;

 

(ii)                                  an amount borrowed includes any amount utilised by way of Letter of Credit;

 

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(iii)                              a Utilisation made by or to be made to a Borrower includes a Letter of Credit issued (or renewed) on its behalf;

 

(iv)                              a Lender funding its participation in a Utilisation includes a Lender participating in a Letter of Credit;

 

(v)                                 amounts outstanding under this Agreement include amounts outstanding under or in respect of any Letter of Credit;

 

(vi)                              an outstanding amount of a Letter of Credit means at any time, unless otherwise specified herein, the US Dollar amount for Revolving Facility A and Euro amount for Revolving Facility B (or the equivalent amount thereof in US Dollars or Euro as determined by the Agent or the Issuing Agent for Revolving Facility A and Revolving Facility B, respectively, as the case may be, at such time on the basis of the Agent’s Spot Rate of Exchange for the purchase of US Dollars or Euro for Revolving Facility A and Revolving Facility B, respectively with such Optional Currency) the greater of the maximum amount that is or may be payable by the relevant Borrower, the Issuing Agent or the relevant Lenders, as the case may be under or in connection with that Letter of Credit at that time; provided that for the purposes of this calculation with respect to any Letter of Credit that, by its terms or the terms of any documents related thereto, provides for one or more automatic increases in the stated amount thereof, the notional amount of such Letter of Credit itself shall be deemed to be such US Dollars or Euro equivalent of the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time;

 

(vii)                           “L/C Participation Amount” means, in relation to a Lender in respect of any Letter of Credit, the commitment of that Lender to the beneficiary under that Letter of Credit as defined in the relevant Letter of Credit.

 

(viii)                        “L/C Proportion” means, in relation to a Lender in respect of any Letter of Credit, the proportion (expressed as a percentage) borne by such Lender’s Available Revolving Commitment to the Available Revolving Facility immediately prior to the issue of that Letter of Credit, adjusted to reflect any assignment or transfer under this Agreement to or by such Lender.

 

(ix)                              “L/C Schedule” means a schedule or appendix to a Letter of Credit detailing the Lenders’ L/C Participation Amounts and Participation Percentages under that Letter of Credit as may be adjusted from time to time in accordance with Clause 6.9 (Adjusted Letter of Credit Schedule).

 

(x)                                 “Loss Share Date” means, at any time after any amount has become payable to the beneficiary under a Letter of Credit, any date on which any amount due and owing to a Lender in respect of a claim under a Letter of Credit in relation to that payment has not been repaid or discharged.

 

(xi)                              “Loss Share Proportion” means, in respect of a Lender and a Loss Share Date, the aggregate of its L/C Participation Amounts under all outstanding Letters of Credit as a proportion of the aggregate of the L/C Participation Amounts of all Lenders under all outstanding Letters of Credit.

 

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(xii)                           a Borrower “repaying” or “prepaying” a Letter of Credit means:

 

(A)                               that Borrower providing cash cover for that Letter of Credit;

 

(B)                               the maximum amount payable under the Letter of Credit being reduced in accordance with its terms; or

 

(C)                               the Issuing Agent being satisfied that neither it (acting as agent for each of the Lenders) nor any Lender has any further liability under that Letter of Credit,

 

and the amount by which a Letter of Credit is repaid or prepaid under sub-paragraphs (xii)(A) and (xii)(B)above is the amount of the relevant cash cover or reduction.

 

(b)                                Clause 5 (Utilisation — Loans) does not apply to a Utilisation by way of Letter of Credit.

 

(c)                                 In determining the amount of the Available Revolving Facility and a Lender’s L/C Proportion with respect to either Revolving Facility of a proposed Letter of Credit for the purposes of this Agreement the Available Revolving Commitment of a Lender will be calculated ignoring any cash cover provided for outstanding Letters of Credit and adjusting to reflect any assignment or transfer under this Agreement to or by the relevant Lender.

 

6.2                               Guarantee Sub-limit

 

Each Revolving Facility may be utilised by way of Letters of Credit up to an aggregate maximum amount equal to the relevant Guarantee Sub-limit.

 

6.3                               Delivery of a Utilisation Request for Letters of Credit

 

A Borrower may request a Letter of Credit to be issued by delivery to the Agent of a duly completed Utilisation Request substantially in the form of Part IB of Schedule 3 (Utilisation Request - Letters of Credit) not later than the Specified Time.

 

6.4                               Completion of a Utilisation Request for Letters of Credit

 

Each Utilisation Request for a Letter of Credit under either Revolving Facility is irrevocable and will not be regarded as having been duly completed unless:

 

(a)                                it specifies that it is for a Letter of Credit;

 

(b)                                it specifies the Revolving Facility to be utilised;

 

(c)                                 the proposed Utilisation Date is a Business Day within the Availability Period;

 

(d)                                the currency and amount of the Letter of Credit comply with Clause 6.5 (Currency and amount);

 

(e)                                 the form of Letter of Credit is attached;

 

(f)                                  the Expiry Date of the Letter of Credit falls on or before the date which is three hundred and sixty five (365) days after the Utilisation Date and in any event on or prior to the 

 

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Final Maturity Date, which shall include Letters of Credit which are by their terms automatically renewable subject to Clause 6.8 (Renewal of a Letter of Credit);

 

(g)                                 the identity of the beneficiary is specified and such beneficiary is:

 

(i)                         a beneficiary approved for this purpose by the Issuing Agent (acting on the instructions of all the Lenders under the Revolving Facility to be utilised, in turn acting reasonably); and

 

(ii)                      incorporated in a country or otherwise exists under the laws of a country in respect of which there is no policy, law or regulation applicable to the Issuing Agent or any Lender which would restrict the Issuing Agent or any Lender from entering into and performing the transactions contemplated by the Letter of Credit;

 

(h)                                the delivery instructions for the Letter of Credit are specified; and

 

(i)                                    such other matters as the Issuing Agent may require (acting reasonably) are included.

 

In the case of a request for an amendment of any outstanding Letter of Credit, such Utilisation Request shall specify (i) the Letter of Credit to be amended; (ii) the proposed date of amendment thereof (which shall be a Business Day); and (iii) the nature of the proposed amendment.

 

6.5                               Currency and amount

 

(a)                                The currency specified in a Utilisation Request must be the Base Currency or an Optional Currency.

 

(b)                                The amount of the proposed Letter of Credit must be an amount that is not more than the Available Revolving Facility and which:

 

(i)                                     if the currency selected is US Dollars, is a minimum of US$50,000 for Revolving Facility A or, if less, the Available Revolving Facility A; or

 

(ii)                                  if the currency selected is Euro, is a minimum of €50,000 for Revolving Facility B or, if less, the Available Revolving Facility B; or

 

(iii)                               if the currency selected is an Optional Currency other than US Dollars or Euro, is the minimum amount (and if required, integral multiple) specified by the Agent pursuant to paragraph (d)(ii) of Clause 4.3 (Conditions relating to Optional Currencies) or, if less, the Available Revolving Facility,

 

or such other amount as the Agent may agree.

 

(c)                                  The amount of a proposed Letter of Credit issued under Revolving Facility A must be an amount the Base Currency Amount of which is not more than the Available Revolving Facility for Facility A and which when aggregated with the Base Currency Amount of all other Letters of Credit then in issue under Revolving Facility A does not exceed the Guarantee Sub-limit.

 

(d)                                 The amount of a proposed Letter of Credit issued under Revolving Facility B must be an amount the Base Currency Amount of which is not more than the Available Revolving Facility for Facility B and when aggregated with the Base Currency Amount of all other 

 

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Letters of Credit then in issue under Revolving Facility B does not exceed the Guarantee Sub-limit.

 

6.6                               Form of Letters of Credit

 

(a)                                 Letters of Credit may be in any form requested by a Borrower and agreed by the Issuing Agent from time to time; provided that if the form does not comply in substance with the minimum requirements set out in the following provisions of this Clause 6.6 then the form shall require the prior approval of all Lenders under the relevant Revolving Facility to be utilised.

 

(b)                                 The form of Letters of Credit must comply with the following minimum requirements:

 

(i)                                   it must specify the names, addresses and commitments of the Lenders and clearly state that it is issued and the relevant undertakings are given by the Lenders though the Letter of Credit may be signed or provided by the Issuing Agent as agent for the Lenders;

 

(ii)                                it must specify the name of the applicant and the beneficiary, the maximum amount, the provisions for the delivery of demands and the Expiry Date;

 

(iii)                             it must expressly provide that the obligations of the Lenders under the Letter of Credit are several, not joint, and no Lender shall be required to pay an amount exceeding its respective commitment set out in the Letter of Credit;

 

(iv)                              it must expressly provide that the Issuing Agent signs the Letter of Credit as agent for the Lenders only and accordingly shall be under no obligation to the beneficiary thereunder; and

 

(v)                                 it must contain satisfactory provisions for expiry and release of the Lenders’ obligations under the Letter of Credit and, where appropriate, for return of the original instrument to the Issuing Agent.

 

6.7                               Issue of Letters of Credit

 

(a)                                 If the conditions set out in this Agreement have been met (including those set out in Clause 4.2), the Issuing Agent (as agent and mandatario con rappresentanza for and on behalf of each of the Lenders) shall issue the Letter of Credit on the Utilisation Date.

 

(b)                                 The Issuing Agent will only be obliged to comply with paragraph (a) above if on the date of the Utilisation Request or Renewal Request and on the proposed Utilisation Date:

 

(i)                                     in the case of a Letter of Credit renewed in accordance with Clause 6.8 (Renewal of a Letter of Credit), no Event of Default is continuing or would result from the proposed Utilisation and, in the case of any other Utilisation, no Default is continuing or would result from the proposed Utilisation;

 

(ii)                                  the Repeating Representations to be made by each Obligor are true in all material respects.

 

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(c)                                  The amount of each Lender’s obligations under and participation in each Letter of Credit will be equal to the proportion borne by its Available Revolving Commitment to the Available Revolving Facility immediately prior to the issue of the Letter of Credit.

 

(d)                                 The liability of the Lenders under a Letter of Credit is several and not joint in any way and no Lender shall be liable for the failure of any other Lender to perform its obligations under a Letter of Credit.

 

(e)                                  The Agent shall determine the Base Currency Amount of each Letter of Credit which is to be issued in an Optional Currency and shall notify the Issuing Agent and each Lender of the details of the requested Letter of Credit and its participation in that Letter of Credit by the Specified Time.

 

(f)                                   A Revolving Facility B Lender may issue and act as Lender in respect of a Letter of Credit by any Affiliate it nominates for this purpose in writing to the Issuing Agent. Where a Revolving Facility B Lender has so nominated an Affiliate, references in this Agreement to a Lender in relation to that Letter of Credit shall be deemed to be a reference to that Lender and its Affiliate or to that Lender or its Affiliate (as the context requires).

 

(g)                                  Wells Fargo Bank, NA will only be deemed to be a Lender for the purposes of this Clause 6.7 (Issue of Letters of Credit) after the Target Accession Date has occurred and shall not have any liability in respect of Letters of Credit issued prior to the Target Accession Date.

 

6.8                               Renewal of a Letter of Credit

 

(a)                                 A Borrower may request any Letter of Credit issued on its behalf be renewed by delivery to the Agent of a Renewal Request by the Specified Time, and with respect to any Letter of Credit which is by its terms deemed to be automatically extended, such Letter of Credit shall be so renewed subject to the terms thereof.

 

(b)                                 The Finance Parties shall treat any Renewal Request in the same way as a Utilisation Request for a Letter of Credit except that the conditions set out in paragraphs (e) and (h) of Clause 6.4 (Completion of a Utilisation Request for Letters of Credit) shall not apply.

 

(c)                                  The terms of each renewed Letter of Credit shall be the same as those of the relevant Letter of Credit immediately prior to its renewal, except that:

 

(i)                                    its amount may be less than the amount of the Letter of Credit immediately prior to its renewal; and

 

(ii)                                 its Term shall start on the date which was the Expiry Date of the Letter of Credit immediately prior to its renewal, and shall end on the proposed Expiry Date specified in the Renewal Request.

 

(d)                                 Subject to paragraph (e) below, if the conditions set out in this Agreement have been met, the Issuing Agent shall amend and re-issue any Letter of Credit pursuant to a Renewal Request.

 

(e)                                  The Issuing Agent and the Lenders under the Revolving Facility to be utilised will be under no obligation to renew a Letter of Credit if they consider, acting reasonably, that the conditions or the process for renewal involve a risk of double exposure at any given time, in which case the Issuing Agent may require comfort (including in the form of the provision of 

 

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cash cover, counter-indemnities or return of the original instrument to the Issuing Agent) as a condition precedent to granting such renewal.

 

6.9                               Adjusted Letter of Credit Schedule

 

(a)                                 The Issuing Agent is authorised and is instructed to deliver to the beneficiary an adjusted L/C Schedule for any Letter of Credit to reflect the obligations of a Lender in relation to an issued Letter of Credit including after any transfer or assignment under Clause 30 (Changes to the Lenders).

 

(b)                                 Any adjusted L/C Schedule provided to the beneficiary under paragraph (a) above shall be effective; provided that:

 

(i)                                    the aggregate L/C Participation Amounts are no less than the aggregate L/C Participation Amounts under the L/C Schedule which it replaces;

 

(ii)                                no Lender’s exposure increases under any adjusted L/C Schedule unless such increase is in connection with an increase in its Revolving Facility Commitment (and Participation Amount) following an assignment or transfer under Clause 30 (Changes to the Lenders); and

 

(iii)                             the adjusted L/C Schedule is dated and includes the reference number of the Letter of Credit to which it applies.

 

6.10                        Revaluation of Letters of Credit

 

(a)                                 If any Letter of Credit is denominated in an Optional Currency, the Agent shall, at the end of each Financial Quarter, or on any other date as determined by the Issuing Agent, recalculate the Base Currency Amount of that Letter of Credit by notionally converting into the Base Currency the outstanding amount of that Letter of Credit on the basis of the Agent’s Spot Rate of Exchange on the date of calculation.

 

(b)                                 If, following any calculation of a Base Currency Amount under paragraph (a) above, the Revolving Facility Utilisations which are Letters of Credit exceed one hundred and two per cent. (102%) of the relevant Guarantee Sub-limit the Borrowers shall ensure that, by the last day of the shortest Interest Period currently applicable to any Loan following such adjustment to the Base Currency Amount, sufficient Letters of Credit are prepaid (by way of the provision of cash cover, such cash cover to be credited to the Cash Collateral Account, or reduction in the face-value amounts of Letters of Credit) so that the Base Currency Amount of the Revolving Facility Utilisations which are Letters of Credit under the affected Revolving Facility does not exceed one hundred per cent. (100%) of the relevant Guarantee Sub-limit.

 

7.                                      UTILISATION - US DOLLAR SWINGLINE LOANS

 

7.1                               General

 

(a)                                 Clause 4.2 (Further conditions precedent) and Clause 4.34.3 (Conditions relating to Optional Currencies);

 

(b)                                 Clause 5 (Utilisation — Revolving Facility Loans);

 

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(c)                                  Clause 10 (Optional Currencies);

 

(d)                                 Clause 15 (Interest) as it applies to the calculation of interest on a Loan but not default interest on an overdue amount;

 

(e)                                  Clause 16 (Interest Periods); and

 

(f)                                   Clause 17 (Changes to the calculation of interest),

 

do not apply to US Dollar Swingline Loans.

 

7.2                               Delivery of a Utilisation Request for US Dollar Swingline Loans

 

(a)                                 A Borrower may utilise the US Dollar Swingline Facility by delivery to the Agent and the Swingline Agent of a duly completed Utilisation Request not later than the Specified Time.

 

(b)                                 Each Utilisation Request for a US Dollar Swingline Loan must be sent to the Agent and the Swingline Agent to the address, fax number or, electronic mail address or other destination notified by the Agent and the Swingline Agent for this purpose with a copy to its address, fax number or electronic mail address or such other destination referred to in Clause 37 (Notices).

 

7.3                               Completion of a Utilisation Request for US Dollar Swingline Loans

 

(a)                                 Each Utilisation Request for a US Dollar Swingline Loan is irrevocable and will not be regarded as having been duly completed unless:

 

(i)                                     it identifies the Borrower;

 

(ii)                                  it specifies that it is for a US Dollar Swingline Loan;

 

(iii)                              the proposed Utilisation Date is a New York Business Day within the Availability Period applicable to Revolving Facility A;

 

(iv)                              the US Dollar Swingline Loan is denominated in US Dollars;

 

(v)                                 the amount of the proposed US Dollar Swingline Loan is not more than the Available US Dollar Swingline Facility and is a minimum of US$5,000,000 or, if less, the Available US Dollar Swingline Facility; and

 

(vi)                              the proposed Interest Period:

 

(A)                               does not extend beyond the Termination Date applicable to Revolving Facility A;

 

(B)                               is a period of not more than five (5) New York Business Days; and

 

(C)                               ends on a New York Business Day.

 

(b)                                 Only one US Dollar Swingline Loan may be requested in each Utilisation Request.

 

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7.4                               US Dollar Swingline Lenders’ participation

 

(a)                                 If the conditions set out in this Agreement have been met, each US Dollar Swingline Lender shall make its participation in each US Dollar Swingline Loan available to the Swingline Agent through its Facility Office.

 

(b)                                 The US Dollar Swingline Lenders will only be obliged to comply with paragraph (a) above if on the date of the Utilisation Request and on the proposed Utilisation Date:

 

(i)                                     no Default is continuing or would result from the proposed Utilisation; and

 

(ii)                                  the Repeating Representations to be made by each Obligor are true in all material respects.

 

(c)                                  The amount of each US Dollar Swingline Lender’s participation in each US Dollar Swingline Loan will be equal to the proportion borne by its Available US Dollar Swingline Commitment to the Available US Dollar Swingline Facility immediately prior to making the US Dollar Swingline Loan, adjusted to take account of any limit applying under Clause 7.5 (Relationship with Revolving Facility A).

 

(d)                                 The Swingline Agent shall notify the Agent and each US Dollar Swingline Lender of the amount of each US Dollar Swingline Loan and its participation in that US Dollar Swingline Loan by the Specified Time.

 

(e)                                  For the avoidance of doubt, nothing in this Agreement shall oblige the Swingline Agent to make a US Dollar Swingline Loan available to a Borrower on behalf of any US Dollar Swingline Lender that has failed to make its participation in such US Dollar Swingline Loan available to the Swingline Agent in accordance with this Clause 7.4.

 

(f)                                   The Swingline Agent shall inform the US Dollar Swingline Lenders and the Agent from time to time regarding the balance of the unutilised US Dollar Swingline Commitments and each US Dollar Swingline Lender shall provide the Swingline Agent and the Agent, upon its reasonable request, with confirmation of the amount of outstanding US Dollar Swingline Loans advanced by it at such time.

 

7.5                               Relationship with Revolving Facility A

 

(a)                               This Clause 7.5 applies when a US Dollar Swingline Loan is outstanding or is to be borrowed.

 

(b)                               Revolving Facility A may be used by way of US Dollar Swingline Loans. The US Dollar Swingline Facility is not independent of Revolving Facility A.

 

(c)                                Notwithstanding any other term of this Agreement a Lender is only obliged to participate in a Revolving Facility A Loan or a US Dollar Swingline Loan to the extent that it would not result in the Base Currency Amount of its participation and that of a Lender which is its Affiliate in the Revolving Facility A Loans and US Dollar Swingline Loans exceeding its Overall Facility A Commitment.

 

(d)                               Where, but for the operation of paragraph (c) above, a Lender’s participation and that of a Lender which is its Affiliate in the Revolving Facility A Loans and US Dollar Swingline Loans would have exceeded its Overall Facility A Commitment, the excess will be 

 

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apportioned among the other Lenders required under this Agreement to make available a participation in the relevant Loan pro rata according to their relevant Commitments. This calculation will be applied as often as necessary until participations in the relevant Loan are apportioned among the relevant Lenders in a manner consistent with paragraph (c) above.

 

(e)                                  Nothing in this Clause 7.5 shall be construed so as to require a Lender that is not a US Dollar Swingline Lender to participate in a US Dollar Swingline Loan.

 

7.6                               Cancellation of US Dollar Swingline Commitment

 

The US Dollar Swingline Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period for Revolving Facility A.

 

8.                                      LETTERS OF CREDIT

 

8.1                               Immediately payable

 

If a Letter of Credit or any amount outstanding under a Letter of Credit becomes immediately payable, the relevant Borrower under the Revolving Facility to which such Letter of Credit relates shall repay or prepay that amount immediately.

 

8.2                               Assignments and transfers

 

(a)                                 For the avoidance of doubt, the consent of the Issuing Agent is not required for any assignment or transfer of any Lender’s rights or obligations under a Revolving Facility.

 

(b)                                 If the conditions and procedure for transfer specified in Clause 30 (Changes to the Lenders) are satisfied, then on the Transfer Date the Issuing Agent and the New Lender shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights or obligations acquired or assumed by it as a result of the transfer and to that extent the Issuing Agent and the Existing Lender shall each be released from further obligations to each other under this Agreement.

 

8.3                               Claims under a Letter of Credit

 

(a)                                 Where a claim is made or purported to be made under a Letter of Credit and which appears on its face to be in order (a “Syndicated L/C Claim”):

 

(i)                                     the Issuing Agent shall promptly and in any event within two (2) Business Days of the date of receipt of a Syndicated L/C Claim notify the relevant Borrower and each Lender of the final date on or before which payment of the demand is to be made and the aggregate amount of the Syndicated L/C Claim;

 

(ii)                                  each Lender (other than a Lender which has paid an amount equal to its Participation Amount (as defined in each case in the relevant Letter of Credit) to the beneficiary) shall immediately on demand pay (via the Issuing Agent) to the relevant beneficiary an amount equal to its Participation Amount (as defined in each case in the relevant Letter of Credit); provided that such amount shall not exceed the maximum amount payable by that Lender to such beneficiary pursuant to the terms of such Letter of Credit;

 

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(iii)                              the relevant Borrower irrevocably and unconditionally authorises the Lenders to pay such Syndicated L/C claim; and

 

(iv)                             the relevant Borrower shall immediately on demand pay to the Issuing Agent for the Lenders an amount equal to the amount of any Syndicated L/C Claim.  For the avoidance of doubt this obligation shall be unaffected by the Termination Date.

 

(b)                                Each relevant Borrower acknowledges that the Issuing Agent and each Lender:

 

(i)                                     is not obliged to carry out any investigation or seek any confirmation from any other person before paying a claim; and

 

(ii)                                 deals in documents only and will not be concerned with the legality of a claim or any underlying transaction or any available set-off, counterclaim or other defence of any person.

 

(c)                                 The obligations of the Borrowers under this Clause 8.3 will not be affected by:

 

(i)                                     the sufficiency, accuracy or genuineness of any claim or any other document; or

 

(ii)                                  any incapacity of, or limitation on the powers of, any person signing a claim or other document.

 

8.4                               Issuing Agent’s Authorisation

 

Each Lender hereby unconditionally and irrevocably authorises the Issuing Agent to prepare and complete each Letter of Credit, in the manner contemplated by the relevant Utilisation Request and this Agreement and substantially in the form attached to this Agreement, and to sign each Letter of Credit on its behalf and issue the same to the relevant beneficiary. Such authorisation shall be deemed to be confirmed in respect of each Letter of Credit issued, or to be issued, pursuant to this Agreement and in respect of each Lender on the date on which such Letter of Credit is issued.

 

8.5                               Indemnities

 

Each Borrower shall immediately on demand indemnify the Issuing Agent and each Lender against any cost, loss or liability incurred by the Issuing Agent or by the Lender (in each case, otherwise than by reason of the Issuing Agent’s or Lender’s own gross negligence or wilful misconduct) in acting as the Issuing Agent or as a Lender (as the case may be) under any Letter of Credit issued under a Revolving Facility including, without limitation, arising in connection with:

 

(a)                                 issuing or maintaining outstanding a Letter of Credit;

 

(b)                                 funding, making arrangements to fund, or failing to fund or make arrangements to fund, payments under or in connection with a Letter of Credit; and

 

(c)                                  acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised.

 

8.6                               Cash cover by Borrower

 

(a)                                 If a Lender fails to honour its obligations under Clause 8.3 or notifies the Issuing Agent that it will not honour its obligations under Clause 8.3 (Claims under a Letter of Credit) and the

 

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Issuing Agent notifies the Parent (with a copy to the Agent) that it requires the relevant Borrower of the relevant Letter of Credit or proposed Letter of Credit to provide cash cover to an account with the Issuing Agent in an amount equal to such Lender’s L/C Proportion of the outstanding amount of that Letter of Credit and in the currency of that Letter of Credit then that Borrower shall do so within four (4) Business Days after the notice is given.

 

(b)           Notwithstanding paragraph (a)(vii) of Clause 6.1 (General), the Issuing Agent shall agree to the withdrawal of amounts up to the level of that cash cover from the account if the relevant Lender’s obligations in respect of the relevant Letter of Credit are transferred to a New Lender in accordance with the terms of this Agreement.

 

(c)           To the extent that a Borrower has complied with its obligations to provide cash cover in accordance with this Clause 8.6, the relevant Lender’s L/C Proportion in respect of that Letter of Credit will remain (but such Lender’s obligations in relation to that Letter of Credit may be satisfied in accordance with Clause 6.1 (General)).  However, the relevant Borrower will be obliged to pay any Letter of Credit Fee in relation to the relevant letter of credit to the Agent (for the account of and for distribution to the relevant Lenders) but the relevant Borrower shall not be obliged to pay any Letter of Credit Fee in relation to the relevant letter of credit to the relevant Lender.

 

(d)           The relevant Issuing Agent shall promptly notify the Agent of the extent to which a Borrower provides cash cover pursuant to this Clause 8.6 and of any change in the amount of cash cover so provided.

 

8.7          Rights of contribution

 

No Obligor will be entitled to any right of contribution or indemnity from any Finance Party in respect of any payment it may make under this Clause 8.

 

8.8          Loss sharing

 

(a)           If, at any time after any amount has become payable to the beneficiary under a Letter of Credit, for any reason any amount due and owing to a Lender under the Finance Documents in respect of that claim has not been paid or discharged and any resulting unpaid amount is not shared among the Lenders of the relevant Revolving Facility pro rata to their Loss Share Proportions in respect of such Revolving Facility, the Lenders shall make such payments between themselves as the Agent shall require to ensure that, after taking into account such payments, any such amount is shared between the relevant Lenders pro rata to their Loss Share Proportions.

 

(b)           If a Lender (the “Paying Bank”) makes a payment to the Agent for distribution to one or more other Lenders under paragraph (a) above then, without double counting, the liability of the relevant Borrower to the Paying Bank shall be increased (or treated as not having been reduced) by an amount equal to the payment so made and the liability of such Borrower to the Lender(s) to which any such payment has been made shall be reduced (or treated as not having been increased) by an amount equal to the payment so made. Following any application of the provisions of paragraph (a) above the Agent is authorised and is instructed to deliver to the beneficiary an adjusted L/C Schedule or a new Letter of Credit, as the case may be, under the terms of this Agreement. Such adjusted L/C or new Letter of Credit shall reflect the L/C Commitments of the Lenders after the application of paragraph (a) above.

 

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(c)           Wells Fargo Bank, NA will only be deemed to be a Lender for the purposes of this Clause 8.8 (Loss sharing) after the Target Accession Date has occurred and shall not have any liability in respect of Letters of Credit issued prior to the Target Accession Date.

 

8.9          Role of the Issuing Agent

 

(a)           Nothing in this Agreement constitutes the Issuing Agent as a trustee or fiduciary of any other person.

 

(b)           The Issuing Agent may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

 

(c)           The Issuing Agent may rely on:

 

(i)            any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

 

(ii)           any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

 

(d)           The Issuing Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

 

(e)           The Issuing Agent may act in relation to the Finance Documents through its personnel and agents.

 

(f)            The Issuing Agent is not responsible for:

 

(i)            the adequacy, accuracy or completeness of any information (whether oral or written) provided by the Agent, any Party (including itself), or any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; or

 

(ii)           the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

 

8.10        Exclusion of liability

 

(a)           Without limiting paragraph (b) below, neither the Issuing Agent nor any Lenders in respect of Letters of Credit will be liable for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct.

 

(b)           No Party (other than the Issuing Agent or a Lender in respect of a Letter of Credit) may take any proceedings against any officer, employee or agent of the Issuing Agent or a Lender in respect of a Letter of Credit in respect of any claim it might have against the Issuing Agent or relevant Lender in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Issuing 

 

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Agent or relevant Lender may rely on this Clause 8.10 subject to Clause 1.3 (Third party rights) and the provisions of the Third Parties Act.

 

8.11        Credit appraisal by the Lenders

 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Issuing Agent that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including, but not limited to, those listed in paragraphs (a) through (d) of Clause 32.14 (Non-Reliance on Agent and Other Finance Parties).

 

8.12        Address for notices

 

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of the Issuing Agent for any communication or document to be made or delivered under or in connection with the Finance Documents is that notified in writing to the Agent prior to the date of this Agreement or any substitute address, fax number or department or officer as the Issuing Agent may notify to the Agent by not less than five (5) Business Days’ notice.

 

8.13        Amendments and waivers

 

Notwithstanding any other provision of this Agreement, an amendment or waiver which relates to the rights or obligations of the Issuing Agent may not be effected without the consent of the Issuing Agent.

 

8.14        Applicability of ISP and UCP

 

Unless otherwise expressly agreed by the Issuing Agent and each Borrower when a Letter of Credit is issued, the rules of the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance) shall apply to each standby Letter of Credit, and the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance shall apply to each commercial Letter of Credit.

 

9.            REPAYMENT

 

9.1          Repayment of Revolving Facility Loans

 

(a)           Each Borrower which has drawn a Revolving Facility Loan shall repay such Revolving Facility Loan on the last day of its Interest Period.

 

(b)           At any time when a Lender becomes a Defaulting Lender, the maturity date of each of the participations of that Lender in the Revolving Facility Loans then outstanding will be automatically extended to the Final Maturity Date in relation to the Revolving Facility and will be treated as separate Revolving Facility Loans (the “Separate Loans”) denominated in the currency in which the relevant participations are outstanding.

 

(c)           A Borrower to whom a Separate Loan is outstanding may prepay that Loan by giving five (5) Business Days’ prior notice to the Agent. The Agent will forward a copy of a 

 

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prepayment notice received in accordance with this paragraph (c) to the Defaulting Lender concerned as soon as practicable on receipt.

 

(d)           Interest in respect of a Separate Loan will accrue for successive Interest Periods selected by the relevant Borrower by the time and date specified by the Agent (acting reasonably) and will be payable by that Borrower to the Defaulting Lender on the last day of each Interest Period of that Loan.

 

(e)           The terms of this Agreement relating to Revolving Facility Loans generally shall continue to apply to Separate Loans other than to the extent inconsistent with paragraphs (b) to (d) above, in which case those paragraphs shall prevail in respect of any Separate Loan.

 

10.          OPTIONAL CURRENCIES

 

10.1        Selection of currency

 

Each Borrower shall select the currency of a Revolving Facility Utilisation in the applicable Utilisation Request.

 

10.2        Unavailability of a currency

 

If before the Specified Time on any Quotation Day:

 

(a)           a Lender notifies the Agent that the Optional Currency requested is not readily available to it in the amount required; or

 

(b)           a Lender notifies the Agent that compliance with its obligation to participate in a Loan in the proposed Optional Currency would contravene a law or regulation applicable to it,

 

the Agent will give notice to the relevant Borrower to that effect by the Specified Time on that day.  In this event, any Lender that gives notice pursuant to this Clause 10.2 will be required to participate in the Loan in the Base Currency (in an amount equal to such Lender’s proportion of the Base Currency Amount, or in respect of a Rollover Loan, an amount equal to such Lender’s proportion of the Base Currency Amount of the Rollover Loan that is due to be made) and its participation will be treated as a separate Loan denominated in the Base Currency during that Interest Period.

 

10.3        Agent’s calculations

 

Each Lender’s participation in a Loan will be determined in accordance with paragraph (b) of Clause 5.4 (Lenders’ participation).

 

11.          US DOLLAR SWINGLINE FACILITY

 

11.1        US Dollar Swingline

 

Subject to the terms of this Agreement, the US Dollar Swingline Lenders make available to the Swingline Agent, by the Specified Time, for the account of the relevant US Borrower a US Dollar swingline loan facility in an aggregate amount equal to the Total US Dollar Swingline Commitments.

 

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11.2        Purpose

 

Each Borrower shall apply all amounts borrowed by it under the US Dollar Swingline Facility for general corporate purposes. A US Dollar Swingline Loan may not be applied in repayment or prepayment of another US Dollar Swingline Loan.

 

11.3        Repayment

 

Each Borrower that has drawn a US Dollar Swingline Loan shall repay that US Dollar Swingline Loan on the last day of its Interest Period.

 

11.4        Voluntary prepayment of US Dollar Swingline Loans

 

(a)           A Borrower to which a US Dollar Swingline Loan has been made may prepay at any time the whole of that US Dollar Swingline Loan.

 

(b)           Unless a contrary indication appears in this Agreement, any part of the US Dollar Swingline Facility which is prepaid or repaid may be re-borrowed in accordance with the terms of this Agreement.

 

11.5        Interest

 

(a)           The rate of interest on each US Dollar Swingline Loan for any day during its Interest Period is the higher of:

 

(i)            the prime commercial lending rate in US Dollars announced by the Swingline Agent at the Specified Time and in force on that day; and

 

(ii)           zero and a half per cent. (0.50%) per annum over the rate per annum determined by the Swingline Agent to be the Federal Funds Rate (as published by the Federal Reserve Bank of New York) for that day.

 

(b)           The Swingline Agent shall promptly notify the Agent, the US Dollar Swingline Lenders and the relevant Borrower of the determination of the rate of interest under paragraph (a) above.

 

(c)           If any day during an Interest Period is not a New York Business Day, the rate of interest on a US Dollar Swingline Loan on that day will be the rate applicable to the immediately preceding New York Business Day.

 

(d)           Each Borrower shall pay accrued interest on each US Dollar Swingline Loan made to it on the last day of its Interest Period.

 

11.6        US Dollar Swingline Agent

 

(a)           The Swingline Agent may perform its duties in respect of the US Dollar Swingline Facility through an Affiliate acting as its agent.

 

(b)           Notwithstanding any other term of this Agreement and without limiting the liability of any Obligor under the Finance Documents, each Lender shall (in proportion to its share of the Total Facility A Commitments or, if the Total Facility A Commitments are then zero, to its share of the Total Facility A Commitments immediately prior to their reduction to zero) pay to or indemnify the Swingline Agent, within three (3) Business Days of demand, for or 

 

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against any cost, loss or liability (including, without limitation, for negligence or any other category of loss whatsoever) incurred by the Swingline Agent or its Affiliate (other than by reason of the Swingline Agent’s or the Affiliate’s gross negligence or wilful misconduct) or, in the case of any cost, loss or liability pursuant to Clause 35.11 (Disruption to Payment Systems etc.) notwithstanding the Swingline Agent’s or the Affiliate’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Swingline Agent or the Affiliate in acting as Swingline Agent for the US Dollar Swingline Facility under the Finance Documents (unless the Swingline Agent or its Affiliate has been reimbursed by an Obligor pursuant to a Finance Document).

 

11.7        Interest Period — US Dollar Swingline Loans

 

(a)           Each US Dollar Swingline Loan has one Interest Period only.

 

(b)           The Interest Period for a US Dollar Swingline Loan must be selected in the relevant Utilisation Request.

 

11.8        Partial Payments

 

(a)           If the Swingline Agent or Agent receives a payment in respect of the US Dollar Swingline Facility that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents in respect of the US Dollar Swingline Facility, the Agent or the Swingline Agent (as applicable) shall apply that payment towards the obligations of that Obligor under the Finance Documents in respect of the US Dollar Swingline Facility in the following order:

 

(i)            first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent, the Swingline Agent or its Affiliate under the Finance Documents incurred in respect of the US Dollar Swingline Facility;

 

(ii)           secondly, in or towards payment pro rata of any accrued interest on a US Dollar Swingline Loan due but unpaid under this Agreement;

 

(iii)          thirdly, in or towards payment pro rata of the principal of any US Dollar Swingline Loan due but unpaid under this Agreement; and

 

(iv)          fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents in respect of the US Dollar Swingline Facility.

 

(b)           The Swingline Agent shall, if so directed by all the US Dollar Swingline Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

 

(c)           Paragraphs (a) and (b) above will override any appropriation made by an Obligor and Clause 35.6 (Partial payments) does not apply to the US Dollar Swingline Facility.

 

11.9        Loss sharing

 

(a)           If a Revolving Facility A Loan (including a US Dollar Swingline Loan) or interest on a Revolving Facility A Loan (including a US Dollar Swingline Loan) is not paid in full on its due date, the Agent (if requested to do so in writing by any affected Lender) shall calculate the amount (if any) which needs to be paid or received by each Lender with a Revolving Facility A Commitment to place that Lender in the position it would have been in had each 

 

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Lender (or its Affiliate) with a Facility A Commitment participated in that Loan in the proportion borne by its Facility A Commitment to the Total Facility A Commitments and, if the Total Facility A Commitments are then zero, the proportion borne by its Facility A Commitment to the Total Facility A Commitments immediately prior to their reduction to zero.

 

(b)           The calculation of the Agent is designed solely to allocate the unpaid amount proportionally among the Lenders with a Revolving Facility A Commitment according to their Revolving Facility A Commitments and will not take into account any commitment fee or other amount payable under the Finance Documents.

 

(c)           The Agent will set a date (the “Loss Sharing Date”) on which payments must be made under this Clause 11.9. The Agent shall give at least three (3) Business Days’ notice to each affected Lender of this date and the amount of the payment (if any) to be paid or received by it on this date.

 

(d)           On the Loss Sharing Date:

 

(i)            each affected Lender who has to make a payment shall pay to the Agent the relevant amount set out in the notice referred to in paragraph (c) above; and

 

(ii)           out of the amounts the Agent receives, the Agent shall pay to each affected Lender who is entitled to receive a payment the amount set out in that notice.

 

(e)           If the amount actually received by the Agent from the Lenders under paragraph (d) above is insufficient to pay the full amount required to be paid under that paragraph, the Agent shall distribute the amount it actually receives among the affected Lenders pro rata to the amounts they are entitled to receive under that paragraph.

 

(f)            If a Lender makes a payment to the Agent under this Clause 11.9 then, to the extent that that payment is distributed by the Agent under paragraphs (d) or (e) above, as between the relevant Obligor and that Lender an amount equal to the amount of that distributed payment will be treated as not having been paid by the relevant Obligor.

 

(g)           Any payment under this Clause 11.9 will not reduce the obligations in aggregate of any Obligor.

 

(h)           Wells Fargo Bank, NA will only be deemed to be a Lender for the purposes of this Clause 11.9 (Loss Sharing) after the Target Accession Date has occurred and shall not have any liability in respect of Revolving Facility A Loans drawn prior to the Target Accession Date.

 

12.          ILLEGALITY, VOLUNTARY PREPAYMENT AND CANCELLATION

 

12.1        Illegality

 

Subject to Clause 12.2 (Illegality in relation to the Issuing Agent), if it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund, issue or maintain its participation in any Utilisation:

 

(a)           such Lender shall promptly notify the Agent upon becoming aware of that event;

 

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(b)           upon the Agent notifying each Borrower, the Revolving Facility Commitments of such Lender and of any Affiliate of that Lender which is a US Dollar Swingline Lender will be immediately cancelled; and

 

(c)           the relevant Borrower shall repay such Lender’s (and any such Affiliate’s) participation in the Utilisations made to that Borrower on the last day of the Interest Period for each Utilisation occurring after the Agent has notified that Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law).

 

12.2        Illegality in relation to the Issuing Agent

 

If it becomes unlawful for an Issuing Agent or any Lender to issue or leave outstanding any Letter of Credit or otherwise to perform any of its obligations in respect of Letters of Credit or to fund or maintain its participation in any Utilisation by way of Letter of Credit as contemplated by this Agreement, then:

 

(a)           that Issuing Agent or such Lender shall promptly notify the Agent upon becoming aware of that event;

 

(b)           the Issuing Agent or such Lender shall not be obliged to issue or participate in (as the case may be) any Letter of Credit;

 

(c)           each Borrower shall use all reasonable endeavours to procure the release of each Letter of Credit issued by that Issuing Agent or in which such Lender participates and which is outstanding at such time.  If a Borrower fails to procure the release of a Letter of Credit it will be obliged to prepay that Letter of Credit; and

 

(d)           in the case of illegality affecting the Issuing Agent, unless any other Lender has agreed to be an Issuing Agent pursuant to the terms of this Agreement, then the Revolving Facility shall cease to be available for the issue of Letters of Credit.

 

Nothing in this Clause 12.2 shall prevent a Borrower from utilising a Revolving Facility to prepay a Letter of Credit in accordance with paragraph (c) above.

 

12.3        Voluntary cancellation

 

(a)           The relevant Borrower may, if it gives the Agent not less than five (5) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of US$5,000,000 for Revolving Facility A and €5,000,000 for Revolving Facility B) of an Available Revolving Facility.

 

(b)           The relevant Borrower may not make a cancellation pursuant to paragraph (a) above to the extent that that cancellation would result in a Lender (or its Affiliate) failing to meet the requirement set out in paragraph (g) of Clause 30.2 (Conditions of assignment or transfer).

 

(c)           Any cancellation under this Clause 12.3 shall reduce the Revolving Facility Commitments of the Lenders rateably under that Facility.

 

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12.4        Voluntary prepayment of Loans

 

Each Borrower may, if it gives the Agent not less than five (5) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Loan drawn by it under the Facility made available to it (but, if in part, being an amount that reduces that Loan by a minimum amount of US$5,000,000 for Revolving Facility A and €5,000,000 for Revolving Facility B).

 

12.5        Voluntary prepayment of Letters of Credit

 

Each Borrower may, if it gives the Agent not less than five (5) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Letter of Credit requested by it under a Revolving Facility made available to it.

 

12.6        Right of cancellation and repayment in relation to a single Lender or the Issuing Agent

 

(a)           If:

 

(i)            any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 19.2 (Tax gross-up); or

 

(ii)           any Lender or the Issuing Agent claims indemnification from the Parent or an Obligor under Clause 19.3 (Tax indemnity) or Clause 20.1 (Increased costs); or

 

(iii)          any Lender is a Defaulting Lender,

 

(iv)          any amount payable to any Lender by an Italian Obligor under a Finance Document is not, or will not be treated as a deductible charge or expense for Italian Tax purposes for that Italian Obligor by reason of that amount originating from transactions occurred with Blacklisted Resident Entities, other than where any limitation in the deduction of that amount results from any inaction of the Italian Obligor which is not the consequence of the lack of cooperation of the entity residing or localized in a Blacklisted Jurisdiction in providing the documentation necessary for that Obligor to treat the payment as a deductible charge or expense; or

 

the Parent (on behalf of each Borrower) may (but shall not be obligated to), whilst the circumstance giving rise to the events referred to above continues, give the Agent notice :

 

(A)          (if such circumstances relate to a Lender or any Affiliate of a Lender) of cancellation of the Revolving Facility Commitment of such Lender and of any Affiliate of that Lender which is a US Dollar Swingline Lender or its intention to procure the repayment of such Lender’s and any such Affiliate’s participation in the Utilisations or give the Agent notice of its intention to replace that Lender (together with any Affiliate of that Lender) in accordance with paragraph (c) below; or

 

(B)          (if such circumstances relate to a Lender or to the Issuing Agent) of repayment of any outstanding Letter of Credit issued by it and cancellation of its appointment as an Issuing Agent or Lender under this Agreement in relation to any Letters of Credit to be issued in the future.

 

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(b)           On receipt of a notice referred to in paragraph (a) above in relation to a Lender or an Affiliate of a Lender, the Available Revolving Commitment of such Lender and any such Affiliate shall immediately be reduced to zero. The Parent shall ensure that a Borrower to which a Utilisation is outstanding shall promptly, and in any event within five (5) Business Days, repay such Lender’s and any such Affiliate’s participation in each Loan and Letter of Credit together with all interest and other amounts accrued under the Finance Documents.

 

(c)           In lieu of the cancellations referred to in Clause 12.1 (Illegality) and above in this Clause 12.6, each Borrower shall have the right, but not the obligation, at its own expense, upon notice from that Borrower to such Lender (the “Terminated Lender”) and the Agent, to replace such Terminated Lender (together with any Affiliate of that Terminated Lender) with a New Lender (in accordance with and subject to the restrictions contained in Clause 30 (Changes to Lenders)) approved by the Agent, the Swingline Agent and the Issuing Agent, and such Terminated Lender hereby agrees to transfer and assign without recourse (in accordance with and subject to the restrictions contained in Clause 30 (Changes to Lenders)) all its interests, rights and obligations under this Agreement to such assignee; provided that no Terminated Lender shall be obligated to make any such assignment:

 

(i)            unless such assignee or that Borrower shall pay to the affected Terminated Lender such Terminated Lender’s and such Affiliate’s participation in all Utilisations together with all interest and other amounts accrued under the Finance Documents; and

 

(ii)           if to make such transfer or assignment would cause such Terminated Lender or such Affiliate to breach, or such transfer or assignment is of and in itself in breach of, in each case, any provision of law or regulation.

 

(d)           A Terminated Lender shall not be obliged to transfer its rights and obligations pursuant to paragraph (c) above to the extent that the transfer would result in that Terminated Lender (or its Affiliate) failing to meet the requirement set out in paragraph (g) of Clause 30.2 (Conditions of assignment or transfer).

 

13.          MANDATORY PREPAYMENT

 

13.1        Change of Control or Sale

 

(a)           Upon the occurrence of:

 

(i)            a Change of Control; or

 

(ii)           the sale of all or substantially all of the assets of the Group whether in a single transaction or a series of related transactions (other than as a result of a Permitted Transaction):

 

(A)          a Lender shall not be obliged to fund a Utilisation (except for a Rollover Loan); and

 

(B)          the Agent shall, upon written instructions from an individual Lender and, by not less than thirty (30) days’ notice, cancel the Revolving Facility Commitment of such Lender and of any Affiliate of that Lender which is a US Dollar Swingline Lender and require repayment of the participation of such Lender in the Loans, whereupon the Revolving Facility Commitment of

 

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such Lender and of any such Affiliate will be cancelled and all outstanding participations of such Lender and of any such Affiliate, together with accrued interest, and all other amounts accrued under the Finance Documents and owing to such Lender and of any such Affiliate, shall become immediately due and payable and the Borrowers shall repay or prepay such amounts.

 

14.          RESTRICTIONS

 

14.1        Notices of cancellation or prepayment

 

Any notice of cancellation, prepayment, authorisation or other election given by any Party under Clause 12 (Illegality, voluntary prepayment and cancellation) shall (subject to the terms of those Clauses) be irrevocable and, unless a contrary indication appears in this Agreement, any such notice shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

 

14.2        Interest and other amounts

 

Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

 

14.3        Reborrowing of Loans; Reutilisation of Facility

 

Unless a contrary indication appears in this Agreement, any part of the Revolving Facility which is prepaid by the Borrower to which such Revolving Facility has been made available, in accordance with Clause 12.4 (Voluntary prepayment of Loans) or Clause 12.5 (Voluntary prepayment of Letters of Credit) may be reborrowed (in the case of Loans) or reutilised (in the case of Letters of Credit) by the relevant Borrower in accordance with the terms of this Agreement.

 

14.4        Prepayment in accordance with Agreement

 

The Borrowers shall not repay or prepay all or any part of the Utilisations or cancel all or any part of the Revolving Facility Commitments except at the times and in the manner expressly provided for in this Agreement.

 

14.5        No reinstatement of Commitments

 

No amount of the Total Facility Commitments cancelled under this Agreement may be subsequently reinstated.

 

14.6        Agent’s receipt of notices

 

If the Agent receives a notice under Clause 12 (Illegality, Voluntary Prepayment and Cancellation), it shall promptly forward a copy of that notice or election to either the Borrowers or the affected Lender, as appropriate.

 

15.          INTEREST

 

15.1        Calculation of interest

 

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:

 

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(a)           Margin;

 

(b)           LIBOR or, in relation to any Loan in Euro, EURIBOR.

 

15.2        Usury Cap

 

Notwithstanding any other provision of this Agreement, if at any time the rate of interest applicable to a Loan made available under this Agreement to any Borrower incorporated in Italy (including the relevant component of any applicable fee and expense) exceeds the maximum rate permitted by the Italian law 7 March 1996 no. 108 and related implementation regulations (the “Italian Usury Legislation”), the rate of interest payable by the relevant Borrower shall be deemed to be automatically reduced, for the shortest possible period, to the maximum rate permitted under the Italian Usury Legislation.

 

15.3        Payment of interest

 

Each Borrower to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period (and, if the Interest Period is longer than six (6) Months, on the dates falling at six (6) Monthly intervals after the first day of the Interest Period).

 

15.4        Default interest

 

(a)           If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is one per cent. (1%) higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably).  Any interest accruing under this Clause 15.4 shall be immediately payable by the Obligor on demand by the Agent.

 

(b)           If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

 

(i)            the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

 

(ii)           the rate of interest applying to the overdue amount during that first Interest Period shall be one per cent. (1%) higher than the rate which would have applied if the overdue amount had not become due.

 

(c)           Default interest (if unpaid) arising on an overdue amount will be compounded (to the extent permitted under any applicable law and regulation, including article 1283 of the Italian Civil Code, as amended, supplemented or implemented from time to time) with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

 

15.5        Notification of rates of interest

 

The Agent shall promptly notify the Lenders and the relevant Borrower of the determination of a rate of interest under this Agreement.

 

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15.6        Interest Rate Limitation

 

Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Utilisation by a US Borrower, together with all fees, charges and other amounts which are treated as interest on such Utilisation under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Utilisation in accordance with applicable law, the rate of interest payable in respect of such Utilisation, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Utilisation but were not payable as a result of the operation of this Clause 15.6 shall be cumulated and the interest and Charges payable to such Lender in respect of other Utilisation or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Margin to the date of repayment, shall have been received by such Lender.

 

16.          INTEREST PERIODS

 

16.1        Selection of Interest Periods and Terms

 

(a)           Each Borrower may select an Interest Period for a Revolving Facility Loan in the Utilisation Request for that Revolving Facility Loan.

 

(b)           Subject to this Clause 16 each Borrower may select an Interest Period of one (1), three (3) or six (6) Months or (in the case of the Swingline Facility) one (1) through five (5) New York Business Day(s) in relation to the Facility made available to it or any other period agreed between the relevant Borrower and the Agent (acting on the instructions of all the Lenders under the relevant Facility).

 

(c)           An Interest Period for a Revolving Facility Loan shall not extend beyond the Final Maturity Date applicable to its Facility.

 

(d)           A Revolving Facility Loan and a US Dollar Swingline Loan have one Interest Period only.

 

(e)           The Parent and the Agent may select an Interest Period of two (2) weeks (or a shorter period) for the purpose of aligning the Interest Period with the effective date of the Holdco Merger.

 

16.2        Non-Business Days

 

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

 

17.          CHANGES TO THE CALCULATION OF INTEREST

 

17.1        Absence of quotations

 

(a)           Subject to Clause 17.2 (Market disruption) if LIBOR or, if applicable, EURIBOR is to be determined by reference to the Base Reference Banks but a Base Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, then the applicable LIBOR or EURIBOR shall be determined on the basis of the quotations of the remaining Base Reference Banks.

 

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(b)           If a Market Disruption Event occurs, then the Agent shall, as soon as is practicable, notify the Parent.

 

17.2        Market disruption

 

(a)           If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender’s share of that Loan for the Interest Period shall be the percentage rate per annum which is the sum of:

 

(i)            the Margin; and

 

(ii)           the rate notified to the Agent by such Lender, as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to such Lender of funding its participation in that Loan from whatever source it may reasonably select;

 

(b)           In this Agreement “Market Disruption Event” means:

 

(i)            at or about noon on the Quotation Day for the relevant Interest Period (i) the Screen Rate is not available or (ii), LIBOR or, if available, EURIBOR is to be determined by reference to the Base Reference Banks and none or only one of the Base Reference Banks supplies a rate to the Agent to determine LIBOR or, if applicable, EURIBOR for the relevant currency and Interest Period; or

 

(ii)           before close of business in New York on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed thirty-five per cent. (35%) of that Loan) that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR or, if applicable, EURIBOR.

 

17.3        Alternative basis of interest or funding

 

(a)           If a Market Disruption Event occurs and the Agent or a Borrower so requires, the Agent and that Borrower shall enter into negotiations (for a period of not more than thirty (30) days) with a view to agreeing a substitute basis for determining the rate of interest.

 

(b)           Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the relevant Borrower, be binding on all Parties.

 

17.4        Break Costs

 

(a)           Each Borrower shall, within three (3) Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by that Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

 

(b)           Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

 

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18.          FEES

 

18.1        Commitment fee

 

(a)           The Borrowers under each Facility (as applicable) shall pay to the Agent (for the account of each Lender):

 

(i)            a fee in US Dollars in respect of Revolving Facility A, and, as applicable, a fee in Euro in respect of Revolving Facility B, computed at the rate of thirty five per cent. (35%) of the relevant Margin per annum on such Lender’s Available Revolving Commitment under the relevant Facility from the date of this Agreement to the end of the Availability Period applicable to the relevant Facility; provided that the Public Debt Ratings are higher than BB (with at least a stable outlook) and Ba2 (with at least a stable outlook) and provided further that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (i) shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being higher than BB (with at least a stable outlook) or Ba2 (with at least a stable outlook) as applicable; or

 

(ii)           a fee in US Dollars in respect of Revolving Facility A and, as applicable a fee in Euro in respect of Revolving Facility B, computed at the rate of thirty seven and one half per cent. (37.5%) of the relevant Margin per annum on such Lender’s Available Revolving Commitment under the relevant Facility from the date of this Agreement until the end of the Availability Period applicable to the relevant Facility; provided that the Public Debt Ratings are equal or lower than BB (with a stable outlook) or Ba2 (with a stable outlook) provided further that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (ii) shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being equal to or lower than BB or Ba2 as applicable;

 

provided that:

 

(A)          in the event that the Public Debt Ratings differ such that the applicable rate cannot be determined for purposes of both (i) and (ii) above, the rate used to calculate the commitment fee shall be the average of the two (or three, as applicable) applicable rates specified in (i) and (ii) above;

 

(B)          in the event of withdrawal of a Public Debt Rating, the rate used to calculate the commitment fee shall be such rate which is the average of the applicable rate or rates (as the case may be) for the remaining Public Debt Rating as specified in (i) or (ii) above and thirty seven and one half per cent. (37.5%); and

 

(C)          in the event of withdrawal of all Public Debt Ratings, the rate used to calculate the commitment fee shall be thirty seven and one half per cent. (37.5%).

 

(b)           Starting on the date of this Agreement, the accrued commitment fee calculated in accordance with paragraph (a) above is payable on the last day of each successive period of three (3) Months which ends during the relevant Availability Period, on the last day of the Availability 

 

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Period and, if cancelled in full, on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective.

 

(c)           No commitment fee is payable to the Agent (for the account of a Lender) on any Available Revolving Commitment of such Lender for any day on which such Lender is a Defaulting Lender.

 

18.2        Arrangement fee

 

The Parent shall pay to the relevant Arranging Parties an arrangement fee for the purposes of remunerating their activities as Arranging Parties in the amount and at the times agreed in each Arrangement Fee Letter(s).

 

18.3        Agency fee

 

The Parent shall pay to the Agent (for its own account) an agency fee to remunerate its activities as Agent in the amount and at the times agreed in the Agent’s Fee Letter.

 

18.4        Swingline Agency fee

 

GTECH Corporation shall pay to the Swingline Agent (for its own account) an agency fee to remunerate its activities as Swingline Agent in the amount and at the times agreed in the Swingline Agent’s Fee Letter.

 

18.5        Utilisation fee

 

(a)           The Borrowers shall pay a utilisation fee calculated by reference to the daily amount outstanding under the Facilities during each consecutive period of three (3) Months (the first of such period beginning on the date of this Agreement) multiplied by the percentage as set out in the table below:

 

	
Utilisation level
    	
 
    	
Utilisation fee (per annum)
    	
 
    
	
Less than or equal to   331/3 per cent. of the aggregate   Revolving Facility Commitments from time to time
    	
 
    	
0.15
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Higher than 331/3 per cent. but less than or equal to 662/3 per cent. of the aggregate Revolving   Facility Commitments from time to time
    	
 
    	
0.30
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
Higher than 662/3 per cent. of the aggregate Revolving   Facility Commitments from time to time
    	
 
    	
0.60
    	
%
    

 

(b)           The accrued utilisation fee with respect to Revolving Facility A shall be payable in US Dollars and the accrued utilisation fee with respect to Revolving Facility B shall be payable in Euro in each case starting from the date of first Utilisation under the Facilities, quarterly in arrears and on the date on which all outstanding amounts under the Facilities are prepaid and the Facilities are cancelled in full.

 

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18.6        Fees payable in respect of Letters of Credit

 

(a)           The applicable Borrowers shall pay to the Agent (for the account of each Lender participating in the relevant Revolving Facility) a Letter of Credit Fee in the Base Currency (computed at the rate equal to the Margin from time to time applicable to a Loan) on the outstanding amount of each Letter of Credit requested by it for the period from the issue of that Letter of Credit until its Expiry Date. The Letter of Credit Fee shall be distributed according to each such Lender’s L/C Proportion of that Letter of Credit.

 

(b)           The accrued issuing agency fee and the accrued Letter of Credit Fee on a Letter of Credit shall be payable on the last day of each successive period of three (3) Months ending on each 31 March, 30 June, 30 September and 31 December in each year (or such shorter period as shall end on the Expiry Date for that Letter of Credit) starting on the date of issue of that Letter of Credit.  The accrued issuing agency fee and the accrued Letter of Credit Fee is also payable to the Agent on the cancelled amount of any Lender’s Revolving Facility Commitment at the time the cancellation is effective if that Commitment is cancelled in full and the Letter of Credit are prepaid or repaid in full.

 

18.7        Fees payable in respect of Wells Fargo Bank, NA

 

Any fees payable under this Clause 18 with respect to Wells Fargo Bank, NA shall only accrue from and including the Target Accession Date.

 

19.          TAX GROSS UP AND INDEMNITIES

 

19.1        Definitions

 

In this Agreement:

 

“Borrower DTTP Filing” means an HM Revenue & Customs’ Form DTTP2 duly completed and filed by the relevant Borrower, which:

 

(a)           where it relates to a UK Treaty Lender that is an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated opposite such Lender’s name in Part II of Schedule 1 (The Original Parties) or (in the case of the scheme reference number, that is subsequently communicated to the Agent and the relevant Borrower promptly upon it becoming available), and

 

(i)            where the Borrower is an Original Borrower, is filed with HM Revenue & Customs within thirty (30) days of the date of this Agreement; or

 

(ii)           where the Borrower is an Additional Borrower, is filed with HM Revenue & Customs within thirty (30) days of the date on which that Borrower becomes an Additional Borrower; or

 

(b)           where it relates to a UK Treaty Lender that is a New Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect of such Lender in the relevant Transfer Certificate or Assignment Agreement, and

 

(i)            where the Borrower is a Borrower as at the relevant Transfer Date, is filed with HM Revenue & Customs within thirty (30) days of that Transfer Date; or

 

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(ii)           where the Borrower is not a Borrower as at the relevant Transfer Date, is filed with HM Revenue & Customs within thirty (30) days of the date on which that Borrower becomes an Additional Borrower.

 

“Change of Tax Law” means with respect to the Lender, any change in, or in the published interpretation, administration or the application of, any law or regulation or Double Taxation Treaty or any published practice or published concession of any relevant taxing authority.

 

“Exempt Lender” means a Lender that is a financial institution or any other entity (including, any entity included in the provision of article 26, paragraph 5-bis, of Presidential Decree No. 600 of 29 September 1973 as introduced by the Law Decree No. 91 of 24 June 2014, converted into law by the Law No. 116 of 11 August 2014 and subsequently amended by Law Decree No.133 of 29 September 2014) which is authorised to provide finance to an Italian Borrower and to which any payment of interest under the Finance Documents can be made without a Tax Deduction in respect of Tax being imposed by the Republic of Italy; provided that such Lender is not a Blacklisted Resident Entity.

 

“Italian Qualifying Lender” means:

 

(a)           a bank or financial institution duly authorised or licensed to carry out banking activity in Italy pursuant to Legislative Decree No. 385 dated 1 September 1993 that is a resident of Italy for Tax purposes pursuant to article 73 of Italian Presidential Decree No. 917 of 22 December 1986 not acting for the purposes of the Finance Document through a Facility Office qualifying as a Permanent Establishment, or in any case a Permanent Establishment, located outside of Italy; or

 

(b)           a Facility Office qualifying as a Permanent Establishment, or in any case a Permanent Establishment, in Italy of a bank or financial institution duly authorised or licensed to carry out banking activity in Italy - other than a Blacklisted Resident Entity - for which any payment received under the Finance Document is business income (reddito di impresa) pursuant to article 81, 151 and 152, paragraph 1, of Italian Presidential Decree No. 917 of 22 December 1986.

 

“Italian Treaty Lender” means a Lender which:

 

(a)           is resident for Tax purposes in a country which has a Double Taxation Treaty in force with Italy, pursuant to which no withholding on account of Tax is required to be made on the interest and similar payments deriving from Italy;

 

(b)           is entitled to benefit of such Double Taxation Treaty and consequently (subject to the completion of procedural formalities) such full exemption from Tax;

 

(c)           does not carry on business in Italy through a Permanent Establishment with which any payment under the Finance Document is effectively connected; and

 

(d)           it is not a Blacklisted Resident Entity.

 

“Protected Party” means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

 

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“Qualifying Lender” means a Lender:

 

(a)           in respect of any payment under or in connection with a Loan made to an Italian Borrower, which is beneficially entitled to interest payable to such Lender in respect of such Loan and, at any time, is a Lender which is:

 

(i)            an Exempt Lender;

 

(ii)           an Italian Qualifying Lender; or

 

(iii)          an Italian Treaty Lender;

 

and

 

(b)           in respect of any payment under or in connection with a Loan made to a UK Borrower, which is beneficially entitled to interest payable to such Lender in respect of such Loan and, at any time is:

 

(i)            a Lender:

 

(A)          which is a bank (as defined for the purpose of section 879 of the ITA) making such Loan and which is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or

 

(B)          which was a bank (as defined for the purpose of section 879 of the ITA) at the time that that Loan was made and which is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or

 

(ii)

 

(A)          a company resident in the United Kingdom for United Kingdom tax purposes;

 

(B)          a partnership each member of which is:

 

(i)            a company so resident in the United Kingdom; or

 

(ii)           a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of Section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

(C)          a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of Section 19 of the CTA) of that company;

 

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(iii)          a Lender which is a UK Treaty Lender; or

 

(iv)          a Lender which is a building society (as defined for the purpose of Section 880 of the ITA) making an advance under a Finance Document;

 

and

 

(c)           in respect of any payment under or in connection with a Loan made to a US Borrower, which is beneficially entitled to interest payable to such Lender in respect of such Loan and, at any time, is a Lender which is:

 

(i)            a United States Person; or

 

(ii)           not a United States Person but is entitled to complete exemption from withholding of United States federal income tax on all payments made pursuant to this Agreement;

 

and

 

(d)           in relation to any other payment, any Lender.

 

“Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

(a)           a company resident in the United Kingdom for United Kingdom tax purposes; or

 

(b)           a partnership each member of which is:

 

(i)            a company so resident in the United Kingdom; or

 

(ii)           a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of Section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

(c)           a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of Section 19 of the CTA) of that company.

 

“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.

 

“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment or a deemed payment under a Finance Document, other than a FATCA Deduction.

 

“Tax Payment” means either the increase in a payment made by an Obligor to a Finance Party under Clause 19.2 (Tax gross-up) or a payment under Clause 19.3 (Tax indemnity).

 

“Treaty Lender” means an Italian Treaty Lender or a UK Treaty Lender.

 

“UK Borrower” means a Borrower which is incorporated in the United Kingdom.

 

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“UK Non-Bank Lender” means a Lender which gives a Tax Confirmation in the Assignment Agreement or Transfer Certificate which it executes on becoming a Party.

 

“UK Treaty Lender” means a Lender which:

 

(a)           is treated as a resident of a UK Treaty State for the purposes of the UK Treaty; and

 

(b)           does not carry on a business in the United Kingdom through a permanent establishment with which that Finance Party’s participation in the Loans is effectively connected; and

 

(c)           fulfils any conditions which must be fulfilled under the Treaty by residents of that Treaty State for such residents to obtain full exemption from taxation on interest imposed by the United Kingdom, subject to the completion of procedural formalities.

 

“UK Treaty State” means a jurisdiction having a double taxation agreement with the United Kingdom (a “UK Treaty”) which makes a provision for full exemption from tax imposed by the United Kingdom on interest.

 

“United States Person” means a United States Person as defined in Section 7701(a)(30) of the Code and includes an entity that is disregarded as separate from a United States Person (as defined in such Section) for United States federal income tax purposes.

 

“US Borrower” means any Borrower whose jurisdiction of formation or organisation is a state in the United States of America or the District of Colombia or, for the purposes of this Clause 19 (Tax Gross Up and Indemnities) a Borrower that is a United States Person.

 

Unless a contrary indication appears, in this Clause 19 a reference to “determines” or “determined” means a determination made in the sole discretion of the person making the determination.

 

19.2        Tax gross-up

 

(a)           Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.

 

(b)           A Borrower shall promptly upon becoming aware that an Obligor must make a Tax Deduction from any payment made under a Finance Document (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent of (i) the Lender with respect to which such Tax Deduction applies and (ii) the rate at which such Tax Deduction is required to be made. Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to such Lender. If the Agent receives such notification from a Lender it shall promptly notify the Borrowers and, if necessary, any Obligors making the payment.

 

(c)           Except as provided in this Clause 19.2 and subject to paragraph (d) below, if a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

 

(d)           An Obligor is not required to make an increased payment to a Lender under paragraph (c) above for a Tax Deduction from any payment under this Agreement if on the date on which the payment falls due:

 

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(i)            with reference to any payment made under the Finance Document by any Borrower, the payment could have been made to the relevant Lender without a Tax Deduction, other than with respect to any US federal withholding Tax, if the Lender had been a Qualifying Lender in relation to that payment, but on that date such Lender is not or has ceased to be a Qualifying Lender in relation to that payment other than as a result of:

 

(A)          any Change of Tax Law; or

 

(B)          a change in the jurisdiction in which an Obligor is established or resident for tax purposes at the date it becomes an Obligor under this Agreement other than as a result of a Permitted Merger;

 

(ii)           a Tax Deduction is required to be made in respect of any payment under or in connection with a Loan made to a US Borrower for United States federal withholding tax, other than any such Tax Deduction that is required as a result of any Change of Tax Law occurring after the date the relevant Lender becomes a Lender under this Agreement.

 

(iii)          the relevant Lender is an Exempt Lender, an Italian Treaty Lender or a UK Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without a Tax Deduction had such Lender complied with its obligations under paragraph (f) below;

 

(iv)          with reference to any payment made under the Finance Document by any US Borrower, the Tax Deduction would not be required but for the Lender’s failure to comply with paragraph (i)(iv) below;

 

(v)           the relevant Lender is a Qualifying Lender in relation to the payment solely by virtue of sub-paragraph (b)(ii) of the definition of Qualifying Lender and:

 

(A)          an officer of Her Majesty’s Revenue & Customs has given (and not revoked) a direction (a “Direction”) under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Parent a certified copy of that Direction; and

 

(B)          the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or

 

(vi)          the relevant Lender is a Qualifying Lender in relation to the payment solely by virtue of sub-paragraph (b)(ii) of the definition of Qualifying Lender and:

 

(A)          the relevant Lender has not given a Tax Confirmation to the Obligor; and

 

(B)          the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Obligor, on the basis that the Tax Confirmation would have enabled the Obligor to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA.

 

(e)           If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time 

 

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allowed and in the minimum amount required by law. Within thirty (30) days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

 

(f)            A Lender and each Obligor which makes a payment to which that Lender is entitled, shall cooperate in completing any procedural formalities, from time to time required or necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction, or with a reduced Tax Deduction, including, but not limited to, the provision of the information and documentation specified in the following paragraphs (g), (h) and (i) of this Clause 19.2 to the extent applicable.

 

(g)           With respect to each Italian Obligor, each Italian Treaty Lender, each Lender requiring the application of a Double Taxation Treaty with respect to any interest payable by such Italian Obligor and each Exempt Lender agree to provide the Italian Obligor with an Affidavit, any Self-Declaration Form or any other form necessary for that Obligor to be entitled to make any payment under this Agreement without a Tax Deduction on a date which falls, in case of any interest payment made by an Italian Borrower, at least ten (10) Business Days prior to the date upon which interest is first due to be paid to it or, in case of any payment made by an Italian Guarantor, upon ten (10) Business Days of request by a such Italian Obligor, and thereafter: (i) within the end of January of any subsequent calendar year (or, if earlier, within at least five (5) Business Days prior to the subsequent date upon which the interest is due to be paid) and, (ii) whenever there is a change in the Lender’s status under a Double Taxation Treaty (including if it changes its tax residence) within twenty (20) Business Days from the time such change is effective (or, if earlier, within at least five (5) Business Days prior to the subsequent date upon which interest is due to be paid by an Italian Obligor).

 

(h)           With respect to each UK Borrower:

 

(i)

 

(A)          a Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Part II of Schedule 1 (The Original Parties); and

 

(B)          a New Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the Transfer Certificate or Assignment Agreement which it executes, and, having done so, such Lender shall be under no obligation pursuant to paragraph (f) above.

 

(ii)           If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (h)(i) above and:

 

(A)          a Borrower making a payment to such Lender has not made a Borrower DTTP Filing in respect of such Lender; or

 

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(B)          a Borrower making a payment to such Lender has made a Borrower DTTP Filing in respect of such Lender but:

 

(1)           such Borrower DTTP Filing has been rejected by HM Revenue & Customs; or

 

(2)           HM Revenue & Customs has not given such Borrower authority to make payments to such Lender without a Tax Deduction within sixty (60) Business Days of the date of the Borrower DTTP Filing,

 

and in each case, such Borrower has notified such Lender in writing, such Lender and such Borrower shall co-operate in completing any additional procedural formalities necessary for such Borrower to obtain authorisation to make that payment without a Tax Deduction;

 

(iii)          if a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (h)(ii) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of such Lender’s Commitment(s) or its participation in any Loan unless the Lender otherwise agrees;

 

(iv)          an Obligor shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Agent for delivery to the relevant Lender;

 

(v)           a UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives a Tax Confirmation to the Parent by entering into this Agreement; and

 

(vi)          a UK Non-Bank Lender shall promptly notify the Parent and the Agent if there is any change in the position from that set out in the Tax Confirmation.

 

(i)            With respect to each US Borrower:

 

(i)            with respect to a Tax Deduction made on account of Tax imposed by the United States, the Obligor shall certify (under the signature of either its Director, International Tax or another Director or superior officer) on the GTECH Withholding Schedule (as defined in paragraph (j) below) for the immediately succeeding payment period and within the time period specified therefor, the amount of each (if any) Tax Deduction that has been made with respect to a payment made on behalf of any Finance Party and the amount of the related payment made to the relevant taxing authority on account of such Tax Deduction in each case with respect to the immediately preceding payment period; and

 

(ii)           the Obligor will provide the relevant Finance Party with IRS Forms 1042-S and 1099, as applicable (and relevant) (or any successor form or forms) relating to such Tax Deduction in a manner and at a time in accordance with United States law, and in any case as soon as practicable following the close of the Obligor’s taxable year, and will simultaneously provide the Agent with a copy thereof. With respect to a Tax Deduction on account of non-United States Taxes, within thirty (30) days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment an original receipt (or certified copy thereof), 

 

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or if unavailable, evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority;

 

(iii)          in the case of any payment of interest hereunder by or on behalf of an Obligor through an account or branch outside the United States or by or on behalf of an Obligor by a payer that is not a United States Person (other than a payment made pursuant to a Guarantee), if such Obligor determines that no Taxes are payable in respect thereof, such Obligor shall furnish, or shall cause such payer to furnish, to the Agent, an opinion of counsel acceptable to the Agent stating that such payment is exempt from Taxes; and

 

(iv)          promptly after becoming a Party to this Agreement, but in any event before a payment pursuant to this Agreement is due, each Lender will provide, as relevant, to each US Borrower two original executed IRS forms or certifications that establish the Lender is entitled to a complete exemption or reduction (as applicable) from US withholding Taxes on all payments made pursuant to this Agreement and in the case of a Lender claiming the portfolio interest exemption, IRS Form W-8BEN-E (or any successor form) together with a statement certifying that such Lender is not (i) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (ii) a “10 percent shareholder” of the relevant US Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (iii) a “controlled foreign corporation” that is related to such US Borrower within the meaning of Section 881(c)(3)(C) of the Code.  Upon a change of facts which causes the prior forms to no longer be valid or upon the reasonable request of a US Borrower, a Lender shall again provide the forms and documents described above unless it is unable to do so because of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or treaty, or any published practice or concession of any relevant taxing authority; if a Lender is unable to provide such forms and documents, then such Lender shall provide such other forms and certifications to establish any exemption or reduction from US withholding Taxes for which such Lender is eligible.

 

(j)            At least three (3) Business Days prior to the due date of any amount payable by an Obligor under any Finance Document, the Agent shall provide to each Borrower by pdf or facsimile a schedule setting forth the portion of the total amount of such payment that will be payable to each Lender on such due date.  Within a reasonable amount of time prior to the close of business on the date on which such scheduled amount becoming payable by an Obligor under any Finance Document, each Borrower shall provide to the Agent by pdf or facsimile a reciprocal schedule setting forth the amount of any Tax Deduction that the Obligor will withhold from each payment to be made to each Lender included on such schedule on the due date for such payment (the “GTECH Withholding Schedule”).  No failure or delay of the Agent to provide the Borrowers with the schedule contemplated hereunder shall affect the obligation of any Obligor to make the payments otherwise required to be made by them under this Agreement.

 

(k)           Any Lender which enters into any sub-participation or other risk sharing arrangement with a Relevant Sub-Participant shall only be entitled to receive payments under this Clause 19.2 with reference to any interest paid on the sub-participated commitment (i) to the same extent as such Lender would have been if it had not entered into such sub-participation or (ii) for an amount equivalent to the Tax Deduction required by law to be applied on any 

 

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payment made under this Agreement and beneficially owned by the Relevant Sub-Participant, if lower; provided that this paragraph (k) shall not apply to limit any entitlement to receive payments under this Clause 19.2 if the right to receive a greater payment results from a Change of Tax Law that occurs after the Relevant Sub-Participant acquired the applicable sub-participated commitment.

 

19.3        Tax indemnity

 

(a)           The relevant Obligor shall (within five (5) Business Days of demand by the Agent) pay (or cause to be paid) to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document (and for which it has provided, or will provide, documentary evidence).

 

(b)           Paragraph (a) above shall not apply:

 

(i)            with respect to any Tax assessed on a Finance Party:

 

(A)          under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident or engaged in a trade or business for tax purposes; or

 

(B)          under the law of the jurisdiction in which that Finance Party’s Permanent Establishment or Facility Office is located in respect of amounts received or receivable in that jurisdiction,

 

if that Tax is imposed on or calculated by reference to the net income received or receivable, including for the avoidance of any doubt the value of production determined for IRAP purposes (but not any sum deemed to be received or receivable) by that Finance Party, including branch profits tax and minimum tax; or

 

(ii)           to the extent a loss, liability or cost:

 

(A)          is compensated for by an increased payment under Clause 19.2 (Tax gross-up); or

 

(B)          would have been compensated for by an increased payment under Clause 19.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph (d) of Clause 19.2 (Tax gross-up) applied; or

 

(C)          is compensated for by Clause 19.6 (Stamp taxes) (or would have been so compensated for under that Clause but was not so compensated solely because any of the exceptions set out therein applied); or

 

(D)          relates to a FATCA Deduction required to be made by a Party.

 

(c)           A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the relevant Obligor.

 

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(d)           Such claim and Agent notification shall set forth in reasonable detail the basis for the claim being made by the relevant Finance Party and appropriate documentation supporting such claim.

 

(e)           A Protected Party shall, on receiving a payment from an Obligor under this Clause 19.3 notify the Agent.

 

19.4        Tax Credit

 

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

 

(a)           a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and

 

(b)           that Finance Party has obtained, utilised and fully retained that Tax Credit on an affiliated group basis,

 

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor.

 

19.5        Lender Status Confirmation

 

(a)           In respect of an Italian Obligor, each Lender which becomes a Party to this Agreement after the date of this Agreement (or which enters into any sub-participation or other risk sharing arrangement with a Relevant Sub-Participant) shall indicate in the Transfer Certificate or Assignment Agreement which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it (or the Relevant Sub-Participant, if on the date of the Sub-Participation or risk arrangement, such Relevant Sub-Participant was treated as if it were a Lender under this Agreement) falls in:

 

(i)            an Exempt Lender;

 

(ii)           an Italian Qualifying Lender;

 

(iii)          an Italian Treaty Lender; or

 

(iv)          not a Qualifying Lender.

 

(b)           In respect of a UK Borrower, each Lender which becomes a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate or Assignment Agreement which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:

 

(i)            not a Qualifying Lender;

 

(ii)           a Qualifying Lender other than a UK Treaty Lender; or

 

(iii)          a UK Treaty Lender.

 

(c)           In respect of a US Borrower, each Lender which becomes a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate or Assignment 

 

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Agreement which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:

 

(i)            not a Qualifying Lender; or

 

(ii)           a Qualifying Lender within paragraph 19.5.

 

(d)           If a New Lender fails to indicate its status in accordance with this Clause 19.5 then such New Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Obligors). If in respect of an Italian Obligor, any Lender fails to indicate the status of the Relevant Sub-Participant or the Relevant Sub-Participant fails to provide the Agent with any Affidavit possibly required or necessary in accordance with this Clause 19.5, then such Lender shall with respect to the Relevant Sub-Participant be treated for the purposes of this Agreement (including by each Obligor) as if it is not an Italian Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Borrower) or the Relevant Sub-Participant provides the Agent with such Affidavit.

 

(e)           For the avoidance of doubt, a Transfer Certificate or Assignment Agreement shall not be invalidated by any failure of any Lender to comply with this Clause 19.5.

 

19.6        Stamp taxes

 

The relevant Borrower shall, or shall procure that an Obligor shall, pay and, within ten (10) Business Days of demand, indemnify each Finance Party against any duly documented liability, loss, cost or expense that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document; provided that no Obligor shall be liable for the aforementioned liability, loss, cost or expense:

 

(a)           in relation to any such Taxes payable in respect of an assignment, transfer or sub-participation by a Finance Party, unless that assignment, transfer or sub-participation is carried out at the request of any Obligor and the Finance Party agrees to such request voluntarily (in circumstances where it is not required to agree to such request on the terms of this Agreement);

 

(b)           to the extent that such Taxes become payable upon a voluntary registration made by any Finance Party if such registration is not necessary to evidence, prove, maintain, enforce, compel or otherwise assert the rights of such Party or obligations of any Party under an Finance Document or when such registration is necessary in order to produce or rely on such document for any other purposes;  or

 

(c)           in case it arises as a consequence of, or in connection to, any claims by any authority, including, but not limited to, any Tax authority, and the Lender has not provided the relevant Borrower with copies of any relevant written communications relating to the Finance Document, including, but not limited to, any notices of payment, (the “Tax Notice”) received from that authority within fifteen (15) Business Days from receipt (the “Tax Notice Term”). If the Lender notifies the relevant Borrower with the Tax Notice within the Tax Notice Term, then the Parties will agree, without prejudice of any rights of the relevant Lender, including the right to be indemnified, under this Clause 19.6, as far as reasonably 

 

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practicable acting in good faith, possible defensive strategies and the substance and conduct of such defensive strategies and such Lender will, as far as reasonably practicable acting in good faith, share in a timely fashion any relevant information for the relevant Borrower in relation to the development of any litigation proceedings or any settlement or other procedures which may be in progress as the result of the implementation of such defensive strategies.

 

19.7        Value added tax

 

(a)           All amounts set out, or expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on each supply, and accordingly, subject to paragraph (b) below, if VAT is chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account for the VAT to the relevant Tax Authority that Party shall pay to the Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the VAT (and such Finance Party shall promptly provide an appropriate VAT invoice to such Party).

 

(b)           If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document, and any Party other than the Recipient (the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

 

(i)            (where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT. The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

 

(ii)           (where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

 

(c)           Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any costs or expenses, that Party shall reimburse or indemnify the Finance Party in respect of the full amount of such costs or expenses, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment from the relevant tax authority in respect of such VAT.

 

(d)           Any reference in this Clause 19.7 to any Party shall, at any time when such Party is treated as a member of a group or unity (or fiscal unity) for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the person who is treated at that time as making the supply, or (as appropriate) receiving the supply, under the grouping rules (provided for in Article 11 of Council Directive 2006/112/EC (or as 

 

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implemented by the relevant member state of the European Union) or any other similar provision in any jurisdiction which is not a member state of the European Union) so that a reference to a Party shall be construed as a reference to that Party or the relevant group or unity (or fiscal unity) of which that Party is a member for VAT purposes at the relevant time or the relevant representative member (or head) of that group or unity (or fiscal unity) at the relevant time (as the case may be).

 

(e)           In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party’s VAT registration and such other information as is reasonably requested in connection with such Finance Party’s VAT reporting requirements in relation to such supply.

 

19.8        No application of the Imposta Sostitutiva

 

The Parties hereby acknowledge that this Agreement was negotiated and is executed outside the Republic of Italy, and therefore the requirements provided for by article 15 and subsequent of Italian Presidential Decree No. 601 of 1973 as amended and supplemented from time to time (“D.P.R. 601/1973”) for the application of the Imposta Sostitutiva on medium term financing are not met. Accordingly, the Lenders cannot exercise, at the request of a Borrower, any option for the application to this Agreement of the Imposta Sostitutiva pursuant to article 15 and subsequent of the D.P.R. 601/1973.

 

19.9        FATCA Information

 

(a)           Subject to paragraph (c) below, each Party shall, within ten (10) Business Days of a reasonable request by another Party:

 

(i)            confirm to that other Party whether it is:

 

(A)          a FATCA Exempt Party; or

 

(B)          not a FATCA Exempt Party;

 

(ii)           supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA;

 

(iii)          supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation, or exchange of information regime.

 

(b)           If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

 

(c)           Paragraph (a) above shall not oblige any Finance Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

 

(i)            any law or regulation;

 

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(ii)           any fiduciary duty; or

 

(iii)          any duty of confidentiality.

 

(d)           If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph (a)(i) or (ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

 

(e)           If a Borrower is a US Tax Obligor or the Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it, each Lender shall, within ten (10) Business Days of:

 

(i)            where an Original Borrower is a US Tax Obligor and the relevant Lender is an Original Lender, the date of this Agreement;

 

(ii)           where a Borrower is a US Tax Obligor on a Transfer Date and the relevant Lender is a New Lender, the relevant Transfer Date;

 

(iii)          the date a new US Tax Obligor accedes as a Borrower; or

 

(iv)          where a Borrower is not a US Tax Obligor, the date of a request from the Agent,

 

supply to the Agent:

 

(A)          a withholding certificate on Form W-8, Form W-9 or any other relevant form; or

 

(B)          any withholding statement or other document, authorisation or waiver as the Agent may require to certify or establish the status of such Lender under FATCA or that other law or regulation.

 

(f)            The Agent shall provide any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) above to the relevant Borrower.

 

(g)           If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Agent by a Lender pursuant to paragraph (e) above is or becomes materially inaccurate or incomplete, such Lender shall promptly update it and provide such updated withholding certificate, withholding statement, document, authorisation or waiver to the Agent unless it is unlawful for the Lender to do so (in which case the Lender shall promptly notify the Agent). The Agent shall provide any such updated withholding certificate, withholding statement, document, authorisation or waiver to the relevant Borrower.

 

(h)           The Agent may rely on any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) or (g) above without further verification. The Agent shall not be liable for any action taken by it under or in connection with paragraph (e), (f) or (g) above.

 

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19.10      FATCA Deduction

 

(a)           Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

(b)           Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Parent and the Agent and the Agent shall notify the other Finance Parties.

 

20.          INCREASED COSTS

 

20.1        Increased Costs

 

(a)           Subject to Clause 20.3 (Exceptions) the Obligors shall, within three (3) Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation; (ii) compliance with any law or regulation (provided that, notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder issued in connection therewith or in implementation thereof shall be deemed to be a “change in law”, regardless of the date enacted, adopted, issued or implemented) made after the date of this Agreement or (iii) the implementation or application of or compliance with Basel III or CRD IV or any law or regulation that implements or applies Basel III or CRD IV.

 

(b)           In this Agreement:

 

“Basel III” means:

 

(i)            the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

 

(ii)           the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement — Rules text” published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

 

(iii)          any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III”.

 

“CRD IV” means:

 

(i)            Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms; and

 

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(ii)           Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms.

 

“Increased Costs” means:

 

(i)            a reduction in the rate of return from a Facility or on a Finance Party’s (or its Affiliate’s) overall capital;

 

(ii)           an additional or increased cost; or

 

(iii)          a reduction of any amount due and payable under any Finance Document,

 

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Revolving Facility Commitment or a US Dollar Swingline Commitment or funding or performing its obligations under any Finance Document or Letter of Credit.

 

20.2        Increased Cost claims

 

(a)           A Finance Party intending to make a claim pursuant to Clause 20.1 (Increased Costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrowers.

 

(b)           Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

 

20.3        Exceptions

 

Clause 20.1 (Increased Costs) does not apply to the extent any Increased Cost is:

 

(a)           attributable to a Tax Deduction required by law to be made by an Obligor;

 

(b)           compensated for by Clause 19.3 (Tax indemnity) (or would have been compensated for under Clause 19.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 19.3 (Tax indemnity) applied);

 

(c)           attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation;

 

(d)           attributable to the implementation or application of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement (but excluding any amendment arising out of Basel III) (“Basel II”) or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Finance Party or any of its Affiliates); or

 

(e)           attributable to a FATCA Deduction required to be made by a Party.

 

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21.          OTHER INDEMNITIES

 

21.1        Currency indemnity

 

(a)           If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of:

 

(i)            making or filing a claim or proof against that Obligor; or

 

(ii)           obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

 

that Obligor shall as an independent obligation, within three (3) Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

 

(b)           Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

 

21.2        Other indemnities

 

Each Borrower shall (or shall procure that an Obligor will), within three (3) Business Days of demand, indemnify the Arranging Parties and each other Finance Party against any cost, loss or liability incurred by it as a result of:

 

(a)           the occurrence of any Event of Default;

 

(b)           a failure by an Obligor to pay any amount due under a Finance Document on its due date, including, without limitation, any cost, loss or liability arising as a result of Clause 34 (Sharing among the Finance Parties);

 

(c)           funding, or making arrangements to fund, its participation in a Utilisation requested by it in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or

 

(d)           a Utilisation (or part of a Utilisation) not being prepaid in accordance with a notice of prepayment given by it.

 

21.3        Indemnity to the Agent

 

Each Borrower shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

 

(a)           investigating any event which it reasonably believes is a Default;

 

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(b)           entering into or performing any foreign exchange contract for the purposes of paragraph (b) of Clause 35.10 (Change of currency); or

 

(c)           acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised.

 

22.          MITIGATION

 

22.1        Mitigation by the Lenders

 

(a)           Each Finance Party shall, in consultation with the Parent, take all reasonable steps, including to the extent possible, but not limited to, making any Utilisation available from an Affiliate, to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 12.1 (Illegality) (or, in respect of the Issuing Agent, Clause 12.2 (Illegality in relation to the Issuing Agent)), Clause 19 (Tax Gross Up and Indemnities) or Clause 20.1 (Increased Costs) or in any amount payable under a Finance Document by an Italian Obligor becoming not deductible from that Italian Obligor’s taxable income for Italian tax purposes by reason of that amount originating from transactions occurred with Blacklisted Resident Entities including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

 

(b)           Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents.

 

22.2        Mitigation by the Obligors

 

Should a Finance Party become subject to Taxes because of its failure to deliver a form, certificate or other document required under Clause 19.2 Tax gross-up), the Obligors shall take such steps as such Finance Party shall reasonably request to assist such Finance Party to recover such Taxes.

 

22.3        Limitation of liability

 

(a)           Each Borrower shall indemnify each Finance Party, for all costs and expenses reasonably incurred by that party as a result of steps taken by it under Clause 22.1 (Mitigation by the Lenders).

 

(b)           A Finance Party is not obliged to take any steps under Clause 22.1 (Mitigation by the Lenders) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

 

23.          COSTS AND EXPENSES

 

23.1        Transaction expenses

 

The Borrowers shall within ten (10) Business Days of demand pay each Finance Party the amount of all reasonable and documented out-of-pocket costs and expenses (including legal fees up to the amount agreed with the Parent) reasonably incurred by any of them in connection with the negotiation, preparation, printing, execution, syndication (and previously approved by the Borrowers) and perfection of:

 

(a)           this Agreement and any other documents referred to in this Agreement; and

 

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(b)           any other Finance Documents executed after the date of this Agreement, and

 

if, requested, the Borrowers shall pay directly the relevant advisers upon receipt of the relevant reasonably detailed invoice; provided that there shall be no double recovery under this Clause 23.1 and paragraph 6 of the Mandate Letter.

 

23.2        Amendment costs

 

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 35.10 (Change of currency), the Borrowers shall, within three (3) Business Days of demand, reimburse the Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or requirement.

 

23.3        Enforcement and preservation costs

 

The Borrowers shall, within three (3) Business Days of demand, pay to the Arranging Parties and each other Finance Party the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of or the preservation of any rights under any Finance Document and any proceedings instituted by or against the Agent as a consequence of taking or holding or enforcing these rights.

 

24.          GUARANTEE AND INDEMNITY

 

24.1        Guarantee and indemnity

 

Each Guarantor irrevocably and unconditionally jointly and severally:

 

(a)           guarantees to each Finance Party and each Hedging Bank as primary obligor the punctual performance by a member of the Group of all of such member of the Group’s obligations under the Finance Documents and Hedging Documents and the punctual payment when due by such member of the Group of all sums payable under the Finance Documents and Hedging Documents;

 

(b)           undertakes with each Finance Party and each Hedging Bank that whenever a member of the Group fails to perform any obligation or pay any of the indebtedness referred to in paragraph (a) above, it will perform such obligation or pay to such Finance Party or Hedging Bank such sum on demand, in each case, as if it were the primary obligor; and

 

(c)           indemnifies, as an independent and primary obligation, each Finance Party and each Hedging Bank immediately on demand against any cost, loss or liability suffered by that Finance Party or Hedging Bank if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal.  The amount of the cost, loss or liability shall be equal to the amount which that Finance Party or Hedging Bank would otherwise have been entitled to recover.

 

24.2        Continuing guarantee

 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents and Hedging Documents, regardless of any intermediate payment or discharge in whole or in part.

 

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24.3        Reinstatement

 

If any payment by an Obligor or any discharge given by a Finance Party or a Hedging Bank (whether in respect of the obligations of any Obligor or any Security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event:

 

(a)           the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and

 

(b)           each Finance Party and each Hedging Bank shall be entitled to recover the value or amount of such Security or payment from each Obligor, as if the payment, discharge, avoidance or reduction had not occurred.

 

24.4        Waiver of defences

 

The obligations of each Guarantor under this Clause 24 will not, to the extent permitted under mandatory law, be affected by an act, omission, matter or thing which, but for this Clause 24, would reduce, release or prejudice any of its obligations under this Clause 24 (without limitation and whether or not known to it or any Finance Party or any Hedging Bank) including:

 

(a)           any time, waiver or consent granted to, or composition with, any Obligor or other person;

 

(b)           the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

 

(c)           the making or absence of any demand on a member of the Group or any other person (other than the notice referred to in Clause 24.1(b) (Guarantee and indemnity)) for payment or performance of any other obligations, or the application of any moneys at any time received from a member of the Group or any other person;

 

(d)           the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or Security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any Security;

 

(e)           any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;

 

(f)            any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document, Hedging Document, or any other document or Security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or Hedging Document or other document or Security;

 

(g)           any unenforceability or illegality or invalidity of any obligation of any person under any Finance Document, Hedging Document or any other document or Security; or

 

(h)           any insolvency or similar proceedings,

 

(other than the irrevocable payment in full of such obligations).

 

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24.5        Guarantor intent

 

Without prejudice to the generality of Clause 24.4 (Waiver of defences), each Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents or any of the Hedging Documents or any facility or amount made available under any of the Finance Documents or Hedging Documents for the purposes of or in connection with any of the following:  acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs or expenses associated with any of the foregoing.

 

24.6        Immediate recourse

 

Each Guarantor waives any right it may have of first requiring any Finance Party or any Hedging Bank (or any trustee or agent on its behalf) to proceed against or enforce any other rights or Security or claim payment from any person before claiming from that Guarantor under this Clause 24.  This waiver applies irrespective of any law or any provision of a Finance Document or Hedging Document to the contrary.

 

24.7        Appropriations

 

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents and Hedging Documents have been irrevocably paid in full, each Finance Party and each Hedging Bank (or any trustee or agent on its behalf) may:

 

(a)           refrain from applying or enforcing any other moneys, Security or rights held or received by that Finance Party or Hedging Bank (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise), and no Guarantor shall be entitled to the benefit of the same; and

 

(b)           hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this Clause 24.

 

24.8        Deferral of Guarantors’ rights

 

(a)           Each Obligor acknowledges and agrees with each Guarantor that, subject to the terms and conditions of this Clause 24.8 and to the extent permitted by applicable law, upon the payment by the Guarantors of any of their obligations under this guarantee (whether pursuant to the guarantees, undertakings or indemnities given in Clause 24.1 (Guarantee and indemnity) or otherwise):

 

(i)            each Obligor shall indemnify the Guarantors for the full amount of such payment; and

 

(ii)           the Guarantors shall be subrogated to the rights of the person to whom such payment shall have been made to the extent of such payment (such rights of indemnification and subrogation, together with all other rights of the Guarantors, by reason of the performance of any of their obligations under this guarantee, or any action taken pursuant to any rights conferred by or pursuant to this guarantee, to be 

 

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indemnified by any person, to prove in respect of any liability in the winding-up of any person or to take the benefit of or enforce any Security or guarantees or to exercise any rights of contribution are, collectively, the “Subrogation Rights”).

 

(b)           Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents or Hedging Documents have been irrevocably paid in full, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or the Hedging Documents:

 

(i)            to be indemnified by an Obligor;

 

(ii)           to claim any contribution from any other Guarantor of any Obligor’s obligations under the Finance Documents or the Hedging Documents; or

 

(iii)          to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties or the Hedging Banks under the Finance Documents or of any other guarantee or Security taken pursuant to, or in connection with, the Finance Documents or Hedging Documents by any Finance Party or Hedging Bank.

 

From and after the date when all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents and Hedging Documents have been irrevocably paid in full, the Subrogation Rights of the Guarantors may be exercised and enforced by the Guarantors in their sole discretion.

 

24.9        Release of Guarantors’ right of contribution

 

If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the terms of the Finance Documents or Hedging Documents for the purpose of any sale or other disposal of that Retiring Guarantor, then on the date such Retiring Guarantor ceases to be a Guarantor:

 

(a)           that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents or Hedging Documents; and

 

(b)           each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents or Hedging Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties or Hedging Banks under any Finance Document or any Hedging Document or of any other Security taken pursuant to, or in connection with, any Finance Document or Hedging Document where such rights or Security are granted by or in relation to the assets of the Retiring Guarantor.

 

24.10      Additional security

 

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or Security now or subsequently held by any Finance Party or Hedging Bank.

 

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24.11      Limitations on US Guarantees

 

(a)           Each US Guarantor acknowledges that it will receive valuable direct or indirect benefits as a result of the transactions contemplated by the Finance Documents and the Hedging Documents (including utilisations thereunder).

 

(b)           Each US Guarantor represents, warrants and agrees that:

 

(i)            it is US Solvent; and

 

(ii)           it has not made a transfer or incurred any obligation under any Finance Document or Hedging Document with the intent to hinder, delay or defraud any of its present or future creditors.

 

(c)           Notwithstanding anything to the contrary contained herein or in any other Finance Document or Hedging Document:

 

(i)            each Finance Party and Hedging Bank agrees that the maximum liability of each US Guarantor under Clause 24 (Guarantee and indemnity) shall in no event exceed an amount equal to the greatest amount that would not render such US Guarantor’s obligations hereunder and under the other Finance Documents and Hedging Documents subject to avoidance under US Bankruptcy Law or to being set aside, avoided or annulled under any Fraudulent Transfer Law, in each case after giving effect to

 

(A)          all other liabilities of such US Guarantor, contingent or otherwise, that are relevant under such Fraudulent Transfer Law (specifically excluding, however, any liabilities of such US Guarantor in respect of intercompany indebtedness to any Borrower to the extent that such Financial Indebtedness would be discharged in an amount equal to the amount paid by such US Guarantor hereunder) and

 

(B)          the value as assets of such US Guarantor (as determined under the applicable provisions of such Fraudulent Transfer Law) of any rights to subrogation, contribution, reimbursement, indemnity or similar rights held by such US Guarantor pursuant to

 

(1)           applicable law or

 

(2)           any other agreement providing for an equitable allocation among such US Guarantor and the Borrowers and other Guarantors of obligations arising under this Agreement or other guarantees of such obligations by such parties: and

 

(ii)           each party agrees that, in the event any payment or distribution is made on any date by a Guarantor under this Clause 24, each such Guarantor shall be entitled to be indemnified from each other Guarantor in an amount equal to such payment, in each case multiplied by a fraction of which the numerator shall be the net worth of the contributing Guarantor and the denominator shall be the aggregate net worth of all the Guarantors.

 

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24.12                 Controlled Foreign Corporations

 

Notwithstanding any term or provision of this Clause 24 or any other term in this Agreement or any Finance Document:

 

(a)                                 no member of the Group that is a controlled foreign corporation for US federal income tax purposes (a “CFC”) will have any obligation or liability, directly or indirectly, as guarantor or otherwise under this Agreement or any Finance Document with respect to any obligation or liability arising under any Finance Document of a US Borrower (a “US Obligation”); and

 

(b)                                 not more than sixty-five per cent. (65%) of the stock or other equity interests (measured by the total combined voting power of the issued and outstanding voting stock or other equity interests) of, and none of the assets or property of, a person that is a CFC will be required to be pledged directly or indirectly as Security for any US Obligations.

 

24.13                 Guarantee limitations applicable to GTECH as Parent

 

Pursuant to article 1938 of the Italian Civil Code, for as long as GTECH is the Parent, the maximum aggregate amount that GTECH may be required to pay in respect of its obligations under this Clause 24 shall not exceed an amount equal to US$1,980,000,000 in respect of Revolving Facility A and €1,155,000,000 in respect of Revolving Facility B (the “Maximum Amount”). Subject to and without prejudice to Clause 24.2 (Continuing guarantee) and 24.3 (Reinstatement), the Maximum Amount shall be reduced by the amount of any cancellation of the Facility Commitments.

 

24.14                 Italian guarantee limitations

 

(a)                                 In the case of any Guarantor incorporated in Italy (other than GTECH for such time as it is the Parent) (an “Italian Guarantor”), its liability as Guarantor under this Clause 24 shall not exceed, at any time, the aggregate at that time of:

 

(i)                                     the highest outstanding principal amount at any time of the indebtedness of such  Italian Guarantor (or any of its direct or indirect Subsidiaries) as a Borrower under any Facility; and

 

(ii)                                  the highest outstanding principal amount at any time of all inter-company loans advanced (or granted) to such Italian Guarantor (or any of its direct or indirect Subsidiaries) by any Obligor or any other member of the Group after the date of this Agreement.

 

(b)                                 In any event, pursuant to article 1938 of the Italian Civil Code, the maximum amount an Italian Guarantor may be required to pay in respect of its obligations as Guarantor under this Agreement shall not exceed the amount equal to US$1,980,000,000 in respect of Revolving Facility A and €1,155,000,000 in respect of Revolving Facility B.

 

24.15                 Keepwell

 

Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other member of the Group to honour all of its obligations under its guaranty in respect of Swap Obligations, subject to the limitation otherwise set forth herein.  The obligations of each

 

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Qualified ECP Guarantor under this Clause 24.15 shall remain in full force and effect until discharged in accordance with the provisions of its guarantee.  Each Qualified ECP Guarantor intends that this Clause 24.15 constitute, and this Clause shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other member of the Group for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

25.                               REPRESENTATIONS

 

25.1                        General

 

On the date of this Agreement and at the times set out in Clause 25.25 (Repetition) each Obligor makes the representations and warranties set out in this Clause 25 to each Finance Party.

 

25.2                        Status

 

(a)                                 It and each of its Material Subsidiaries is a limited liability corporation, duly incorporated or organised (as applicable) and validly existing under the law of its jurisdiction of incorporation.

 

(b)                                 It and each of its Material Subsidiaries has the power to own its material assets and carry on its business as it is being conducted.

 

25.3                        Binding obligations

 

Subject to the Legal Reservations, the obligations expressed to be assumed by it in each Finance Document to which it is a party and which have been executed by it are legal, valid, binding and enforceable obligations.

 

25.4                        Non-conflict with other obligations

 

The entry into and performance by it of its obligations under, and the transactions contemplated by, the Finance Documents, to which it is a party do not and will not conflict with:

 

(a)                                 any law or regulation applicable to it;

 

(b)                                 its constitutional documents; or

 

(c)                                  any agreement or instrument binding upon it or any of its assets or constitute a default or termination event (however described) under any such agreement or instrument, unless any such conflict does not and is not reasonably likely to have a Material Adverse Effect.

 

25.5                       Power and authority

 

(a)                                 It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is or will be a party and the transactions contemplated by those Finance Documents.

 

(b)                                 No limit on its powers will be exceeded as a result of the borrowing or giving of guarantees or indemnities contemplated by the Finance Documents to which it is a party.

 

25.6                        Validity and admissibility in evidence

 

(a)                                 All Authorisations required:

 

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(i)                                     to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; and

 

(ii)                                  to make the Finance Documents to which it is a party admissible in evidence in its jurisdictions of incorporation,

 

have been obtained or effected and are in full force and effect.

 

(b)                                 All Authorisations necessary for the conduct of the business, trade and ordinary activities of members of the Group have been obtained or effected and are in full force and effect other than those Authorisations the failure of which to obtain or effect has not and is not reasonably likely to have a Material Adverse Effect.

 

25.7                        Governing law and enforcement

 

(a)                                 Subject to the Legal Reservations, the choice of governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions.

 

(b)                                 Subject to the Legal Reservations, any judgment obtained in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.

 

25.8                        Deduction of Tax

 

It is not required to make any Tax Deduction from any payment it may make under any Finance Document to a Lender which is:

 

(a)                                 a Qualifying Lender,

 

(i)                                     falling within paragraphs (a)(i), (a)(ii), (b)(i), (b)(iv), (c) or (d) of the definition of Qualifying Lender; or

 

(ii)                                  except where a Direction has been given under section 931 of the ITA in relation to the payment concerned, falling within paragraph (b)(ii) of the definition of Qualifying Lender; or

 

(b)                                 a Treaty Lender; provided that in the case of a UK Treaty Lender the payment is one specified in a direction given by the Commissioners of Revenue and Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488) and in the case of a US Borrower the Lender has satisfied its obligations under Clause 19.2(i)(iv) (Tax gross-up).

 

25.9                        No filing or stamp taxes

 

Under the laws of its Relevant Jurisdictions it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents, subject always to the Legal Reservations, except with reference to Italy:

 

(a)                                 where any Finance Document is executed before or deposited with an Italian notary public or in any case formed and executed within the Italian territory in the form of a deed;

 

109

 

(b)                                 on voluntarily registration of any Finance Document with the Italian tax authority;

 

(c)                                  in any “case of use” (caso d’uso), including the filing, recording or enrolment of any Finance Document with any Italian judicial authority (when carrying out any administrative activity) or administrative authority (unless such filing is mandatory at law);

 

(d)                                 in the event any of the provisions of the Finance Document is mentioned (according to the enunciazione principle) in any separate document entered into between the same parties (alone or together with other parties) which have not been previously registered and in respect of which any of the conditions described at paragraphs (a) through (c) above is met; or

 

(e)                                  if any Finance Document is enforced in Italy either by way of a direct court judgment or an exequatur of a judgment rendered outside Italy.

 

25.10                 No default

 

(a)                                No Event of Default or Default is continuing or will result from the making of any Utilisation or the entry into, the performance of, or any transaction contemplated by any Finance Document.

 

(b)                                No other event or circumstance is outstanding which constitutes a default or termination event (however described) under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries’) assets are subject which has had or is reasonably likely to have a Material Adverse Effect.

 

25.11                 No misleading information

 

All of the written factual information supplied by each of the Original Obligors in connection with the Finance Documents and the matters contemplated therein was (to the best of its knowledge after due and careful enquiry) true, complete and accurate in all material respects as at the date it was given and was not misleading in any material respect.

 

25.12                 Financial statements

 

(a)                                 The Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied unless expressly disclosed therein or otherwise disclosed to the Agent in writing to the contrary prior to the date of this Agreement.

 

(b)                                 Its Original Financial Statements give a true and fair view of its financial condition and results of operations during the relevant Financial Year unless expressly disclosed therein to the contrary or otherwise disclosed to the Agent in writing to the contrary prior to the date of this Agreement.

 

25.13                 No proceedings pending or threatened

 

No litigation, arbitration or administrative proceedings or investigations of, or before, any court, arbitral body or agency which are reasonably likely, if adversely determined, to have a Material Adverse Effect (to the best of the Parent’s knowledge and belief) have been started or threatened against it or any of its Subsidiaries.

 

110

 

25.14                 Security

 

No Security or Quasi-Security exists over all or any of the present or future assets of any member of the Group other than as permitted by this Agreement.

 

25.15                 Pari Passu Ranking

 

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

25.16                 US Government Regulations

 

(a)                                It is not a “public utility” within the meaning of, or subject to regulation under, the United States Federal Power Act of 1920 (16 U.S.C. §§791 et seq.).

 

(b)                                It is not an “investment company” as defined in, or subject to regulation under, the United States Investment Company Act of 1940 (15 U.S.C. §§ 80a-1 et seq.) or in violation of regulation under any United States federal or state law or regulation that limits its ability to incur or guarantee indebtedness.

 

(c)                                  It has not made (or attempted to make) an “unlawful payment” within the meaning of, and is not in any other way in violation of, the Foreign Corrupt Practices Act (15 U.S.C. §§ 78dd-1 et seq.) or any similar laws.

 

25.17                 ERISA

 

(a)                                 No ERISA Event has occurred or is reasonably expected to occur that has resulted in or is reasonably expected to result in a material liability of it or its Subsidiaries or any ERISA Affiliate.

 

(b)                                 Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan, copies of which have been filed with the Internal Revenue Service of the United States of America, is complete and accurate and fairly presents the funding status of such Plan, and since the date of such Schedule B there has been no material adverse change in such funding status.

 

(c)                                  Neither it, nor any of its Subsidiaries, nor any ERISA Affiliate has incurred or is reasonably expected to incur any Withdrawal Liability to any Multiemployer Plan.

 

(d)                                 Neither it, nor any of its Subsidiaries, nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganisation or has been terminated, within the meaning of Title IV of ERISA, and to the best of its knowledge, no such Multiemployer Plan is reasonably expected to be in reorganisation or to be terminated, within the meaning of Title IV of ERISA.

 

(e)                                  Except as does not have and could not reasonably be expected to have, a Material Adverse Effect, and except to the extent required under Section 4980B of the Code, no Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of the Obligors, any of their Subsidiaries or any of their respective ERISA Affiliates.

 

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25.18                 Solvency (US Obligors)

 

GTECH Corporation is, on a consolidated basis, as of the date hereof, US Solvent.

 

25.19                 Material Adverse Effect

 

No Material Adverse Effect has occurred since the date of the most recent financial statements delivered pursuant to Clause 26.1 (Financial statements).

 

25.20                 US Anti-Terrorism laws

 

It, and to the best of its knowledge, each of its Material Subsidiaries:

 

(a)                                 has taken reasonable measures to ensure compliance with Anti-Terrorism Laws;

 

(b)                                 is not a Designated Person; and

 

(c)                                  does not deal in any property or interest in property known by it to be blocked pursuant to any Anti-Terrorism Law.

 

25.21                 US Margin Regulations

 

No part of the proceeds of any Utilisation will be used (i) in contravention of Regulation T, U or X of the Federal Reserve Board, or (ii) for “buying” or “carrying” (within the meaning of Regulation T, U or X) any Margin Stock or to extend credit to others for the purpose of buying or carrying any Margin Stock, other than in the case of clause (ii), that a portion of the proceeds of any Utilisation may be used to make Restricted Payments permitted under paragraph (e) of the definition of Permitted Restricted Payments or as consideration to finance Permitted Acquisitions.  Following the application of the proceeds of each Utilisation, not more than twenty five per cent. (25%) of the value of the assets of the Obligors subject to any restriction contained in this Agreement or any other agreement or instrument between the Obligors, on the one hand, and any Lender or Affiliate of any Lender, on the other hand, relating to Financial Indebtedness will be Margin Stock.

 

25.22                 Sanctions, Anti-Corruption and other laws

 

The Parent represents that:

 

(a)                                 each member of the Group has implemented and maintains in effect policies and procedures designed to promote and achieve compliance by each such member and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and each member of the Group and their respective directors and officers and, to the knowledge of the Parent, their respective employees and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in a Borrower being designated as a Sanctioned Person;

 

(b)                                 none of (a) the Parent, any member of the Group or any of their respective directors, officers or employees, or (b) to the knowledge of the Parent, any agent of the Parent or any member of the Group that will act in any capacity in connection with or benefit from the Facilities, is a Sanctioned Person; and

 

112

 

(c)                                  no Utilisation, use of proceeds or issuance of Letter of Credit pursuant to this Agreement will violate Anti-Corruption Laws or applicable Sanctions.

 

Notwithstanding anything to the contrary contained in this Agreement or in any other Finance Document, the representations and warranties under this Clause 25.22 shall not be made to or for the benefit of any Specified Lender, no Specified Lender shall have any rights under this Clause 25.22 and each Specified Lender shall be deemed not to be a Lender solely for purposes of calculating any consent or vote of the Majority Lenders under Clause 29.16 (Acceleration) with respect to any breach of this Clause 25.22 (but in each case without prejudice to any other rights or obligations of any Specified Lender as a consequence of any Default occurring as a result of any breach of this Clause 25.22).

 

25.23                 Gaming

 

(a)                                 Each member of the Group complies in the jurisdiction in which it operates and conducts its business and operations:

 

(i)                                     where applicable, with the laws of the United States of America that prohibit internet gambling, including, but not limited to, the US Wire Wager Act (18 U.S.C. §1084);

 

(ii)                                  based on advice of reputable and experienced counsel, in all material respects with the laws that prohibit, or are reasonably capable of enforcing against any member of the Group prohibitions on, internet gambling of all other Prohibited Jurisdictions; and

 

(iii)                               in all material respects with all gaming and internet gaming laws that are applicable in the jurisdictions in which it operates and conducts its business and operations.

 

(b)                                 The Group has implemented and maintains reasonable safeguards and procedures to determine whether any additional jurisdictions should be included within the category of Prohibited Jurisdictions and exclude persons in the Prohibited Jurisdictions from placing wagers on any of the Group’s internet websites and will continue to maintain such safeguards and procedures until the Final Maturity Date or until, in respect of any Prohibited Jurisdiction, such time as it ceases to be a Prohibited Jurisdiction and the Group has received advice to this effect from reputable and experienced counsel.

 

25.24                 Compliance with laws

 

Each Obligor complies in all respects with all laws to which it may be subject to the extent that failure so to comply would have or would be reasonably likely to have a Material Adverse Effect.

 

25.25                 Repetition

 

(a)                                 The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on:

 

(i)                                     the date of each Utilisation Request and the first day of each Interest Period; and

 

(ii)                                  in the case of an Additional Obligor, the day on which the company becomes (or it is proposed that the company becomes) an Additional Obligor.

 

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(b)                                 Each representation or warranty deemed to be made after the date of this Agreement shall be deemed to be made by reference to the facts and circumstances existing at the date the representation or warranty is deemed to be made.

 

26.                               INFORMATION UNDERTAKINGS

 

The undertakings in this Clause 26 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

26.1                        Financial statements

 

The Parent shall supply to the Agent, who will distribute to each Lender, each of the following:

 

(a)                                 within one hundred twenty (120) days after the end of each of its Financial Years, its annual audited consolidated financial statements by making the same available on the Parent’s public website;

 

(b)                                 as soon as they become available but in any event within seventy-five (75) days after the end of each of its financial half years its consolidated financial statements for its financial half year by making the same available on the Parent’s public website;

 

(c)                                  as soon as they are available, but in any event within sixty (60) days after the end of the first and third Financial Quarter of each of its Financial Years, its consolidated financial statements for those Financial Quarters by making the same available on the Parent’s public website; and

 

(d)                                 as soon as the same become available, but in any event within one hundred and twenty (120) days after the end of each of its financial years, the balance sheet and income statement or, if available, audited financial statements of each Guarantor other than the Parent.

 

26.2                        Provision and contents of Compliance Certificate

 

(a)                                 The Parent shall supply to the Agent, who will distribute to each Lender:

 

(i)                                     with each set of financial statements delivered pursuant to paragraphs (a) and (b) of Clause 26.1 (Financial statements) if the Public Debt Ratings are equal to or higher than BBB- and Baa3 (with at least a stable outlook); provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph (i) shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being equal to or higher than BBB- or Baa3 as applicable; or

 

(ii)                                  otherwise with each set of financial statements delivered pursuant to paragraphs (a), (b) and (c) of Clause 26.1 (Financial statements),

 

a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 27 (Financial Covenants) as at the date as at which those financial statements were prepared, including, prior to the completion of the Mergers, an explanation as to how the average US$/€ rate has been calculated and disclosure of items included in EBITDA, Total Net Debt and Total Net Interest Costs with an indication of the value of each item expressed as per the consolidated financial statements.

 

114

 

(b)                                 Commencing with the Compliance Certificate that is deliverable with respect to the Financial Quarter ending on 31 December 2014, the Compliance Certificate delivered in respect of the Financial Quarters ending in June and December in each Financial Year shall set out (in reasonable detail) computations as to compliance with Clause 28.24 (Guarantor Threshold Test and Additional Guarantors).

 

(c)                                  Commencing with the Compliance Certificate that is deliverable with respect to the Financial Quarter ending on 31 December 2014, the Compliance Certificate delivered in respect of the Financial Quarters ending December in each Financial Year shall list the Material Subsidiaries or confirm that there has been no change to the list of Material Subsidiaries since the previous Compliance Certificate for the Financial Quarter ending 31 December.

 

(d)                                 Each Compliance Certificate shall be signed by duly authorised signatory of the Parent and shall be reported on by the Auditors with respect to the information provided pursuant to Clause 26.2(a) (in the form agreed by the Auditors) when the audited consolidated Financial Statements for the Group are delivered pursuant to paragraph (a) of Clause 26.1 (Financial statements).

 

26.3                        Requirements as to financial statements

 

The Parent shall procure that each set of financial statements delivered pursuant to Clause 26.1 (Financial statements) is prepared using the Accounting Principles and financial reference periods consistent with those applied in the presentation of the Original Financial Statements for the Parent unless, in relation to any set of financial statements, the Parent notifies the Agent that there has been a change in the Accounting Principles or the accounting practices and its Auditors deliver to the Agent, who will distribute to each Lender:

 

(a)                                 a description of any change necessary for those financial statements to reflect the Accounting Principles or accounting practices upon which the Parent’s Original Financial Statements were prepared; and

 

(b)                                 sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 27 (Financial Covenants) has been complied with, to determine the Margin as set out in the definition of “Margin”, and to make an accurate comparison between the financial position indicated in those financial statements.

 

Any reference in this Agreement to any financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements of the Parent were prepared.

 

26.4                        Information:  miscellaneous

 

The Parent shall supply to the Agent who will distribute to each Lender and, in the case of paragraph (b) below, GTECH Corporation shall also supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests) who will distribute to each Lender:

 

(a)                                 promptly, copies of all documents dispatched by the Parent to its shareholders generally (or any class of them) or dispatched by any Obligor to its creditors generally (or any class of them);

 

115

 

(b)                                 promptly upon becoming aware of them, the details of any ERISA Events, material environmental issues, material litigation, arbitration or administrative proceedings which are, in each case, current, threatened or pending against any member of the Group, which if adversely determined has or is reasonably likely to have a Material Adverse Effect;

 

(c)                                  promptly upon it becoming publicly available information, notice of any change to, or withdrawal of, any Public Debt Rating;

 

(d)                                 promptly upon completion, notice that the Transactions are completed;

 

(e)                                  promptly upon termination or upon publication (as the case may be), notice that the Merger Agreement has been terminated or that the Parent has disclosed publicly that it no longer intends to proceed with the completion of the Mergers; and

 

(f)                                   promptly on request, such further information regarding the financial condition, assets and operations of the Group or any member of the Group as any Finance Party through the Agent may reasonably request,

 

it being understood that the Parent and GTECH Corporation may satisfy their obligations under this Clause 26.4 by publishing the relevant information to its website and notifying the Agent in writing that the relevant information has been so published.

 

26.5                        Notification of Default

 

Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor).

 

26.6                        “Know your customer” checks

 

(a)                                 If:

 

(i)                                     the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

 

(ii)                                  any change in the status of an Obligor or the composition of the shareholders of an Obligor after the date of this Agreement; or

 

(iii)                               a proposed assignment or transfer by a Lender of any of its rights or obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

 

obliges the Agent, the Swingline Agent, the Issuing Agent or any Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Agent, the Swingline Agent, the Issuing Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent, the Swingline Agent or the Issuing Agent (in each case for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Agent, the Swingline Agent, the Issuing Agent such Lender or, in the case of the event described in paragraph (iii) above, any prospective

 

116

 

new Lender to carry out and be satisfied with the results of all necessary “know your customer” or other checks in relation to any relevant person pursuant to the transactions contemplated in the Finance Documents.

 

(b)                                 Each Lender shall promptly upon the request of the Agent, the Swingline Agent or the Issuing Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent, the Swingline Agent or the Issuing Agent (in each case for itself) in order to carry out and be satisfied with the results of all necessary “know your customer” or other checks on Lenders or prospective new Lenders pursuant to the transactions contemplated in the Finance Documents.

 

(c)                                  The Parent shall, by not less than ten (10) Business Days’ prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Guarantor or Additional Borrower pursuant to Clause 31 (Changes to the Obligors).

 

(d)                                 Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Guarantor or Additional Borrower obliges the Agent, the Swingline Agent, the Issuing Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Parent shall promptly upon the request of the Agent, the Swingline Agent, the Issuing Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent, the Swingline Agent or the Issuing Agent (in each case for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent, the Swingline Agent, the Issuing Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other checks in relation to any relevant person pursuant to the accession of such Subsidiary to this Agreement as an Additional Guarantor or as the case may be, an Additional Borrower.

 

26.7                        Posting on electronic system

 

Each of the Borrowers hereby acknowledges that (a) the Agent or the Global Coordinators will make available to the other Finance Parties materials or information provided by or on behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on Debt Domain (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrowers or their securities) (each, a “Public Lender”).  Each Borrower hereby agrees that so long as such Borrower is the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a private offering or is actively contemplating issuing any such securities; (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC”, the Borrowers shall be deemed to have authorised the Finance Parties to treat such Borrower Materials as not containing any material non-public information with respect to the Borrowers or their securities for purposes of United States Federal and state securities laws (provided that such Borrower Materials shall be treated as set forth in Clause 44 (Confidentiality)); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Agent and the Global Coordinators shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a

 

117

 

portion of the Platform not designated “Public Investor”.  Notwithstanding the foregoing, each Borrower shall not be under any obligation to mark any Borrower Materials “PUBLIC”.

 

27.                               FINANCIAL COVENANTS

 

27.1                        Financial definitions

 

In this Clause 27:

 

“Calculation Date” means (i) at any time the Public Debt Ratings are equal to or higher than BBB- (with at least a stable outlook) and Baa3 (with at least a stable outlook) 30 June and 31 December of each year (provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being equal to or higher than BBB- (with at least a stable outlook) or Baa3 (with at least a stable outlook) as applicable) and (ii) at any time any Public Debt Rating is lower than BBB- (with at least a stable outlook) or Baa3 (with at least a stable outlook), or any Public Debt Rating is withdrawn, 31 March, 30 June, 30 September and 31 December of each year (provided that if at any time after the date hereof three Public Debt Ratings have been issued, this paragraph shall be interpreted to mean at least two of the three Public Debt Ratings issued by the Rating Agencies being lower than BBB- (with at least a stable outlook) or Baa3 (with at least a stable outlook) as applicable).

 

“Consolidated Interest Expense” means the amount of interest, discount, acceptance and commitment fees, amounts payable under interest rate hedging agreements and the interest element of payments under finance leases, including, for the avoidance of doubt, interest payable on the Capital Securities.

 

“EBITDA” means the amount of the consolidated operating income of the Group:

 

(a)                                 plus depreciation, amortization and impairment loss; and

 

(b)                                 plus extraordinary and non-cash items of expense but only to the extent such items have been deducted in the determination of operating income; and

 

(c)                                  minus extraordinary and non-cash items of income, but only to the extent such items are included in operating income; and

 

(d)                                 minus amounts attributable to minority interests in excess of US$60,000,000.

 

“Relevant Period” means a period of twelve (12) months ending on the last day of a Financial Year or half year or, as the case may be, financial quarter of the Parent.

 

“Total Net Debt” means the total Financial Indebtedness of the Group (including, for the avoidance of doubt, the outstanding amount of the Capital Securities and excluding, for the avoidance of doubt, any accrued Consolidated Interest Expense) minus the aggregate amount of cash and Cash Equivalent Investments held by the Group.

 

“Total Net Interest Costs” means Consolidated Interest Expense of the Group less interest received and amounts received under interest rate hedging agreements less capitalised up-front debt issuance costs recorded as interest expense.

 

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27.2                        Financial condition

 

The Parent shall ensure that:

 

(a)                                 EBITDA to Total Net Interest Costs:  EBITDA to Total Net Interest Costs at each Calculation Date shall not be less than the ratio set out next to the relevant Calculation Date in the table below:

 

	
EBITDA to
   Total Net
   Interest
   Costs
    	
 
    	
2014
    	
 
    	
2015
    	
 
    	
2016
    	
 
    	
2017
    	
 
    	
2018
    	
 
    	
2019
    
	
March
    	
 
    	
—
    	
 
    	
2.75:1.00
    	
 
    	
2.75:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    
	
June
    	
 
    	
—
    	
 
    	
2.75:1.00
    	
 
    	
2.75:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    
	
September
    	
 
    	
—
    	
 
    	
2.75:1.00
    	
 
    	
2.75:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    
	
December
    	
 
    	
2.75:100
    	
 
    	
2.75:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    	
 
    	
3.00:1.00
    

 

(b)                                 Total Net Debt to EBITDA:  Total Net Debt to EBITDA at each Calculation Date shall:

 

(i)                                     if the Mergers are not completed, not be greater than 4.00:1.00 as tested at each Calculation Date in accordance with Clause 27.3 (Financial testing) below; and

 

(ii)                                  if the Mergers are completed, not be greater than the ratio set out next to the relevant Calculation Date in the table below:

 

	
Total Net
   Debt to
   EBITDA
    	
 
    	
2014
    	
 
    	
2015
    	
 
    	
2016
    	
 
    	
2017
    	
 
    	
2018
    	
 
    	
2019
    
	
March
    	
 
    	
—
    	
 
    	
5.50:1.00
    	
 
    	
5.50:1.00
    	
 
    	
5.00:1.00
    	
 
    	
4.50:1.00
    	
 
    	
4.25:1.00
    
	
June
    	
 
    	
—
    	
 
    	
5.50:1.00
    	
 
    	
5.50:1.00
    	
 
    	
5.00:1.00
    	
 
    	
4.50:1.00
    	
 
    	
4.00:1.00
    
	
September
    	
 
    	
—
    	
 
    	
5.50:1.00
    	
 
    	
5.00:1.00
    	
 
    	
4.75:1.00
    	
 
    	
4.25:1.00
    	
 
    	
4.00:1.00
    
	
December
    	
 
    	
5.50:1.00
    	
 
    	
5.50:1.00
    	
 
    	
5.00:1.00
    	
 
    	
4.75:1.00
    	
 
    	
4.25:1.00
    	
 
    	
4.00:1.00
    

 

27.3                        Financial testing

 

The financial covenants set out in Clause 27.2 (Financial condition) shall be calculated in accordance with the Accounting Principles and tested in relation to the Group on a consolidated basis by reference to each Compliance Certificate delivered in accordance with Clause 26.2 (Provision and contents of Compliance Certificate).

 

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28.                               GENERAL UNDERTAKINGS

 

The undertakings in this Clause 28 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

 

28.1                        Authorisations

 

Each Obligor shall promptly:

 

(a)                                 obtain, comply with and do all that is necessary to maintain in full force and effect; and

 

(b)                                 supply certified copies to the Agent (at its request) of, any Authorisation required under any law or regulation of a Relevant Jurisdiction to:

 

(i)                                     enable it to perform its obligations under the Finance Documents; and

 

(ii)                                  ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document to which it is a party.

 

28.2                        Compliance with laws

 

(a)                                 Each Obligor shall (and the Obligors shall ensure that each member of the Group will) comply in all respects with all laws to which it may be subject, if (except as regards (i) Sanctions, to which Clause 28.20 (Use of proceeds and Sanctions) below applies, and (ii) Anti-Corruption Laws, to which Clause 28.21 (Anti-Corruption) below applies) failure so to comply has or is reasonably likely to have a Material Adverse Effect.

 

(b)                                 The Borrowers will maintain in effect and enforce policies and procedures designed to promote and achieve compliance by the Borrowers, their Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

 

28.3                        Merger

 

No Obligor shall (and the Obligors shall ensure that no other member of the Group will) enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction other than a Permitted Merger or Permitted Acquisition.

 

28.4                        Change of business

 

The Obligors shall ensure that no substantial change is made to the general nature of the business of the Group from the Business.

 

28.5                        Acquisitions

 

(a)                                 Except as permitted under paragraph (b) below, no Obligor shall (and the Obligors shall ensure that no other member of the Group will):

 

(i)                                     acquire a company or any shares or securities or a business or undertaking (or, in each case, any interest in any of them); or

 

(ii)                                  incorporate a company.

 

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(b)                                 Paragraph (a) above does not apply to an acquisition of a company, of shares, securities or a business or undertaking (or, in each case, any equity or partnership interest in any of them), or the incorporation of a company or Joint Venture which is a Permitted Acquisition.

 

28.6                        Pari passu ranking

 

Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

 

28.7                        Negative pledge

 

(a)                                 In this Clause 28.7, “Quasi-Security” means a transaction described in paragraph (b) below.

 

(b)                                 Except as permitted under paragraph (c) below:

 

(i)                                     No Obligor shall (and the Obligors shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets.

 

(ii)                                  No Obligor shall (and the Obligors shall ensure that no other member of the Group will):

 

(A)                               sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;

 

(B)                               sell, transfer or otherwise dispose of any of its receivables on recourse terms (it being understood for the avoidance of doubt that a member of the Group may sell, transfer or otherwise dispose of its receivables on non-recourse terms);

 

(C)                               enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

 

(D)                               enter into any other preferential arrangement having a similar effect,

 

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

 

(c)                                  Paragraphs (a) and (b) above do not apply to any Security or (as the case may be) Quasi-Security, which is Permitted Security.

 

28.8                        Disposals

 

(a)                                 Except as permitted under paragraph (b) below, no Obligor shall (and the Obligors shall ensure that no member of the Group will) enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

 

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(b)                                 Paragraph (a) above does not apply to any sale, lease, transfer or other disposal which is a Permitted Disposal.

 

28.9                        Loans or credit

 

(a)                                 Except as permitted under paragraph (b) below, no Obligor shall (and the Obligors shall ensure that no member of the Group will) be a creditor in respect of any Financial Indebtedness.

 

(b)                                 Paragraph (a) above does not apply to a Permitted Loan.

 

28.10                 No Guarantees or indemnities

 

(a)                                 Except as permitted under paragraph (b) below, no Obligor shall (and the Obligors shall ensure that no member of the Group will) incur or allow to remain outstanding any guarantee in respect of any obligation of any person.

 

(b)                                 Paragraph (a) does not apply to a guarantee which is a Permitted Guarantee.

 

28.11                 Dividends and share redemption

 

(a)                                 The Parent shall not declare, make or pay or allow any member of the Group to declare, make or pay any Restricted Payment.

 

(b)                                 Paragraph (a) does not apply to a Restricted Payment which is a Permitted Restricted Payment and, for the avoidance of doubt, does not prohibit the Merger Capital Reduction.

 

28.12                 Priority Financial Indebtedness

 

The Obligors shall ensure that at no time will Financial Indebtedness incurred or allowed to remain outstanding by all members of the Group (including non-Guarantors) that are not Obligors exceed in the aggregate five per cent. (5%) of the consolidated total assets of the Group.

 

28.13                 Pensions and employee benefit schemes

 

(a)                                 The Parent shall ensure that all pension schemes operated or maintained for the benefit of members of the Group or any of its employees are maintained and fully funded on the basis of reasonable actuarial assumptions and valuations prepared by actuaries of recognised standing most recently used to account for such obligations in accordance with the Accounting Principles and, in any case, in compliance with applicable law and the contracts governing their provision and that no action or omission is taken by any member of the Group in relation to such a pension scheme which has or is reasonably likely to have a Material Adverse Effect.

 

(b)                                 The Parent shall ensure that no member of the Group establishes any defined benefit occupational pension scheme.

 

(c)                                 The Parent shall deliver to the Agent copies of any actuarial reports prepared in relation to the pension schemes for the time being operated by or maintained for the benefit of members of the Group or any of its employees promptly after those reports are prepared in

 

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order to comply with the then current statutory or auditing requirements (as applicable either to the trustees of any relevant schemes or to the Parent) or otherwise.

 

(d)                                 The Parent shall promptly notify the Agent of any material change in the rate of contributions to any pension schemes referred to in paragraph (a) above paid or recommended to be paid (whether by the scheme actuary or otherwise) or required (by law or otherwise).

 

(e)                                  The Parent shall (and shall ensure that each of its Subsidiaries incorporated in Italy will):

 

(i)                                     fully and timely pay and discharge all mandatory and supplementary social security and health care assistance contributions (including interest and penalties) which the same companies are requested to pay under applicable laws, regulations, by-laws and any agreement entered into by the same companies;

 

(ii)                                  duly and timely file or cause to be filed, according to applicable law, all social security returns and social security reports which are required to be filed by same companies;

 

(iii)                               properly and entirely accrue in the financial statements the TFR (Trattamento di fine rapporto) with regard to all its employees according to the applicable laws; and

 

(iv)                              make adequate provisions in their accounts, pertaining to mandatory and supplementary social security and health care contributions which have not been paid because they are not yet due under the terms of any applicable laws, regulations, by-laws and any agreement entered into by the same companies.

 

28.14                 Intellectual Property

 

Each Obligor shall (and the Obligors shall procure that each Group member will):

 

(a)                                 preserve and maintain the subsistence and validity of the Intellectual Property necessary for the business of the relevant Group member;

 

(b)                                 use reasonable endeavours to prevent any infringement in any material respect of the Intellectual Property;

 

(c)                                  make registrations and pay all registration fees and taxes necessary to maintain the Intellectual Property in full force and effect and record its interest in that Intellectual Property;

 

(d)                                 not use or permit the Intellectual Property to be used in a way or take any step or omit to take any step in respect of that Intellectual Property which may materially and adversely affect the existence or value of the Intellectual Property or imperil the right of any member of the Group to use such property; and

 

(e)                                  not discontinue the use of the Intellectual Property,

 

where failure to do so, in the case of paragraphs (a), (b) and (c) above, or in the case of paragraphs (d) and (e) above, such use, permission to use, omission or discontinuation, is reasonably likely to have a Material Adverse Effect.

 

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28.15                 No speculative Hedging Arrangements

 

No Borrower shall enter into any derivative transaction other than any derivative transaction entered into in connection with protection against or benefit from fluctuations in any rate or price.

 

28.16                 ERISA reporting requirements

 

Each Obligor shall (and the Parent shall ensure that each relevant member of the Group will):

 

(a)                                 ERISA Events and ERISA Reports

 

(i)                                     promptly and in any event within ten (10) days after such Obligor or any ERISA Affiliate knows or has reason to know that any ERISA Event has occurred, deliver to the Agent a statement of the finance director of the Parent describing such ERISA Event and the action, if any, that such Obligor or such ERISA Affiliate has taken and proposes to take with respect thereto; and

 

(ii)                                  on the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and information;

 

(b)                                 Plan Terminations:  promptly and in any event within five (5) Business Days after receipt thereof by any Obligor or any ERISA Affiliate, deliver to the Agent copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan;

 

(c)                                  Plan Annual Reports:  promptly upon the written request of the Agent, deliver to the Agent copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) most recently filed by it with the Employee Benefits Security Administration of the United States with respect to each Plan; and

 

(d)                                 Multiemployer Plan notices:  promptly and in any event within five (5) Business Days after receipt thereof by it or any ERISA Affiliate from the sponsor of a Multiemployer Plan, deliver to the Agent copies of each notice concerning:

 

(i)                                     the imposition of Withdrawal Liability by any such Multiemployer Plan;

 

(ii)                                  the reorganisation or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan; or

 

(iii)                               the amount of liability incurred, or that may be incurred, by such Obligor or any ERISA Affiliate in connection with any event described in paragraph (i) or (ii) above.

 

28.17                 Italian segregation of assets or finanziamenti destinati

 

No Italian Obligor shall:

 

(a)                                 segregate assets or revenues pursuant to Article 2447 bis (Patrimoni Destinati ad uno Specifico Affare) of the Italian Civil Code;

 

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(b)                                 enter into any transaction which could qualify as a finanziamento destinato pursuant to article 2447-decies;

 

(c)                                  issue any class of stock or any other financial instruments under article 2447-ter of the Italian Civil Code, or

 

(d)                                 in each case, without the prior written consent of the Agent (acting on the instructions of the Majority Lenders).

 

28.18                 US Anti-Terrorism Laws

 

(a)                                 No Obligor shall engage in any transaction that violates any of the applicable prohibitions set forth in any Anti-Terrorism Law.

 

(b)                                 None of the funds or assets of such Obligor or its Subsidiaries that are used to repay the Facilities shall constitute property of, or shall be beneficially owned by, any Designated Person or be derived from transactions known to an Obligor to violate the prohibitions set forth in any Anti-Terrorism Law, and no Designated Person shall have any direct or indirect interest in such Obligor that would constitute a violation of any Anti-Terrorism Laws.

 

28.19                 US Margin Regulations

 

No part of the proceeds of any Utilisation will be used (i) in contravention of Regulation T, U or X of the Federal Reserve Board, or (ii) for “buying” or “carrying” (within the meaning of Regulation T, U or X) any Margin Stock or to extend credit to others for the purpose of buying or carrying any Margin Stock, other than in the case of clause (ii), that a portion of the proceeds of any Utilisation may be used to make Restricted Payments permitted under paragraph (e) of the definition of Permitted Restricted Payments or as consideration to finance Permitted Acquisitions.  Following the application of the proceeds of each Utilisation, not more than twenty five per cent. (25%) of the value of the assets of the Obligors subject to any restriction contained in this Agreement or any other agreement or instrument between the Obligors, on the one hand, and any Lender or Affiliate of any Lender, on the other hand, relating to Financial Indebtedness will be Margin Stock.

 

28.20                 Use of proceeds and Sanctions

 

(a)                                 The undertakings in this Clause 28.20 remain in force from the date of this Agreement for as long as any amount is outstanding under the Finance Documents or any Commitment is in force:

 

(i)                                     a Borrower will not request any Utilisation, and a Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Utilisation (A) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (B) in any manner that would result in the violation of  any Sanctions applicable to any party hereto. Each Obligor shall, and shall procure that each other member of the Group shall, not knowingly use any revenue or benefit derived from any activity or dealing with a Sanctioned Person to be used in discharging any obligation due or owing to the Finance Parties; and

 

(ii)                                  each Obligor shall, and shall procure that each other member of the Group shall, to the extent permitted by law promptly upon becoming aware of them supply to the 

 

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Agent, who will distribute to each Lender, details of any claim, action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions Authority.

 

(b)                                 Notwithstanding anything to the contrary contained in this Agreement or in any other Finance Document, the undertakings in this Clause 28.20 shall not be made to or for the benefit of any Specified Lender, no Specified Lender shall have any rights under this Clause 28.20  and each Specified Lender shall be deemed not to be a Lender solely for purposes of calculating any consent or vote of the Majority Lenders under Clause 29.16 (Acceleration) with respect to any breach of this Clause 28.20 (but in each case without prejudice to any other rights or obligations of any Specified Lender as a consequence of any Default occurring as a result of any breach of this Clause 28.20).

 

28.21                 Anti-Corruption

 

(a)                                 Neither the Parent nor any Obligor shall (and the Parent shall ensure that no other member of the Group will) directly or indirectly use the proceeds of the Facilities in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any person in violation of any Anti-Corruption Laws.

 

(b)                                 The Parent and each Obligor shall (and the Parent shall ensure that each other member of the Group will) not violate applicable Anti-Corruption Laws and Sanctions in any material respect.

 

28.22                 Existing Target Facility Repayment

 

The Parent shall procure that following the completion of the Mergers and the accession of Target to this Agreement pursuant to Clause 31.2 (Additional Obligors) any amounts outstanding under the Existing Target Facility shall be promptly repaid, cancelled and discharged in full and any guarantees with respect to the Existing Target Facility shall be released.

 

28.23                 Security following Debt Ratings decrease

 

(a)                                 If following completion of the Mergers:

 

(i)                                     any two Public Debt Ratings (or any Public Debt Rating, if two Public Debt Ratings are issued) are either equal to BB or Ba2 or lower or have been withdrawn, then the Parent shall procure that, as soon as practicable and in any event within ninety (90) days after the relevant Public Debt Rating(s) or Public Debt Rating withdrawal(s) or reduction(s) become(s) public, Security:

 

(A)                               is granted in favour of the Finance Parties and each Hedging Bank by Holdco over the shares of the Target and the quotas of Italian Holdco;

 

(B)                               is granted in favour of the Finance Parties and each Hedging Bank by:

 

(1)                                 each Obligor over each intercompany note or loan in excess of US$10,000,000 (or its equivalent in any other currency or currencies) between the Obligor as creditor and a member of the Group as debtor; and

 

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(2)                                 each member of the Group over each intercompany note or loan  in excess of US$10,000,000 (or its equivalent in any other currency or currencies) between such member of the Group as creditor and an Obligor as debtor,

 

whether documented by a promissory note or otherwise and including any such intercompany note or loan between Holdco and any of the Target, Italian Holdco or GTECH Corporation at completion of the Transaction; and

 

(ii)                                  any Public Debt Rating is equal to BB- or Ba3 or lower (in circumstances where the remaining Public Debt Ratings are equal to BB+ or Ba1 or lower) or any Public Debt Rating has been withdrawn, then the Parent shall procure that, as soon as practicable and in any event within ninety (90) days after the relevant Public Debt Rating(s) or Public Debt Rating withdrawal(s) or reduction(s) become(s) public, Security is granted in favour of the Finance Parties and each Hedging Bank over:

 

(A)                               the assets referred to in paragraph (a)(i) above, to the extent it has not already been granted in favour of the Finance Parties and each Hedging Bank; and

 

(B)                               all of the accounts receivable under contracts for the supply of goods and services to customers of the Material Subsidiaries,

 

it being understood that granting of Security under this paragraph (a)(ii) will not be required to the extent that it would cause a default (however defined) under any “equal and rateable security” or “most favoured nation” provisions (or other provisions of equivalent effect) under the Pari Passu Indebtedness due to an inability (despite the exercise of reasonable commercial endeavours) to overcome any obstacle to compliance with such provisions.

 

(b)                                 If at any time after the date of this Agreement:

 

(i)                                     any new Security or Quasi-Security is granted over assets of the Group in favour of the holders or creditors of Pari Passu Indebtedness; or

 

(ii)                                  any existing Security or Quasi Security is amended on terms favourable to the holders or creditors of Pari Passu Indebtedness;

 

then, at the same time any such grant or amendment becomes effective, the Parent shall do all acts and deliver all documents as are necessary (including accessions pursuant to Clause 31 (Changes to the Obligors)) to procure that the Finance Parties and each Hedging Bank receive the benefit of the same or substantially the same new Security or Quasi-Security (on the same or substantially the same terms and conditions) or receive the benefit of the same or substantially the same amended terms (as the case may be) in substance and form satisfactory to the Agent (acting reasonably).

 

(c)                                  With respect to any Security or Quasi-Security granted or to be granted by any member of the Group pursuant to paragraphs (a) and (b) above (the “Transaction Security”), each Obligor shall, as soon as reasonably practicable following the relevant public announcement (or in the case of any Transaction Security granted to holder of Pari Passu Indebtedness, at the same time as such Transaction Security is so granted), do all such acts or execute all such documents as the Agent may reasonably specify (and in such form as the Agent may reasonably require) to grant and perfect the Transaction Security created or intended to be 

 

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created under or evidenced by the relevant security documents entered into with respect to the Transaction Security (the “Security Documents”) and shall thereafter take all such action as is available to it (including making all filings and registrations and entering into any deeds of confirmation) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Transaction Security conferred or intended to be conferred by or pursuant to the Security Documents, in each case promptly following a reasonable request of the Agent (including without limitation following the completion of any Permitted Merger).

 

(d)                                 With respect to the granting of any Security or Quasi-Security granted or to be granted by any member of the Group pursuant to paragraphs (a) and (b) above, the obligation shall be subject always to the Agreed Security Principles.  With respect to the granting of Security over accounts receivable referred to in paragraph (b) above in circumstances where Agreed Security Principle 2.1(d) relating to third party arrangements would apply due to the requirement of third party consent, then the Parent shall request such consent within the applicable timeframe in respect of accounts receivable that together, at that time, constitute a percentage of consolidated Group revenues that is at least the greater of (i) the percentage of revenues represented by the ten (10) largest relevant contracts by revenue and (ii) twenty five per cent. (25%).

 

(e)                                  In this Agreement, “Pari Passu Indebtedness” means any Financial Indebtedness incurred by any member of the Group pursuant to any loan, facility, any public or private financing in the domestic or international debt capital markets (including any public or private bond issue, placement or note, security or other debt issuance or indebtedness), in each case incurred by any member of the Group (including, without limitation, the Bridge Facilities and the Existing GTECH Notes) as well as any Financial Indebtedness incurred by any member of the Group for the purposes of refinancing any of the aforementioned Financial Indebtedness but excludes Financial Indebtedness which is secured by Security that falls within the basket set out in paragraph (o) of the definition of “Permitted Security”.

 

(f)                                   The provisions of Clause 28.23 (Security following Debt Ratings decrease) shall continue with full force and effect notwithstanding any intervening application of Clause 42.7 (Release of Security on Permitted Disposal and Investment Grade Rating) and in the event that the relevant trigger conditions are met subsequently, the Parent shall again be obliged to procure the granting of Security in accordance with this Clause 28.23.

 

28.24                 Guarantor Threshold Test and Additional Guarantors

 

(a)                                 Subject in each case to the Agreed Security Principles, the Parent shall do all acts and deliver all documents as are necessary, including procuring accessions pursuant to Clause 31 (Changes to the Obligors), to ensure that commencing from 31 December 2014, and by reference to the Compliance Certificate and accompanying financial statements to be delivered pursuant to Clause 26.2(b) (Provision and contents of Compliance Certificate): (i) the ratio of (A) the aggregate of the total unconsolidated assets of the Guarantors excluding the Excluded Assets to (B) the consolidated total assets of the Group excluding Excluded Assets is greater than or equal to eighty five per cent. (85%) and (ii) the ratio of (A) the unconsolidated aggregate earnings before interest, taxes, depreciation and amortisation (calculated on the same basis as EBITDA is calculated but excluding the Excluded EBITDA Entries) of the Guarantors to (B) EBITDA of the Group excluding Excluded EBITDA Entries is greater than or equal to eighty five per cent. (85%).

 

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(b)                                 For the purposes of paragraph (a) above, the consolidated total assets and EBITDA of the Group (i) may exclude the total assets and EBITDA of Subsidiaries with negative assets or negative EBITDA and (ii) shall exclude the total assets and EBITDA of all Subsidiaries which the Agent (acting reasonably) is satisfied are either not eligible (on the basis of the Agreed Security Principles) to be Guarantors or over whose shares (on the basis of the Agreed Security Principles) no Security is required to be granted.

 

(c)                                  If at any time after the date of this Agreement:

 

(i)                                     any new guarantee is granted in favour of any holder or creditor of Pari Passu Indebtedness; or

 

(ii)                                  any guarantee is amended on terms favourable to the holders or creditors of Pari Passu Indebtedness;

 

then, at the same time any such grant or amendment becomes effective, the Parent shall do all acts and deliver all documents as are necessary (including accessions pursuant to Clause 31 (Changes to the Obligors)) to procure that the Finance Parties receive the benefit of the same or substantially the same new guarantee (on the same or substantially the same terms and conditions) or receive the benefit of the same or substantially the same amended terms (as the case may be) in substance and form satisfactory to the Agent (acting reasonably).

 

(d)                                 With respect to any guarantee granted or to be granted by any member of the Group pursuant to paragraph (c) above, the obligation shall be subject always to the Agreed Security Principles.

 

28.25                 MFN to Financial Covenants and Mandatory Prepayments

 

(a)                                 If at any time:

 

(i)                                     any new financial covenant is put in place in favour of any holder or creditor of Pari Passu Indebtedness; or

 

(ii)                                  the levels of any financial covenant in favour of the holders or creditors of Pari Passu Indebtedness is or is amended to become more stringent than the levels of the same or an equivalent financial covenant in favour of the Finance Parties under this Agreement;

 

then, at the same time any such financial covenant is put in place, becomes more stringent or such amendment becomes effective, the Parent shall do all acts and deliver all documents as are necessary (including entering into an amendment and restatement of this Agreement) to procure that the Finance Parties receive the benefit of the same or substantially the same financial covenants (on the same or substantially the same terms and conditions and at substantially the same levels) (as the case may be) in substance and form satisfactory to the Agent (acting reasonably).

 

(b)                                 If at any time:

 

(i)                                     any new mandatory prepayment provision is put in place in favour of any holder or creditor of Pari Passu Indebtedness; or

 

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(ii)                                  any mandatory prepayment provision in favour of the holders or creditors of Pari Passu Indebtedness is or is amended to become more favourable than any mandatory prepayment provision in favour of the Finance Parties under this Agreement;

 

then, at the same time any such mandatory prepayment provision is put in place, or such amendment becomes effective, the Parent shall do all acts and deliver all documents as are necessary (including entering into an amendment and restatement of this Agreement) to procure that the Finance Parties receive the benefit of the same or substantially the same mandatory prepayment provisions (on the same or substantially the same terms and conditions subject to paragraph (c) below) (as the case may be) in substance and form satisfactory to the Agent (acting reasonably).

 

(c)                                  For the purposes of paragraph (b) above, it is acknowledged and agreed that any such mandatory prepayment provision introduced into this Agreement as a result shall provide for prepayment of the Facilities without cancellation such that the amount prepaid may subsequently be re-drawn (thought it is understood that the amount redrawn may not be used to finance, directly or indirectly, the equivalent mandatory prepayment of Pari Passu Indebtedness).

 

28.26                 Structure Memorandum

 

The Parent shall not amend the Structure Memorandum in a way that is reasonably likely to be materially prejudicial to the interests of the Lenders without the consent of the Majority Lenders (acting reasonably).

 

29.                               EVENTS OF DEFAULT

 

Each of the events or circumstances set out in this Clause 29 is an Event of Default.

 

29.1                        Non-payment

 

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless such failure to pay is due to administrative or technical error and payment is made within three (3) Business Days of its due date.

 

29.2                        Financial covenants and other obligations

 

Any requirement of Clause 27 (Financial Covenants) is not satisfied or an Obligor does not comply with the provisions of Clauses 28.7 (Negative pledge), 28.8 (Disposals), 28.20 (Use of proceeds and Sanctions), 28.21 (Anti-Corruption), 28.11 (Dividends and share redemption) or Clause 28.12 (Priority Financial Indebtedness).

 

29.3                        Other obligations

 

(a)                                 An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 29.1 (Non-payment) and Clause 29.2 (Financial covenants and other obligations)).

 

(b)                                 No Event of Default under paragraph (a) above will occur if (i) the failure to comply is capable of remedy and is remedied within twenty (20) Business Days of the Agent giving 

 

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notice to the Parent or relevant Obligor or the Parent or an Obligor becoming aware of the failure to comply.

 

29.4                       Misrepresentation

 

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading when made or deemed to be made and, if capable of cure, is not cured within twenty (20) Business Days.

 

29.5                        Cross-default

 

(a)                                 Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally applicable grace period.

 

(b)                                 Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

 

(c)                                  Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended by a creditor of any member of the Group as a result of an event of default (however described).

 

(d)                                 Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described).

 

(e)                                  No Event of Default will occur under this Clause 29.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) through (d) above is less than €50,000,000 or its equivalent in any other currency or currencies (or, following completion of the Mergers, US$75,000,000 or its equivalent in any other currency or currencies).

 

29.6                        Insolvency

 

(a)                                 An Obligor or Material Subsidiary is unable or admits inability to pay its debts as they fall due or is deemed to or declared to be unable to pay its debts under applicable law, suspends or threatens to suspend making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

 

(b)                                 The value of the assets of any Obligor (other than the Parent) or Material Subsidiary is less than its liabilities (taking into account contingent and prospective liabilities) and such circumstances continue for sixty (60) days commencing on the earlier of the date when the directors of such Obligor acknowledge or have evidence that such circumstances exist; or

 

(c)                                  Any circumstance contemplated under Section 2447 of the Italian Civil Code occurs in relation to the Parent and:

 

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(i)                                     no shareholders meeting takes place for the recapitalisation of the Parent; or

 

(ii)                                  the recapitalisation of the Parent is not completed,

 

in each case within sixty (60) days of the earlier of the date when the directors of the Parent acknowledge or have evidence that the aforementioned circumstance is in existence.

 

(d)                                 A moratorium is declared in respect of any indebtedness of an Obligor or Material Subsidiary.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

 

29.7                        Insolvency proceedings

 

(a)                                 Any corporate action, legal proceedings or other procedure or step (including a petition or a judicial or court order) is taken or filed in relation to:

 

(i)                                     the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration, bankruptcy, other insolvency proceedings or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of an Obligor (other than the Parent) or Material Subsidiary;

 

(ii)                                  a composition, compromise, assignment or arrangement with any creditor of an Obligor (other than the Parent) or Material Subsidiary;

 

(iii)                               the appointment of a liquidator, receiver, administrator, administrative receiver, compulsory manager or other similar officer in respect of an Obligor (other than the Parent) or Material Subsidiary or any of its assets;

 

(iv)                              enforcement of any Security over any assets of an Obligor (other than the Parent) or Material Subsidiary;

 

(v)                                 enforcement of any Security over any asset or assets of the Parent having an aggregate value greater than or equal to €50,000,000 or its equivalent in any other currency or currencies (or, following completion of the Mergers, US$75,000,000 or its equivalent in any other currency or currencies); or

 

(vi)                              Italian Insolvency Proceedings,

 

or any analogous procedure or step is taken in any jurisdiction.

 

(b)                                 Paragraph (a) shall not apply to:

 

(i)                                     any winding-up petition against any Obligor (other than the Parent) or Material Subsidiary which is frivolous or vexatious and is discharged, stayed or dismissed within sixty (60) days of commencement or, if earlier, the date on which it is advertised; or

 

(ii)                                  any petition filed by creditors against the Parent in respect of an Italian Insolvency Proceeding to the extent that (a) the Parent is contesting in good faith and by appropriate means such petition, (b) the Parent provides evidence to the Lenders that 

 

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it is reasonably likely that such petition will be discharged within ninety (90) days of its filing and (c) such petition is discharged within ninety (90) days of its filing.

 

29.8                        Creditors’ process

 

Pursuant to any creditor’s process, any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of an Obligor or Material Subsidiary having an aggregate value greater than or equal to €25,000,000 or its equivalent in any other currency or currencies (or, following completion of the Mergers, US$35,000,000 or its equivalent in any other currency or currencies) and is not discharged within sixty (60) days.

 

29.9                        Unlawfulness and invalidity

 

(a)                                 It is or becomes unlawful for an Obligor to perform any of its material obligations under the Finance Documents.

 

(b)                                 Any obligation or obligations of any Obligor under any Finance Documents are not or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.

 

(c)                                  Any Finance Document ceases to be in full force and effect in any material respect ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

 

29.10                 Cessation of business

 

Any Obligor or any Material Subsidiary suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a substantial part of its business except as a result of a Permitted Disposal or a Permitted Merger.

 

29.11                 Repudiation and rescission of agreements

 

An Obligor (or any other relevant party) rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or a material provision thereof or evidences an intention to rescind or repudiate a Finance Document or a material provision thereof.

 

29.12                Litigation

 

Any litigation, or administrative, proceedings are commenced or threatened in writing against an Obligor or any Material Subsidiary which have been adversely determined, or would be reasonably likely to be adversely determined and if so determined, be reasonably likely to have, a Material Adverse Effect.

 

29.13                 Material adverse change

 

Any event or circumstance occurs which has or is reasonably likely to have a Material Adverse Effect.

 

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29.14                 ERISA Events of Default

 

(a)                                 Any ERISA Event shall have occurred with respect to a Plan and such ERISA Event taken together with the sum (determined as of the date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the Obligors and the ERISA Affiliates related to such ERISA Event) and shall have caused, or shall reasonably be expected to cause, a Material Adverse Effect.

 

(b)                                 Any ERISA Event shall have occurred with respect to a plan that shall have caused or shall be reasonably be expected to have a Material Adverse Effect.

 

(c)                                  Any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Obligors and the ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), shall be reasonably expected to cause a Material Adverse Effect.

 

(d)                                 Any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is being terminated, within the meaning of title IV of ERISA, and as a result of such termination the aggregate annual contributions of the Obligors and the ERISA Affiliates to all Multiemployer Plans that are then in reorganisation or being terminated have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer plans immediately preceding the plan year in which such termination occurs by an amount that shall be reasonably expected to cause a Material Adverse Effect.

 

29.15                 US Insolvency Proceedings

 

(a)                                 An involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction in the United States seeking:

 

(i)                                     relief in respect of any Obligor or Material Subsidiary, or of a substantial part of the property or assets of any Obligor or Material Subsidiary, under US Bankruptcy Law;

 

(ii)                                  the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Obligor or Material Subsidiary or for a substantial part of the property or assets of any Obligor or Material Subsidiary; or

 

(iii)                               the winding-up or liquidation of any Obligor or Material Subsidiary,

 

and such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered.

 

(b)                                 Any Obligor or Material Subsidiary shall:

 

(i)                                     voluntarily commence any proceeding or file any petition seeking relief under US Bankruptcy Law; or

 

(ii)                                  apply for or consent to the appointment, pursuant to the laws of the United States or any state thereof, of a receiver, trustee, custodian, sequestrator, conservator or

 

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similar official for any Obligor or Material Subsidiary or for a substantial part of the property or assets of any Obligor or Material Subsidiary.

 

29.16                 Acceleration

 

(a)                                 On and at any time after the occurrence of an Event of Default, other than an Event of Default referred to in paragraph (b) below, which is continuing the Agent may, and shall if so directed by the Majority Lenders, by notice to the Parent:

 

(i)                                     cancel the Total Facility Commitments or US Dollar Swingline Commitments or both at which time they shall immediately be cancelled;

 

(ii)                                  declare that all or part of the Utilisations, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, at which time they shall become immediately due and payable;

 

(iii)                               declare that all or part of the Utilisations be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders;

 

(iv)                              declare that cash cover in respect of each Letter of Credit is immediately due and payable at which time it shall become immediately due and payable;

 

(v)                                 declare that cash cover in respect of each Letter of Credit is payable on demand at which time it shall immediately become due and payable on demand by the Agent on the instructions of the Majority Lenders;

 

(vi)                              declare all or any part of the amounts outstanding under the US Dollar Swingline Facility to be immediately due and payable, at which time they shall become immediately due and payable;

 

(vii)                           declare that all or any part of the amounts outstanding under the US Dollar Swingline Facility be payable on demand, at which time they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; or

 

(viii)                        exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

 

(b)                                 If an Event of Default occurs under Clause 29.15 (US Insolvency Proceedings) in respect of an Obligor:

 

(i)                                     the Facility Commitments shall immediately be cancelled; and

 

(ii)                                  all of the Loans, together with accrued interest, and all other amounts accrued under the Finance Documents shall be immediately due and payable;

 

in each case automatically and without any direction, notice, declaration or other act.

 

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30.                               CHANGES TO THE LENDERS

 

30.1                        Assignments and transfers by the Lenders

 

Subject to this Clause 30.1, a Lender (the “Existing Lender”) may:

 

(a)                                 assign any of its rights; or

 

(b)                                 transfer by novation any of its rights and obligations,

 

under any Finance Document to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets (the “New Lender”) and in the case of a Revolving Facility made available to the Parent or any other Italian Borrower, it is (i) not a Blacklisted Resident Entity and (ii) a person authorised under applicable Italian law or regulation to (x) make loans to a borrower incorporated in Italy; or (y) acquire participations in or provide guarantees or cash cover in relation to loans made to a borrower incorporated in Italy.

 

30.2                        Conditions of assignment or transfer

 

(a)                                 Except where such assignment or transfer is from a Lender to an Affiliate, another Lender or a Related Fund, the minimum amount of any assignment or transfer undertaken pursuant to this Clause 30 must be greater than or equal to the Base Currency Amount of US$5,000,000 with respect to Revolving Facility A and €5,000,000 with respect to Revolving Facility B.

 

(b)                                 The consent of the Parent shall be required for any assignment or transfer by an Existing Lender of any of such Existing Lender’s rights or obligations under this Agreement, unless the transfer or assignment is:

 

(i)                                     to another Lender or an Affiliate of a Lender; or

 

(ii)                                  following an Event of Default which is continuing.

 

Where the consent of the Parent is required it shall not be unreasonably withheld or delayed, and shall be deemed to have been given if no response has been received from the Parent within five (5) Business Days of the date of the request for its consent.

 

(c)                                  An assignment will only be effective on:

 

(i)                                     receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties and the other Secured Parties as it would have been under if it had been an Original Lender;

 

(ii)                                  the recordation of such assignment on the Register; and

 

(iii)                               the performance by the Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Lender and the New Lender.

 

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(d)                                 If:

 

(i)                                     a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

 

(ii)                                  as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 19 (Tax Gross Up and Indemnities) or Clause 20.1 (Increased costs),

 

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. This paragraph (e) shall not apply in relation to Clause 19.2 (Tax gross-up), to a Treaty Lender that has included a confirmation of its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (h)(ii)(B) of Clause 19.2 (Tax gross-up) if the Obligor making the payment has not made a Borrower DTTP Filing in respect of that Treaty Lender.

 

(e)                                  Any Lender may, without the consent of any Obligor, at any time sub-participate or sub-contract any of its rights or obligations under the Finance Documents.

 

(f)                                   By becoming party to this Agreement each Obligor expressly grants its consent to any assignment or transfer of the rights and obligations from an Existing Lender to a New Lender for the purposes of article 1407 of the Italian Civil Code.

 

(g)                                  Notwithstanding any other term of this Agreement, each Lender shall ensure that at all times its Overall Facility A Commitment is not less than:

 

(i)                                     its US Dollar Swingline Commitment; or

 

(ii)                                  if it does not have a US Dollar Swingline Commitment, the US Dollar Swingline Commitment of a Lender which is its Affiliate.

 

30.3                        Assignment or transfer fee

 

Unless the Agent otherwise agrees and excluding an assignment or transfer (i) to an Affiliate of a Lender, (ii) to a Related Fund or (iii) made in connection with primary syndication of the Facilities, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of €1,500 (or, following completion of the Mergers, US$2,000).

 

30.4                        Limitation of responsibility of Existing Lenders

 

(a)                                 Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

 

(i)                                     The legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

 

(ii)                                  the financial condition of any Obligor;

 

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(iii)                               the performance and observance by any Obligor or any other member of the Group of its obligations under the Finance Documents or any other documents; or

 

(iv)                              the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

 

and any representations or warranties implied by law are excluded.

 

(b)                                 Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

 

(i)                                     has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender or any other Finance Party in connection with any Finance Document; and

 

(ii)                                  will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

(c)                                  Nothing in any Finance Document obliges an Existing Lender to:

 

(i)                                     accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 30; or

 

(ii)                                  support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

 

30.5                        Procedure for transfer

 

(a)                                 Subject to the conditions set out in Clause 30.2 (Conditions of assignment or transfer), a transfer is effected in accordance with paragraph (c) below when:

 

(i)                                     the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender; and

 

(ii)                                  the transfer is recorded on the Register.

 

The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate and record the transfer on the Register.

 

(b)                                 The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender upon its completion of all “know your customer” or other checks relating to any person that it is required to carry out in relation to the transfer to such New Lender.

 

(c)                                  Subject to Clause 30.9 (Pro rata interest settlement) on the Transfer Date:

 

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(i)                                     to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the “Discharged Rights and Obligations”);

 

(ii)                                  each of the Obligors and the New Lender shall assume obligations towards one another or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor or other member of the Group and the New Lender have assumed or acquired the same in place of that Obligor and the Existing Lender;

 

(iii)                               the Agent, the Global Coordinators, the Bookrunners, the New Lender, the other Lenders, the Swingline Agent and the Issuing Agent and any relevant US Dollar Swingline Lender shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights, or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Global Coordinators, the Bookrunners, the Swingline Agent, the Issuing Agent and any relevant US Dollar Swingline Lender and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

 

(iv)                              the New Lender shall become a Party as a “Lender”.

 

30.6                        Procedure for assignment

 

(a)                                 Subject to the conditions set out in Clause 30.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

 

(b)                                 The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

 

(c)                                  Subject to Clause 30.9 (Pro rata interest settlement), on the Transfer Date:

 

(i)                                     the Existing Lender will assign absolutely to the New Lender its rights under the Finance Documents expressed to be the subject of the assignment in the Assignment Agreement;

 

(ii)                                  the Existing Lender will be released from the obligations (the “Relevant Obligations”) expressed to be the subject of the release in the Assignment Agreement; and

 

(iii)                               the New Lender shall become a Party as a “Lender” and will be bound by obligations equivalent to the Relevant Obligations.

 

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(d)                                 Lenders may utilise procedures other than those set out in this Clause 30.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Obligor or unless in accordance with Clause 30.5 (Procedure for transfer), to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender); provided that they comply with the conditions set out in Clause 30.2 (Conditions of assignment or transfer).

 

30.7                        Copy of Transfer Certificate or Assignment Agreement to Parent

 

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Parent a copy of that Transfer Certificate or Assignment Agreement.

 

30.8                        Security over Lenders’ rights

 

In addition to the other rights provided to Lenders under this Clause 30, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of such Lender including, without limitation:

 

(a)                                 any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

 

(b)                                 in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by such Lender as Security for those obligations or securities,

 

except that no such charge, assignment or Security shall:

 

(i)                                     release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

 

(ii)                                  require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

 

30.9                        Pro rata interest settlement

 

If the Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 30.5 (Procedure for transfer) or any assignment pursuant to Clause 30.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):

 

(a)                                 any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date (“Accrued Amounts”) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six (6) Months, on the next of the dates which falls at six (6) Monthly intervals after the first day of that Interest Period); and

 

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(b)                                 the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt:

 

(i)                                     when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

 

(ii)                                  the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 30.9, have been payable to it on that date, but after deduction of the Accrued Amounts.

 

30.10                 Disclosure to numbering service providers

 

(a)                                 Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facilities and one or more Obligors the following information:

 

(i)                                     names of Obligors;

 

(ii)                                  country of domicile of Obligors;

 

(iii)                               place of incorporation of Obligors;

 

(iv)                              date of this Agreement;

 

(v)                                 the names of the Agent, the Swingline Agent, the Issuing Agent and the Arrangers;

 

(vi)                              date of each amendment and restatement of this Agreement;

 

(vii)                           amount of Total Facility Commitments;

 

(viii)                        currencies of the Facilities;

 

(ix)                              type of Facilities;

 

(x)                                 ranking of Facilities;

 

(xi)                              Final Maturity Date for Facilities;

 

(xii)                           changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and

 

(xiii)                        such other information agreed between such Finance Party and the Parent,

 

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.

 

(b)                                 The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facilities and one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

(c)                                  Each Obligor represents that none of the information set out in paragraphs (i) to (xiii) of paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.

 

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(d)                                 The Agent shall notify the Parent and the other Finance Parties of:

 

(i)                                     the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facilities and one or more Obligors; and

 

(ii)                                  the number or, as the case may be, numbers assigned to this Agreement, the Facilities and one or more Obligors by such numbering service provider.

 

30.11                 The Register

 

(a)                                 The Agent, acting solely for this purpose as the agent of the Obligors (and to the extent necessary for the Facilities to be considered as being in registered form for US federal income tax purposes), shall maintain at its address referred to in Clause 37 (Notices):

 

(i)                                     a copy of each notice and written confirmation referred to in Clause 30.2 (Conditions of assignment or transfer) and in Clause 30.5 (Procedure for transfer) delivered to and accepted by it; and

 

(ii)                                  with respect to each Facility, a register for the recordation of the names and addresses of the Lenders and the Revolving Facility Commitments of, and principal amounts (and related interest amounts) owing to, each Lender from time to time (the “Register”) under such Facility.

 

The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Obligors, the agents and the Lenders shall treat each person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by any Obligor at any reasonable time and from time to time upon reasonable prior notice. This Clause (a) shall be construed so that each Facility is at all times maintained in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related Treasury regulations (or any other relevant or successor provisions of the Code or of such Treasury regulations).

 

(b)                                 Each Party to this Agreement irrevocably authorises the Agent to make the relevant entry in the Register on its behalf for the purposes of this Clause 30.11 without any further consent of, or consultation with, such Party.

 

30.12                 Accession, assignments and transfers by Hedging Banks

 

(a)                                 No Affiliate of a Lender may become a Hedging Bank unless and until the proposed Hedging Bank accedes to this Agreement as a Hedging Bank by delivering to the Agent a duly completed and signed Accession Letter.

 

(b)                                 No Hedging Bank may assign any of its rights or transfer any of its rights or obligations as Hedging Bank under this Agreement or any Hedging Document to any person:

 

(i)                                     except as permitted under the relevant Hedging Document; and

 

(ii)                                  unless and until the proposed Hedging Bank accedes to this Agreement as a Hedging Bank by delivering to the Agent a duly completed and signed Accession Letter, save where it is already party to this Agreement as a Hedging Bank.

 

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30.13                 Participant Register

 

The applicable Lender, acting solely for this purpose as a non-fiduciary agent of the Obligors (and to the extent necessary for the Facilities to be considered as being in registered form for US federal income tax purposes), shall maintain a register on which it enters the name and address of each Relevant Sub-Participant, and the amount of each such Relevant Sub-Participant’s interest in such Lender’s rights and/or obligations under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Relevant Sub-Participant or any information relating to a Relevant Sub-Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Finance Document) to any Person except to the extent that such disclosure is necessary in connection with a Tax audit or other proceeding to establish that such Facilities or other obligation is in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related Treasury regulations (or any successor provisions of the Code or of such Treasury regulations). The entries in the Participant Register shall be conclusive absent manifest error, and the Obligor (to the extent it has been notified of such entry) and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of the applicable rights and/or obligations of such Lender under this Agreement, notwithstanding notice to the contrary.

 

31.                               CHANGES TO THE OBLIGORS

 

31.1                        Assignment and transfers by Obligors

 

Save in the context of a Permitted Merger, no Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

 

31.2                        Additional Obligors

 

(a)                                 Subject to compliance with the provisions of paragraphs (b) and (c) of Clause 26.6 (“Know your customer” checks), the Parent may request that any of its wholly owned Subsidiaries become a Guarantor or a Borrower (each an “Additional Obligor”).

 

(b)                                 Subject always to the provisions of Clause 28.24 (Guarantor Threshold Test and Additional Guarantors), the Parent shall procure that:

 

(i)                                     within ten (10) Business Days following completion of the Italian Reorganisation, Italian Holdco will accede to this Agreement as an Additional Borrower and an Additional Guarantor;

 

(ii)                                  within ten (10) Business Days following completion of the Holdco Merger, Holdco will accede to this Agreement as an Additional Borrower and an Additional Guarantor;

 

(iii)                               within ten (10) Business Days following completion of the Target Merger, Target will accede to this Agreement as an Additional Borrower and an Additional Guarantor; and

 

(iv)                              from time to time thereafter, each member of the Group required to comply with Clause 28.24 (Guarantor Threshold Test and Additional Guarantors) will accede to this Agreement as an Additional Guarantor,

 

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in each case subject to delivery of the documentation referred to in paragraph (c)(iii) below

 

(c)                                  A member of the Group which is a wholly owned Subsidiary of the Parent shall become an Additional Obligor if:

 

(i)                                     other than with respect to those Additional Obligors set out at paragraph (b) above, all Lenders (in the case of a proposed Additional Borrower) or the Majority Lenders (in the case of a proposed Additional Guarantor) have approved that member of the Group;

 

(ii)                                  the Parent and the proposed Additional Guarantor or the proposed Additional Borrower deliver to the Agent a duly completed and executed Accession Letter; and

 

(iii)                               the Agent has received all of the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent) in relation to that Additional Obligor, each in form and substance satisfactory to the Agent.

 

(d)                                 In the case of an Additional Borrower under Revolving Facility B or an Additional Guarantor incorporated in Italy, the Parties have agreed to make an appropriate increase to the guarantee limitation set out in Clause 24.12 (Guarantee limitations applicable to GTECH as Parent) or Clause 24.14 (Italian guarantee limitations).

 

(e)                                  Notwithstanding anything else in this Agreement, no Subsidiary of the Parent may become or remain a Borrower at any time unless, at that time, it is also a Guarantor.

 

(f)                                   The Agent shall notify the Parent and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent).

 

(g)                                  Notwithstanding anything to the contrary in this Agreement, a Subsidiary of the Parent that is a controlled foreign corporation (as such term is defined in Section 957 of the Code) may not (and shall not be obligated to) become a Guarantor for purposes of the Finance Documents.

 

31.3                        Resignation of an Obligor

 

(a)                                 The Parent may request that a Guarantor (other than the Parent or GTECH Corporation) or a Borrower (other than the Parent or GTECH Corporation) ceases to be a Guarantor or, as the case may be, Borrower by delivering to the Agent a Resignation Letter if:

 

(i)                                     that Guarantor (other than a Guarantor which is also an Original Borrower) or a Borrower is being disposed of by way of a Third Party Disposal and the Parent has confirmed this is the case;

 

(ii)                                  following the completion of any Permitted Transaction, any Guarantor (other than a Guarantor which is also an Original Borrower) ceases to be a Material Subsidiary; or

 

(iii)                               all the Lenders have consented to the resignation of that Guarantor.

 

(b)                                 The Agent shall accept a Resignation Letter and notify the Parent and the Lenders of its acceptance if:

 

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(i)                                     the Parent has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter; and

 

(ii)                                  no payment is due from the Guarantor under Clause 24.1 (Guarantee and indemnity) or from a Borrower under Clause 11.3 (Repayment) or Clause 15.3 (Payment of interest).

 

(c)                                  The resignation of that Guarantor shall not be effective until the date of the relevant Third Party Disposal at which time that company shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents as a Guarantor.

 

31.4                        Repetition of Representations

 

Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the representations and warranties referred to in paragraph (a)(ii) of Clause 25.25 (Repetition) are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

 

32.                               ROLE OF THE AGENT, THE ARRANGING PARTIES, THE GLOBAL COORDINATORS, THE SWINGLINE AGENT, THE ISSUING AGENT AND OTHERS

 

32.1                        Appointment

 

(a)                                 Each of the Arranging Parties, the Lenders and the Issuing Agent hereby irrevocably appoints The Royal Bank of Scotland plc to act on its behalf as the Agent (and, in particular, for the purposes of Italian law, as mandatario con rappresentanza (common representative)) hereunder and under the other Finance Documents and authorises the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.

 

(b)                                 Each of the US Dollar Swingline Lenders hereby irrevocably appoint KeyBank National Association to act on its behalf as the Swingline Agent (and, in particular, for the purposes of Italian law, as mandatario con rappresentanza (common representative)) hereunder and under the other Finance Documents and authorises the Swingline Agent to take such actions on its behalf and to exercise such powers as are delegated to the Swingline Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.

 

(c)                                  Each of the Arranging Parties, the Lenders and the Issuing Agent authorises the Global Coordinators, Bookrunners and Mandated Lead Arrangers to exercise the rights, powers, authorities and discretions specifically given to the Global Coordinators, Bookrunners and Mandated Lead Arrangers under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

(d)                                 Unless otherwise expressly stated, the provisions of this Clause 32 are solely for the benefit of the Agent, the Arranging Parties, the Lenders, the Swingline Agent and the Issuing Agent and no Obligor shall have rights as a third party beneficiary of any of such provisions.

 

32.2                        Rights as a Lender

 

The person serving as the Agent, the Swingline Agent or the Issuing Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the 

 

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same as though it were not the Agent, the Swingline Agent or the Issuing Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the person serving as the Agent, the Swingline Agent or the Issuing Agent hereunder in its individual capacity.  Such person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrowers or any Subsidiary or other Affiliate thereof as if such person were not the Agent, the Swingline Agent or the Issuing Agent hereunder and without any duty to account therefor to the Lenders.

 

32.3                        Duties of the Agent, the Swingline Agent and the Issuing Agent

 

(a)                                 The Agent, the Swingline Agent and the Issuing Agent shall promptly forward to a Party the original or a copy of any document which is delivered to it for that Party by any other Party.

 

(b)                                 Without prejudice to Clause 30.7 (Copy of Transfer Certificate or Assignment Agreement to Parent), paragraph (a) above shall not apply to any Transfer Certificate or Assignment Agreement.

 

(c)                                  Except where a Finance Document specifically provides otherwise, the Agent, the Swingline Agent or the Issuing Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

(d)                                 If the Agent, the Swingline Agent or the Issuing Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

 

(e)                                  If the Agent, the Swingline Agent or the Issuing Agent (as applicable) is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent or the Arrangers) under this Agreement, it shall promptly notify the other Finance Parties.

 

(f)                                   The duties of the Agent, the Swingline Agent and the Issuing Agent under the Finance Documents are solely mechanical and administrative in nature.

 

(g)                                  The Agent, acting solely for this purpose as agent of the Obligors, shall maintain the Register referred to in Clause 30.11 (The Register).

 

(h)                                 Notwithstanding any other provision of any Finance Document to the contrary, none of the Agent, the Arranging Parties, the Swingline Agent, the Issuing Agent or the Bookrunners is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law, regulation or a breach of a fiduciary duty or duty of confidentiality.

 

32.4                        Roles of the Global Coordinators and Bookrunners

 

Except as specifically provided in the Finance Documents, the Global Coordinators and the Bookrunners have no obligations of any kind to any other Party under or in connection with any Finance Document.

 

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32.5                        No fiduciary duties

 

(a)                                 Nothing in this Agreement constitutes the Agent, the Global Coordinators, Bookrunners and Mandated Lead Arrangers, the Swingline Agent or the Issuing Agent as a trustee or fiduciary of any other person.

 

(b)                                 None of the Agent, the Global Coordinators, the Bookrunners and Mandated Lead Arrangers or the Swingline Agent, the Issuing Agent or any US Dollar Swingline Lender shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

 

32.6                        Business with the Group

 

The Agent, the Global Coordinators, Bookrunners and Mandated Lead Arrangers, the Swingline Agent, the Issuing Agent and each US Dollar Swingline Lender may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

 

32.7                        Rights and discretions of the Agent, the Swingline Agent and the Issuing Agent

 

The Agent, the Swingline Agent and the Issuing Agent:

 

(a)                                 may rely on any representation, notice or document believed by them to be genuine, correct and appropriately authorised;

 

(b)                                 may rely on any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; and

 

(c)                                  may disclose the identity of a Defaulting Lender to the other Finance Parties and the Parent and shall disclose the same upon the written request of the Parent or the Majority Lenders.

 

32.8                        Majority Lenders’ instructions

 

(a)                                 Unless a contrary indication appears in a Finance Document, the Agent shall exercise any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent).

 

(b)                                 Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties.

 

(c)                                  The Agent is not authorised to act on behalf of a Lender (without first obtaining such Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.

 

(d)                                 In making any determination with a view to granting or refusing a consent under this Agreement, the Majority Lenders shall act reasonably in making such determination.

 

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32.9                        Exculpatory Provisions

 

The Agent, the Swingline Agent and the Issuing Agent shall not have any duties or obligations except those expressly set forth herein and in the other Finance Documents.  Without limiting the generality of the foregoing, the Agent, the Swingline Agent and the Issuing Agent:

 

(a)                                 shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)                                 shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Finance Documents that it is required to exercise as directed in writing by the Majority Lenders (or such other number of percentage of the Lenders as shall be expressly provided for herein or in the Finance Documents); provided that it shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose it to liability or that is contrary to any Finance Document or applicable law;

 

(c)                                  shall not, except as expressly set forth herein and in the other Finance Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to a Borrower or any of its Affiliates that is communicated to or obtained by the person serving as the Agent or any of its Affiliates in any capacity;

 

(d)                                 shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Majority Lenders (or such other number or percentage of the Lenders as shall be necessary, or as it shall believe in good faith shall be necessary, under the circumstances as provided in Clauses 42.1 (Required consents) and 29.16 (Acceleration)) or (ii) in the absence of its own gross negligence or wilful misconduct.  The Agent, the Swingline Agent and the Issuing Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to it by the Borrowers, a Lender or another agent of the Finance Parties under this Agreement; and

 

(e)                                  shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Finance Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Finance Document or any other agreement, instrument or document.

 

32.10                 Reliance by the Agent, the Swingline Agent and the Issuing Agent

 

(a)                                 The Agent, the Swingline Agent and the Issuing Agent shall each be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper person.

 

(b)                                 The Agent, the Swingline Agent and the Issuing Agent also may each rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper person, and shall not incur any liability for relying thereon.

 

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(c)                                  In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender, the Swingline Agent or the Issuing Agent, the Agent may presume that such condition is satisfactory to such Lender, the Swingline Agent or the Issuing Agent unless the Agent shall have received notice to the contrary from such Lender or the Issuing Agent prior to the making of such Loan, US  Dollar Swingline Loan or the issuance of such Letter of Credit.

 

(d)                                 The Agent, the Swingline Agent and the Issuing Agent may each consult with legal counsel (who may be counsel for a Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

32.11                 Replacement of the Agent, the Swingline Agent or the Issuing Agent

 

(a)                                 After consultation with the Parent, the Majority Lenders may, by giving thirty (30) days’ notice to the Agent, the Swingline Agent or the Issuing Agent (or, where any one of them is an Impaired Agent, by giving such shorter notice agreed to by the Majority Lenders), replace the Agent, the Swingline Agent or the Issuing Agent (as applicable) by appointing a successor which shall be a bank with offices in the United States and Italy, or an Affiliate of any such bank with offices in the United States and Italy.

 

(b)                                 The retiring Agent, the Swingline Agent or the Issuing Agent(as applicable) shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Lenders) make available to the successor Agent, the Swingline Agent or the Issuing Agent (as applicable) such documents and records and provide such assistance as the successor Agent, the Swingline Agent or the Issuing Agent (as applicable) may reasonably request for the purposes of performing its functions as Agent, the Swingline Agent or the Issuing Agent (as applicable) under the Finance Documents.

 

(c)                                  The appointment of the successor Agent, the Swingline Agent or the Issuing Agent (as applicable) shall take effect on the date specified in the notice from the Majority Lenders to the retiring Agent.  As from this date, the retiring Agent, the Swingline Agent or the Issuing Agent (as applicable) shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 32 (and any agency fees for the account of the retiring Agent, the Swingline Agent or the Issuing Agent (as applicable) shall cease to accrue from (and shall be payable on) that date).

 

(d)                                 Any successor Agent, the Swingline Agent or the Issuing Agent and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

 

32.12                 Delegation of Duties

 

(a)                                 The Agent, the Swingline Agent or the Issuing Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Finance Document by or through any one or more sub-agents appointed by the Agent, the Swingline Agent or the Issuing Agent.

 

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(b)                                 The Agent, the Swingline Agent and the Issuing Agent and any such sub-agent may perform all of its duties and exercise its rights and powers by or through their respective Related Parties.

 

(c)                                  The provisions of Clause 32.9 (Exculpatory Provisions) shall apply to any such sub-agent and to the Related Parties of the Agent, the Swingline Agent, the Issuing Agent and any such sub-agent and shall apply to their respective activities in connection with the syndication of the Facilities provided for herein as well as activities as the Agent, the Swingline Agent or the Issuing Agent.

 

32.13                 Resignation of the Agent, the Swingline Agent or the Issuing Agent

 

(a)                                 The Agent, the Swingline Agent or the Issuing Agent may at any time give notice of its resignation to the Lenders, the other agents to the Finance Parties under this Agreement and the Borrowers.

 

(b)                                 Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, in consultation with the Borrowers, to appoint a successor, which shall be a bank with offices in the United States and Italy, or an Affiliate of any such bank with offices in the United States and Italy.

 

(c)                                  If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within thirty (30) days after the retiring Agent gives notice of its resignation, then the retiring agent may on behalf of the Lenders and the other agents to the Finance Parties under this Agreement, appoint a successor agent meeting the qualifications set forth above and any such appointment made by the agent shall be deemed to be accepted by the Lenders and the relevant agents.

 

(d)                                 Upon the acceptance of a successor’s appointment as the Agent, the Swingline Agent or the Issuing Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) agent, and the retiring agent shall be discharged from all of its duties and obligations hereunder or under the other Finance Documents.

 

(e)                                  The fees payable by the Borrowers to a successor agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor.

 

(f)                                   After the retiring agent’s resignation hereunder and under the other Finance Documents, the provisions of this Clause 32 and Clause 23 (Costs and Expenses) shall continue in effect for the benefit of such retiring agent and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring agent was acting as agent.

 

(g)                                  Upon the acceptance of a successor’s appointment as the Agent, the Swingline Agent or the Issuing Agent  hereunder, (i) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring agent, (ii) the retiring agent shall be discharged from all of its respective duties and obligations hereunder or under the other Finance Documents and (iii) in the case of the Issuing Agent, the successor Issuing Agent shall issue Letters of Credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring Issuing 

 

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Agent to effectively assume the obligations of the retiring Issuing Agent with respect to such Letters of Credit.

 

(h)                                 The retiring agent shall, at its own cost, make available to the successor agent such documents and records and provide such assistance as the successor agent may reasonably request for the purposes of performing its functions under the Finance Documents.

 

(i)                                     The Agent shall resign in accordance with paragraph (a) and (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to paragraph (c) above) if on or after the date which is three (3) months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

 

(i)                                     the Agent fails to respond to a request under Clause 19.9 (FATCA Information) and the Parent or a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

(ii)                                  the information supplied by the Agent pursuant to Clause 19.9 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

(iii)                               the Agent notifies the Parent and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

and (in each case) the Parent or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and the Parent or such Lender, by notice to the Agent, requires it to resign.

 

32.14                 Non-Reliance on the Agent and the Other Finance Parties

 

Each Lender, the Swingline Agent and the Issuing Agent acknowledges that it has, independently and without reliance upon the Agent or any other Finance Party or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender, the Swingline Agent and the Issuing Agent acknowledges that it will, independently and without reliance upon the Agent or any other Finance Party or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Finance Document or any related agreement or any document furnished hereunder or thereunder and that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including:

 

(a)                                 the financial condition, status and nature of each member of the Group;

 

(b)                                 the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

 

(c)                                  whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, 

 

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arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

 

(d)                                 the adequacy, accuracy or completeness of any other information provided by the Agent, any Party or any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

 

32.15                 Responsibility for documentation

 

None of the Agent, the Global Coordinators, Bookrunners and Mandated Lead Arrangers or the Swingline Agent and the Issuing Agent:

 

(a)                                 is responsible for the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Agent, the Global Coordinators, Bookrunners and Mandated Lead Arrangers, the Swingline Agent, the Issuing Agent, a US Dollar Swingline Lender, an Obligor or any other person given in or in connection with any Finance Document or the transactions contemplated in the Finance Documents; or

 

(b)                                 is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document.

 

32.16                 Exclusion of liability

 

(a)                                 Without limiting paragraph (b) below (and without prejudice to the provisions of paragraph (e) of Clause 35.11 (Disruption to Payment Systems, etc.)), none of the Agent, the Swingline Agent or the Issuing Agent will be liable (including, without limitation, for negligence or any other category of liability whatsoever) for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct.

 

(b)                                 No Party (other than the Agent, the Swingline Agent or the Issuing Agent (as applicable)) may take any proceedings against any officer, employee or agent of the Agent, the Swingline Agent or the Issuing Agent in respect of any claim it might have against the Agent, the Swingline Agent or the Issuing Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent, the Swingline Agent or the Issuing Agent may rely on this Clause 32.16 subject to Clause 1.3 (Third party rights) and the provisions of the Third Parties Act.

 

(c)                                  The Agent, the Swingline Agent and the Issuing Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by it if it has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the relevant agent for that purpose.

 

(d)                                 Nothing in this Agreement shall oblige the Agent, the Swingline Agent, the Issuing Agent or the Global Coordinators, Bookrunners and Mandated Lead Arrangers to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender, and each Lender confirms to the Agent, the Swingline Agent, the Issuing Agent and the 

 

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Global Coordinators, Bookrunners and Mandated Lead Arrangers that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent, the Swingline Agent, the Issuing Agent or the Global Coordinators, Bookrunners or Mandated Lead Arrangers.

 

32.17                 Lenders’ indemnity to the Agent

 

(a)                                 Each Lender shall (in proportion to its share of the Total Facility Commitments or, if the Total Facility Commitments are then zero, to its share of the Total Facility Commitments immediately prior to their reduction to zero) indemnify the Agent, the Swingline Agent and the Issuing Agent, within three (3) Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by that agent (otherwise than by reason of the agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 35.11 (Disruption to Payment Systems, etc.), notwithstanding the agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the relevant agent) in acting as the Agent, the Swingline Agent or the Issuing Agent (as applicable) under the Finance Documents (unless the relevant agent has been reimbursed by an Obligor pursuant to a Finance Document).

 

(b)                                 Wells Fargo Bank, NA will only be deemed to be a Lender for the purposes of the indemnity in paragraph (a) after the Target Accession Date has occurred.

 

32.18                 Confidentiality

 

(a)                                 In acting as agent for the Finance Parties, the Agent, the Swingline Agent and the Issuing Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

 

(b)                                 If information is received by another division or department of the Agent, the Swingline Agent or the Issuing Agent it may be treated as confidential to that division or department, and the relevant agent shall not be deemed to have notice of it.

 

(c)                                  Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent, the Swingline Agent, the Issuing Agent nor the Arranging Parties are obliged to disclose to any other person (i) any confidential information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

 

32.19                 Relationship with the Lenders

 

Subject to Clause 30.9 (Pro rata interest settlement), the Agent, the Swingline Agent and the Issuing Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five (5) Business Days’ prior notice from such Lender to the contrary in accordance with the terms of this Agreement.

 

32.20                 Deduction from amounts payable by the Agent, the Swingline Agent and the Issuing Agent

 

If any Party owes an amount to the Agent, the Swingline Agent or the Issuing Agent under the Finance Documents, the relevant agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of 

 

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the amount owed.  For the purposes of the Finance Documents, that Party shall be regarded as having received any amount so deducted.

 

33.                               CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:

 

(a)                                 interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

 

(b)                                 oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

 

(c)                                  oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

 

34.                               SHARING AMONG THE FINANCE PARTIES

 

34.1                        Payments to Finance Parties

 

(a)                                 Subject to paragraph (b) below, if a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with Clause 35 (Payment Mechanics) and applies that amount to a payment due under the Finance Documents, then:

 

(i)                                     the Recovering Finance Party shall, within three (3) Business Days, notify details of the receipt or recovery to the Agent;

 

(ii)                                  the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause 35 (Payment Mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

 

(iii)                               the Recovering Finance Party shall, within three (3) Business Days of demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 35.6 (Partial payments).

 

(b)                                 Paragraph (a) above shall not apply to any amount received or recovered by the Issuing Agent in respect of any cash cover placed in an account with the Issuing Agent.

 

34.2                        Redistribution of payments

 

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 35.6 (Partial payments).

 

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34.3                        Recovering Finance Party’s rights

 

(a)                                 On a distribution by the Agent under Clause 34.2 (Redistribution of payments), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have shared in the redistribution.

 

(b)                                 If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable.

 

34.4                        Reversal of redistribution

 

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

(a)                                 each Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 34.2 (Redistribution of payments) shall, upon request of the Agent, pay to the Agent for account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay); and

 

(b)                                 that Recovering Finance Party’s rights of subrogation in respect of any reimbursement shall be cancelled, and the relevant Obligor will be liable to the reimbursing Finance Party for the amount so reimbursed.

 

34.5                        Exceptions

 

(a)                                 This Clause 34 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause 34, have a valid and enforceable claim against the relevant Obligor.

 

(b)                                 A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings if:

 

(i)                                     it notified the other Finance Party of the legal or arbitration proceedings; and

 

(ii)                                  the other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

 

35.                               PAYMENT MECHANICS

 

35.1                        Payments to the Agent

 

(a)                                 On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, excluding a payment under the terms of a US Dollar Swingline Loan, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date not later than:

 

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(i)                                     1:00 p.m. (New York, New York time) in the case of payments to be made by or to GTECH Corporation;

 

(ii)                                  1:00 p.m. (London time) in the case of payments to be made by or to the Parent,

 

and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.  All payments received by the Agent after the above mentioned times, shall in each case be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrowers shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

 

(b)                                 Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to Euro, in a principal financial centre in a Participating Member State or London) with such bank as the Agent specifies.

 

35.2                        Distributions by the Agent, the Swingline Agent or the Issuing Agent

 

Each payment received by the Agent, the Swingline Agent or the Issuing Agent (as applicable) under the Finance Documents for another Party shall, subject to Clause 35.3 (Distributions to an Obligor) and Clause 35.4 (Clawback), be made available by the Agent, the Swingline Agent or the Issuing Agent (as applicable) as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office) to such account as that Party may notify to the Agent, the Swingline Agent or the Issuing Agent (as applicable) by not less than five (5) Business Days’ notice with a bank in the principal financial centre of the country of that currency (or, in relation to Euro, in the principal financial centre of a Participating Member State or London).

 

35.3                        Distributions to an Obligor

 

The Agent, the Swingline Agent or the Issuing Agent may (with the consent of the Obligor or in accordance with Clause 36 (Set-Off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

35.4                        Clawback

 

(a)                                 Where a sum is to be paid to the Agent, the Swingline Agent or the Issuing Agent under the Finance Documents for another Party, the Agent, the Swingline Agent or the Issuing Agent (as applicable) is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

 

(b)                                 If the Agent, the Swingline Agent or the Issuing Agent (as applicable) pays an amount to another Party and it proves to be the case that the agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the relevant agent shall on demand refund the same to the Agent, the Swingline Agent or the Issuing Agent (as applicable) together with interest on that amount from the date of payment to the date of receipt by the Agent or the Issuing Agent (as 

 

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applicable), calculated by the Agent, the Swingline Agent or the Issuing Agent (as applicable) to reflect its cost of funds.

 

35.5                        Impaired Agent

 

(a)                                 If, at any time, the Agent, the Swingline Agent or the Issuing Agent becomes an Impaired Agent, then an Obligor or a Lender which is required to make a payment under the Finance Documents to the relevant agent in accordance with Clause 35.1 (Payments to the Agent) may instead either pay that amount direct to the required recipient or pay that amount to an interest-bearing account held with an Acceptable Bank within the meaning of paragraph (a) of the definition of “Acceptable Bank” and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents.  In each case such payments must be made on the due date for payment under the Finance Documents.

 

(b)                                 All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements.

 

(c)                                  A Party which has made a payment in accordance with this Clause 35.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

 

(d)                                 Promptly upon the appointment of a successor agent in accordance with Clause 32.10 (Reliance by the Agent, the Swingline Agent and the Issuing Agent), each Party which has made a payment to a trust account in accordance with this Clause 35.5 shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor agent for distribution in accordance with Clause 35.2 (Distributions by the Agent, the Swingline Agent or the Issuing Agent).

 

35.6                        Partial payments

 

(a)                                 Subject to this Clause 35.6 if the Agent receives a payment for application against amounts due in respect of any Finance Documents that is insufficient to discharge all the amounts then due and payable by an Obligor under those Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under those Finance Documents in the following order:

 

(i)                                     first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent, the Swingline Agent and the Issuing Agent under those Finance Documents;

 

(ii)                                  secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under those Finance Documents;

 

(iii)                               thirdly, in or towards payment pro rata of any principal due but unpaid under those Finance Documents and any amount due but unpaid under Clause 8.3 (Claims under a Letter of Credit) and Clause 8.5 (Indemnities); and

 

(iv)                              fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

 

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(b)                                 The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

 

(c)                                  Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

 

35.7                        No set-off by Obligors

 

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) counterclaim, recoupment or setoff.

 

35.8                        Business Days

 

(a)                                 Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

 

(b)                                 During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement, interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

 

35.9                       Currency of account

 

(a)                                 Subject to paragraphs (b) to (e) below, the Base Currency is the currency of account and payment for any sum due from an Obligor under any Finance Document.

 

(b)                                 A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be made in the currency in which that Utilisation or Unpaid Sum is denominated on its due date.

 

(c)                                  Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

 

(d)                                 Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

 

(e)                                  Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency.

 

35.10                 Change of currency

 

(a)                                 Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

 

(i)                                     any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrowers and with the consent of each Lender); and

 

(ii)                                  any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency 

 

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or currency unit into the other, rounded up or down by the Agent (acting reasonably and with the consent of each Lender).

 

(b)                                 If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrowers and with the consent of each Lender) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

35.11                 Disruption to Payment Systems, etc.

 

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by a Borrower that a Disruption Event has occurred:

 

(a)                                 the Agent may, and shall if requested to do so by a Borrower, consult with the Borrowers with a view to agreeing with the Borrowers such changes to the operation or administration of the Facilities as the Agent may deem necessary in the circumstances;

 

(b)                                 the Agent shall not be obliged to consult with the Borrowers in relation to any changes mentioned in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

 

(c)                                  the Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

(d)                                 any such changes agreed upon by the Agent and the Borrowers shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 42 (Amendments and Waivers);

 

(e)                                  the Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation, for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 35.11; and

 

(f)                                   the Agent shall notify the Finance Parties of all changes agreed upon pursuant to paragraph (d) above.

 

35.12                 USA Patriot Act notice

 

(a)                                 Each Lender and the Agent (for itself and not on behalf of any Lender) hereby notifies the Obligors that, pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies each Obligor, which information includes the name and address of such Obligor and other information that will allow such Lender or the Agent (as applicable) to identify such Obligor in accordance with the USA Patriot Act.  Each of the Obligors shall, and shall cause each of its Subsidiaries to, provide such information and take such actions as are reasonably requested by the Agent or any Lender in order to assist the Agent and the Lenders in maintaining compliance with the USA Patriot Act.

 

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(b)                                 Notwithstanding anything to the contrary contained in this Agreement or in any other Finance Document, the covenants under paragraph (a) above shall not be made to or for the benefit of any Specified Lender, no Specified Lender shall have any rights under such paragraph and each Specified Lender shall be deemed not to be a Lender solely for purposes of calculating any consent or vote of the Majority Lenders under Clause 29.16 (Acceleration) with respect to any breach of such paragraph (but in each case without prejudice to any other rights or obligations of any Specified Lender as a consequence of any Default occurring as a result of any breach of such paragraph).

 

36.                              SET-OFF

 

A Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

 

37.                               NOTICES

 

37.1                        Notices generally

 

Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in Clause 37.3 (Electronic Communications) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by fax as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(a)                                 if to a Borrower or the other Original Obligors, to the address, fax number, electronic mail address or telephone number specified for such person below, with respect to each Original Borrower as set out in Schedule 12 (Original Borrowers’ Details);

 

(b)                                 if the any Arranger or any Bookrunner, to the address, fax number, electronic mail address or telephone number specified for such person below;

 

(c)                                  if to the Agent, the Swingline Agent or the Issuing Agent, to the address, fax number, electronic mail address or telephone number specified in Schedule 11 (Agents’ Details); and

 

(d)                                 if to any other Finance Party, to the address, fax number, electronic mail address or telephone number specified in the Administrative Questionnaire supplied by the Agent.

 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by fax shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications to the extent provided in Clause 37.3 (Electronic Communications) below shall be effective as provided in such Clause.

 

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37.2                        Communication with Impaired Agent

 

If the Agent, the Swingline Agent or the Issuing Agent is an Impaired Agent, then the Parties other then the Impaired Agent may, instead of communicating with each other through the relevant agent, communicate with each other directly and (while the relevant agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the relevant agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement agent has been appointed.

 

37.3                        Electronic Communications

 

Notices and other communications to the Lenders, the Agent, the Swingline Agent and the Issuing Agent hereunder may be delivered or furnished by electronic mail or other electronic means pursuant to procedures approved by the Agent; provided that the foregoing shall not apply to notices to any Lender or the Issuing Agent pursuant to Clause 5 (Utilisation — Revolving Facility Loans) if such Lender or the Issuing Agent (as applicable) has notified the Agent that it is incapable of receiving notices under such Clause by electronic communication.  Each agent for a Finance Party or a Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

Unless an agent for a Finance Party otherwise prescribes, notices and other communications sent to an electronic mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return electronic mail or other written acknowledgement); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

 

37.4                        The Platform

 

The platform is provided “as is” and “as available”.  The Agent Parties (as defined below) do not warrant the accuracy or completeness of the Borrower Materials or the adequacy of the platform, and expressly disclaim liability for errors in or omissions from the Borrower Materials. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by any agent party in connection with the Borrower Materials or the platform.  In no event shall the Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Borrower, any Lender, the Swingline Agent, the Issuing Agent or any other person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or wilful misconduct of such Agent Party; provided that in no event shall any Agent Party have any liability to any Borrower, any Lender, the Issuing Agent or any other person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

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37.5                        Change of address, etc.

 

Each of the Global Coordinators, Bookrunners and Mandated Lead Arrangers, the Obligors, the Agent, the Swingline Agent and the Issuing Agent may change its address, fax or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Finance Party may change its address, fax or telephone number for notices and other communications hereunder by notice to the Borrowers, the Agent, the Swingline Agent and the Issuing Agent.  In addition, each Lender agrees to notify the Agent from time to time to ensure that the Agent has on record an effective address, contact name, telephone number, fax number and electronic mail address to which notices and other communications may be sent and accurate wire instructions for such Lender.

 

37.6                        Reliance by the Agent, the Swingline Agent, the Issuing Agent and the Lenders

 

The Agent, the Swingline Agent, the Issuing Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic Utilisation Requests) purportedly given by or on behalf of a Borrower even if (a) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (b) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  Each Borrower shall indemnify the Agent, the Swingline Agent, the Issuing Agent, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such person on each notice purportedly given by or on behalf of a Borrower.  All telephonic notices to and other telephonic communications with the Agent may be recorded by the Agent, and each of the parties hereto hereby consents to such recording.

 

37.7                        Use of websites

 

(a)                                 Each Borrower may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of communication by posting this information onto an electronic website designated by the Borrowers and the Agent (the “Designated Website”) if:

 

(i)                                     the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

 

(ii)                                  both the Borrowers and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and

 

(iii)                               the information is in a format previously agreed between the Borrowers and the Agent.

 

If any Lender (a “Paper Form Lender”) does not agree to the delivery of information electronically, then the Agent shall notify the Borrowers accordingly, and each Borrower shall at its own cost supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form.  In any event, each Borrower shall at its own cost supply the Agent with at least one copy in paper form of any information required to be provided by it.

 

(b)                                 The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Borrowers and the Agent.

 

(c)                                  The Borrowers shall promptly upon becoming aware of its occurrence notify the Agent if:

 

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(i)                                     the Designated Website cannot be accessed due to technical failure;

 

(ii)                                  the password specifications for the Designated Website change;

 

(iii)                               any new information which is required to be provided under this Agreement is posted onto the Designated Website;

 

(iv)                              any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

 

(v)                                 the Borrowers become aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

 

If a Borrower notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by a Borrower under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

(d)                                 Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website.  Each Borrower shall at its own cost comply with any such request within ten (10) Business Days.

 

37.8                        English language

 

(a)                                 Any notice given under or in connection with any Finance Document must be in English.

 

(b)                                 All other documents provided under or in connection with any Finance Document must be:

 

(i)                                     in English; or

 

(ii)                                  if not in English and if so required by the Agent, accompanied by a certified English translation, and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

38.                               CALCULATIONS AND CERTIFICATES

 

38.1                        Accounts

 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

 

38.2                        Certificates and determinations

 

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

 

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38.3                        Day count convention

 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of three hundred and sixty (360) days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

 

39.                               TAX CHARACTERIZATION

 

Each party hereto agrees that, consistent with the specific terms of this Agreement, the loan relationships created hereby shall be treated as resulting in borrowings by and loans to the Borrowers for all US Tax purposes.

 

40.                               PARTIAL INVALIDITY

 

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

41.                              REMEDIES AND WAIVERS

 

No failure to exercise nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

42.                               AMENDMENTS AND WAIVERS

 

42.1                        Required consents

 

(a)                                 Subject to Clause 42.2 (Exceptions), any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Borrowers, and any such amendment or waiver will be binding on all Parties.

 

(b)                                 The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 42.

 

(c)                                  Each Obligor agrees to any such amendment or waiver permitted by this Clause 42 which is agreed to by the Borrowers.  This includes any amendment or waiver which would, but for this paragraph (c), require the consent of all of the Guarantors.

 

42.2                        Exceptions

 

(a)                                 An amendment or waiver that has the effect of changing or which relates to:

 

(i)                                     the definition of “Change of Control” in Clause 1.1 (Definitions);

 

(ii)                                  the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

(iii)                               an extension to the date of payment of any amount under the Finance Documents;

 

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(iv)                             a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

 

(v)                                a change in currency of payment of any amount under the Finance Documents;

 

(vi)                             an increase in or an extension of any Commitment or the Total Facility Commitments, an extension of the Availability Period, or any requirement that a cancellation of Revolving Commitments reduces the Revolving Commitments of the Lenders rateably under the relevant Facility;

 

(vii)                          a change to the Borrowers or Guarantors other than in accordance with Clause 31 (Changes to the Obligors);

 

(viii)                       any provision which expressly requires the consent of all the Lenders;

 

(ix)                             Clause 2.2 (Finance Parties’ rights and obligations), Clause 13 (Mandatory Prepayment), Clause 24 (Guarantee and Indemnity), Clause 30 (Changes to the Lenders), Clause 31.3 (Resignation of an Obligor), this Clause 42, Clause 46 (Governing Law) or Clause 47.1 (Jurisdiction of English courts).

 

shall not be made without the prior consent of all the Lenders.

 

(b)                                 An amendment or waiver which relates to the rights or obligations of the Agent, the Arranging Parties, the Swingline Agent, the Issuing Agent or a Hedging Bank may not be effected without the consent of the Agent, the Arranging Parties, the Swingline Agent, the Issuing Agent or such Hedging Bank.

 

(c)                                  Any amendment or waiver that has the effect of changing or which relates to:

 

(i)                                    other than as expressly permitted by the provisions of this Agreement, any release of any guarantee or indemnity; or

 

(ii)                                 any Security (or the nature or scope of the assets expressed to be subject to a Security Document) unless expressly permitted under this Agreement or relating to a sale or disposal of such asset where such sale or disposal is expressly permitted under this Agreement,

 

in each case following the date on which it is created and perfected pursuant to the provision of this Agreement shall not be made without the consent of the Super Majority Lenders. For the avoidance of doubt any amendment or waiver of the provisions of Clauses 28.23 (Security following Debt Ratings decrease), 28.24 (Guarantor Threshold Test and Additional Guarantors) and to the Agreed Security Principles shall be governed by Clause 42.1 (Required consents).

 

42.3                        Replacement of Lender

 

(a)                                 If at any time any Lender becomes a Non-Consenting Lender (as defined in paragraph (c) below) then the Parent may, on five (5) Business Days’ prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to Clause 30 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement Lender”) selected by the Parent, and which is

 

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acceptable to the Agent and (in the case of any transfer of a Revolving Facility Commitment or a participation in a Letter of Credit) the Issuing Agent and (in the case of any transfer of a US Dollar Swingline Commitment or a participation in a US Dollar Swingline Loan) the Swingline Agent, which confirms its willingness to assume and does assume all the obligations of the transferring Lender (including the assumption of the transferring Lender’s participations on the same basis as the transferring Lender) for a purchase price in cash payable at the time of transfer equal to the outstanding principal amount of such Lender’s participation in the outstanding Utilisations and all accrued interest or Letter of Credit fees, Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

(b)                                 The replacement of a Lender pursuant to this Clause 42.3 shall be subject to the following conditions:

 

(i)                                    the Borrowers shall have no right to replace the Agent, the Swingline Agent or the Issuing Agent pursuant to this Clause 42.3;

 

(ii)                                 neither the Agent nor the Non-Consenting Lender shall have any obligation to the Borrowers to find a Replacement Lender;

 

(iii)                              the replacement must take place no later than ninety (90) days after the date the Non-Consenting Lender notifies the Borrowers and the Agent of its failure or refusal to agree to any consent, waiver or amendment to the Finance Documents requested by the Borrowers; and

 

(iv)                             in no event shall the Lender replaced under this paragraph (b) be required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents.

 

(c)                                  In the event that:

 

(i)                                    the Borrowers or the Agent (at the request of the Borrowers) has requested the Lenders to consent to a waiver or amendment of any provisions of the Finance Documents;

 

(ii)                                 the waiver or amendment in question requires the consent of all the Lenders; and

 

(iii)                              Lenders whose Commitments aggregate more than eighty per cent. (80%) of the Total Facility Commitments (or, if the Total Facility Commitments have been reduced to zero, aggregated more than eighty per cent. (80%) of the Total Facility Commitments prior to that reduction) have consented to such waiver or amendment,

 

then any Lender who does not and continues not to agree to such waiver or amendment shall be deemed a “Non-Consenting Lender”.

 

42.4                        Disenfranchisement of Defaulting Lenders

 

(a)                                 For so long as a Defaulting Lender has any Available Revolving Commitment, in ascertaining the Majority Lenders or whether any given percentage (including, for the avoidance of doubt, unanimity) of the Total Facility Commitments or Total Commitments has been obtained to approve any request for a consent, waiver, amendment or other vote

 

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under the Finance Documents, that Defaulting Lender’s Commitments will be reduced by the amount of its Available Revolving Commitments.

 

(b)                                 For the purposes of this Clause 42.4, the Agent may assume that the following Lenders are Defaulting Lenders:

 

(i)                                    any Lender which has notified the Agent that it has become a Defaulting Lender;

 

(ii)                                 any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,

 

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

42.5                        Replacement of a Defaulting Lender

 

(a)                                 The Parent may, at any time a Lender has become and continues to be a Defaulting Lender, by giving five (5) Business Days’ prior written notice to the Agent and such Lender:

 

(i)                                     replace such Lender by requiring such Lender to (and such Lender shall) transfer pursuant to Clause 30 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement;

 

(ii)                                  require such Lender to (and such Lender shall) transfer pursuant to Clause 30 (Changes to the Lenders) all (and not part only) of the undrawn Commitment of the Lender; or

 

(iii)                               require such Lender to (and such Lender shall) transfer pursuant to Clause 30 (Changes to the Lenders) all (and not part only) of its rights and obligations in respect of the Facility,

 

to a Lender or a Replacement Lender selected by the Parent, and which (unless the Agent is an Impaired Agent) is acceptable to the Agent (acting reasonably) and (in the case of any transfer of a Revolving Facility Commitment or a participation in a Letter of Credit) to the Issuing Agent, which confirms its willingness to assume and does assume all the obligations of the transferring Lender (including the assumption of the transferring Lender’s participations in Loans or Letters of Credit (as the case may be) on the same basis as the transferring Lender).

 

(b)                                 Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause 42.5 shall be subject to the following conditions:

 

(i)                                     the Borrowers shall have no right to replace the Agent pursuant to this Clause 42.5;

 

(ii)                                neither the Agent nor the Defaulting Lender shall have any obligation to the Parent to find a Replacement Lender;

 

(iii)                             the transfer must take place no later than ninety (90) days after the notice referred to in paragraph (a) above; and

 

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(iv)                              in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender any of the fees received by the Defaulting Lender pursuant to the Finance Documents.

 

42.6                        Amendment to correct manifest error

 

The Agent may (without receiving any instructions from the Majority Lenders) agree with the Borrowers any amendment to or the modification of the provisions of any Finance Document or any schedule or annex thereto, which is necessary to correct a manifest error.

 

42.7                        Release of Security on Permitted Disposal and Investment Grade Rating

 

(a)                                 The Finance Parties shall procure that if an Obligor or a Material Subsidiary has created Security over any of its assets (other than shares) in favour of any of the Finance Parties, which assets subsequently become the subject of a Permitted Disposal or any other disposal approved by the Majority Lenders to a person which is not a member of the Group the Finance Parties which are the beneficiaries of such Security will, at the cost and request of the Parent (to the extent that such cost is duly documented), release the Security promptly following the Parent’s request.

 

(b)                                 The release of the Security referred to in paragraph (a) above shall not become effective until the date of that Permitted Disposal or such earlier date agreed between the Agent and the Parent.

 

(c)                                  The Finance Parties shall further procure that if at any time following the granting of Security pursuant to Clause 28.23 (Security following Debt Ratings Decrease) all Public Debt Ratings received are at least BBB- or higher by S&P or Fitch or Baa3 or higher by Moody’s (in each case with a stable outlook), the Finance Parties which are the beneficiaries of such Security will at the cost and request of the Parent (to the extent that such cost is duly documented), release the Security promptly following the Parent’s request.  It is understood however that following any such release, the provisions of Clause 28.23 (Security following Debt Ratings Decrease) shall continue with full force and effect and in the event that the relevant trigger conditions are met, the Parent shall again be obliged to procure the granting of Security in accordance with Clause 28.23.

 

43.                               NEGOTIATED AGREEMENT

 

For the purposes of the transparency rules set forth in the CICR Resolution of March 4, 2003 and by the Disposizioni sulla trasparenza delle operazioni e dei servizi bancari e finanziari issued by the Bank of Italy on 20 June 2012 and published in the Italian Official Gazette on 30 June 2012, the Parties hereby acknowledge and confirm that this Agreement (and each of the provisions hereof) has been specifically negotiated with the support of legal advisors on each side.

 

44.                               CONFIDENTIALITY

 

44.1                        Confidential Information

 

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 44.2 (Disclosure of Confidential Information) and Clause 30.10 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

 

168

 

44.2                        Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

(a)                                 to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

(b)                                 to any person:

 

(i)                                    to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(ii)                                 with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, any securitisation (or similar transaction of broadly equivalent economic effect), or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents or one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

 

(iii)                              appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

 

(iv)                             who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

 

(v)                                to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

 

(vi)                             to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 30.8 (Security over Lenders’ rights);

 

(vii)                          to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

(viii)                       who is a Party; or

 

(ix)                             with the consent of the Parent;

 

169

 

in each case, such Confidential Information as that Finance Party shall consider appropriate if:

 

(A)                               in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

(B)                               in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

 

(C)                               in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

 

(c)                                  to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Parent and the relevant Finance Party;

 

(d)                                 to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information;

 

(e)                                  to any insurer (including its professional advisers) such Confidential Information as required to be disclosed to enable it to carry out its normal insurance activities in relation to the Finance Documents, the Obligors or its assets if the insurer is informed of its confidential nature; and

 

(f)                                   to any Sanctions Authority.

 

170

 

44.3                        Continuing obligations

 

The obligations in this Clause 44 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of one (1) year from the earlier of:

 

(a)                                 the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

 

(b)                                 the date on which such Finance Party otherwise ceases to be a Finance Party.

 

45.                               COUNTERPARTS

 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

 

46.                               GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

47.                               ENFORCEMENT

 

47.1                        Jurisdiction of English courts

 

(a)                                 The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or any non-contractual obligations arising out of or in connection with this Agreement) (a “Dispute”).

 

(b)                                 The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes, and, accordingly, no Party will argue to the contrary.

 

(c)                                  This Clause 47.1 is for the benefit of the Finance Parties and Hedging Banks only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties and Hedging Banks may take concurrent proceedings in any number of jurisdictions.

 

(d)                                 Each Obligor agrees not to claim and hereby irrevocably waives any immunity from legal process in connection with a Finance Document under any law of any applicable jurisdiction which it is entitled to claim or which may be attributed to it in respect of itself or its assets to the fullest extent permitted by the laws of such jurisdiction.

 

47.2                        Service of process

 

(a)                                 Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):

 

(i)                                    irrevocably appoints Holdco of 70 Chancery Lane, London WC2A 1AF, England, as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and

 

171

 

(ii)                                 agrees that failure by an agent for service of process to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

 

(b)                                 If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Parent (on behalf of all the Obligors) must immediately (and in any event within fifteen (15) days of such events taking place) appoint another agent on terms acceptable to the Agent.  Failing this, the Agent may appoint another agent for this purpose.

 

47.3                        Waiver of Jury Trial

 

EACH PARTY HERETO HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY LITIGATION IN ANY UNITED STATES FEDERAL OR STATE COURT DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER FINANCE DOCUMENTS OR ANY DEALINGS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE LENDER/BORROWER/GUARANTOR RELATIONSHIP.  Each party hereto hereby acknowledges that this waiver is a material inducement to enter into a business relationship, it has relied on this waiver in entering into this Agreement, and it will continue to rely on this waiver in related future dealings.  Each party hereto hereby further warrants and represents that it has reviewed this waiver with its legal counsel and it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel.  THIS WAIVER IS IRREVOCABLE AND MAY NOT BE MODIFIED OTHER THAN BY A WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS CLAUSE 47.3 AND EXECUTED BY EACH OF THE PARTIES HERETO.  In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

172

 

SCHEDULE 1
 THE ORIGINAL PARTIES

 

PART I
 THE ORIGINAL OBLIGORS

 

	
Name of Borrower
    	
 
    	
Registration number (or   equivalent, if any) and Jurisdiction of Incorporation
    
	
 
    	
 
    	
 
    
	
GTECH S.p.A.
    	
 
    	
08028081001 Italy
    
	
 
    	
 
    	
 
    
	
GTECH Corporation
    	
 
    	
090517 Delaware
    
	
 
    	
 
    	
 
    
	
Name of Original   Guarantors
    	
 
    	
Registration number (or   equivalent, if any) and Jurisdiction of Incorporation
    
	
 
    	
 
    	
 
    
	
GTECH S.p.A.
    	
 
    	
08028081001 Italy
    
	
 
    	
 
    	
 
    
	
GTECH Corporation
    	
 
    	
090517 Delaware
    

 

173

 

PART IIA

THE ORIGINAL LENDERS

 

	
Name of Original Lender
    	
 
    	
Revolving Facility A
   Commitment
    US$
    	
 
    	
Treaty Passport Scheme
   Reference Number
    	
 
    	
Jurisdiction of Tax
   Residence
    
	
Barclays Bank PLC
    	
 
    	
108,851,348.84
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
BNP Paribas, Succursale Italia
    	
 
    	
108,851,348.84
    	
 
    	
005/B/0255139/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Citibank, N.A.
    	
 
    	
108,851,348.84
    	
 
    	
13/C/62301/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crédit Agricole Corporate Investment Bank, New   York branch
    	
 
    	
108,851,348.84
    	
 
    	
5/C/222082/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit Suisse AG, Milan Branch
    	
 
    	
108,851,348.84
    	
 
    	
n/a
    	
 
    	
Italy (and Switzerland   for DTT purposes) and meets definition of UK Treaty Lender
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Deutsche Bank Luxembourg S.A.
    	
 
    	
108,851,348.84
    	
 
    	
48/D/72718/DTTP
    	
 
    	
Luxembourg
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ING Bank N.V. Milan Branch
    	
 
    	
108,851,348.84
    	
 
    	
1/I/70193/DTTP
    	
 
    	
The Netherlands
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Intesa Sanpaolo S.p.A NYC Branch
    	
 
    	
108,851,348.84
    	
 
    	
n/a
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JP Morgan Chase Bank, N.A., London Branch
    	
 
    	
89,370,829.36
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mediobanca International (Luxembourg) S.A.
    	
 
    	
108,851,348.85
    	
 
    	
48/M/315419/DTTP
    	
 
    	
Luxembourg
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Royal Bank of Scotland plc, Milan Branch
    	
 
    	
108,851,348.84
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scotiabank Europe plc
    	
 
    	
108,851,348.84
    	
 
    	
n/a
    	
 
    	
United Kingdom
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Société Générale Paris
    	
 
    	
108,851,348.84
    	
 
    	
5/S/70085/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Unicredit Bank AG, New York Branch
    	
 
    	
108,851,348.84
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Third
    	
 
    	
122,899,978.96
    	
 
    	
13/F/24267/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Wells Fargo Bank, NA(1)
    	
 
    	
122,899,978.96
    	
 
    	
13/W/61173/DTTP
    	
 
    	
US
    

 

(1)  Wells Fargo Bank, NA’s commitment is conditional on Target Accession Date occurring.

 

174

 

	
Name of Original Lender
    	
 
    	
Revolving Facility A
   Commitment
    US$
    	
 
    	
Treaty Passport Scheme
   Reference Number
    	
 
    	
Jurisdiction of Tax
   Residence
    
	
KeyBank National Association
    	
 
    	
49,761,677.79
    	
 
    	
13/K/216374/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
1,800,000,000.00
    	
 
    	
 
    	
 
    	
 
    

 

175

 

	
Name of Original Lender
    	
 
    	
Revolving Facility B
   Commitment
    EUR
    	
 
    	
Treaty Passport
   Scheme Reference
   Number
    	
 
    	
Jurisdiction of Tax
   Residence
    
	
Barclays Bank PLC, Milan Branch
    	
 
    	
59,728,100.91
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
BNP Paribas, Succursale Italia
    	
 
    	
59,728,100.91
    	
 
    	
005/B/0255139/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Citibank, N.A.
    	
 
    	
59,728,100.91
    	
 
    	
13/C/62301/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crédit Agricole Corporate and Investment Bank,   Milan branch
    	
 
    	
59,728,100.91
    	
 
    	
5/C/222082/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit Suisse AG, Milan Branch
    	
 
    	
59,728,100.91
    	
 
    	
n/a
    	
 
    	
Italy (and   Switzerland for DTT purposes) and meets definition of UK Treaty Lender
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Deutsche Bank Luxembourg S.A.
    	
 
    	
59,728,100.91
    	
 
    	
48/D/72718/DTTP
    	
 
    	
Luxembourg
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ING Bank N.V. Milan Branch
    	
 
    	
59,728,100.91
    	
 
    	
1/I/70193/DTTP
    	
 
    	
The Netherlands
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Intesa Sanpaolo S.p.A.
    	
 
    	
59,728,100.91
    	
 
    	
n/a
    	
 
    	
Italy
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JP Morgan Chase Bank, N.A., Milan Branch
    	
 
    	
46,824,875.10
    	
 
    	
13/M/0268710/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mediobanca International (Luxembourg) S.A.
    	
 
    	
59,728,100.89
    	
 
    	
48/M/315419/DTTP
    	
 
    	
Luxembourg
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Royal Bank of Scotland plc, Milan Branch
    	
 
    	
59,728,100.87
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scotiabank Europe plc
    	
 
    	
59,728,100.91
    	
 
    	
n/a
    	
 
    	
United Kingdom
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SOCIETE GENERALE, MILAN BRANCH
    	
 
    	
59,728,100.91
    	
 
    	
5/S/70085/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Unicredit Bank AG, Milan Branch
    	
 
    	
59,728,100.91
    	
 
    	
7/U/237605/DTTP
    	
 
    	
Italy
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Banca Popolare di Milano S.c.a.r.l.
    	
 
    	
99,286,075.79
    	
 
    	
n/a
    	
 
    	
Italy
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
UBI Banca S.c.p.a.
    	
 
    	
77,780,699.45
    	
 
    	
n/a
    	
 
    	
Italy
    

 

176

 

	
Banco Popolare S.C., London Branch
    	
 
    	
49,643,037.89
    	
 
    	
n/a
    	
 
    	
UK
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
1,050,000,000.00
    	
 
    	
 
    	
 
    	
 
    

 

177

 

PART IIB

THE ORIGINAL US DOLLAR SWINGLINE LENDERS

 

	
Name of Original US
   Dollar Swingline
   Lender
    	
 
    	
US Dollar Swingline
   Commitment
    	
 
    	
Treaty Passport
   Scheme Reference
   Number (if applicable)
    	
 
    	
Jurisdiction of Tax
   Residence
    
	
Citibank, N.A.
    	
 
    	
20,000,000.00
    	
 
    	
13/C/62301/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crédit Agricole Corporate and Investment Bank,   New York branch
    	
 
    	
20,000,000.00
    	
 
    	
5/C/222082/DTTP
    	
 
    	
France
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
KeyBank National Association
    	
 
    	
20,000,000.00
    	
 
    	
13/K/216374/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
JP Morgan Chase Bank, N.A.
    	
 
    	
20,000,000.00
    	
 
    	
13/M/0268710/DTTP
    	
 
    	
US
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Royal Bank of Scotland Plc, Milan Branch
    	
 
    	
20,000,000.00
    	
 
    	
n/a
    	
 
    	
n/a
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
100,000,000.00
    	
 
    	
 
    	
 
    	
 
    

 

178

 

PART III

THE BOOKRUNNERS AND MANDATED LEAD ARRANGERS

 

Banca IMI S.p.A.

 

Barclays Bank PLC

 

BNP Paribas Succursale Italia

 

Crédit Agricole Corporate and Investment Bank, Milan branch

 

Credit Suisse AG, Milan Branch

 

Citigroup Global Markets Limited

 

Deutsche Bank Luxembourg S.A.

 

J.P. Morgan Limited

 

ING Bank N.V. Milan Branch

 

Mediobanca - Banca di Credito Finanziario S.p.A

 

The Royal Bank of Scotland Plc

 

Scotiabank Europe Plc

 

SOCIETE GENERALE

 

Unicredit Bank AG New York Branch

 

Unicredit Bank AG, Milan Branch

 

179

 

PART IV

THE MANDATED LEAD ARRANGERS

 

Banca Popolare di Milano S.c.a.r.l

 

Fifth Third

 

UBI Banca S.c.p.a.

 

Wells Fargo Bank, NA

 

180

 

PART V

THE ARRANGERS

 

Banco Popolare S.C., London Branch

 

Keybank National Association

 

181

 

PART VI

THE INITIAL MATERIAL SUBSIDIARIES

 

As at the date of this Agreement:

 

·                  GTECH Corporation

 

·                  GTECH Global Services Corporation Limited

 

·                  Lotterie Nazionali S.r.l.

 

·                  Lottomatica Scommesse S.r.l.

 

·                  Lottomatica Videolot Rete S.p.A.

 

182

 

SCHEDULE 2
  CONDITIONS PRECEDENT

 

PART I
 CONDITIONS PRECEDENT TO INITIAL UTILISATION

 

1.                                      Original Obligors

 

(a)                                 A certificate of the Parent (signed by an authorised signatory) confirming that borrowing or guaranteeing, as appropriate, the Total Facility Commitments would not cause any borrowing, guaranteeing or similar limit binding on any Original Obligor to be exceeded.

 

(b)                                 A certificate of an authorised signatory of the relevant Original Obligor certifying that each copy document relating to it specified in this Part I or in Part III of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

2.                                      Legal opinions

 

Executed forms of the following legal opinions, in each case addressed to, and capable of being relied on by the Finance Parties (other than the Hedging Banks) and dated as at the date of this Agreement:

 

(a)                                 a legal opinion of Studio Legale Associato, in associazione con Clifford Chance, legal advisers to the Obligors as to Italian law as to due incorporation and capacities, powers and authority to enter into the Finance Documents in the form distributed to the Original Lenders prior to signing of this Agreement.

 

(b)                                 a legal opinion of Clifford Chance US LLP as advisors to the Obligors as to the laws of Delaware as to due incorporation and capacities, powers and authority to enter into the Finance Documents and legal, valid, binding and enforceable obligations, in the form distributed to the Original Lenders prior to signing of this Agreement.

 

(c)                                  a legal opinion of Linklaters Studio Legale Associato, legal advisers to the Arranging Parties and the Agent in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

 

(d)                                 a legal opinion of Linklaters Studio Legale Associato, legal advisers to the Arranging Parties and the Agent in Italy, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

 

3.                                      US Conditions Precedent

 

In the case of GTECH Corporation:

 

(a)                                 a solvency certificate signed by the chief financial officer or chief accounting officer in form and substance satisfactory to the Agent and its counsel; and

 

(b)                                 a certificate as to existence and good standing from the appropriate governmental authorities in its jurisdiction of organisation.

 

183

 

4.                                      Italian Conditions Precedent

 

A certificate (certificato di vigenza) issued by the competent Registro delle Imprese in respect of each Original Obligor incorporated in Italy dated no earlier than five (5) Business Days prior to the date of this Agreement

 

5.                                      Other documents and evidence

 

(a)                                 Evidence that Holdco has accepted its appointment as process agent.

 

(b)                                 A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Parent accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

 

(c)                                  The Original Financial Statements.

 

(d)                                 Evidence that the fees, costs and expenses then due from the Borrowers pursuant to Clause 18 (Fees) and Clause 23 (Costs and Expenses) have been paid or will be paid by the first Utilisation Date.

 

184

 

PART II

CONDITIONS PRECEDENT TO BE DELIVERED

BY ADDITIONAL OBLIGORS

 

1.                                      An Accession Letter, duly executed by the Additional Obligor and the Borrowers.

 

2.                                      A copy of the constitutional documents of the Additional Obligor.

 

3.                                      A copy of a resolution of the board of directors of the Additional Obligor:

 

(a)                                 approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter;

 

(b)                                 authorising a specified person or persons to execute the Accession Letter on its behalf; and

 

(c)                                  authorising a specified person or persons, on its behalf, to sign or despatch all other documents and notices (including, in relation to an Additional Borrower, any Utilisation Request) to be signed or despatched by it under or in connection with the Finance Documents.

 

4.                                      A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.

 

5.                                      If required by applicable law, a copy of a resolution signed by all the holders of the issued shares of the Additional Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party.

 

6.                                      A certificate of the Additional Obligor (signed by a director (or an officer if the Additional Obligor is a US Obligor)) confirming that borrowing or guaranteeing, as appropriate, the Total Facility Commitments would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded.

 

7.                                      A certificate of an authorised signatory of the Additional Obligor certifying that each copy document listed in this Part II of Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter.

 

8.                                      A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Letter or for the validity and enforceability of any Finance Document.

 

9.                                      If available, the latest audited financial statements of the Additional Obligor.

 

10.                               A legal opinion of Linklaters Studio Legale Associato, legal advisers to the Global Coordinators and the Agent in England.

 

11.                               If the Additional Obligor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the legal advisers to the Arranger and the Agent in the jurisdiction in which the Additional Obligor is incorporated.

 

12.                               A legal opinion of from Clifford Chance LLP or other reputable counsel to the relevant Additional Obligor as advisors to the Obligors as to the laws of the jurisdiction of incorporation of the

 

185

 

proposed Additional Obligors in relation to due incorporation and capacities, powers and authority to enter into the Finance Documents.

 

13.                               If the proposed Additional Obligor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in Clause 47.2 (Service of process), if not an Obligor, has accepted its appointment in relation to the proposed Additional Obligor.

 

14.                               If the proposed Additional Obligor is a US Obligor:

 

(a)                                 a solvency certificate signed by the chief financial officer or chief accounting officer of such Obligor in form and substance satisfactory to the Agent and its counsel; and

 

(b)                                 a certificate as to the existence and good standing of such US Obligor from the appropriate governmental authorities in such US Obligor’s jurisdiction of organisation.

 

15.                               Copies of any information and any other evidence reasonably requested by any Lender required in order to comply with “know your customer” or anti-money laundering requirements under applicable laws.

 

186

 

PART III

CONDITIONS PRECEDENT TO SIGNING

 

1.                                      Prepayment and Cancellation Notice

 

A copy of the irrevocable notices of cancellation and prepayment in respect of the Existing GTECH Facilities confirming that the Existing GTECH Facilities will be cancelled in full and repaid in an amount equal to the outstanding amounts under the Existing GTECH Facilities.

 

2.                                      Original Obligors

 

(a)                                 A copy of the constitutional documents of each Original Obligor (being, in the case of the Parent, its statuto and atto costititutivo).

 

(b)                                 A copy of a resolution of the board of directors or, if applicable, equivalent body of each Original Obligor:

 

(i)                                     approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party;

 

(ii)                                  authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf;

 

(iii)                               authorising a specified person or persons, on its behalf, to sign or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed or despatched by it under or in connection with the Finance Documents to which it is a party;

 

(iv)                              in the case of an Obligor other than the Parent, authorising the Parent to act as its agent in connection with the Finance Documents; and

 

(v)                                 if applicable, a copy of the resolution of the board of directors of the relevant company, establishing the body referred to in sub-paragraph (iv) above.

 

(c)                                  A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.

 

(d)                                 The Structure Memorandum together addressed to or capable of being relied on by the Finance Parties (other than the Hedging Banks).

 

3.                                      Legal Opinions

 

Agreed forms of the legal opinions set out at Part I of this Schedule 2 (Conditions Precedent).

 

4.                                      “Know your customer” checks

 

Copies of any information and any other evidence reasonably requested by any Lender prior to the first Utilisation Date required in order to comply with “know your customer” or anti-money laundering requirements under applicable laws.

 

187

 

SCHEDULE 3
 REQUESTS

 

PART IA
 UTILISATION REQUEST LOANS

 

From:               [Borrower]

 

To:                             The Royal Bank of Scotland plc, as Agent

 

Dated: [Date]

 

Ladies and Gentlemen

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  This is a Utilisation Request.  Terms defined in the Facilities Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

 

2.                                      We wish to borrow a Loan on the following terms:

 

(a)                                 Borrower:                                          [·]

 

(b)                                 Proposed Utilisation Date:                                [·] (or, if that is not a Business Day, the next Business Day)

 

(c)                                  Facility to be utilised:                             [Revolving Facility[A/B]]

 

(d)                                 Currency of Loan:                                           [·]

 

(e)                                  Amount:                            [·] or, if less, the Available Revolving Facility

 

(f)                                   Interest Period:              [·]

 

3.                                      We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

 

4.                                      [The proceeds of this Loan should be credited to [account]].

 

5.                                      This Utilisation Request is irrevocable.

 

Yours faithfully

 

 

	
 
    	
 
    
	
authorised signatory for
    	
 
    
	
[the Borrower]
    	
 
    

 

188

 

PART IB
 UTILISATION REQUEST
 LETTERS OF CREDIT

 

From:               [Borrower]

 

To:                             The Royal Bank of Scotland plc, as Agent

 

Dated:

 

Ladies and Gentlemen

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

We refer to the Facilities Agreement.  This is a Utilisation Request.  Terms defined in the Facilities Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

 

1.                                      We wish to arrange for a Letter of Credit to be issued by the Issuing Agent specified below (which has agreed to do so) on the following terms:

 

(a)                                 Borrower:  [·]

 

(b)                                 Issuing Agent:  The Royal Bank of Scotland plc

 

(c)                                  Proposed Utilisation Date:  [·] (or, if that is not a Business Day, the next Business Day)

 

(d)                                 Facility to be utilised:  Facility[A/B]

 

(e)                                  Currency of Letter of Credit:  [·]

 

(f)                                   Amount:  [·] or, if less, the Available Revolving Facility in relation to the Facility[A/B]

 

(g)                                  Term:  [·]

 

(h)                                 Delivery instructions as follows:  [·]

 

2.                                      We confirm that each condition specified in paragraph (c) of Clause 6.7 (Issue of Letters of Credit) is satisfied on the date of this Utilisation Request.

 

3.                                      We attach a copy of the proposed Letter of Credit.

 

4.                                      The purpose of this proposed Letter of Credit is [·].

 

5.                                      This Utilisation Request is irrevocable.

 

Yours faithfully

 

 

	
 
    	
 
    
	
authorised signatory for
    	
 
    
	
[the Borrower]
    	
 
    

 

189

 

PART IC
 UTILISATION REQUEST
 US DOLLAR SWINGLINE LOANS

 

From:               [Borrower]

 

To:                             KeyBank National Association, as Agent for the US Dollar Swingline Lenders

The Royal Bank of Scotland plc, as Agent

 

Dated: [insert date]

 

Ladies and Gentlemen:

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

We refer to the Facilities Agreement.  This is a Utilisation Request.  Terms defined in the Facilities Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request. The Swing Line Borrowing requested herein complies with the requirements of Clauses 7 (Utilisations — US Dollar Swingline Loans) and 11 (US Dollar Swingline Facility) of the Agreement.

 

1.                                      We wish to borrow on the following terms:

 

(a)                                 Borrower:  [·]

 

(b)                                 Proposed Utilisation Date:  [·] (or, if that is not a New York Business Day, the next New York Business Day)

 

(c)                                  Facility to be utilised:  US Dollar Swingline Facility

 

(d)                                 Currency of Loan:  US Dollars

 

(e)                                  Amount:  [·]

 

(f)                                   Interest Period: [·]

 

2.                                      We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.

 

3.                                      [The proceeds of this US Dollar Swingline Loan should be credited to [account]].

 

4.                                      This Utilisation Request is irrevocable.

 

5.                                      The Borrower certifies that it shall not use the proceeds of the US Dollar Swingline Loan requested herein to refinance any outstanding US Dollar Swingline Loan.

 

Yours faithfully

 

 

	
 
    	
 
    
	
authorised signatory for
    	
 
    
	
[the Borrower]
    	
 
    

 

190

 

SCHEDULE 4
 FORM OF TRANSFER CERTIFICATE

 

To:                             The Royal Bank of Scotland plc, as Agent

 

From:               [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

 

Dated: [insert date]

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  This is a Transfer Certificate.  Terms defined in the Facilities Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

 

2.                                      We refer to Clause 30.5 (Procedure for transfer):

 

(a)                                 The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 30.5 (Procedure for transfer).

 

(b)                                 The proposed Transfer Date is [·].

 

(c)                                  The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 37.1 (Notices generally) are set out in the Schedule.

 

3.                                      The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 30.4 (Limitation of responsibility of Existing Lenders).

 

4.                                      This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.

 

5.                                     The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 30.4 (Limitation of responsibility of Existing Lenders).

 

6.                                      The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [in respect of an Italian Obligor,:

 

(i)                                     [an Exempt Lender];

 

(ii)                                  [an Italian Qualifying Lender];

 

(iii)                               [an Italian Treaty Lender];

 

(iv)                              [not a Qualifying Lender].]

 

(b)                                 [in respect of a UK Borrower,:

 

(i)                                     [not a Qualifying Lender];

 

191

 

(ii)                                  [a Qualifying Lender other than a UK Treaty Lender]; or

 

(iii)                               [a UK Treaty Lender].]

 

(c)                                  [in respect of a US Borrower,:

 

(i)                                     [not a Qualifying Lender]; or

 

(ii)                                  [a Qualifying Lender within limb (b) of the definition of Qualifying Lender].

 

7.                                      [The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [·]) and is tax resident in [·], so that interest payable to it by borrowers is generally subject to [full exemption from][a reduced rate of]  UK withholding tax, and requests that the Parent notify:

 

(a)                                 each UK Borrower which is a Party as a Borrower as at the Transfer Date; and

 

(b)                                 each Additional Borrower which is a UK Borrower and becomes an Additional Borrower after the Transfer Date,

 

that it wishes that scheme to apply to the Agreement.] **

 

8.                                      The New Lender confirms that is not a Blacklisted Resident Entity.

 

9.                                      This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

** delete as applicable

 

192

 

THE SCHEDULE
 Commitment/rights and obligations to be transferred

 

[insert relevant details]

 

[Facility Office address, fax number and attention details for notices and account details for payments,]

 

	
[Existing Lender]
    	
 
    	
[New Lender]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
					

 

 

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [·].

 

[Agent]

 

 

	
By:
    	
 
    	
 
    

 

193

 

SCHEDULE 5
 FORM OF ASSIGNMENT AGREEMENT

 

To:                             The Royal Bank of Scotland plc, as Agent

 

From:               [the Existing Lender] (the “Existing Lender”) and [the New Lender] (the “New Lender”)

 

Dated: [insert date]

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  This is an Assignment Agreement.  Terms defined in the Facilities Agreement have the same meaning in this Assignment Agreement unless given a different meaning in this Assignment Agreement.

 

2.                                      We refer to Clause 30.6 (Procedure for assignment):

 

(a)                                 The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Facilities Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitments and participations in Loans under the Facilities Agreement as specified in the Schedule.

 

(b)                                 The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitments and participations in Loans under the Facilities Agreement specified in the Schedule.

 

(c)                                  The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b) above.

 

3.                                      The proposed Transfer Date is [·].

 

4.                                      On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.

 

5.                                      The Facility Office and address, fax number and attention details for notices of the New Lender are set out in the Schedule.

 

6.                                      The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 30.4 (Limitation of responsibility of Existing Lenders).

 

7.                                      The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

 

(a)                                 [in respect of an Italian Obligor,:

 

(i)                                     [an Exempt Lender];

 

(ii)                                  [an Italian Qualifying Lender];

 

(iii)                               [an Italian Treaty Lender];

 

(iv)                              [not a Qualifying Lender].]

 

194

 

(b)                                 [in respect of a UK Borrower,:

 

(i)                                     [not a Qualifying Lender];

 

(ii)                                  [a Qualifying Lender other than a UK Treaty Lender]; or

 

(iii)                               [a UK Treaty Lender].]

 

(c)                                  [in respect of a US Borrower,:

 

(i)                                     [not a Qualifying Lender]; or

 

(ii)                                  [a Qualifying Lender within limb (b) of the definition of Qualifying Lender].

 

8.                                      [The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [·]) and is tax resident in [·], so that interest payable to it by borrowers is generally subject to [full exemption from][a reduced rate of]  UK withholding tax, and requests that the Parent notify:

 

(a)                                 each UK Borrower which is a Party as a Borrower as at the Transfer Date; and

 

(b)                                 each Additional Borrower is a UK Borrower which becomes an Additional Borrower after the Transfer Date,

 

that it wishes that scheme to apply to the Agreement.]**

 

[8/9].                   The New Lender confirms that is not a Blacklisted Resident Entity.

 

[9/10].            This Assignment Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 30.7 (Copy of Transfer Certificate or Assignment Agreement to Parent), to the Parent (on behalf of each Obligor) of the assignment referred to in this Assignment Agreement.

 

[10/11].     This Assignment Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Assignment Agreement.

 

[11/12].     This Assignment Agreement [and any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.

 

[12/13].     This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement.

 

** delete as applicable

 

195

 

SCHEDULE 6
 FORM OF ACCESSION LETTER

 

To:                             The Royal Bank of Scotland plc, as Agent

 

From:               [Subsidiary] and [Parent]

 

Dated:

 

Ladies and Gentlemen

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  This is an Accession Letter.  Terms defined in the Facilities Agreement have the same meaning in this Accession Letter unless given a different meaning in this Accession Letter.

 

2.                                      [Subsidiary]/[Hedging Bank] agrees to become [an Additional Guarantor][and][an Additional Borrower]/[a Hedging Bank] and to be bound by the terms of the Facilities Agreement and the other Finance Documents as [an Additional Guarantor] [and][an Additional Borrower]/ [a Hedging Bank] pursuant to [Clause 31.2 (Additional Obligors)]/[Clause 30.12 (Accession, assignments and transfers by Hedging Banks)] of the Facilities Agreement [Subsidiary]/[Hedging Bank] is a company duly incorporated in [name of relevant jurisdiction] and is a limited liability company and its registered number is [·].

 

3.                                      [Subsidiary’s]/ [Hedging Bank’s] administrative details are as follows:

 

Address:

 

Fax No.:

 

Attention:

 

4.                                      [The guarantee to be granted by [Subsidiary] pursuant to Clause 24 (Guarantee and Indemnity) of the Facilities Agreement shall be subject to the following limitations [insert as applicable — subject to agreement with Agent (acting reasonably)].

 

5.                                      [This Accession Letter is governed by English law.](2)

 

This Accession Letter is entered into by deed.

 

[Parent]                                [Subsidiary]/ [Hedging Bank]

 

[witnessed by:

 

	
Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Occupation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address
    	
 
    	
 
    

 

(2)  For Additional Obligor accessions

 

196

 

SCHEDULE 7
 FORM OF RESIGNATION LETTER

 

To:                             The Royal Bank of Scotland plc, as Agent

 

From:               [resigning Obligor] and [Parent]

 

Dated:

 

Ladies and Gentlemen

 

GTECH Senior Facilities Agreement
 dated 4 November 2014 (the “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  This is a Resignation Letter.  Terms defined in the Facilities Agreement have the same meaning in this Resignation Letter unless given a different meaning in this Resignation Letter.

 

2.                                      Pursuant to Clause 31.3 (Resignation of an Obligor), we request that [resigning Obligor] be released from its obligations as a [Guarantor] [Borrower] under the Facilities Agreement and the other Finance Documents.

 

3.                                      We confirm that:

 

(a)                                 no Default is continuing or would result from the acceptance of this request; and

 

(b)                                 this request is given in relation to [a Third Party Disposal of [resigning Obligor]]/[(resigning Obligor) ceasing to be a Material Subsidiary]; [the all Lender consent obtained on [insert date]];

 

4.                                      This letter is governed by English law.

 

	
[Parent]
    	
 
    	
[resigning Obligor]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
					

 

197

 

SCHEDULE 8
 FORM OF COMPLIANCE CERTIFICATE

 

To:                             The Royal Bank of Scotland plc, as Agent

 

From:               [Parent]

 

Dated:

 

Ladies and Gentlemen

 

GTECH Senior Facilities Agreement
 dated 4 November “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  This is a Compliance Certificate.  Terms defined in the Facilities Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

2.                                      We confirm that:

 

[Insert details of covenants to be certified].

 

[Insert details and calculations required pursuant to Clause 27.2 (Financial Condition) of the Facilities Agreement].

 

3.                                      [When applicable] We confirm that the Parent has complied with Clause 27 (Financial Covenants) of the Facilities Agreement.

 

4.                                      [When applicable] We confirm that the Parent has complied with Clause 28.24 (Guarantor Threshold Test and Additional Guarantors)of the Facilities Agreement.  Following are the computations (in reasonable detail):  [·]

 

5.                                      [When applicable] Pursuant to Clause 26.2(c) of the Facilities Agreement, we confirm that [there have been no change to the list of Material Subsidiaries since the Compliance Certificate for the Financial Quarter ending 31 December [·].]/[The following is the list of Material Subsidiaries as at (insert date):]

 

 

	
Signed
    	
 
    	
 
    
	
CFO
    	
 
    	
 
    
	
[PARENT]
    	
 
    

 

198

 

SCHEDULE 9
 TIMETABLES - LOANS
 - NOTICES TO THE AGENT

 

	
 
    	
 
    	
Loans in Euro
    	
 
    	
Loans in US
   Dollars
    	
 
    	
Loans in Other
   Currencies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Approval as an Optional Currency, if required   (Clause 4.3 (Conditions relating to Optional Currencies))
    	
 
    	
 
    	
 
    	
 
    	
 
    	
U-4

 

11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent notifies the Parent if a currency is   approved as an Optional Currency in accordance with Clause 4.3 (Conditions relating to Optional Currencies)
    	
 
    	
—
    	
 
    	
 
    	
 
    	
U-3

 

11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Delivery of a duly completed Utilisation   Request (Clause 5.1 (Delivery of a   Utilisation Request) for Interest Periods of one (1), three   (3) or six (6) Months (Clause 16.1 (Selection of Interest   Periods and Terms)
    	
 
    	
U-3

 

11:00 a.m. (London time)
    	
 
    	
U-3

 

9:00 a.m. (New York time)
    	
 
    	
U-3 (U-4 in the case of a Special Notice   Currency)

 

11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Delivery of a duly completed Utilisation   Request (Clause 7.2 (Delivery of a   Utilisation Request for US   Dollar Swingline Loans))
    	
 
    	
—
    	
 
    	
11:00 a.m. (New York time)
    	
 
    	
—
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent determines (in relation to a   Utilisation) the Base Currency Amount of the Loan, if required under Clause 5.4 (Lenders’ participation)
    	
 
    	
U-3

 

1:00 p.m. (London time)
    	
 
    	
U-3

 

3:00 p.m. (London time)
    	
 
    	
U-3 (U-4 in the case of a Special Notice   Currency)

 

1:00 p.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent notifies the Lenders of the Loan in   accordance with Clause 5.4 (Lenders’ participation)
    	
 
    	
U-3

 

3:00 p.m. (London time)
    	
 
    	
U-3

 

5:00 p.m. (London time)
    	
 
    	
U-3 (U-4 in the case of a Special Notice   Currency)

 

3:00 p.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Swingline Agent determines (in relation to   a Utilisation) the Base Currency Amount of the US Dollar Swingline Loan, if   required under Clause 7.4 (US Dollar Swingline Lenders’ participation) and notifies each US   Dollar Swingline Lender of 
    	
 
    	
—
    	
 
    	
1:00 p.m. New York time)
    	
 
    	
—
    

 

199

 

	
 
    	
 
    	
Loans in Euro
    	
 
    	
Loans in US
   Dollars
    	
 
    	
Loans in Other
   Currencies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
the amount of its participation in the US   Dollar Swingline Loan under Clause 7.4 (US   Dollar Swingline Lenders’   participation)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent sets the lending rate in dollars   under Clause 15.5 (Notification of rates   of interest).
    	
 
    	
—
    	
 
    	
U-0

 

11.00 a.m.

 

(New York time)
    	
 
    	
—
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent receives a notification from a   Lender under Clause 10.2 (Unavailability of a   currency)
    	
 
    	
—
    	
 
    	
—
    	
 
    	
U-2

 

11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent gives notice in accordance with   Clause 10.2 (Unavailability of a currency)
    	
 
    	
—
    	
 
    	
—
    	
 
    	
U-2

 

2:00 p.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The Agent determines amount of the Loan in   Optional Currency in accordance with Clause 35.10 (Change of   currency)
    	
 
    	
U-3

 

11:00 a.m. (London time)
    	
 
    	
U-3

 

11:00 a.m. (London time)
    	
 
    	
U-4

 

11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
LIBOR or EURIBOR is fixed
    	
 
    	
EURIBOR Quotation Day as of approximately   11:00 a.m. (Brussels time)
    	
 
    	
LIBOR Quotation Day as of approximately   11:00 a.m. (London time)
    	
 
    	
LIBOR Quotation Day as of approximately   11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
“U”                           =
    	
 
    	
date of Utilisation
    	
 
    	
date of Utilisation
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
“U - X”                           =
    	
 
    	
X Business Days prior to date of Utilisation
    	
 
    	
X Business Days prior to date of Utilisation
    	
 
    	
 
    

 

200

 

PART I
 LETTERS OF CREDIT
 – NOTICES TO AGENT

 

	
 
    	
 
    	
Letters of Credit
    
	
 
    	
 
    	
 
    
	
Delivery of a duly completed Utilisation   Request (Clause 6.3).
    	
 
    	
U-5

 

11:00 a.m. (London time)
    
	
 
    	
 
    	
 
    
	
The Agent determines (in relation to a   Utilisation) the Base Currency Amount of the Letter of Credit if required   under paragraph (d) of Clause 6.6 and notifies the Issuing Agent and   Lenders of the Letter of Credit in accordance with paragraph (d) of   Clause 6.5.
    	
 
    	
(London time) on date of receipt by Agent of   Utilisation Request)
    
	
 
    	
 
    	
 
    
	
Delivery of duly completed Renewal Request
    	
 
    	
U-5

 

11:00 a.m. (London time)
    

 

	
“U”
    	
=
    	
date of Utilisation
    
	
 
    	
 
    	
 
    
	
“U-X”
    	
=
    	
Business Days prior to date of Utilisation
    

 

201

 

SCHEDULE 10
 FORM OF LETTER OF CREDIT

 

To:                             [Beneficiary] (the “Beneficiary”)

Date []

 

Irrevocable Standby Letter of Credit No. []

 

Our customer, [] (the “Applicant”) has entered into an agreement for [] (the “Contract”) with the Beneficiary.

 

At the request of the banks whose names are set out below and in the attached Appendix 2 (each a Lender and together the Lenders) issue on a several basis this unconditional and irrevocable standby Letter of Credit (Letter of Credit) in your favour on the following terms:

 

1.                                      Definitions

 

1.1                               In this Letter of Credit:

 

“Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for general business in London.

 

“Demand” means a demand for a payment under this Letter of Credit in the form of Appendix 2 to this Letter of Credit.

 

“Expiry Date” means: [].

 

“Issuing Agent” means The Royal Bank of Scotland plc, London Trade Services Centre, PO Box 66891, Aldgate Union, 10 Whitechapel High Street, London E1W 9FQ.

 

“Participation Amount” means in respect of a Lender and any drawings under this Letter of Credit, the sum which is equal to that Lender’s Participation Percentage of the Total L/C Amount.

 

“Participation Percentage” means in respect of a Lender, the percentage set opposite its name in the second column in Appendix 2.

 

“Total L/C Amount” means [].

 

2.                                      Lender’s Agreement

 

(a)                                 The Beneficiary may request a drawing or drawings under this Letter of Credit by giving to the Issuing Agent a duly completed Demand. A Demand must be received by the Issuing Agent by no later than 3.30 pm (London time) on the Expiry Date.

 

(b)                                 Subject to terms of this Letter of Credit, each Lender shall, no later than five (5) Business Days after the deemed date of receipt by the Issuing Agent of a Demand (the “Due Date”), pay to the Beneficiary (by making payment via us, the Issuing Agent) its respective Participation Percentage of the sum demanded in the Demand.

 

(c)                                  The obligations of the Lenders under this Letter of Credit shall be several, not joint, and no Lender shall ever be obliged to make a payment under this Letter of Credit if as a result the aggregate of all payments made by it under this Letter of Credit would exceed its

 

202

 

Participation Amount. The Lenders together, shall never be obliged to make payments hereunder in aggregate exceeding the Total L/C Amount.

 

(d)                                 The Beneficiary is entitled to make multiple requests pursuant to this Letter of Credit; provided that the total sum claimed under this Letter of Credit does not in aggregate exceed the Total L/C Amount.

 

(e)                                  Each Lender shall accept any Demand made in accordance with this Letter of Credit as evidence, for the purposes of this Letter of Credit alone, that the amount claimed is due to the Beneficiary (waiving all rights of objection and defence and without reference to the Applicant or any third party).

 

(f)                                   If the identity or commitment of the Lenders as set out in Appendix 2 changes after this Letter of Credit is issued, then the Agent shall deliver to the Beneficiary an adjusted Appendix 2 (an “Adjusted Letter of Credit Schedule”) setting out the then current Lenders and their Commitments, and this will replace the immediately preceding Appendix 2 that was in effect. Any Adjusted Letter of Credit Schedule provided pursuant to the preceding sentence shall be effective; provided that: (i) the adjusted aggregate Participation Amounts (as defined in each case in the relevant Letter of Credit) are no less than the aggregate Participation Amounts (as defined in each case in the relevant Letter of Credit) under the former Appendix 2; and (ii) it is dated and includes the reference number of this Letter of Credit.

 

3.                                      Liability of Lenders

 

The liability of the Lenders under this Letter of Credit is several and not joint and neither we (as the Issuing Agent or the Lender) nor any Lender shall be liable for the failure of any other Lender to perform its obligations under the Letter of Credit.

 

4.                                      Expiration

 

(a)                                 Each Lender will be released from its obligations under this Letter of Credit on the date (if any) notified by the Beneficiary to the Issuing Agent as the date upon which the obligations of each Lender under this Letter of Credit are released.

 

(b)                                 Unless previously released under paragraph 4(a) above, at 3.30 pm (London time) on the Expiry Date the obligations of each Lender under this Letter of Credit will cease with no further liability on the part of any Lender except for any Demand validly presented under the Letter of Credit before 3.30 pm (London time) on the Expiry Date that remains unpaid.

 

(c)                                  When the Lenders are no longer under any further obligations under this Letter of Credit, the Beneficiary must return the original of this Letter of Credit to the Issuing Agent.

 

5.                                      Liability of the Issuing Agent

 

This Letter of Credit is signed by the Issuing Agent solely as agent and mandatario con rappresentanza for the Lenders and the Issuing Agent makes no representation or warranty, express or implied, concerning, and accepts no responsibility for the legality, validity, effectiveness, adequacy or enforceability of this Letter of Credit or concerning its power to enter into this Letter of Credit on behalf of any Lender (except for itself as a Lender) and, accordingly, it shall not be liable for any cost, loss or expense sustained or incurred by the Beneficiary as a result of any present or future total or partial invalidity, illegality or unenforceability affecting this Letter

 

203

 

of Credit or the failure of any Lender (except for itself as a Lender, if applicable) to be bound by its terms.

 

6.                                      Payments

 

All payments under this Letter of Credit shall be made by wire transfer in [] and for value on or before the Due Date for the Demand under which such payment was demanded to the following account

 

Name:  []

 

Account number:  []

 

Bank:  []

 

7.                                      Delivery of Demand

 

Each Demand shall be in writing, and, unless otherwise stated, may be made by letter or fax.  All Demands must be presented to the Issuing Agent in legible form at the following address and addressed to the department stated below:

 

The Royal Bank of Scotland plc

London Trade Services Centre,

PO Box 66891,

Aldgate Union,

10 Whitechapel High Street,

London E1W 9FQ

 

FAO: The Centre Manager

 

Any Demand shall be deemed to be received by the Issuing Agent (i) if sent by fax, at the date and time received by the Issuing Agent in legible form (provided that an original is received by post or hand within two (2) Business Days thereafter); and (ii) if sent by post or hand, when the Demand is delivered. For the purposes of this paragraph, signature of a courier’s proof of delivery shall be sufficient evidence of delivery.

 

8.                                      Assignment and Transfer

 

The Beneficiary’s rights under this Letter of Credit may not be assigned or transferred.

 

9.                                      ISP

 

Except to the extent it is inconsistent with the express terms of this Letter of Credit, this Letter of Credit is subject to the International Standby Practices (ISP 98), International Chamber of Commerce Publication No. 590.

 

10.                               Third Parties

 

This Letter of Credit shall not confer any benefit on or be enforceable by anyone other than the Beneficiary.

 

204

 

11.                               Governing Law

 

For any matter not regulated by ISP 98, this Letter of Credit and any non-contractual obligations arising out of or in connection with it are governed by [English] [New York] law.

 

12.                               Jurisdiction

 

The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Letter of Credit (including a dispute relating to any non-contractual obligation arising out of or in connection with this Letter of Credit).

 

	
Yours faithfully
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
for and on behalf of
    	
 
    
	
[Names of all Lenders]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
The Issuing Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature:
    	
 
    

 

205

 

APPENDIX 1
 FORM OF DEMAND

 

To:                             [Issuing Agent]

 

[Date]

 

Ladies and Gentlemen

 

Irrevocable Standby Letter of Credit No. [              ] issued in favour of [Beneficiary] (Letter of Credit)

 

We refer to the Letter of Credit. Terms defined in the Letter of Credit have the same meaning when used in this Demand.

 

1.              We certify that the Applicant has failed to pay the sum of [                 ] when due under the Contract. We therefore demand payment of the sum of [                               ].

 

2.              Payment should be made to the account specified in the Letter of Credit as follows:

 

3.              Name:

 

a.              Account number:  []

 

b.              Bank:  []

 

4.              The date of this Demand is not later than the Expiry Date.

 

	
Yours faithfully
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Authorised Signatory)
    	
(Authorised Signatory)
    
	
 
    	
 
    
	
For
    	
 
    
	
 
    	
 
    
	
[Beneficiary]
    	
 
    

 

206

 

APPENDIX 2

 

Irrevocable Standby Letter Credit No. [                             ] (Letter of Credit)

 

	
Name and Address of Lender
    	
 
    	
Participation Percentage
    
	
[·]
    	
 
    	
[·]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Total
    	
 
    	
[·]
    

 

207

 

SCHEDULE 11
 AGENTS’ DETAILS

 

Notices to the Agent and the Issuing Agent

 

The Royal Bank of Scotland plc

250 Bishopsgate

London, EC2M 4AA

United Kingdom

Attention: Natalie Brown

email: Natalie.Brown@rbs.com

Tel: +44 20 3361 1101

 

Notices to the Swingline Agent:

 

KeyBank National Association

127 Public Square

Cleveland, Ohio 44114

US

Attention: Matthew Bradley / Kathy Koenig

email: matthew_j_bradley@keybank.com / Kathy_koenig@keybank.com

Tel: +1 216 689 3270 / +1 216 813 4814

 

208

 

SCHEDULE 12
 ORIGINAL BORROWERS’ DETAILS

 

Notices to GTECH:

 

GTECH S.p.A.

Via del Campo Boario 19

00156 Rome

Italy

Attention:  Treasury Department

Facsimile:  00 39  06 51894205

 

Notices to GTECH Corporation:

 

GTECH Corporation

GTECH Center

10 Memorial Boulevard

Providence, RI  02903-1125

USA

Attention:  Treasury Department

Facsimile:  001-401-392-4951

 

209

 

SCHEDULE 13
 AGREED SECURITY PRINCIPLES

 

1.                                      SECURITY PRINCIPLES

 

1.1                               The Security to be provided pursuant to Clause 28.23 (Security following Debt Ratings decrease) will be given in accordance with these agreed security principles and the limitations set forth in Clauses 24.11 (Limitations on US Guarantees) to 24.13 (Guarantee Limitations applicable to GTECH as Parent) (the “Agreed Security Principles”). This Schedule addresses the manner in which the Agreed Security Principles will impact on the guarantees and Security proposed to be taken pursuant to Clause 28.23 (Security following Debt Rating decrease) or Clause 28.24 (Guarantor Threshold Test and Additional Guarantors). Terms defined in Clause 28.23 (Security following Debt Ratings decrease) or Clause 28.24 (Guarantor Threshold Test and Additional Guarantors) shall have the same meaning where used in this Schedule.

 

1.2                               The Security Principles embody a recognition by all parties that there may be certain legal and practical difficulties in obtaining effective guarantees and security from members of the Group in the relevant jurisdictions of incorporation. In particular:

 

(a)           general statutory limitations, financial assistance, corporate benefit, fraudulent preference, tax restrictions or costs, retention of title claims and similar principles may limit the ability of a member of the Group to provide Security or any guarantee or may require that the Security or guarantee be limited by an amount or otherwise;

 

(b)           a key factor in determining whether or not Security shall be taken or the extent of its perfection is the applicable cost (including but not limited to adverse effects on interest deductibility and stamp duty, notarisation and registration fees) which shall not be disproportionate to the benefit to the Lenders of obtaining such Security. In particular, the Parties acknowledge that Imposta Sostitutiva pursuant to article 15 and subsequent of Italian Presidential Decree No. 601/1973 as amended and supplemented from time to time will not be available with respect to the Agreement. Accordingly, Security that requires payment of an ad valorem registration tax on the amount of the Secured obligations will not be taken subject to paragraph (c) below;

 

(c)           the maximum guaranteed or secured amount may be limited to minimise stamp duty, notarisation, registration or other applicable fees, taxes and duties where the benefit of increasing the guaranteed or secured amount is disproportionate to the level of such fee, taxes and duties;

 

(d)           where there is material incremental cost involved in creating Security over assets owned by an Obligor in a particular category the principle stated at paragraph 1.2(b)above shall apply and, subject to the Agreed Security Principles, only the material assets in that category  shall be subject to Security;

 

(e)           it is acknowledged that in certain jurisdictions it may be either impossible or impractical to create Security over certain categories of assets in which event Security will not be taken over such assets;

 

(f)            any assets subject to third party arrangements which may prevent those assets from being charged will be excluded from any relevant Security Document; provided that such third party arrangements are permitted under this Agreement and provided that the consent of

 

210

 

that third part has been requested. In particular, in certain circumstances, the granting of Security over the shares of a member of the Group which holds a gaming license or concession will require the prior consent of the relevant gaming or licensing authority. No guarantee or assurance can be given in such respect;

 

(g)           members of the Group will not be required to enter into Security Documents or guarantees if the same would conflict with the fiduciary duties of the directors (or other officers) of the relevant member of the Group or contravene any legal prohibition or would result in (or in a material risk of) personal or criminal liability on the part of any director (or other officer) of any member of the Group; provided that the relevant member of the Group shall use reasonable endeavours to overcome any such obstacle;

 

(h)           members of the Group will not be required to enter into Security Documents or guarantees if the same would conflict with the terms of any applicable shareholder agreements or if the granting of the relevant Security or guarantee would be prohibited for regulatory reasons;

 

(i)            no Joint Venture shall be required to become a Guarantor nor shall any member of the Group be required to grant Security over any interest in any Joint Venture;

 

(j)            the granting of Security or the perfection of the Security granted will not be required if it would restrict the ability of the relevant member of the Group to conduct its operations and business in the ordinary course as otherwise permitted by the Finance Documents. Accordingly, no Security shall be granted over bank accounts or insurance policies of members of the Group;

 

(k)           to the extent possible and without prejudice to the rights of the Finance Parties, all Security shall be given in favour of a security agent and not the Finance Parties individually; “Parallel debt” provisions will be used where necessary, subject to applicable law. Where Security is granted in respect of more than one instrument or category of creditor of Pari Passu Indebtedness, there shall be a single security agent or trustee appointed in respect of each relevant Security Document and customary intercreditor arrangements shall be entered into between the relevant creditors of the Pari Passu Indebtedness setting out, inter alia, a common waterfall on enforcement and customary security agent or trustee protections; and

 

(l)            with regard to Security over any intercompany notes, the fact they are secured shall not prevent the relevant debtors from repaying or prepaying or otherwise discharging the relevant outstandings at any time prior to the taking of any action pursuant to Clause 29.16 (Acceleration).

 

1.3                               The Parent need only perform its obligations to procure that any member of the Group becomes an Additional Guarantor or to procure the granting of Security over its shares or other ownership interests if: (i) it is not unlawful for the relevant person to become a Guarantor and that person becoming a Guarantor would not result in personal liability for that person’s directors or other management, and (ii) the guarantee would have some economic value having regard to corporate benefit and other relevant restrictions applicable to the person granting the guarantee. Each Obligor must use, and must procure that the relevant person uses, all reasonable endeavours lawfully available to avoid any such unlawfulness or personal liability. This includes agreeing to a limit on the amount guaranteed. The Agent may (but shall not be obliged to) agree to such a limit if, in its opinion, to do so would avoid the relevant unlawfulness or personal liability. The Agent and the relevant Additional Guarantor (each acting reasonably and on the basis of the advice of their

 

211

 

respective local counsel) may agree to other limitations for the purpose of avoiding any obstacle to the grating of an additional guarantee.

 

2.                                      TERMS OF SECURITY DOCUMENTS

 

2.1                               The following principles will be reflected in the terms of any Security taken:

 

(a)           Security will not be enforceable until an Event of Default has occurred and notice of acceleration has been given by the Agent under this Agreement;

 

(b)           the Security Documents should only operate to create Security rather than to impose new commercial obligations; accordingly, they should not contain additional representations, warranties, undertaking and indemnities, unless these are (i) required to be included in any Security Document for the validity and enforceability of the Security Documents or (ii) are the same as or consistent with those contained in this Agreement;

 

(c)           until an Event of Default has occurred and notice of acceleration has been given by the Agent under this Agreement, pledgors of shares in Obligors shall be permitted to retain and to exercise voting rights to any shares pledged by them in a manner which does not adversely affect the validity or enforceability of the Security or cause an Event of Default to occur and the Obligors shall be permitted to pay dividends on pledged shares to the pledgors and the pledgors shall be entitled to retain such dividends to the extent permitted under this Agreement;

 

(d)           any accounts receivable which, if charged, such charge would be prohibited by anti-assignment provisions of contracts or applicable law or would breach the terms of any contract relating to such accounts receivable or would be a default or event of default under the relevant contract or entitle the counterparty to the relevant contract a right to terminate the relevant contract will be excluded from any relevant Security Document; provided that the consent of that counterparty has been sought;

 

(e)           notification to debtors of Security over accounts receivable will only be given if an Event of Default has occurred and notice of an acceleration has been given by the Agent under this Agreement;

 

(f)            security over any loan or note intercompany receivables will be perfected upon execution of the Security Document either by virtue of notification to debtors or by acknowledgement in writing by such debtor (as may be required by local law to perfect such Security) subject to no adverse tax consequences;

 

(g)           the Finance Parties should only be able to exercise any power of attorney granted to them under the Security Documents following the occurrence of an Event of Default in respect of which notice of acceleration has been given by the Agent under this Agreement or material failure to comply with a written request to fulfil a further assurance or perfection obligation;

 

(h)           the Security Documents shall not operate so as to prevent transactions which are permitted under this Agreement or to require additional consents or authorisations;

 

(i)            unless the restriction is required by law, the constitutional documents of the Obligors whose shares have been pledged will be amended to remove any restriction on the transfer or the registration of the transfer of the shares on enforcement of the Security granted over them. If the pledging of  shares of an Obligor under the Agreed Security Principles requires the

 

212

 

prior consent of any gaming or licensing authority, the Parent shall use its commercial reasonable efforts to obtain such consent in a reasonable time frame; and

 

(j)            in furtherance of Clause 24.11 (Limitations on US Guarantees),

 

(i)            no member of the Group that is a CFC will have any obligation or liability, directly or indirectly, to grant Security with respect to any US Obligation;

 

(ii)           not more than sixty-five per cent. (65%) of the stock or other equity interests (measured by the total combined voting power of the issued and outstanding voting stock or other equity interests) of, and none of the assets or property of, a person that is a CFC will be required to be pledged directly or indirectly as security for any US Obligations; and

 

(iii)          no member of the Group shall grant any Security for the obligations of a US Borrower if (a) such member of the Group is a “related person” (as defined in Section 267(b) or Section 707(b) of the Code) to such US Borrower, (b) such member of the Group is not a “United States person” (as defined in Section 7701(a)(30) of the Code) and (c) such US Borrower does not own a “controlling interest” (as defined in Section 163(j) of the Code) in such member of the Group, to the extent such guarantee or pledge would cause such US Borrower to be disallowed, for US federal or state income tax purposes, a deduction (or any portion thereof) for interest expense paid that could otherwise have been utilised.

 

3.                                      FIRST RANKING SECURITY

 

3.1                               Subject to the due execution of all relevant Security Documents, completion of relevant perfection formalities within statutorily prescribed time limits, payment of all registration fees and documentary taxes, any other rights arising by operation of law, and any qualifications contained in any legal opinion delivered under this Agreement, the Agent shall (in the case of those Security Documents creating pledges of shares in an Obligor) obtain a first priority valid pledge of the shares in issue at any time in that Obligor which are owned by another Obligor. Such Security Document shall be governed by the laws of the jurisdiction in which such Obligor whose shares are being pledged is formed.

 

3.2                              It is further acknowledged that pursuant to each Security Document (or, if applicable, this Agreement) any costs, fees, taxes or other amounts payable in connection with any re-taking, renotarisation, perfection, presentation, novation or re-registration of any Security or any interest in any Finance Document in connection with an assignment or transfer by any Lender shall be borne by the applicable Lender.

 

213

 

SCHEDULE 14
 FORM OF AFFIDAVIT

 

COVER PAGE

 

Claim for the refund, exemption or application of the reduced tax rate on income paid to non-residents

 

	
Conventions for the avoidance of   double taxation
    	
 
    	
o dividends (FORM A)
    	
 
    	
o interest (FORM B)
    	
 
    	
o royalties (FORM C)
    	
 
    	
o other income (FORM D)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EU Directives
    	
 
    	
o      parent-subsidiary tax regime   dir. 90/435/EEC (FORM E)
    	
 
    	
o      interest and royalty tax regime   dir. 2003/49/EC (FORM F)
    

 

o       DETAILS OF THE BENEFICIAL OWNER

 

 

	
Natural person
    	
 
    	
Surname
    	
Name
    	
Place of Birth
    	
Date of Birth
    
	
 
    	
 
    	
 
    
	
Legal person

 

o cross in the case of a   permanent establishment
    	
 
    	
Business Name
    
	
 
    	
 
    	
 
    
	
Foreign TIN
    	
 
    	
No.
    
	
 
    	
 
    	
 
    	
o                                    My country of residence does not issue a TIN for   residents or I cannot obtain a TIN from my country of residence.
    
	
 
    	
 
    	
 
    
	
Italian TIN (if issued)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    	
 
    
	
Domicile

 

(if different from residence)
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    
	
P.O. Box (optional)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-MAIL (optional)
    	
 
    	
 
    
								

 

214

 

COVER PAGE

 

o       DETAILS OF THE LEGAL REPRESENTATIVE

 

	
Natural person
    	
 
    	
Surname
    	
Name
    	
Place of Birth
    	
Date of Birth
    
	
 
    	
 
    	
 
    
	
Legal person
    	
 
    	
Business Name
    
	
 
    	
 
    	
 
    
	
TIN
    	
 
    	
No.
    
	
 
    	
 
    	
 
    	
o                                    My country of residence does not issue a TIN for   residents or I cannot obtain a TIN from my country of residence.
    
	
 
    	
 
    	
 
    
	
Italian TIN (if issued)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    	
 
    
	
Domicile

 

(if different from residence)
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    
	
P.O. Box (optional)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-MAIL (optional)
    	
 
    	
 
    
								

 

o       OTHER CO-BENEFICIARIES OF THE INCOME FOR WHICH REFUND IS BEING REQUESTED

 

	
Natural person
    	
 
    	
Surname
    	
Name
    	
Place of Birth
    	
Date of Birth
    
	
 
    	
 
    	
 
    
	
Legal person
    	
 
    	
Business Name
    
	
 
    	
 
    	
 
    
	
TIN
    	
 
    	
No.
    
	
 
    	
 
    	
 
    	
o                                    My country of residence does not issue a TIN for   residents or I cannot obtain a TIN from my country of residence.
    
	
 
    	
 
    	
 
    
	
Italian TIN (if issued)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    	
 
    
	
Domicile

 

(if different from residence)
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    
	
P.O. Box (optional)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-MAIL (optional)
    	
 
    	
 
    
								

 

215

 

COVER PAGE

 

o       DETAILS OF THE PROXY APPOINTED TO SUBMIT THE APPLICATION (IF PRESENT) (3)

 

	
Natural person
    	
 
    	
Surname
    	
Name
    	
Place of Birth
    	
Date of Birth
    
	
 
    	
 
    	
 
    
	
Legal person
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
TIN
    	
 
    	
No.
    
	
 
    	
 
    	
 
    	
o                                    My country of residence does not issue a TIN for   residents or I cannot obtain a TIN from my country of residence.
    
	
 
    	
 
    	
 
    
	
Italian TIN (if issued)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    	
 
    
	
Domicile

 

(if different from the residence)
    	
 
    	
State
    	
Full address
    
	
 
    	
 
    	
 
    
	
P.O. Box (optional)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
E-MAIL (optional)
    	
 
    	
 
    
								

 

	
PAYMENT METHOD (for refunds)
    
	
 
    
	
FINANCIAL ISTITUTION:
    	
 
    
	
 
    	
 
    
	
BANK ACCOUNT HOLDER(4)
    	
 
    
	
 
    	
 
    
	
(if part of the Economic and Monetary Union): BIC(5)
    	
IBAN
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    
	
(if outside the   Economic and Monetary Union)(6): BANK ACCOUNT DETAILS
    
	
 
    
	
 
    
	
 
    
	
ADDRESS OF THE   FINANCIAL INSTITUTION
    
	
 
    
	
 
    
				

 

(3)  Attach the original copy of the relative power of attorney

 

(4)  If the beneficiary uses a proxy for the payment, fill in the application with the bank account of the proxy. For powers of attorney released abroad, the original copy with translation must be sent to Centro Operativo di Pescara. If the proxy for the collection is also the proxy for the submission of the application and/or for making the requested declarations, only one original copy with translation is required.

 

(5)  If Economic and Monetary Union: the BIC code is mandatory.

 

(6)  If not Economic and Monetary Union: the BIC code is an alternative to the address of the financial institutions.

 

216

 

 

	
SIGNATURE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ATTACHMENTS:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

217

 

FORM B - INTEREST

 

o           EXEMPTION/APPLICATION OF THE TAX RATE PROVIDED BY THE CONVENTION

 

o           REFUND

 

Article        of the Convention for the avoidance of double taxation between Italy and

 

ITALIAN INTEREST PAYER

 

	
Person
    	
 
    	
Surname Name / Business Name
    
	
 
    	
 
    	
 
    
	
Italian TIN
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence
    	
 
    	
Full address
    

 

DEPOSITARY BANK (FOR CUSTODY OF SECURITIES)

 

	
Legal Person
    	
 
    	
Business Name
    
	
 
    	
 
    	
 
    
	
Italian TIN
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Residence
    	
 
    	
Full address
    

 

DESCRIPTION OF THE INTEREST RECEIVED

 

	
Payment date
    	
 
    	
Amount of
   interest gross of
   the Italian tax
    	
 
    	
Amount of the
   tax paid in Italy
    	
 
    	
Applicable tax
   rate according
   to the
   Convention
    	
 
    	
Amount of the
   tax due
    	
 
    	
Requested
   refund
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

218

 

DECLARATION OF THE BENEFICIARY OR ITS AUTHORISED REPRESENTATIVE(7)

 

The undersigned                                               acting as

 

Declares

 

·                  to reside / that the entity                      is resident in                                  pursuant to the Convention with                                         for the tax period / periods                                           ;

 

·                  to be / that the entity above mentioned is the beneficial owner of the interest;

 

·                  not to have / that the above mentioned entity does not have a permanent establishment or a fixed base in Italy to which the income effectively connects;

 

o       to be / that the above mentioned entity is subject to tax for the specified interest in the Country of residence;

 

o       NOT to be / that the above mentioned entity is NOT subject to tax for the specified interest in the Country of residence (explain the reasons for exemption)                                                                                                                                            ;

 

·                  to comply with all other necessary requirement for applying the benefits granted by the Convention regarding the income received;

 

·                  that all information in this declaration is correct and complete, and that the undersigned shall communicate if one or more of the requirements described above ceases to be, as well as of any variations in the supplied data and information.

 

Requests

 

o       exemption from Italian tax or application within the limits provided by the mentioned Convention;

 

o       refund of taxes regarding the income specified above;

 

·                  that the refund should be made according to the payment methods specified on the cover page.

 

	
Place and date
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
 
    

 

(7)  The authorised representative is the delegated person authorised to submit the application and/or supply the declarations requested by the Convention on behalf of the beneficial owner (see cover page), on the basis of the document that grants the relative power of representation (the original copy of which must be attached).

 

219

 

CERTIFICATION OF THE TAX AUTHORITY

 

The Tax Authority of                                                        certifies that for the tax period/s                                          the beneficiary

 

described above is resident in                                           according to Article        of the Convention with Italy and that the declarations given in this form are true to the best of the knowledge of this Tax administration.

 

 

	
Date
    	
 
    	
 
    	
Signature and Office stamp
    

 

220

 

SCHEDULE 15
  FORM OF SUBSTITUTE AFFILIATE LENDER DESIGNATION NOTICE

 

 

To:                             [The Royal Bank of Scotland plc] (as Agent) for itself and each of the other parties to the Facilities Agreement referred to below.

 

Cc:                             [The Parent]

 

From:               [Designating Lender] (the “Designating Lender”)

 

Dated:           []

 

Ladies and Gentlemen

 

GTECH Senior Facilities Agreement 
 dated 4 November 2014 (the “Facilities Agreement”)

 

1.                                      We refer to the Facilities Agreement.  Terms defined in the Facilities Agreement have the same meaning in this Designation Notice.

 

2.                                      We hereby designate our [Affiliate/Facility Office] details of which are given below as a Substitute [Affiliate Lender/Facility Office] in respect of [details of the Utilisation or Utilisations] required to be advanced to [specify name of borrower or refer to all borrowers in a particular jurisdiction etc.] (“Designated Loans”).

 

3.                                      The details of the Substitute [Affiliate Lender/Facility Office] are as follows:

 

Name:

 

Facility Office:

 

Fax Number:

 

Attention:

 

Jurisdiction of Incorporation:

 

4.                                      [By countersigning this notice below the Designated Affiliate Lender agrees to become a Designated Affiliate Lender in respect of Designated Loans as indicated above and agrees to be bound by the terms of the Facilities Agreement accordingly.]

 

5.                                      This Designation Notice and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

221

 

	
 
    	
 
    
	
 
    	
 
    
	
For and on behalf of
    	
 
    
	
 
    	
 
    
	
[Designating Lender]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
We acknowledge and   agree to the terms of the above.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
For and on behalf of
    	
 
    
	
 
    	
 
    
	
[Substitute Affiliate   Lender]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
We acknowledge the   terms of the above.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
For and on behalf of
    	
 
    
	
 
    	
 
    
	
The [Agent] [and the   Security Agent]
    	
 
    
	
 
    	
 
    
	
Dated
    	
 
    

 

222

 

SCHEDULE 16
  SELF DECLARATION FORM

 

The undersigned [Lender’s legal representative], domiciled at [Lender’s legal representative address], legal representative of [Lender’s Name], with its registered office at [Lender’s registered address]

 

CONSIDERING THAT

 

pursuant to article 26, paragraph 5-bis, of Presidential Decree No. 600 of 29 September 1973 as amended by article 22 of Law Decree No. 91 of 24 June 2014, converted into law by Law No. 144 of 11 August 2014, and Article 10, paragraph 2, of Law Decree No. 133 dated 12 September 2014 no Italian withholding tax applies to interest payments made by Italian entities to:

 

·                                          Credit institutions established in a EU Member State;

 

·                                          Insurance companies incorporated in a EU Member State and authorised under the legislative provisions of a EU Member State;

 

·                                          Collective investment founds established in a EU Member State or in a EEA Member State included within the list provided by article 168-bis of Italian Presidential Decree No. 917 of 22 December 1986, as amended and implemented from time to time, to the extent they do not make recourse to leverage debt financing (non fanno ricorso alla leva finanziaria);

 

·                                          Entities listed under Article 2, paragraph 5, numbers from 4) to 23), of Directive 2013/36/EU.

 

DECLARES

 

(Please check one of the following three boxes, if applicable)

 

·                                          That [Lender’s Name] is a credit institution established in a EU Member State.

 

·                                          That [lender’s Name] is an insurance company incorporated in a EU Member State and authorized under the legislative provisions of a EU Member State.

 

·                                          That [Lender’s Name] is a collective investment found established in a EU Member State or in a EEA Member State including within the list provided by article 168-bis of Italian Presidential Decree nr. 917 of 22 December 1986, as amended and implemented from time to time, to the extent it does not make recourse to leverage debt financing.

 

·                                          That [Lender’s Name] is an entities listed under Article 2, paragraph 5, numbers from 4) to 23), of Directive 2013/36/EU.

 

and as such is entitled to receive interest payments under the US$1,800,000,000 and €1,050,000,000 Multicurrency Revolving Credit Facilities for GTECH Corporation and GTECH S.p.A without the application of any tax deduction to interest payments made by Italian entities.

 

223

 

	
Place and date of signature
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Legal Representative of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Name and Surname]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[Title]
    

 

224

 

SIGNATORIES

 

The Parent

 

GTECH S.P.A.

 

 

By: CLAUDIO DEMOLLI

 

 

The Original Borrowers

 

GTECH S.P.A.

 

 

By: CLAUDIO DEMOLLI

 

 

GTECH CORPORATION

 

 

By: CLAUDIO DEMOLLI

 

 

The Original Guarantors

 

GTECH S.P.A.

 

 

By: CLAUDIO DEMOLLI

 

 

GTECH CORPORATION

 

 

By: CLAUDIO DEMOLLI

 

225

 

Global Coordinators, Bookrunners and Mandated Lead Arrangers

 

J.P. MORGAN LIMITED

 

 

By: MICHAEL HOLLAND, NIA HORNE

 

 

MEDIOBANCA — BANCA DI CREDITO

 

FINANZIARIO S.P.A.

 

 

By: JOSEP BUADES (ATTORNEY)

 

 

Bookrunners and Mandated Lead Arrangers

 

BANCA IMI S.P.A

 

 

By: ALESSANDRA CAPOZZI

 

 

BARCLAYS BANK PLC

 

 

By: ROBERT AZURDIA, SINEAD HARRIS

 

 

BNP PARIBAS, SUCCURSALE ITALIA

 

 

By: JOSEP BUADES (ATTORNEY)

 

 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, MILAN BRANCH

 

 

By: JOSEP BUADES (ATTORNEY)

 

226

 

	
CREDIT SUISSE AG, MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CITIGROUP GLOBAL MARKETS   LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: LUCY DEVLIN
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
DEUTSCHE BANK LUXEMBOURG S.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
J.P. MORGAN LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: MICHAEL HOLLAND
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ING BANK N.V. MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MEDIOBANCA - BANCA DI CREDITO FINANZIARIO S.P.A
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES
    	
 
    

 

227

 

	
SCOTIABANK EUROPE PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: STEVE CALLER, JOHN O’CONNOR
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SOCIETE GENERALE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
UNICREDIT BANK AG, MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
JOSEP BUADES
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
UNICREDIT BANK AG NEW   YORK BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Mandated Lead Arrangers
    	
 
    
	
 
    	
 
    
	
BANCA POPOLARE DI MILANO S.C.A.R.L
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
FIFTH THIRD
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    

 

228

 

	
UBI BANCA S.C.P.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
WELLS FARGO BANK, NA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: KEITH W ENDERSON
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Arrangers
    	
 
    
	
 
    	
 
    
	
BANCO POPOLARE S.C.,   LONDON BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: DARIO MANCINI, PETER SOULSBY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
KEYBANK NATIONAL ASSOCIATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Agent
    	
 
    
	
 
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Issuing Agent
    	
 
    
	
 
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES
    	
 
    

 

229

 

	
Swingline Agent
    	
 
    
	
 
    	
 
    
	
KEYBANK NATIONAL   ASSOCIATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Original Lenders
    	
 
    
	
 
    	
 
    
	
BARCLAYS BANK PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: ROBERT AZURDIA, SINEAD HARRIS
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
BARCLAYS BANK PLC, MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: ROBERT AZURDIA, SINEAD HARRIS
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
BNP PARIBAS, SUCCURSALE   ITALIA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CITIBANK, N.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: LUCY DEVLIN
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CRÉDIT   AGRICOLE CORPORATE AND INVESTMENT BANK, MILAN BRANCH
    
	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    

 

230

 

	
CRÉDIT   AGRICOLE CORPORATE AND INVESTMENT BANK, NEW YORK BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CREDIT SUISSE AG, MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
DEUTSCHE BANK LUXEMBOURG   S.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ING BANK N.V. MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
INTESA SANPAOLO S.P.A
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: ALESSANDRA CAPOZZI
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
INTESA SANPAOLO S.P.A NYC BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: ALESSANDRA CAPOZZI
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
JP MORGAN CHASE BANK,   N.A., LONDON BRANCH
    	
 
    

 

231

 

	
By: MICHAEL HOLLAND
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
JP MORGAN CHASE BANK,   N.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: MICHAEL HOLLAND
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
JP MORGAN CHASE BANK,   N.A., MILAN BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: MICHAEL HOLLAND
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MEDIOBANCA INTERNATIONAL   (LUXEMBOURG) S.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE   ROYAL BANK OF SCOTLAND PLC, MILAN BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SCOTIABANK EUROPE PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: STEVE CALLER, JOHN O’CONNOR
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SOCIETE GENERALE PARIS
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    

 

232

 

	
SOCIETE GENERALE, MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
UNICREDIT BANK AG, MILAN   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
UNICREDIT BANK AG, NEW YORK   BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
BANCA POPOLARE DI MILANO, S.C.A.R.L
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
FIFTH THIRD
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
UBI BANCA S.C.P.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
WELLS FARGO BANK, NA
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: KEITH W ENDERSON
    	
 
    

 

233

 

	
BANCO POPOLARE S.C.,   LONDON BRANCH
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: DARIO MANCINI, PETER SOULSBY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
KEYBANK NATIONAL   ASSOCIATION
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: JOSEP BUADES (ATTORNEY)
    	
 
    

 

234Exhibit 4.14

 

	

    	
CLIFFORD   CHANCE LLP
    

 

EXECUTION VERSION

 

DATED 3 APRIL 2015

 

GTECH S.P.A. (FORMERLY KNOWN AS LOTTOMATICA S.P.A.)

AS ISSUER

 

AND

 

BNY MELLON CORPORATE TRUSTEE SERVICES LIMITED (AS SUCCESSOR TO J.P. MORGAN CORPORATE TRUSTEE SERVICES LIMITED)

AS TRUSTEE

 

 

FIRST SUPPLEMENTAL TRUST DEED RELATING TO A TRUST DEED DATED 17 MAY 2006 IN RESPECT OF €750,000,000 SUBORDINATED INTEREST-DEFERRABLE CAPITAL SECURITIES DUE 2066

 

 

 

Contents

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions and   Interpretation
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Amendment and Restatement
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Notices
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Costs, Expenses and   Indemnification
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Further Assurance
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Counterparts
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Governing Law and   Jurisdiction
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Third Party Rights
    	
 
    	
3
    
	
 
    	
 
    	
 
    
	
Schedule 1 Amended and Restated Trust Deed
    	
 
    	
 
    

 

i

 

THIS FIRST SUPPLEMENTAL TRUST DEED is made on 3 April 2015

 

BETWEEN:

 

(1)                                 GTECH S.p.A. a società per azioni incorporated under the laws of the Republic of Italy (formerly known as Lottomatica S.p.A.) as issuer (the “Issuer”); and

 

(2)                                 BNY MELLON CORPORATE TRUSTEE SERVICES LIMITED (as successor to J.P. Morgan Corporate Trustee Services Limited) as trustee (the “Trustee”).

 

WHEREAS:

 

(A)                               The Issuer and the Trustee have entered into a trust deed (the “Principal Trust Deed”) dated 17 May 2006 constituting the Securities.

 

(B)                               On 15 July 2014, the Issuer entered into an agreement and plan of merger (the “Merger Agreement”) with, amongst others, International Game Technology, a Nevada Corporation (“IGT”), to acquire IGT through the formation of International Game Technology PLC (formerly known as Georgia Worldwide PLC), a public limited company incorporated under the laws of England and Wales with company number 09127533 (“Holdco”). The acquisition of IGT will be effected by (i) the merger of the Issuer with and into Holdco (the “Merger”), pursuant to which each issued and outstanding ordinary share of the Issuer, par value €1.00, will be converted into the right to receive one ordinary share of Holdco, nominal value US$0.10 (the Merger being more fully described in the Common Cross-Border Merger Terms (Progetto Comune di Fusione Transfrontaliera)); and (ii) immediately thereafter, the merger of Georgia Worldwide Corporation, a Nevada corporation and wholly owned subsidiary of Holdco, with and into IGT, with IGT surviving as a wholly-owned subsidiary of Holdco (in each case subject to the terms and conditions of the Merger Agreement).

 

(C)                               By an Extraordinary Resolution dated 19 January 2015, the Securityholders consented to amend the Conditions and the Principal Trust Deed to (i) reflect the change in the jurisdiction of incorporation of the Issuer pursuant to the Merger and to remove provisions which are no longer relevant or applicable as a result of such change of jurisdiction, including but not limited to those only applicable to Italian companies; (ii) remove commercial terms that are no longer relevant and amend certain other provisions to align these with the customary terms of similar securities issued under English law (including amendments to the quorum required to pass an Extraordinary Resolution and to incorporate certain protections in favour of the Trustee); and (iii) clarify that Condition 6.7 (Replacement) of the Capital Securities is not intended to be a contractual term of the Capital Securities and is instead only an indication of the Issuer’s intention, and requested the Trustee to concur in such amendments and execute this first supplemental trust deed (the “First Supplemental Trust Deed”) in order to give effect thereto.

 

1

 

NOW THIS DEED WITNESSETH and it is hereby agreed and declared as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

All words and expressions defined in the Principal Trust Deed shall where the context so requires and admits have the same meaning in this First Supplemental Trust Deed, and the principles of interpretation specified in Clause 1.2 of the Principal Trust Deed shall where the context so requires and admits also apply to this First Supplemental Trust Deed. In addition, in this First Supplemental Trust Deed the following expression has the following meaning:

 

“Holdco Merger Effective Date” means the date fixed as the effective date of the Merger by an order of the High Court of England and Wales, as the competent English authority.

 

2.                                      AMENDMENT AND RESTATEMENT

 

2.1                               The Principal Trust Deed, with effect from the Holdco Merger Effective Date, shall stand amended and restated in the form set out in Schedule 1 hereto.

 

2.2                               The Conditions (as set out in Schedule 3 (Terms and Conditions) to the Principal Trust Deed), with effect from the Holdco Merger Effective Date, shall be deleted in their entirety and replaced with the Conditions set out in Schedule 1 hereto.

 

2.3                               This First Supplemental Trust Deed is supplemental to the Principal Trust Deed.

 

2.4                               Subject to the amendments to be effected to the Principal Trust Deed and the Conditions hereunder, the Principal Trust Deed and the Securities shall remain in full force and effect and the Principal Trust Deed and this First Supplemental Trust Deed shall be read and construed together as one deed.

 

3.                                      NOTICES

 

3.1                               A memorandum of this First Supplemental Trust Deed shall be endorsed on the original of the Principal Trust Deed by the Trustee and on the duplicate thereof by the Issuer.

 

3.2                               The Issuer shall, as soon as practicable after the amendments set out in Clause 2 (Amendment and Restatement) become effective, give notice of the amendments to the Securityholders in accordance with Condition 15 (Notices).

 

4.                                      COSTS, EXPENSES AND INDEMNIFICATION

 

The Issuer  shall, from time to time on demand of the Trustee, reimburse the Trustee for all properly incurred costs and expenses (including legal fees) incurred by it in connection with the negotiation, preparation and execution or purported execution of this First Supplemental Trust Deed and the completion of the matters herein contemplated.

 

2

 

5.                                      FURTHER ASSURANCE

 

The Issuer undertakes to the Trustee to execute all such other documents and comply with all such other requirements to effect the amendments contemplated hereby and any other matter incidental thereto as the Trustee may direct in the interests of the Securityholders.

 

6.                                      COUNTERPARTS

 

This First Supplemental Trust Deed may be executed in any number of counterparts, each of which is an original and all of which together evidence the same agreement.  This First Supplemental Trust Deed shall not come into effect until each party has executed and delivered at least one counterpart.

 

7.                                      GOVERNING LAW AND JURISDICTION

 

7.1                               This First Supplemental Trust Deed and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, the laws of England.

 

7.2                               Clause 22 (Jurisdiction) of the Principal Trust Deed shall apply, mutatis mutandis, to this First Supplemental Trust Deed.

 

8.                                      THIRD PARTY RIGHTS

 

A person who is not party to this First Supplemental Trust Deed may not enforce any terms of this First Supplemental Trust Deed under the Contract (Rights of Third Parties) Act 1999, but this does not affect any right or remedy of any third party which exists or is available apart from that Act.

 

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

 

3

 

EXECUTION PAGES

 

	
EXECUTED as a DEED   by GTECH S.p.A.
    	
 
    
	
(formerly known as   Lottomatica S.p.A.)
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
 
    
	
CLAUDIO DEMOLLI (ATTORNEY-IN-FACT)
    	
 
    

 

 

	
EXECUTED as a DEED   by
    	
 
    
	
BNY MELLON CORPORATE   TRUSTEE SERVICES LIMITED (as successor to J.P. Morgan Corporate   Trustee Services Limited) acting by two of its lawful attorneys:
    	
 
    
	
 
    	
 
    
	
Attorney: PAUL CATTERMOLE (VICE PRESIDENT)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Attorney: MARIA BERTOLIN 
    	
 
    
	
(AUTHORIZED   SIGNATORY)
    	
 
    
	
 
    	
 
    
	
In the presence of 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Witness’s signature: 
    	
/S/ THOMAS VANSON
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Name: THOMAS VANSON
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    

 

 

	

    	
 
    	
CLIFFORD   CHANCE LLP
    

 

SCHEDULE 1
 AMENDED AND RESTATED TRUST DEED

 

INTERNATIONAL GAME TECHNOLOGY PLC

AS ISSUER

 

AND

 

BNY MELLON CORPORATE TRUSTEE SERVICES LIMITED (AS SUCCESSOR TO J.P. MORGAN CORPORATE TRUSTEE SERVICES LIMITED)

AS TRUSTEE

 

 

AMENDED AND RESTATED TRUST DEED

RELATING TO THE 
 €750,000,000 SUBORDINATED INTEREST-DEFERRABLE CAPITAL SECURITIES DUE 2066

 

 

1

 

CONTENTS

 

	
Clause
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Definitions and Interpretation
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Covenant to Pay
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Form and Issue of the Securities   and Further Issues
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Stamp Duties and Taxes
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Covenant of Compliance
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Amounts due to the Trustee
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Proceedings, Action and   Indemnification
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Application of Moneys received   by the Trustee
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Partial Payments
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
Covenants by the Issuer
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
Remuneration and Indemnification   of Trustee
    	
 
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
Supplement to the Trustee Acts
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
Trustee’s Liability
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
Trustee Entering into Contracts
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
Waiver and Modification
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
Currency Indemnity
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
Appointment, Retirement and   Removal of the Trustee
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
Meetings
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
Notes Held in Clearing Systems
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
Notices
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
Governing Law and Submission to   Jurisdiction
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
Counterparts
    	
 
    	
33
    
	
 
    	
 
    	
 
    
	
Schedule 1 Forms of Global   Certificates
    	
 
    	
34
    
	
 
    	
 
    	
 
    
	
Part 1 Form of   Unrestricted Global Certificate
    	
 
    	
34
    
	
 
    	
 
    	
 
    
	
Part 2 Form of   Restricted Global Certificate
    	
 
    	
41
    
	
 
    	
 
    	
 
    
	
Schedule 2 Form of   Definitive Certificate
    	
 
    	
49
    
	
 
    	
 
    	
 
    
	
Schedule 3 Terms and Conditions
    	
 
    	
55
    
	
 
    	
 
    	
 
    
	
Schedule 4 Provisions for   Meetings of Securityholders
    	
 
    	
91
    
	
 
    	
 
    	
 
    
	
Schedule 5 Form of   Officer’s Certificate
    	
 
    	
101
    
	
 
    	
 
    	
 
    
	
Schedule 6 Form of   Officer’s Certificate Relating to Mandatory Deferral Event
    	
 
    	
103
    

 

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THIS TRUST DEED is made on 17 May 2006 (as supplemented by a first supplemental trust deed on 3 April 2015 and as further amended and restated from time to time) BETWEEN:

 

(3)                                 INTERNATIONAL GAME TECHNOLOGY PLC, a public limited company incorporated under the laws of England and Wales with company number 09127533 (the “Issuer”); and

 

(4)                                 BNY MELLON CORPORATE TRUSTEE SERVICES LIMITED (as successor to J.P. Morgan Corporate Trustee Services Limited) acting through its registered office at One Canada Square, London, E14 5AL, as trustee for the Securityholders (in such capacity, the “Trustee”, which expression shall, wherever the context so admits, include such company and all other persons or companies for the time being the Trustee or Trustees under this Trust Deed).

 

WHEREAS:

 

(D)                               By a resolution of the board of directors of GTECH S.p.A. (formerly Lottomatica S.p.A.), a società per azioni incorporated under the laws of the Republic of Italy (“GTECH”), passed on 27 April 2006, GTECH resolved to issue €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066, such Securities constituted in the manner hereinafter appearing.

 

(E)                                On 15 July 2014, GTECH entered into an agreement and plan of merger (the “Merger Agreement”) with, amongst others, International Game Technology, a Nevada Corporation (“IGT”), to acquire IGT through the formation of the Issuer. The acquisition of IGT was effected by (i) the merger of GTECH with and into the Issuer (the “Merger”) and (ii) immediately thereafter, the merger of Georgia Worldwide Corporation, a Nevada corporation and wholly owned subsidiary of the Issuer, with and into IGT, with IGT surviving as a wholly-owned subsidiary of the Issuer (in each case subject to the terms and conditions of the Merger Agreement).

 

(F)                                 In connection with the Merger and pursuant to a first supplemental trust deed dated 3 April 2015 (the “Supplemental Trust Deed”), this Trust Deed was amended and restated to the form set out herein with effect on and from the Holdco Merger Effective Date (as defined below).

 

(G)                               The Trustee has agreed to act as trustee of this Trust Deed upon and subject to the terms and conditions hereinafter contained.

 

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

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

Terms defined in the Conditions shall, unless otherwise defined herein or the context requires otherwise, bear the same meanings herein (including in the recitals hereto).

 

In addition, in this Trust Deed:

 

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“Agents” means the Principal Paying and Transfer Agent, any other Paying and Transfer Agent, the Registrar and the Agent Bank;

 

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

 

“Auditors” means the auditors for the time being of the Issuer or, if they are unable or unwilling to carry out any action requested of them under this Trust Deed, such other firm of accountants as may be nominated by the Issuer and approved in writing by the Trustee for the purpose, or failing such nomination, as selected by the Trustee for the purpose;

 

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

 

“Conditions” means the terms and conditions in the form set out in Schedule 3 hereto, as the same may from time to time be modified in accordance with this Trust Deed and any reference in this Trust Deed to a particular specified Condition shall be construed accordingly;

 

“Definitive Certificate” means a registered certificate issued in the name of the holder of one or more Securities, being in or substantially in the form set out in Schedule 2;

 

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

 

“Extraordinary Resolution” has the meaning given to it in Schedule 4;

 

“Global Certificates” means the Restricted Global Certificate and the Unrestricted Global Certificate;

 

“Holdco Merger Effective Date” means the date fixed as the effective date of the Merger by an order of the High Court of England and Wales, as the competent English authority;

 

“Insolvency Event” means (i) the commencement of a voluntary or involuntary liquidation, dissolution or winding-up due to corporate action or an administrative and/or court order, or (ii) the occurrence of any Insolvency Proceedings (as defined in the Conditions), subject to applicable bankruptcy law;

 

“Issue Date” means 17 May 2006;

 

“Liabilities” means, in respect of any person, any losses, damages, costs, charges, awards, claims, demands, expenses, judgments, decrees, actions, proceedings or other liabilities whatsoever including legal fees and any taxes and penalties incurred by that person, including any value added tax or similar tax charged or chargeable in respect thereof and legal fees and expenses on a full indemnity basis;

 

“Officer’s Certificate” has the meaning given to it in the Conditions;

 

“outstanding” means, in relation to the Securities, all of the Securities issued other than:

 

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(a)                                 those Securities which have been redeemed or purchased and cancelled pursuant to Condition 6 or otherwise pursuant to this Trust Deed;

 

(b)                                 those Securities in respect of which the date for redemption in full in accordance with the Conditions has occurred and the redemption moneys for which (including all Scheduled Interest Amounts, Optionally Deferred Interest and Equity Funded Deferred Interest payable thereon) have been duly paid to the Trustee or to the Principal Paying and Transfer Agent in the manner provided in the Paying Agency Agreement (and, where appropriate, notice to that effect has been given to the Securityholders in accordance with Condition 15) and remain available for payment against presentation of the relevant Securities;

 

(c)                                  those Securities which have become void pursuant to Condition 10;

 

(d)                                 those mutilated or defaced Securities which have been surrendered and cancelled and in respect of which replacements have been issued pursuant to Condition 11;

 

(e)                                  (for the purpose only of ascertaining the principal amount outstanding of the Securities and without prejudice to the status for any other purpose of the relevant Securities) those Securities which are alleged to have been lost, stolen or destroyed and in respect of which replacements have been issued pursuant to Condition 11; and

 

(f)                                   the Global Certificates to the extent that they shall have been exchanged for Definitive Certificates pursuant to the provisions contained therein,

 

PROVIDED THAT for each of the following purposes, namely:

 

(i)                                  for ascertaining the right to attend and vote at any meeting of the Securityholders or any of them and any direction or request by the Securityholders;

 

(ii)                               the determination of how many and which Securities are for the time being outstanding for the purposes of Conditions 9 and 12 and Schedule 4; and

 

(iii)                            the exercise of any discretion, power or authority contained in this Trust Deed which the Trustee is required, expressly or impliedly, to exercise in or by reference to the interests of any of the Securityholders,

 

those Securities (if any) which are for the time being held by (1) the Issuer or any of its subsidiaries or (2) any person for the benefit of the Issuer or any of its subsidiaries shall (unless and until no longer so held), be deemed not to remain outstanding;

 

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

 

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“powers” in relation to the Trustee and any Appointee appointed by it under this Trust Deed means their respective powers, authorities and discretions under this Trust Deed or the general law;

 

“Relevant Documents” means this Trust Deed and the Paying Agency Agreement and any other document which is designated as such by the Issuer and the Trustee from time to time;

 

“Restricted Global Certificate” means the registered global certificate representing the Securities sold pursuant to Rule 144A under the Securities Act, in or substantially in the form set out in Schedule 1, Part 2;

 

“Rule 144A Legend” means the transfer restriction legend set out on the Restricted Global Certificate and any Definitive Certificate issued in respect thereof;

 

“Securities” means the securities in registered form comprising the said €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066 of the Issuer hereby constituted or the principal amount thereof for the time being outstanding or, as the context may require, a specific number thereof;

 

“Securities Act” means the U.S. Securities Act of 1933, as amended;

 

“tax” shall be construed so as to include any present or future tax, levy, impost, duty, charge, fee, deduction or withholding of any nature whatsoever (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same) imposed or levied by or on behalf of a tax authority and “taxes”, “taxation” and “taxable” and comparable expressions shall be construed accordingly;

 

“this Trust Deed” means this Trust Deed and the Schedules and any trust deed supplemental hereto and the Schedules (if any) thereto, the Securities and the Conditions, all as from time to time modified in accordance with the provisions herein or therein contained;

 

“Trust Corporation” means a trust corporation (as defined in the Law of Property Act 1925) or a corporation entitled to act as a trustee pursuant to applicable foreign legislation relating to trustees;

 

“Trustee Acts” means the Trustee Act 1925 and the Trustee Act 2000; and

 

“Unrestricted Global Certificate” means the registered global certificate representing the Securities sold pursuant to Regulation S under the Securities Act, in or substantially in the form set out in Schedule 1, Part 1.

 

1.2                               Interpretation

 

References to:

 

(a)                                 principal in respect of the Securities shall be deemed also to include a reference to any premium which may be payable in respect of the Securities, and references to principal and/or interest in respect of the Securities shall be deemed also to include references to any Additional Amounts which may be payable under Condition 8;

 

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(b)                                 interest in respect of the Securities shall, unless the context otherwise requires, be deemed also to include a reference to Optionally Deferred Interest and Equity Funded Deferred Interest;

 

(c)                                  Liabilities or remuneration shall include any amount in respect of any withholding, value added, turnover or similar tax charged in respect thereof;

 

(d)                                 “€” or “euros” are references to the lawful single currency for the time being of the European Union;

 

(e)                                  any action, remedy or method of judicial proceedings for the enforcement of rights of creditors shall include, in respect of any jurisdiction other than England and Wales, references to such action, remedy or method of judicial proceedings for the enforcement of rights of creditors available or appropriate in such jurisdiction as shall most nearly approximate thereto and any other similar, analogous or corresponding event under the insolvency laws of any applicable jurisdiction;

 

(f)                                   words denoting the singular number only shall include the plural number also and vice versa;

 

(g)                                  words denoting one gender only shall include the other gender;

 

(h)                                 words denoting persons only shall include firms and corporations and vice versa;

 

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

 

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

 

(k)                                 “approval not to be unreasonably withheld” or like references mean, in relation to the Trustee, that, in determining whether to give such approval, the Trustee shall have regard to the interests of the Securityholders only and any determination as to whether or not its approval is unreasonably withheld shall be made on that basis.

 

1.3                               Contracts (Rights of Third Parties) Act 1999

 

Unless otherwise provided herein, a person who is not a party to this Trust Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Trust Deed. The parties to this Trust Deed shall have the right to amend, vary or rescind any provisions of this Trust Deed without the consent of any such third party.

 

1.4                               Headings

 

Headings shall be ignored in construing this Trust Deed.

 

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1.5                               Schedules

 

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

 

1.6                               Enforceability

 

If at any time any provision of this Trust Deed is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this Trust Deed nor the legality, invalidity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby.

 

2.                                     COVENANT TO PAY

 

2.1                               Amount of Securities

 

The initial aggregate principal amount of the Securities is €750,000,000.

 

2.2                               Covenant to Pay

 

The Issuer covenants with the Trustee that it will, in accordance with this Trust Deed, on the due date for the final maturity of the Securities provided for in the Conditions or on such earlier date as the same or any part thereof may become due and repayable thereunder, pay or procure to be paid unconditionally to or to the order of the Trustee in euros in a city in which banks have access to the TARGET System in immediately available funds, the principal amount of the Securities repayable on that date and shall in the meantime and until such date (both before and after any judgment or other order of a court of competent jurisdiction) pay or procure to be paid unconditionally to or to the order of the Trustee as aforesaid interest (which shall accrue from day to day) on the principal amount outstanding of the Securities at the rates specified in, or calculated from time to time in accordance with, the Conditions and when payable in accordance with the Conditions, provided that:

 

(a)                                 every payment of principal or interest in respect of the Securities or any of them made to or to the account of the Principal Paying and Transfer Agent in the manner provided in the Paying Agency Agreement shall satisfy, to the extent of such payment, the relevant covenant by the Issuer contained in this Clause except to the extent that there is default in the subsequent payment thereof in accordance with the Conditions to the Securityholders;

 

(b)                                 if any payment of principal or interest in respect of the Securities or any of them is made after the date on which such amount is payable in accordance with the Conditions, payment shall be deemed not to have been made until either the full amount is paid to the Securityholders or, if earlier, the seventh day after notice has been given to the Securityholders in accordance with Condition 15 that the full amount has been received by the Principal Paying and Transfer Agent or the Trustee except, in the case of payment to the Principal Paying and Transfer Agent, to the extent that there is default in the subsequent payment thereof in accordance with the Conditions to the Securityholders; and

 

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(c)                                  in any case where payment of the whole or any part of the principal amount of any Security is improperly withheld or refused upon due presentation thereof, interest shall continue to accrue on the whole or such part of such principal amount at the rates aforesaid or, if higher, the rate of interest on judgment debts for the time being provided by English law from (and including) the date of such withholding or refusal up to (and including) the date either on which the full amount (including interest as aforesaid) is paid to the Securityholders or, if earlier, the seventh day after notice has been given to the Securityholders in accordance with Condition 15 that the full amount (including interest as aforesaid) payable in respect of such Security is available for payment, provided that, upon further presentation thereof being duly made, such payment is in fact made.

 

The Trustee will hold the benefit of this covenant on trust for the Securityholders in accordance with this Trust Deed.

 

2.3                               Settlement of Equity Funded Deferred Interest

 

(a)                                 The Issuer covenants with the Trustee that, so long as any Equity Funded Deferred Interest has arisen and remains unpaid, it will:

 

(i)                                    to the extent permitted by applicable law and subject to Condition 5.3, promptly fund the full settlement in cash of such Equity Funded Deferred Interest using the proceeds raised from the issue, offer and sale or contribution of Authorised Equity (as defined in the Conditions) in accordance with the provisions of Condition 5.2; and

 

(ii)                                 pay or procure to be paid such proceeds (less any expenses relating thereto) unconditionally to or to the order of the Trustee or the Principal Paying Agent in euros in a city in which banks have access to the TARGET System in immediately available funds as soon as practicable, but in any event within twenty business days following the settlement of the relevant issue, offer and sale or contribution of Authorised Equity. Notice of such payment shall be given to the Trustee and the Principal Paying Agent and the Securityholders (in accordance with Condition 15) five business days prior to the date on which such payment is made.

 

(b)                                 The Trustee will hold the benefit of this covenant on trust for the Securityholders in accordance with this Trust Deed.

 

(c)                                  Any amounts received by the Trustee pursuant to this Clause 2.3 shall forthwith be paid by it to the Principal Paying and Transfer Agent for payment to the Securityholders in the manner provided in the Paying and Transfer Agency Agreement.

 

2.4                               Subordination

 

Upon the occurrence of any Insolvency Event in relation to the Issuer, the rights and claims of the Securityholders against the Issuer under this Trust Deed and in relation to the Securities are subordinated to the extent set out in Condition 2 (Status).

 

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2.5                               Discharge

 

Subject to Clause 2.6, any payment to be made in respect of the Securities by the Issuer or the Trustee may be made as provided in the Conditions and any payment so made will (subject to Clause 2.6), to such extent, be a good discharge to the Issuer or the Trustee, as the case may be.

 

2.6                               Following certain Enforcement Events

 

Upon the occurrence of an Enforcement Event, the Trustee may:

 

(a)                                 by notice in writing to the Issuer and the Agents require the Agents, until notified by the Trustee to the contrary, so far as permitted by applicable law:

 

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

 

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

 

(b)                                 by notice in writing to the Issuer require it to make all subsequent payments in respect of the Securities to or to the order of the Trustee and not to the Principal Paying and Transfer Agent; with effect from the issue of any such notice to the Issuer and until such notice is withdrawn proviso (a) to Clauses 2.2 and (so far as it concerns payments by the Issuer) Clause 2.5 shall cease to have effect.

 

2.7                               Calculation of Rate of Interest

 

References in proviso (b) to Clause 2.2 to “the rates aforesaid” shall, in respect of any Securities bearing interest at a floating rate, in the event of such Securities having become due and repayable, with effect from the expiry of the Interest Period during which such Securities become due and repayable, be construed as references to the rates of interest calculated mutatis mutandis in accordance with the Conditions and notices thereof shall be published in accordance with the Conditions unless the Trustee otherwise agrees.

 

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3.                                      FORM AND ISSUE OF THE SECURITIES AND FURTHER ISSUES

 

3.1                               Form and Denomination

 

The Securities are issued in registered form in an initial aggregate principal amount of €750,000,000, each with a minimum denomination of €50,000 and integral multiples of €1,000 above such amount.

 

3.2                               The Global Certificates

 

(a)                                 On issue of the Securities, the Unrestricted Global Certificate and the Restricted Global Certificate will be issued representing the aggregate principal amount of the Securities and the Issuer shall procure that the appropriate entries be made in the register of Securityholders by the Registrar to reflect the issue of such Securities.

 

(b)                                 The Unrestricted Global Certificate and the Restricted Global Certificate will be issued in the name of a nominee for a common depositary for Euroclear and Clearstream, Luxembourg. The Securities represented by the Global Certificates shall be subject to their terms in all respects and entitled to the same benefits under this Trust Deed as individual Securities represented by Definitive Certificates.

 

(c)                                  Interests in the Global Certificates shall be exchangeable for Definitive Certificates as set out in the Global Certificates.

 

(d)                                 The Unrestricted Global Certificate and the Restricted Global Certificate shall be in or substantially in the forms set out in Part 1 and Part 2 of Schedule 1 respectively, and the Restricted Global Certificate shall bear the Rule 144A Legend.

 

3.3                               Definitive Certificates

 

(a)                                 The Global Certificates are exchangeable for Definitive Certificates in the limited circumstances set out therein. The Definitive Certificates may be printed or typed and need not be security printed unless otherwise required by applicable stock exchange requirements. The Definitive Certificates will be endorsed with the Conditions.

 

(b)                                 The Definitive Certificates, if issued, shall be in or substantially in the form set out in Schedule 2.

 

3.4                               Signature

 

The Global Certificates and Definitive Certificates (if issued) will be signed manually or in facsimile by a director of the Issuer duly authorised for the purpose and will be authenticated manually by or on behalf of the Registrar. The Issuer may use the facsimile signature of any person who at the date of this Trust Deed is an authorised director of the Issuer even if at the time of issue of any Security (including the Global Certificates) he no longer holds such office or is so authorised. Securities (including the Global Certificates) so executed and authenticated will be valid evidence of binding and valid obligations of the Issuer.

 

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3.5                               Entitlement to treat Holder as Owner

 

The Issuer, the Trustee and any Agent may deem and treat the registered holder of any Security as the absolute owner of such Security for all purposes, free of any equity, set-off or counterclaim on the part of the Issuer against the original or any intermediate holder of such Security (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in it or any writing on, or the theft or loss of, the related Certificate issued in respect of it (other than a duly executed transfer thereof)) for all purposes and, except as ordered by a court of competent jurisdiction or as required by applicable law, the Issuer, the Trustee and the Agents shall not be affected by any notice to the contrary. All payments made to any such holder shall be valid and, to the extent of the sums so paid, effective to satisfy and discharge the liability for the moneys payable on the Securities.

 

3.6                               Further Issues

 

(a)                                 The Issuer may from time to time without the consent of the Securityholders create and issue further securities having the same terms and conditions as the Securities in all respects (or in all respects except for the first payment of interest on them) and so that such further issue shall be consolidated and form a single series with, and have the same International Securities Identification Number (ISIN) and common code number as, the Securities.

 

(b)                                 Any further securities forming a single series with the Securities shall be constituted by a deed supplemental to the Trust Deed. The Issuer shall prior to the issue of any further securities to be so constituted execute and deliver to the Trustee a deed supplemental to this Trust Deed (if applicable duly stamped) and containing covenants by the Issuer in the form mutatis mutandis of Clause 2 in relation to the principal amount and interest in respect of such further securities and such other provisions (corresponding to any of the provisions contained in this Trust Deed) as the Trustee shall require and effecting other modifications to this Trust Deed as the Trustee shall require in order to reflect the issue of such further securities.

 

(c)                                  A memorandum of every such supplemental deed shall be endorsed by the Trustee on this Trust Deed and by the Issuer on the duplicate(s) of this Trust Deed.

 

(d)                                 Whenever it is proposed to create and issue any further securities, the Issuer shall give to the Trustee not less than 14 days’ notice in writing of its intention so to do, stating the amount of the further securities proposed to be created and issued.

 

4.                                      STAMP DUTIES AND TAXES

 

4.1                               Stamp Duties

 

The Issuer will pay any stamp, issue, registration, documentary and other similar duties and taxes, including interest and penalties, payable on or in connection with (i) the execution and delivery of this Trust Deed and (ii) the constitution, issue and offering of the Securities. The Issuer will also pay (or, if the same are required to be

 

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paid in the United Kingdom by the Trustee, the Issuer shall pay the necessary amount to the Trustee to enable the Trustee to pay) all stamp, issue, registration, documentary or other similar duties and taxes payable in any jurisdiction in relation to which the liability to pay arises directly as a result of any action taken by or on behalf of the Trustee or, as the case may be, (where entitled under Condition 9 to do so, and subject to Clause 2.4) the Securityholders to enforce the obligations of the Issuer under this Trust Deed or the Securities.

 

4.2                               Relevant Taxing Jurisdiction

 

If the Issuer shall become subject generally to the taxing jurisdiction of any country or any political subdivision thereof or therein that has the power to tax (each an “Additional Taxing Jurisdiction”) other than or in addition to a Relevant Taxing Jurisdiction , it shall immediately notify the Trustee upon becoming aware thereof and (if the Trustee so requires) shall enter into a trust deed supplemental hereto, giving to the Trustee an undertaking or covenant in form and manner satisfactory to the Trustee in terms corresponding to the terms of Condition 8 in respect of such Additional Taxing Jurisdiction. Condition 8 shall be deemed to apply as if references in such provision to “Taxes” included taxes imposed by way of withholding or deduction by any such Additional Taxing Jurisdiction (or any political subdivision thereof or therein).

 

5.                                      COVENANT OF COMPLIANCE

 

The Issuer hereby covenants with the Trustee that it will comply with and perform and observe all the provisions of this Trust Deed which are expressed to be binding on it.  The Conditions shall be binding on the Issuer and the Securityholders.  The Trustee shall be entitled to enforce the obligations of the Issuer under the Securities and the Conditions as if the same were set out and contained in this Trust Deed which shall be read and construed as one document therewith.  The provisions contained in Schedule 3 shall have effect in the same manner as if herein set forth.

 

6.                                      AMOUNTS DUE TO THE TRUSTEE

 

In respect of amounts due to the Trustee in its personal capacity under this Trust Deed (including all amounts due pursuant to Clause 11), the Trustee may at any time, at its discretion and without notice, take such proceedings and/or other steps as it may think fit against or in relation to the Issuer to obtain payment of the amounts due.

 

7.                                     PROCEEDINGS, ACTION AND INDEMNIFICATION

 

7.1                               Proof of Default

 

Should the Trustee take legal proceedings against the Issuer to enforce any of the provisions of the Securities or this Trust Deed, proof therein that as regards any specified Security the Issuer has made default in paying any principal or interest payable in respect of such Security shall (unless the contrary be proved) be sufficient evidence that the Issuer has made the like default as regards all other Securities which are then payable.

 

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7.2                               Securityholders’ directions or requests

 

Upon the occurrence of an Enforcement Event or upon the breach by the Issuer of any of its obligations under this Trust Deed (other than any of its obligation set out in the Conditions), the Trustee may at any time, at its discretion and without further notice, institute such proceedings or take such other action against the Issuer as permitted by Condition 9 to recover any amounts due in respect of the Securities or to enforce any of its obligations under this Trust Deed or the Conditions, but the Trustee shall not be bound to take any such action or proceedings or any other action under this Trust Deed unless:

 

(a)                                 instructed to do so by Securityholders holding not less than 25% in aggregate principal amount of the outstanding Securities; or

 

(b)                                 so directed by an Extraordinary Resolution,

 

subject in each case to it being indemnified and/or secured to its satisfaction against all actions, proceedings, claims and demands to which it may thereby render itself liable and all Liabilities which it may incur by so doing.

 

7.3                               Enforcement by Trustee only

 

In accordance with Condition 9.7, no Securityholder shall be entitled to proceed directly against the Issuer unless the Trustee, having become bound as aforesaid so to proceed, fails to do so within a reasonable period and such failure is continuing.

 

7.4                               Notification to the Trustee

 

The Issuer shall notify the Trustee in writing immediately upon becoming aware of any action or proceedings to enforce the terms of this Trust Deed and/or the Securities being taken directly against the Issuer by any Securityholder or Securityholders.

 

8.                                     APPLICATION OF MONEYS RECEIVED BY THE TRUSTEE

 

8.1                               Declaration of Trust

 

All moneys received by the Trustee in respect of the Securities or amounts payable under this Trust Deed will be held by the Trustee (subject to the provisions of Clause 8.2 and Clause 8.3) on trust to apply them:

 

(a)                                 first, in payment of all Liabilities properly incurred by the Trustee or any Appointee (including all amounts payable to it pursuant to Clause 11) in carrying out its functions under this Trust Deed;

 

(b)                                 secondly, subject to the provisions of Clause 2.4, in payment of any amounts owing in respect of the Securities pari passu and rateably; and

 

(c)                                  thirdly, in payment of the balance (if any) to the Issuer for itself.

 

Without prejudice to this Clause 8.1, if the Trustee holds any moneys which represent principal or interest or other sums in respect of Securities which have become void or

 

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in respect of which claims have become prescribed under Condition 9, the Trustee will hold such moneys upon the above trusts.

 

8.2                               Suspense Accounts

 

Any amount received or recovered by the Trustee (otherwise than as a result of a payment by the Issuer to the Trustee in accordance with Clause 2) in respect of any sum payable by the Issuer under this Trust Deed or the Securities may be placed in a suspense account and kept there for so long as the Trustee thinks fit.

 

8.3                               Accumulation

 

If the amount of the moneys at any time available for payment in respect of the Securities under Clause 8.1 is less than 10% of the principal amount of the Securities then outstanding, the Trustee may, at its discretion, invest such moneys. The Trustee may retain such investments and accumulate the resulting income until the investments and the accumulations, together with any other funds for the time being under the control of the Trustee and available for such payment, amount to at least 10% of the principal amount of the Securities then outstanding. The accumulated investments (after deduction of, or provision for, any applicable taxes) will be applied as specified in Clause 8.1. All interest and other income deriving from such investments shall be applied first in payment or satisfaction of all amounts then due and unpaid under Clause 11 to the Trustee and/or any Appointee and otherwise held for the benefit of and paid to the Securityholders.

 

8.4                               Investment

 

Any moneys held by the Trustee may be invested in the name or under the control of the Trustee in any investments or other assets in any part of the world whether or not they produce income or by placing the same on deposit in the name or under the control of the Trustee at such bank or other financial institution and in such currency as the Trustee may, in its absolute discretion, think fit. If that bank or institution is the Trustee or a subsidiary, holding or associated company of the Trustee, it shall not be liable to account for interest at a rate greater than that payable by it to an independent customer on a deposit of the type made.  The Trustee may at any time vary any such investments for or into other investments or convert any moneys so deposited into any other currency and shall not be responsible for any resulting loss, whether due to depreciation in value, fluctuation in exchange rates or otherwise.

 

9.                                      PARTIAL PAYMENTS

 

Upon any payment under Clause 2.2 or Clause 2.3 (other than (a) a payment which is made in full or (b) a payment which is made in full except to the extent of any withholding or deduction made therefrom for or on account of Taxes or duties as permitted by the Conditions against surrender of a Security), the Security in respect of which such payment is made shall be produced to the Trustee or the Principal Paying and Transfer Agent and the Trustee shall or shall cause the Principal Paying and Transfer Agent to enface thereon a memorandum of the amount paid and the date of such payment, but the Trustee may dispense with such production and enfacement upon such indemnity being given as it shall think sufficient.

 

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10.                               COVENANTS BY THE ISSUER

 

So long as any of the Securities remains outstanding the Issuer shall:

 

(a)                                 Conduct: at all times carry on and conduct its affairs, and procure that its subsidiaries carry on and conduct their respective affairs, in a proper manner in accordance with good business practice;

 

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

 

(c)                                  Books of Account: at all times keep, and procure that each of its subsidiaries keeps, proper books of account and, after an Enforcement Event has occurred and at any other time upon reasonable notice being given to the Issuer, allow the Trustee and any person appointed by it to whom the Issuer and/or the relevant subsidiary has no reasonable objection, access to all books of record and account and other relevant records of the Issuer and/or the relevant subsidiary, respectively, at all reasonable times during normal business hours;

 

(d)                                 Notice of Events: give notice in writing to the Trustee immediately upon becoming aware of the occurrence of any Enforcement Event or any breach of any of the provisions of this Trust Deed or any Change of Control Event, and without waiting for the Trustee to take any further action;

 

(e)                                  Officer’s Certificate: send to the Trustee, within ten business days of any request by the Trustee and (without the need for any request) at the time of the despatch to the Trustee of its year end consolidated financial statements as provided for in Clause (f) below, and in any event not later than 30 days after its year end consolidated financial statements are published, an Officer’s Certificate (in the form or substantially in the form set out in Schedule 5) certifying that up to a specified date being not more than five days before the date of such certificate (the “Certification Date”), the Issuer and each subsidiary, as applicable, has complied with all the provisions relating to it as specified under this Trust Deed and/or the Conditions (or, if such is not the case, giving details of the circumstances of such non-compliance) and that as at such date there did not exist nor had there existed at any time prior thereto since the Certification Date of the last such certificate (or, in the case of the first such certificate, the date of this Trust Deed), any Enforcement Event or other matter which would affect the Issuer’s ability to perform its obligations hereunder (or, if such is not the case, specifying the same);

 

(f)                                   Financial Statements etc.: send to the Trustee in the English language (i) as soon as the same become available and in any event no later than 30 days following the publication of the year end consolidated financial statements of the Issuer, two copies of its consolidated financial statements for such year,  audited by an internationally recognised firm of independent auditors and (ii) as soon as the same become available and in any event no later than 30 days following the publication of the semi-annual interim consolidated financial

 

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statements of the Issuer, two copies of its consolidated financial statements for such six-month period, subject to a limited review by an internationally recognised firm of independent auditors, together with (iii) two copies in English of every report or other notice, statement or circular issued, or that legally or contractually should be issued, to the members or creditors (or any class of them) of the Issuer generally in their capacity as such at the time of the actual (or legally or contractually required) publication or issue thereof, and procure that the same are made available for inspection by Securityholders at the specified offices of the Paying and Transfer Agents as soon as practicable thereafter;

 

(g)                                  Further Acts: insofar as is permitted by applicable law, at all times execute and/or do all such further documents, acts and things as may be necessary in the opinion of the Trustee to give effect to this Trust Deed;

 

(h)                                 Maintenance of Agents: at all times maintain a Registrar, a Principal Paying and Transfer Agent, an Agent Bank and Paying and Transfer Agents in accordance with the Conditions;

 

(i)                                     Change of Agents: give, or procure that there be given, notice to the Securityholders in accordance with Condition 15 of any appointment, resignation or removal of any Agent (other than the appointment of the initial Agents) or change of any Agent’s specified office and not make any such appointment or removal without the written approval of the Trustee;

 

(j)                                    Obligations of Agents: observe and comply with its obligations and use all reasonable endeavours to procure that the Agents observe and comply with their obligations under the Paying Agency Agreement and notify the Trustee immediately it becomes aware of any material breach of such obligations, or failure by a Paying and Transfer Agent to comply with such obligations, in relation to the Securities;

 

(k)                                 Notification of Late Payment: procure the Principal Paying and Transfer Agent to notify the Trustee forthwith in the event that it does not, on or before the date any amount becomes payable in respect of the Securities or any of them, receive unconditionally pursuant to the Paying Agency Agreement payment of a sufficient amount in euros to discharge the amount of moneys payable in respect thereof on such date;

 

(l)                                     Notification of Unconditional Payment: in the event of the unconditional payment to the Principal Paying and Transfer Agent of any amount payable in respect of the Securities or any of them being made after the date for payment thereof in accordance with the Conditions forthwith give or procure to be given notice to the Securityholders in accordance with Condition 15, that such payment has been made;

 

(m)                             Notices relating to Optional Deferral:  give or procure to be given: (i) in the event it elects to optionally defer payment of any Scheduled Interest Amounts pursuant to Condition 4.1, an Optional Deferral Notice (as defined in Condition 4.1) to the Trustee (in an Officer’s Certificate) and to the Principal Paying and Transfer Agent, the Registrar and the Securityholders in

 

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accordance with Condition 15, not less than ten business days prior to an Interest Payment Date; (ii) while any Optionally Deferred Interest remains outstanding, notice to the Trustee (in an Officer’s Certificate) and the Securityholders in accordance with Condition 15 as soon as practicable after becoming aware of the occurrence of any of the events specified in Condition 4.1(b); (iii) at least seven business days’ notice to the Trustee, the Principal Paying and Transfer Agent, the Registrar and the Securityholders of its intention to pay any Optionally Deferred Interest in cash pursuant to Condition 4.1(b), specifying the date of such payment; and (iv) in the event that any Optionally Deferred Interest becomes Old Optionally Deferred Interest in accordance with Condition 4.1, notice to the Trustee and the Securityholders in accordance with Condition 15 no later than seven business days thereafter;

 

(n)                                 Notices relating to Mandatory Deferral:  give or procure to be given not less than five business days prior to any Interest Payment Date, notice of the occurrence of any Mandatory Deferral Event as of the relevant Test Date, and the amount of any available cash proceeds which may be used as provided in Condition 4.2 to pay any Scheduled Interest Amount payable on the following Interest Payment Date to the Trustee (in an Officer’s Certificate in the form or substantially in the form set out in Schedule 6) and to the Agent Bank, the Principal Paying and Transfer Agent, the Registrar and Securityholders in accordance with Condition 15; or, if no Mandatory Deferral Event occurred as of the relevant Test Date, notice to the Trustee (in an Officer’s Certificate in the form or substantially in the form set out in Schedule 6) certifying that no Mandatory Deferral Event occurred as of the relevant Test Date, and setting out the details of the relevant Coverage Ratio and, if so requested by the Trustee, the amount of any Capital Expenditure, EBITDA, ESOP Cashflow, Interest Expense or Taxes Paid;

 

(o)                                 Notices relating to Equity Funding of Deferred Interest:  in the event that any unpaid Equity Funded Deferred Interest is to be settled by way of the issue, offer or sale of ordinary shares (pursuant to the provisions of Condition 5.2), give or procure to be given notice to the Trustee (in an Officer’s Certificate) and the Securityholders in accordance with Condition 15:

 

(i)                                     if the Issuer does not have a sufficient amount of authorised ordinary shares available for issue, (x) notice that all or part, as the case may be, of the relevant Equity Funded Deferred Interest cannot be settled for such reason, and (y) promptly following approval and adoption by the shareholders of the Issuer of any resolution relating to the authorisation for issuance of a sufficient amount of ordinary shares to settle such unpaid Equity Funded Deferred Interest, notice of such approval and adoption; or

 

(ii)                                  in the event of the issue, offer and sale or contribution of Authorised Equity and the payment of the proceeds thereof to the Trustee in accordance with the provisions of Condition 5.2, the amount of such proceeds and the relevant Equity Funded Deferred Interest Settlement Date in respect thereof;

 

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(p)                                 Notices relating to Equity Funded Deferred Interest:  in the event that any Equity Funded Deferred Interest remains unpaid, (i) give or procure to be given to the Trustee (in an Officer’s Certificate) notice of the occurrence of any of the events specified in Conditions 4.3 and 5.4; (ii) give or procure to be given to the Trustee (in an Officer’s Certificate) and the Securityholders in accordance with Condition 15, as soon as practicable after becoming aware thereof, of the occurrence of a Market Disruption Event; and, following the termination or cessation of such Market Disruption Event, notice of such termination or cessation; and (iii) every month following the date on which such Equity Funded Deferred Interest first arose, until the date on which such unpaid Equity Funded Deferred Interest is settled in full, give or procure to be given to the Trustee information on the best endeavours being undertaken by the Issuer to fund such unpaid Equity Funded Deferred Interest;

 

(q)                                 Listing: use its best endeavours to obtain and maintain the listing of the Securities on the Luxembourg Stock Exchange for as long as any Security is outstanding.  If, however, it is unable to do so, having used such endeavours, or if the maintenance of such listing is agreed by the Trustee to be unduly onerous, the Issuer will instead use its best endeavours promptly to obtain and thereafter to maintain a listing for the Securities on such other stock exchange approved by the Trustee (such approval not to be unreasonably withheld);

 

(r)                                    Notice to Securityholders: send to the Trustee for its approval (such approval not to be unreasonably withheld), not less than three business days prior to the date on which any such notice is to be given to Securityholders, a copy of each notice to be given to the Securityholders in accordance with Condition 15 and not give such notice without such approval (which approval shall not be unreasonably withheld), and, upon publication, two copies of each such notice (such approval, unless so expressed, not to constitute approval of such notice for the purposes of Section 21 of the Financial Services and Markets Act 2000);

 

(s)                                   Securities held by the Issuer etc.: send to the Trustee promptly after being so requested by it an Officer’s Certificate setting out the total number and aggregate principal amount outstanding of the Securities which:

 

(i)                                     up to and including the date of such certificate, have been purchased or redeemed by the Issuer or any of its subsidiaries; and

 

(ii)                                  at the date of such certificate are held by or on behalf of the Issuer or any of its subsidiaries;

 

(t)                                    Notification of Early Redemption or Payment: not less than the number of days specified in the relevant Condition prior to the redemption or repayment date in respect of any Security, give to the Trustee notice in writing of the amount of such redemption or repayment pursuant to the Conditions, specify the date fixed for such redemption or prepayment and duly proceed to redeem or repay such Securities accordingly;

 

(u)                                 Tax Redemption: if the Issuer gives notice to the Trustee that it intends to redeem the Securities pursuant to Condition 6.3, the Issuer shall, prior to

 

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giving such notice to the Securityholders, provide such information to the Trustee as the Trustee requires in order to satisfy itself of the matters referred to in such Condition;

 

(v)                                 Maintaining Current Ratings of the Securities:  furnish, or procure that there is furnished, from time to time, any and all documents, instruments, information and undertakings that may be reasonably necessary in order to maintain the current ratings of the Securities by the Rating Agencies (save that when any such document, instrument, information and/or undertaking is not within the possession or control of the Issuer or is not to be given by the Issuer, the Issuer agrees only to use its best endeavours to furnish, or procure that there is furnished, from time to time any such documents, instruments, information and undertakings as may be reasonably necessary in order to maintain the then current ratings of the Securities by the Rating Agencies);

 

(w)                               Inspection of Documents:  procure that each of the Paying and Transfer Agents makes available for inspection by Securityholders at its specified office copies of each of the Relevant Documents and the then latest audited balance sheet and profit and loss account of the Issuer;

 

(x)                                 Clearstream, Luxembourg and Euroclear:  use its best endeavours to procure that Clearstream, Luxembourg and/or Euroclear (as the case may be) issue(s) any certificate or other document called for by the Trustee under Clause 12 as soon as practicable after such request;

 

(y)                                 Calculation pursuant to the Conditions:  do, or procure that there are done on its behalf, all calculations required pursuant to the Conditions;

 

(z)                                  Documents in connection with Meetings of Securityholders: from time to time as required or contemplated by this Trust Deed or as requested by the Trustee, make available through the Paying and Transfer Agents or otherwise such documents as may be required by the Securityholders in connection with meetings of Securityholders;

 

(aa)                          Modifications: prior to making any modification or amendment or supplement to this Trust Deed, procure the delivery of legal opinion(s) as to English and any other relevant law, addressed to the Trustee, dated the date of such modification or amendment or supplement, as the case may be, and in a form acceptable to the Trustee from legal advisers acceptable to the Trustee;

 

(bb)                          Rule 144A(d)(4): for so long as any of the Securities are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Issuer will, during any period in which it is neither subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, nor exempt from the reporting requirements of the Exchange Act pursuant to Rule 12g3-2(b) thereunder, provide to the holder or beneficial owner of such restricted securities or to any prospective purchaser of such restricted securities designated by such holder or beneficial owner, in each case upon the request of such holder, beneficial owner or prospective purchaser, the information required to be provided by Rule 144A(d)(4) under the Securities Act;

 

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(cc)                            Recordation as Subordinated Debt:  record its payment obligations in respect of the Securities as subordinated indebtedness in its financial statements; and

 

(dd)                          Tax Laws:  in order to comply with applicable tax laws (inclusive of any current and future laws, rules, regulations, intergovernmental agreements and interpretations thereof promulgated by competent authorities) related to this Trust Deed, the Paying Agency Agreement and the Securities in effect from time to time (“Applicable Law”) that a foreign financial institution, the Issuer, the Trustee, the Paying and Transfer Agents or another party is or has agreed to be subject to, the Issuer agrees (i) to provide to the Trustee sufficient information about the parties and/or transactions (including any modification to the terms of such transactions) so the Trustee can determine whether it has tax related obligations under Applicable Law, (ii) that the Trustee shall be entitled to make any withholding or deduction from payments to comply with Applicable Law for which the Trustee shall not have any liability, and (iii) to hold harmless the Trustee for any losses it may suffer due to the actions it takes to comply with Applicable Law.  The terms of this Clause 10(dd) shall survive the termination of this Trust Deed.

 

11.                               REMUNERATION AND INDEMNIFICATION OF TRUSTEE

 

11.1                        Normal Remuneration

 

As from the date of this Trust Deed, the Issuer shall pay to the Trustee as remuneration for its services as trustee, such sum at such rate on such dates in each case as may be agreed between them from time to time.  Such remuneration shall accrue from day to day from the date of this Trust Deed.  However, if any payment to a Securityholder of any moneys payable in respect of any Security is improperly withheld or refused, such remuneration shall continue to accrue as from the date of such withholding or refusal until payment to such Securityholder is duly made.

 

11.2                        Additional Remuneration

 

At any time after the occurrence of an Enforcement Event or any breach of the provisions of this Trust Deed, or if the Trustee considers it expedient in the interests of Securityholders, or is requested by the Issuer, to undertake duties which they both agree to be of an exceptional nature or otherwise outside the scope of the normal duties of the Trustee under this Trust Deed, the Issuer shall pay to the Trustee such additional remuneration as shall be agreed between them or, failing such agreement as to any of the matters in this Clause (or as to such sums referred to in Clause 11.1), as determined by a person (acting as an expert) selected by the Trustee and approved in writing by the Issuer or, failing such approval, nominated by the President for the time being of The Law Society of England and Wales. The expenses involved in such nomination and such person’s fee shall be paid by the Issuer. The determination of such person shall be conclusive and binding on the Issuer, the Trustee and the Securityholders.

 

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11.3                        Expenses

 

Subject to Clause 13 below, the Issuer shall also on demand by the Trustee pay or discharge all Liabilities properly incurred by the Trustee and any Appointee in the preparation and execution of this Trust Deed and the performance of its functions under this Trust Deed including, but not limited to, legal and travelling expenses and any stamp, documentary or other taxes or duties paid by the Trustee in connection with any legal proceedings brought or contemplated by the Trustee against the Issuer to enforce any provision of this Trust Deed or the Securities. Such Liabilities shall:

 

(a)                                 in the case of payments made by the Trustee before such demand, carry interest from the date of the demand at the rate equal to the Trustee’s cost of funding (as reasonably determined by the Trustee) on the date on which the Trustee made such payments; and

 

(b)                                 in other cases, carry interest at such rate from 30 days after the date of the demand or (where the demand specifies that payment is to be made on an earlier date) from such earlier date.

 

11.4                        Indemnity

 

Subject to Clause 13 below, the Issuer will indemnify the Trustee in respect of all Liabilities paid or properly incurred by it in the fulfilment of its obligations, rights, authorities and discretions under this Trust Deed or by any Appointee in the carrying out its functions in the fulfilment of its obligations under this Trust Deed and against any Liability (including, but not limited to, all Liabilities paid or incurred in disputing or defending any of the foregoing) which any of them may incur or which may be made against any of them arising out of or in relation to or in connection with, its appointment or the exercise of its functions.

 

11.5                        Claims of the Trustee unaffected

 

The provisions of Clause 2.4 apply only in respect of amounts payable pursuant to Clauses 2.2 and 2.3, and under any Security, and nothing set out in Clause 2.4. shall affect or prejudice any claim by the Trustee against the Issuer in respect of amounts payable under this Clause.

 

11.6                        Provisions Continuing

 

The provisions of Clauses 11.3, 11.4 and 11.5 shall continue in full force and effect in relation to the Trustee even if it may have ceased to be the Trustee in relation to claims which arose during the period of its appointment as Trustee.

 

11.7                        No withholding

 

The Issuer hereby further undertakes to the Trustee that all monies payable by the Issuer to the Trustee under this Clause shall be made without set-off, counterclaim, deduction or withholding unless compelled by law in which event the Issuer will pay such additional amounts as will result in the receipt by the Trustee of the amounts which would otherwise have been payable by the Issuer to the Trustee under this Clause in the absence of any such set-off, counterclaim, deduction or withholding.

 

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12.                               SUPPLEMENT TO THE TRUSTEE ACTS

 

The Trustee shall have all the powers conferred upon trustees by the Trustee Acts and by way of supplement thereto it is expressly declared as follows:

 

(a)                                 Advice:  The Trustee may act on the advice or opinion of, or any information obtained from, any expert, or a certificate or report or confirmation of the Auditors, or of any accountants, financial advisers, investment banks, lawyers or experts in each case whether or not addressed to the Trustee, and whether their liability in relation thereto is limited (by its terms or by any engagement letter relating thereto entered into by the Trustee or in any other manner) by reference to a monetary cap, methodology or otherwise, whether obtained by certificate or report and shall not be responsible to anyone for any Liability occasioned by so acting.  Any such advice, opinion, information, certificate or report may be sent or obtained by letter, facsimile transmission, e-mail or cable and the Trustee shall not be liable to anyone for acting in good faith on any advice, opinion, information, certificate or report purporting to be conveyed by such means although the same shall contain some error or shall not be authentic.  The Trustee shall be entitled to accept and be entitled to rely on any such advice, opinion, information, certificate or report and, if so relied on, such advice, opinion, information, certificate or report shall be conclusive and binding on the Issuer, the Trustee and the Securityholders in the absence of manifest error.

 

(b)                                 Trustee to Assume Due Performance:  The Trustee need not notify anyone of the execution of this Trust Deed or do anything to ascertain whether any Enforcement Event or other event, condition or act or breach of the provisions of this Trust Deed, the happening of which would cause a right or remedy to become exercisable by the Trustee under this Trust Deed or Change of Control Event has occurred or to monitor or supervise the performance and observance by the Issuer of its obligations hereunder or under any Relevant Document and, until it has actual knowledge or express notice pursuant to this Trust Deed to the contrary, the Trustee may assume that no such event, condition or act has occurred and that the Issuer is performing all its obligations under this Trust Deed and the Securities.

 

(c)                                  Resolutions of Securityholders:  The Trustee shall not be liable to any person by reason of having acted upon any Written Resolution or any Extraordinary or other resolution purporting to have been passed at any meeting of Securityholders in respect whereof minutes have been made and signed or any direction or request of Securityholders even though subsequent to its acting it may be found that there was some defect in the constitution of the meeting or the passing of the resolution or (in the case of a Written Resolution) that not all Securityholders had signed the Extraordinary Resolution or (in the case of a direction or request) it was not signed by the requisite number of Securityholders or that for any reason the resolution, direction or request was not valid or binding upon such Securityholders.

 

(d)                                 Officer’s Certificate:  The Trustee may call for and accept as sufficient evidence of any fact or matter or of the expediency of any act an Officer’s Certificate as to any fact or matter upon which the Trustee may, in the exercise

 

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of any of its functions require to be satisfied or have information to the effect that, in the opinion of the persons so certifying, any particular act is expedient and the Trustee need not call for further evidence and shall not be responsible for any Liability that may be occasioned by it or any other person acting on such certificate.

 

(e)                                  Deposit of Documents:  The Trustee shall be at liberty to hold this Trust Deed and any other documents or to deposit them in any part of the world with any banker or banking company or company whose business includes undertaking the safe custody of documents or lawyer or firm of lawyers considered by it to be of good repute and the Trustee shall not be responsible for or required to insure against any Liability incurred in connection with any such holding or deposit, and may pay all sums required to be paid on account of or in respect of any such deposit.

 

(f)                                   Custodians/Nominees:  The Trustee may appoint and pay any person to act as a custodian or nominee on any terms in relation to such assets of the trusts constituted by this Trust Deed as the Trustee may determine, including for the purposes of depositing with a custodian this Trust Deed or any document relating to the trusts constituted by this Trust Deed; the Trustee is not obliged to appoint a custodian if the Trustee invests in securities payable to bearer.

 

(g)                                  Discretion of Trustee:  Save as expressly otherwise provided in this Trust Deed, the Trustee shall have absolute and uncontrolled discretion as to the exercise or non-exercise of its trusts, powers, authorities and discretions under this Trust Deed (the exercise or non-exercise of which as between the Trustee and the Securityholders shall be conclusive and binding on the Securityholders) and shall not be responsible for any Liability which may result from their exercise or non-exercise, and in particular the Trustee shall not be bound to act at the request or direction of the Securityholders or otherwise under any provision of this Trust Deed or to take at such request or direction or otherwise any other action under any provision of this Trust Deed unless it shall first be indemnified and/or secured to its satisfaction against all Liabilities to which it may render itself liable or which it may incur by so doing.

 

(h)                                 Agents:  Whenever it considers it expedient in the interests of the Securityholders, the Trustee may, in the conduct of its trust business, instead of acting personally, employ and pay an agent selected by it, whether or not a lawyer or other professional person, to transact or conduct, or concur in transacting or conducting, any business and to do or concur in doing all acts required to be done by the Trustee (including the receipt and payment of money).

 

(i)                                     Delegation:  Whenever it considers it expedient in the interests of the Securityholders, the Trustee may delegate to any person and on any terms (including power to sub-delegate) all or any of its functions provided that the Trustee may not delegate the right to determine whether an Enforcement Event has occurred unless prior to such delegation the Trustee provides to the Issuer confirmation in writing that the Trustee has been advised by its legal advisers that it should delegate that right (with or without any other rights, trusts, powers, authorities and discretions) to another person or fluctuating

 

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body of persons because of a conflict of interest or possible conflict of interest and/or other similar circumstances which the Trustee might face, or be subjected to, as the trustee of this Trust Deed if it were not to delegate that right.

 

(j)                                    Forged Securities:  The Trustee shall not be liable to any person by reason of having accepted as valid or not having rejected any Security purporting to be such and subsequently found to be forged or not authentic.

 

(k)                                 Responsibility for Appointees:  If the Trustee exercises reasonable care in selecting any Appointee appointed under this Clause, it will not have any obligation to supervise such Appointee or be responsible for any Liability incurred by reason of the misconduct of such Appointee, or the default or misconduct or default of any substitute appointed by such Appointee.

 

(l)                                     Confidentiality:  The Trustee shall not (unless and to the extent ordered so to do by a court of competent jurisdiction) be required to disclose to any Securityholder any information (including, without limitation, information of a confidential, financial or price sensitive nature) made available to the Trustee by the Issuer or any other person in connection with this Trust Deed and no Securityholder shall be entitled to take any action to obtain from the Trustee any such information.

 

(m)                             Determinations Conclusive:  The Trustee may determine all questions and doubts arising in relation to any of the provisions of this Trust Deed. Every such determination, whether or not relating in whole or in part to the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee and the Securityholders.

 

(n)                                 Breach of Provisions of the Trust Deed:  The Trustee may determine whether or not any breach by the Issuer of any provision of this Trust Deed is in its opinion capable of remedy and/or whether or not any event is in its opinion materially prejudicial to the interests of the Securityholders. Any such determination will be conclusive and binding upon the Issuer and the Securityholders.

 

(o)                                 Currency Conversion:  Where it is necessary or desirable for any purpose in connection with this Trust Deed or the Conditions to convert any sum from one currency to another, it shall (unless otherwise provided herein or required by law) be converted at such rate or rates, in accordance with such method and as at such date, as may be specified by the Trustee but having regard to current rates of exchange.  Any rate, method and date so specified shall be binding on the Issuer and the Securityholders.

 

(p)                                 Payment for and Delivery of Securities:  The Trustee shall not be responsible for the receipt or application by the Issuer of the proceeds of the issue of the Securities, the exchange of the interests between the Securities represented by any Global Certificate or the delivery of any Global Certificate or Definitive Certificate to the person(s) entitled to it or them.

 

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(q)                                 Securities held by the Issuer, etc.:  Unless notified to the contrary, the Trustee shall be entitled to assume without enquiry (other than requesting a certificate pursuant to Clause 10(s)) that no Securities are held by, for the benefit of, or on behalf of, the Issuer or any of its subsidiaries.

 

(r)                                    Legal opinions:  The Trustee shall not be responsible to any person for failing to request, require or receive any legal opinion relating to the Securities or for checking or commenting upon the content of any such legal opinion.

 

(s)                                   Interests of Securityholders:  In connection with the exercise or performance by it of any right, power, trust, authority, duty or discretion under or in relation to this Trust Deed (including, without limitation, any modification, waiver, authorisation of any breach or proposed breach of any of the Conditions or this Trust Deed), the Trustee shall have regard to the general interests of the Securityholders  (whatever their number) as a class and shall not have regard to any interests arising from circumstances particular to individual Securityholders (whatever their number) and, in particular but without limitation, shall not have regard to the consequences of any such exercise or performance for individual Securityholders resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory or any political sub-division thereof and the Trustee shall not be entitled to require, nor shall any Securityholder be entitled to claim, from the Issuer, the Trustee or any other person, any indemnification or payment in respect of any tax consequence of any such exercise upon individual Securityholders except to the extent already provided for in Condition 8 and/or any undertaking given in addition thereto or in substitution therefor under this Trust Deed.

 

(t)                                    Consents and Approvals:  Any consent or approval given by the Trustee for the purposes of this Trust Deed may be given on such terms and subject to such condition (if any) as the Trustee thinks fit, and notwithstanding anything to the contrary in this Trust Deed may be given retrospectively.  The Trustee may give any consent or approval, exercise any power, authority or discretion or take any similar action (whether or not such consent, approval, power, authority, discretion or action is specifically referred to in this Trust Deed) if it is satisfied that the interests of the Securityholders will not be materially prejudiced thereby. For the avoidance of doubt, the Trustee shall not have any duty to the Securityholders in relation to such matters other than that which is contained in the preceding sentence.

 

(u)                                 Reliance of Certification of Clearing System:  The Trustee may call for any certificate or other document to be issued by Clearstream, Luxembourg, or Euroclear or any other relevant clearing system as to the principal amount of Securities represented by a Global Certificate standing to the account of any person. Any such certificate or other document shall, in the absence of manifest error, be conclusive and binding for all purposes.  Any such certificate or other document may comprise any form of statement or print out of electronic records provided by the relevant clearing system (including Euroclear’s EUCLID or Clearstream, Luxembourg’s Cedcom system) in accordance with its usual procedures and in which the holder of a particular principal amount of Securities is clearly identified together with the amount of

 

26

 

such holding.  The Trustee shall not be liable to any person by reason of having accepted as valid or not having rejected any certificate or other document to such effect purporting to be issued by Clearstream, Luxembourg or Euroclear and subsequently found to be forged or not authentic.

 

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

 

(w)                               Responsibility for Statements etc.:  The Trustee shall not be responsible for, or for investigating any matter which is the subject of, any recital, statement, representation, warranty or covenant of any person contained in this Trust Deed or any other agreement or document relating to the transactions contemplated in this Trust Deed or under such other agreement or document.

 

(x)                                 Professional Charges:  Any Trustee of this Trust Deed being a lawyer, accountant, broker or other person engaged in any profession or business shall be entitled to charge and be paid all usual professional and other charges for business transacted and acts done by him or his firm in connection with the trusts of this Trust Deed, and also his proper charges in addition to disbursements for all other work and business done and all time spent by him or his firm in connection with matters arising in connection with this Trust Deed.

 

(y)                                 Not Bound to Act:  The Trustee shall not be bound to take any action in connection with this Trust Deed or any obligations arising pursuant hereto, including, without prejudice to the generality of the foregoing, forming any opinion or employing any financial adviser, where it is not satisfied that it will be indemnified against all Liabilities which may be incurred in connection with such action, and may demand prior to taking any such action that there be paid to it in advance such sums as it considers (without prejudice to any further demand) shall be sufficient so to indemnify it.

 

27

 

(z)                                  Compliance:  No provision of this Trust Deed shall require the Trustee to do anything which may (i) be illegal or contrary to applicable law or regulation; or (ii) cause it to expend or risk its own funds or otherwise incur any Liability in the performance of any of its duties or in the exercise of any of its rights, powers or discretions, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or Liability is not assured to it.

 

(aa)                          No Responsibility for Rating:  The Trustee shall have no responsibility whatsoever to the Issuer, any Securityholder or any other person for the maintenance of or failure to maintain any rating of any of the Securities by any rating agency.

 

(bb)                          Reliance on Information relating to Meetings: The Trustee may rely without further investigation on (i) an Officer’s Certificate and/or (ii) the confirmation, opinion, certificate, advice or any other information obtained from any lawyer, consultant or other expert the Trustee deems appropriate regarding any matter governing the procedure for calling and holding a meeting. The Trustee shall be entitled at any time to obtain and rely on such legal advice as it may deem necessary in respect of all applicable laws and regulations governing the procedure for calling and holding any meeting, and the Trustee shall not be responsible for any delay occasioned in obtaining such advice, and all proper costs and expenses incurred for such legal advice shall be borne by the Issuer upon respect of proper evidence thereof.

 

13.                               TRUSTEE’S LIABILITY

 

Section 1 of the Trustee Act 2000 shall not apply to the duties of the Trustee in relation to the trusts contained in this Trust Deed, provided that if the Trustee fails to show the degree of care and diligence required of it as Trustee having regard to the provisions of this Trust Deed conferring on it any powers, authorities or discretions, nothing in this Trust Deed shall relieve or indemnify it from or against any liability which by virtue of any rule of law would otherwise attach to it in respect of any negligence, wilful default or fraud of which it may be guilty in relation to its duties hereunder.

 

Where there are any inconsistencies between the Trustee Acts and the provisions of this Trust Deed, the provisions of this Trust Deed shall, to the extent allowed by law, prevail and, in the case of any such inconsistency with the Trustee Act 2000, the provisions of this Trust Deed shall constitute a restriction or exclusion for the purposes of that Act.

 

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

 

14.                               TRUSTEE ENTERING INTO CONTRACTS

 

Neither the Trustee, nor any director or officer of a corporation acting as Trustee under this Trust Deed, whether acting for itself or in any other capacity shall, by reason of its or his fiduciary position, be in any way precluded from entering into or

 

28

 

being interested in any contract or financial or other transaction or arrangement with the Issuer and/or any of its subsidiaries or associated companies, from accepting or holding the trusteeship of any other trust deed constituting or securing any other securities issued by or relating to or the trusteeship of any shares in the Issuer or any such person or company as aforesaid, or any other office of profit under the Issuer or any such person or company as aforesaid or from becoming the owner of, or acquiring any interest in, or holding, or disposing, of any Securities or ordinary shares or securities of the Issuer or any such person or company as aforesaid and shall be entitled (a) to exercise and enforce its rights, comply with its obligations and perform its duties, under or in relation to any such transactions, any such trusteeship or, as the case may be, such Securities, ordinary shares or securities, in each case with the same rights as it would have had if the Trustee were not the Trustee and (b) to retain and shall not be in any way liable to account for any profit made or share of brokerage or commission or remuneration or other amount or benefit received thereby or in connection therewith.

 

15.                               WAIVER AND MODIFICATION

 

15.1                        Waiver, Authorisation and Determination

 

The Trustee may, without the consent of  Securityholders and without prejudice to its rights in respect of any subsequent breach, from time to time and at any time, but only and in so far as in its opinion the interests of the Securityholders shall not be materially prejudiced thereby, on such terms and subject to such conditions as to it shall seem fit and proper, waive or authorise any breach, continuing breach or proposed breach by the Issuer of any of the covenants or provisions contained in this Trust Deed, or determine that any condition, event or act which constitutes, or which with the giving of notice and/or the lapse of time would constitute an Enforcement Event shall not be treated as such for the purposes of this Trust Deed provided always that the Trustee shall not exercise any powers conferred on it by this Clause 15 in contravention of any express direction given by Extraordinary Resolution or by request in writing made by the holders of not less than 25% in aggregate principal amount of Securities then outstanding, but so that no such direction shall affect any waiver, authorisation or determination previously given or made, or so as to authorise or waive any such breach or proposed breach relating to any of the matters the subject of the Reserved Matters as specified and defined in Schedule 4.  Any such waiver, authorisation or determination shall be binding on the Securityholders and, if the Trustee so requires, shall be notified to the Securityholders as soon as practicable in accordance with Condition 15.

 

15.2                        Modification

 

The Trustee may without, the consent of the Securityholders from time to time and at any time concur with the Issuer in making any modification to this Trust Deed or the Securities or any of the Relevant Documents or any documents supplemental hereto or thereto which in the opinion of the Trustee (a) is of a formal, minor or technical nature or is made to correct a manifest error and (b) any other modification (except in relation to the Reserved Matters set out in Schedule 4 hereto) which is not, in its opinion, materially prejudicial to the interests of the Securityholders.  Any such modification shall be binding upon the Securityholders and if the Trustee so requires,

 

29

 

shall be notified by the Issuer to the Securityholders as soon as practicable in accordance with Condition 15.

 

16.                               CURRENCY INDEMNITY

 

16.1                        Currency of Account and Payment

 

Euro is the sole currency of account and payment for all sums payable by the Issuer under or in connection with this Trust Deed and the Securities, including damages.

 

16.2                        Extent of Discharge

 

An amount received or recovered in a currency other than euro (whether as a result of, or of the enforcement of, a judgment or order of a court of any jurisdiction, in the insolvency, winding-up or dissolution of the Issuer or otherwise), by the Trustee or any Securityholder in respect of any sum expressed to be due to it from the Issuer shall only discharge the Issuer to the extent of the euro amount that the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so).  If the euro amount so received or recovered is less than euro amount expressed to be due to the recipient under this Trust Deed or the Securities, the Issuer shall indemnify such recipient against any loss sustained by it as a result. In any event, the Issuer shall indemnify the recipient against the cost of making any such purchase.

 

16.3                        Indemnities Separate

 

The indemnities in this Clause constitute separate and independent obligations from the other obligations in this Trust Deed, shall give rise to separate and independent causes of action, shall apply irrespective of any indulgence granted by the Trustee and/or any Securityholder and shall continue in full force and effect despite any judgment, order, claim or proof for a liquidated amount in respect of any sum due under this Trust Deed and/or the Securities or any other judgment or order. Any such Liability as referred to in this Clause 16 shall be deemed to constitute a Liability constituted by the Trustee and the Securityholders and no proof or evidence of any actual Liability shall be required by the Issuer or its liquidator or liquidators.

 

17.                               APPOINTMENT, RETIREMENT AND REMOVAL OF THE TRUSTEE

 

17.1                        Appointment

 

The Issuer shall have the power to appoint a new Trustee but no person shall be appointed who shall not previously have been approved by an Extraordinary Resolution. One or more persons may hold office as Trustee or Trustees but such Trustee or Trustees shall be or include a Trust Corporation. Whenever there shall be more than two Trustees of this Trust Deed the majority of such Trustees shall be competent to execute and exercise all or any of the Trustee’s functions.

 

30

 

17.2                        Appointment of separate or co-trustees

 

Notwithstanding the provisions of Clause 17.1, the Trustee may by notice in writing to the Issuer (but without the consent of the Issuer or the Securityholders), appoint any person to act either as a separate trustee or as a co-trustee jointly with the Trustee:

 

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

 

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

 

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

 

Subject to the provisions of this Trust Deed the Trustee may confer on any person so appointed such functions as it thinks fit. The Trustee may by written notice to the Issuer and that person remove that person. At the Trustee’s request, the Issuer shall forthwith do all things as may be required to perfect such appointment or removal and it irrevocably appoints the Trustee as its attorney in its name and on its behalf to do so.

 

17.3                        Retirement and removal

 

The Trustee may retire at any time on giving not less than 60 days’ prior written notice to the Issuer without assigning any reason and without being responsible for any costs occasioned by such retirement and the Securityholders shall have the power exercisable by Extraordinary Resolution to remove any Trustee, provided that in the event of the only trustee of this Trust Deed which is a Trust Corporation giving notice or being removed under this Clause, the retirement or removal of such sole Trust Corporation shall not become effective until a new Trust Corporation is appointed. If a sole Trust Corporation gives notice of retirement or an Extraordinary Resolution is passed for its removal, the Issuer shall use all reasonable endeavours to procure that another Trust Corporation be appointed as Trustee. If in such circumstances no appointment of a new Trustee has become effective within 60 days of the date of such notice or Extraordinary Resolution, the Trustee shall be entitled to appoint a Trust Corporation as trustee of this Trust Deed.

 

17.4                        Merger

 

Any corporation into which the Trustee may be merged or converted, any corporation with which the Trustee may be consolidated or amalgamated, or any corporation resulting from any merger, amalgamation, conversion or consolidation to which the Trustee shall be a party, any corporation to which the Trustee shall sell or otherwise transfer all or substantially all of its assets or any corporation to which the Trustee shall sell or otherwise transfer all or substantially all of its corporate trust business, shall, to the extent permitted by applicable law and provided that such corporation shall be otherwise qualified and eligible under this Clause, be the successor Trustee under this Trust Deed  without the execution or delivery of any papers or any further act on the part of the parties hereto whereupon the Issuer and such successor shall

 

31

 

acquire and become subject to the same rights and obligations between themselves as if they had entered into a trust deed in the same form mutatis mutandis of this Trust Deed. Notice of any such merger, amalgamation, conversion, consolidation, sale or transfer shall forthwith be given by the Trustee to the Issuer and, as soon as practicable, to the Securityholders in accordance with Condition 15.

 

18.                              MEETINGS

 

18.1                        Meetings of Securityholders

 

For the purposes of paragraph 4 of Schedule 4 to this Trust Deed, the Issuer shall, at the request of the Trustee, convene a meeting of the Securityholders.

 

18.2                        Notification to the Trustee

 

The Issuer shall notify the Trustee in writing immediately upon becoming aware of any action or proceedings to enforce the terms of this Trust Deed and/or the Securities being taken directly against the Issuer by any Securityholder or Securityholders.

 

19.                               NOTES HELD IN CLEARING SYSTEMS

 

So long as any Global Certificate is, or any Securities represented by a Global Certificate are, held on behalf of a clearing system, in considering the interests of Securityholders, the Trustee may have regard to any information provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with entitlements to any such Global Certificate or the Securities and may consider such interests on the basis that such accountholders or participants were the holder(s) thereof.

 

20.                               NOTICES

 

Any communication shall be by letter or facsimile transmission as follows:

 

to the Issuer:

 

International Game Technology PLC

70 Chancery Lane

London WC2A 1AF

England

 

	
Attention:
    	
 
    	
General Counsel
    
	
Tel:
    	
 
    	
+44 (0)203 131 0300
    
	
Fax:
    	
 
    	
+44 (0)203 131 0301
    

 

to the Trustee:

 

BNYM Mellon Corporate Trustee Services Limited

One Canada Square

London E14 5AL

England

 

32

 

	
Attention:
    	
 
    	
Trustee Administration Manager - International   Game Technology PLC
    
	
Fax:
    	
 
    	
+44 207 964 2509,
    

 

or to such other details as a party may notify in writing to the other party from time to time.

 

Any such communication will take effect, in the case of delivery, at the time of delivery or, in the case of facsimile transmission, at the time of despatch, provided that any such notice or other communication which would otherwise take effect after 4.00 p.m. on any particular day shall not take effect until 10.00 a.m. on the immediately succeeding business days in the place of the addressee.

 

21.                               GOVERNING LAW AND SUBMISSION TO JURISDICTION

 

21.1                        Governing Law

 

This Trust Deed and all non-contractual obligations arising from or connected with it are governed by, and shall be construed in accordance with, English law.

 

21.2                        Jurisdiction

 

The Issuer irrevocably agrees for the benefit of the Trustee and the Securityholders that the courts of England are to have non-exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Trust Deed, and accordingly any legal action or proceedings arising out of or in connection with this Trust Deed or the Securities may be brought in such courts. The Issuer irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in such courts on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient or inappropriate forum. This submission shall not limit the right of the Trustee and the Securityholders to take any Proceedings against the Issuer in any other court of competent jurisdiction or concurrent Proceedings in any number of jurisdictions.

 

22.                              COUNTERPARTS

 

This Trust Deed and any trust deed supplemental hereto may be executed and delivered in any number of counterparts, all of which, taken together, shall constitute one and the same deed and any party to this Trust Deed or any trust deed supplemental hereto may enter into the same by executing and delivering a counterpart.

 

IN WITNESS whereof this Trust Deed has been executed by the Issuer and the Trustee and entered into the day and year first above written.

 

33

 

SCHEDULE 1
 FORMS OF GLOBAL CERTIFICATES

 

PART 1
 FORM OF UNRESTRICTED GLOBAL CERTIFICATE

 

	
Common Code: 025409566
    	
 
    	
ISIN: XS0254095663
    

 

INTERNATIONAL GAME TECHNOLOGY PLC

(Incorporated under the laws of England and Wales)

 

UNRESTRICTED GLOBAL CERTIFICATE
 representing up to
 €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066

 

The issue was approved by resolution of the Board of Directors of GTECH S.p.A. (formerly known as Lottomatica S.p.A.), a società per azioni incorporated under the laws of the Republic of Italy (“GTECH”), on 27 April 2006 (and registered at the company register in Rome on 5 May 2006). An offering circular dated 10 May 2006 was prepared by GTECH in connection with the issue and sale of the Securities.

 

The Securities in respect of which this Unrestricted Global Certificate is issued form part of the series designated as specified in the title (the “Securities”) of International Game Technology PLC, a public limited company incorporated in England and Wales with company number 09127533 (the “Issuer”), as successor by merger to GTECH.

 

The Issuer hereby certifies that The Bank of New York Depository (Nominees) Limited is, at the date hereof, entered in the Register as the holder of Securities in the principal amount of

 

€[·]

([·] euros)

 

or such other amount as is shown on the register of Securityholders as being represented by this Unrestricted Global Certificate and is duly endorsed (for information purposes only) in the third column of Schedule A to this Unrestricted Global Certificate. For value received, the Issuer promises to pay the person who appears at the relevant time on the register of Securityholders as holder of the Securities in respect of which this Unrestricted Global Certificate is issued, such amount or amounts as shall become payable from time to time in respect of such Securities and otherwise to comply with the Conditions referred to below.

 

The Securities are constituted by a Trust Deed dated 17 May 2006, as supplemented by a first supplemental trust deed on 3 April 2015 and as further supplemented, amended and restated from time to time (the “Trust Deed”) between the Issuer and BNY Mellon Corporate Trustee Services Limited (as successor to J.P. Morgan Corporate Trustee Services Limited) as trustee (the “Trustee”) and are subject to the Trust Deed and the terms and conditions (the “Conditions”) set out in Schedule B hereto and as modified by the provisions of this Unrestricted Global Certificate. Terms defined in the Trust Deed have the same meaning when used herein.

 

This Unrestricted Global Certificate is evidence of entitlement only.

 

34

 

Title to the Securities passes only on due registration of Securityholders and only the duly registered holder is entitled to payments on Securities in respect of which this Unrestricted Global Certificate is issued.

 

The statements set out in the legend above are an integral part of the Security or Securities in respect of which this Unrestricted Global Certificate is issued and by acceptance hereof each holder or beneficial owner of the Securities evidenced by this Unrestricted Global Certificate or any owner of an interest in such Securities agrees to be subject to and bound by the terms of such legend.

 

The Conditions are modified as follows in so far as they apply to the Securities represented by this Unrestricted Global Certificate.

 

Exchange

 

Owners of beneficial interests in the Securities in respect of which this Unrestricted Global Certificate is issued will be entitled to have title to the Securities registered in their names and to receive individual definitive registered certificates (“Definitive Certificates”) if (a) either Euroclear or Clearstream, Luxembourg (or any other clearing system as shall have been designated by the Issuer and approved by the Trustee on behalf of which the Securities evidenced by this Unrestricted Global Certificate may be held) is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so or notifies the Issuer that it is no longer willing or able to act as a depositary for this Unrestricted Global Certificate and a successor depositary is not appointed by the Issuer within 120 days of such notice, or (b) there shall have occurred and be continuing an Enforcement Event or (c) instructions have been given for the transfer of an interest in the Securities evidenced by this Unrestricted Global Certificate to a person who would otherwise take delivery thereof in the form of an interest in the Securities evidenced by the Restricted Global Certificate where the Restricted Global Certificate has been exchanged for Definitive Certificates.

 

In such circumstances, the Issuer will cause sufficient Definitive Certificates to be executed and delivered to the Registrar for completion, authentication and despatch to the relevant Securityholders within 21 days following a request therefor by the holder of this Unrestricted Global Certificate. A person with an interest in the Securities represented by this Unrestricted Global Certificate must provide the Registrar with (i) a written order containing instructions and other such information as the Issuer and the Registrar may require to complete, execute and deliver such individual Definitive Certificates and (ii) a certificate to the effect that (other than in the case of (c) above) such person is not transferring its interest in this Unrestricted Global Certificate.

 

Meetings

 

At any meeting of the Securityholders the holder hereof shall be treated as having one vote in respect of each €1,000 principal amount of Securities represented by this Unrestricted Global Certificate. The Trustee may allow to attend and speak (but not to vote) at any meeting of Securityholders any accountholder (or the representative of any such person) of a clearing system with an interest in the Securities represented by this Unrestricted Global Certificate on confirmation of entitlement and proof of his identity.

 

35

 

Redemption at the Option of the Issuer

 

The option of the Issuer provided for in Conditions 6.2, 6.3 and 6.4 shall be exercised by the Issuer giving notice to the Securityholders within the time limits set out in, and containing the information required by, those Conditions.

 

Trustee’s Powers

 

In considering the interests of Securityholders the Trustee may, to the extent it considers it appropriate to do so in the circumstances, (a) have regard to such information as may have been made available to it by or on behalf of the relevant clearing system or its operator as to the identity of its accountholders (either individually or by way of category) with entitlements in respect of Securities and (b) consider such interests on the basis that such accountholders were the holders of the Securities represented by this Unrestricted Global Certificate.

 

Enforcement

 

For the purposes of enforcement of the provisions of the Trust Deed against the Trustee, the persons named in a certificate of the holder of the Securities represented by this Unrestricted Global Certificate shall be recognised as the beneficiaries of the trusts set out in the Trust Deed to the extent of the principal amount of their interest in the Securities set out in the certificate of the holder as if they were themselves the holders of Securities in such principal amounts.

 

Purchase and Cancellation

 

Cancellation of any Security following its purchase will be effected by reduction in the principal amount of the Securities in the Register.

 

Payments

 

Payments of principal in respect of Securities represented by this Unrestricted Global Certificate will be made against presentation and, if no further payment falls to be made in respect of the Securities, surrender of this Unrestricted Global Certificate to or to the order of the Principal Paying and Transfer Agent or such other Paying and Transfer Agent as shall have been notified to the holder of this Unrestricted Global Certificate for such purpose.

 

Transfers

 

Transfers of interests in the Securities represented by this Unrestricted Global Certificate for interests in the Restricted Global Certificate shall be made in accordance with the Paying Agency Agreement and in accordance with the operating procedures of the relevant clearing system.

 

Notices

 

So long as Securities are represented by this Unrestricted Global Certificate and this Unrestricted Global Certificate is held on behalf of Euroclear or Clearstream, Luxembourg, notices to the holders of such Securities may be given by delivery of the relevant notice to the relevant clearing system for communication by it to entitled accountholders in substitution for notification as required by the Conditions.

 

36

 

This Unrestricted Global Certificate shall not be valid for any purpose until authenticated by or on behalf of the Registrar.

 

This Unrestricted Global Certificate and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

 

In Witness whereof the Issuer has caused this Unrestricted Global Certificate to be signed manually or in facsimile on its behalf.

 

Dated [·]

 

 

	
INTERNATIONAL GAME   TECHNOLOGY PLC
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Authorised Director
    	
 
    

 

37

 

Certificate of Authentication

 

Certified by or on behalf of the Registrar that the above-named holder is at the date hereof entered in the Register as holder of the above-mentioned principal amount of Securities.

 

	
THE BANK OF NEW YORK   MELLON (LUXEMBOURG) S.A. (as successor to J.P. Morgan Bank Luxembourg S.A.)
    
	
 
    
	
(as Registrar)
    
	
 
    
	
By:
    
	
 
    
	
Authorised Signatory
    
	
 
    
	
Dated:
    

 

38

 

SCHEDULE A

 

SCHEDULE OF INCREASE OR REDUCTION IN PRINCIPAL AMOUNT OF

THE SECURITIES REPRESENTED BY THIS UNRESTRICTED GLOBAL CERTIFICATE

 

The following increases or reductions in the principal amount of the Securities represented by this Unrestricted Global Certificate have been made as a result of (i) redemption or purchase and cancellation of Securities or (ii) transfer of Securities (including transfers of interests between the Global Certificates):

 

	
Date of Redemption/
   Purchase and
   cancellation /Transfer
   (stating which)
    	
 
    	
Amount of increase or
   decrease in principal
   amount of Securities
   represented by this
   Unrestricted Global
   Certificate
    	
 
    	
Principal amount of
   Securities represented
   by this Unrestricted
   Global Certificate
   following such
   increase or decrease
    	
 
    	
Notation made by or on
   behalf of the Principal
   Paying and Transfer
   Agent or other Paying
   and Transfer Agent
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

39

 

SCHEDULE B

 

[TERMS AND CONDITIONS TO BE ATTACHED]

 

40

 

PART 2
 FORM OF RESTRICTED GLOBAL CERTIFICATE

 

THE RESTRICTED SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, ENCUMBERED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT (1) IN THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT IS (A) A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) OR A PURCHASER THAT THE SELLER AND ANY PERSON ACTING ON THE SELLER’S BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER, IN EACH CASE PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, AND (B) AWARE THAT THE OFFER, SALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (IN WHICH CASE ADDITIONAL TRANSFER RESTRICTIONS MAY APPLY), (2) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”), (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (4) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS AND SUBJECT TO THE RIGHT OF THE ISSUER AND THE TRUSTEE PRIOR TO ANY SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER PURSUANT TO CLAUSES (2) OR (4) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION REASONABLY SATISFACTORY TO EACH OF THEM.  EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.  EACH HOLDER AND BENEFICIAL OWNER, BY ITS ACCEPTANCE OF THE RESTRICTED SECURITIES EVIDENCED HEREBY, REPRESENTS THAT IT UNDERSTANDS AND AGREES TO THE FOREGOING RESTRICTIONS AND THAT NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALES OF THIS RESTRICTED GLOBAL CERTIFICATE AND AGREES THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.

 

THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF (A) THE TRANSFER OF THE RESTRICTED SECURITIES EVIDENCED HEREBY PURSUANT TO CLAUSE (3) ABOVE OR (B) THE DATE WHICH IS TWO YEARS AFTER THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF SUCH SECURITIES, OR ANY SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT.

 

	
Common Code: 025409574
    	
 
    	
ISIN: XS0254095747
    

 

41

 

INTERNATIONAL GAME TECHNOLOGY PLC
 (Incorporated under the laws of England and Wales)

 

RESTRICTED GLOBAL CERTIFICATE
 representing up to
 €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066

 

The issue was approved by resolution of the Board of Directors of GTECH S.p.A. (formerly known as Lottomatica S.p.A.), a società per azioni incorporated under the laws of the Republic of Italy (“GTECH”), on 27 April 2006 (and registered at the company register in Rome on 5 May 2006). An offering circular dated 10 May 2006 was prepared by GTECH in connection with the issue and sale of the Securities.

 

The Securities in respect of which this Restricted Global Certificate is issued form part of the series designated as specified in the title (the “Securities”) of International Game Technology PLC, a public limited company incorporated in England and Wales with company number 09127533 (the “Issuer”), as successor by merger to GTECH.

 

The Issuer hereby certifies that The Bank of New York Depository (Nominees) Limited is, at the date hereof, entered in the Register as the holder of Securities in the principal amount of

 

€[·]

 

([·] euros)

 

or such other amount as is shown on the register of Securityholders as being represented by this Restricted Global Certificate and is duly endorsed (for information purposes only) in the third column of Schedule A to this Restricted Global Certificate. For value received, the Issuer promises to pay the person who appears at the relevant time on the register of Securityholders as holder of the Securities in respect of which this Restricted Global Certificate is issued, such amount or amounts as shall become due and payable from time to time in respect of such Securities and otherwise to comply with the Conditions referred to below.

 

The Securities are constituted by a Trust Deed dated 17 May 2006 (the “Trust Deed”), as supplemented by a first supplemental trust deed on 3 April 2015 and as further supplemented, amended and restated from time to time between the Issuer and BNY Mellon Corporate Trustee Services Limited (as successor to J.P. Morgan Corporate Trustee Services Limited) as trustee (the “Trustee”) and are subject to the Trust Deed and the terms and conditions (the “Conditions”) set out in Schedule B hereto, as modified by the provisions of this Restricted Global Certificate. Terms defined in the Trust Deed have the same meaning when used herein.

 

This Restricted Global Certificate is evidence of entitlement only.

 

Title to the Securities passes only on due registration of Securityholders and only the duly registered holder is entitled to payments on Securities in respect of which this Restricted Global Certificate is issued.

 

The statements set out in the legend above are an integral part of the Security or Securities in respect of which this Restricted Global Certificate is issued and by acceptance hereof each holder or beneficial owner of the Securities evidenced by this Restricted Global Certificate or

 

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any owner of an interest in such Securities agrees to be subject to and bound by the terms of such legend.

 

The Conditions are modified as follows in so far as they apply to the Securities represented by this Restricted Global Certificate is issued.

 

Exchange

 

Owners of beneficial interests in the Securities in respect of which this Restricted Global Certificate is issued will be entitled to have title to the Securities registered in their names and to receive individual definitive certificates (“Definitive Certificates”) if (a) either Euroclear or Clearstream, Luxembourg (or any other clearing system as shall have been designated by the Issuer and approved by the Trustee on behalf of which the Securities evidenced by this Restricted Global Certificate may be held) is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so or notifies the Issuer that it is no longer willing or able to act as a depositary for this Unrestricted Global Certificate and a successor depositary is not appointed by the Issuer within 120 days of such notice, or (b) there shall have occurred and be continuing an Enforcement Event or (c) instructions have been given for the transfer of an interest in the Securities evidenced by this Restricted Global Certificate to a person who would otherwise take delivery thereof in the form of an interest in the Securities evidenced by the Unrestricted Global Certificate where the Unrestricted Global Certificate has been exchanged for Definitive Certificates.

 

In such circumstances, the Issuer will cause sufficient Definitive Certificates to be executed and delivered to the Registrar for completion, authentication and despatch to the relevant Securityholders within 21 days following a request therefor by the holder of this Restricted Global Certificate. A person with an interest in the Securities represented by this Restricted Global Certificate must provide the Registrar with (i) a written order containing instructions and other such information as the Issuer and the Registrar may require to complete, execute and deliver such individual definitive registered Securities and (ii) a certificate to the effect that (other than in the case of (c) above) such person is not transferring its interest in this Restricted Global Certificate.

 

Meetings

 

At any meeting of Securityholders, the holder hereof shall be treated as having one vote in respect of each €1,000 principal amount of Securities represented by this Restricted Global Certificate. The Trustee may allow to attend and speak (but not to vote) at any meeting of Securityholders any accountholder (or the representative of any such person) of a clearing system with an interest in the Securities represented by this Restricted Global Certificate on confirmation of entitlement and proof of his identity.

 

Redemption at the Option of the Issuer

 

The option of the Issuer provided for in Conditions 6.2, 6.3 and 6.4 shall be exercised by the Issuer giving notice to the Securityholders within the time limits set out in, and containing the information required by, those Conditions.

 

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Trustee’s Powers

 

In considering the interests of Securityholders the Trustee may, to the extent it considers it appropriate to do so in the circumstances, (a) have regard to such information as may have been made available to it by or on behalf of the relevant clearing system or its operator as to the identity of its accountholders (either individually or by way of category) with entitlements in respect of Securities and (b) consider such interests on the basis that such accountholders were the holders of the Securities represented by this Restricted Global Certificate.

 

Enforcement

 

For the purposes of enforcement of the provisions of the Trust Deed against the Trustee, the persons named in a certificate of the holder of the Securities represented by this Restricted Global Certificate shall be recognised as the beneficiaries of the trusts set out in the Trust Deed to the extent of the principal amount of their interest in the Securities set out in the certificate of the holder as if they were themselves the holders of Securities in such principal amounts.

 

Purchase and Cancellation

 

Cancellation of any Security following its purchase will be effected by reduction in the principal amount of the Securities in the Register.

 

Payments

 

Payments of principal in respect of Securities represented by this Restricted Global Certificate will be made against presentation and, if no further payment falls to be made in respect of the Securities, surrender of this Restricted Global Certificate to or to the order of the Principal Paying and Transfer Agent or such other Paying and Transfer Agent as shall have been notified to the holder of this Restricted Global Certificate for such purpose.

 

Transfers

 

Transfers of interests in the Securities represented by this Restricted Global Certificate for interests in the Unrestricted Global Certificate shall be made in accordance with the Paying Agency Agreement and in accordance with the operating procedures of the relevant clearing system and any such transfers may only be made upon presentation of a certificate as provided in the Paying Agency Agreement.

 

Notices

 

So long as Securities are represented by this Restricted Global Certificate and this Restricted Global Certificate is held on behalf of Euroclear or Clearstream, Luxembourg, notices to the holders of such Securities may be given by delivery of the notice to the relevant clearing system for communication by it to entitled accountholders in substitution for notification as required by the Conditions.

 

This Restricted Global Certificate shall not be valid for any purpose until authenticated by or on behalf of the Registrar.

 

This Restricted Global Certificate and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

 

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In Witness whereof the Issuer has caused this Restricted Global Certificate to be signed manually or in facsimile on its behalf.

 

Dated [·]

 

 

INTERNATIONAL GAME TECHNOLOGY PLC

 

	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Authorised Director
    	
 
    

 

45

 

Certificate of Authentication

 

Certified by or on behalf of the Registrar that the above-named holder is at the date hereof entered in the Register as holder of the above-mentioned principal amount of Securities.

 

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A. (as successor to J.P. Morgan Bank Luxembourg S.A.) (as Registrar)

 

By:

 

Authorised Signatory

 

Dated:

 

46

 

SCHEDULE A

 

SCHEDULE OF INCREASE OR REDUCTION IN PRINCIPAL AMOUNT OF

THE SECURITIES REPRESENTED BY THIS RESTRICTED GLOBAL CERTIFICATE

 

The following increases or reductions in the principal amount of the Securities represented by this Restricted Global Certificate have been made as a result of (i) redemption or purchase and cancellation of Securities or (ii) transfer of Securities (including transfers of interests between the Global Certificates):

 

	
Date of Redemption/
   Purchase and
   cancellation /Transfer
   (stating which)
    	
 
    	
Amount of increase or
   decrease in principal
   amount of Securities
   represented by this
   Restricted Global
   Certificate
    	
 
    	
Principal amount of
   Securities represented
   by this Restricted
   Global Certificate
   following such
   increase or decrease
    	
 
    	
Notation made by or on
   behalf of the Principal
   Paying and Transfer
   Agent or other Paying
   and Transfer Agent
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

47

 

SCHEDULE B

 

[TERMS AND CONDITIONS TO BE ATTACHED]

 

48

 

SCHEDULE 2
  FORM OF DEFINITIVE CERTIFICATE

 

[THE RESTRICTED SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, ENCUMBERED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT (1) IN THE UNITED STATES IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT IS (A) A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) OR A PURCHASER THAT THE SELLER AND ANY PERSON ACTING ON THE SELLER’S BEHALF REASONABLY BELIEVE IS A QUALIFIED INSTITUTIONAL BUYER, IN EACH CASE PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, AND (B) AWARE THAT THE OFFER, SALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”) TO A PERSON OTHER THAN A U.S. PERSON (AS DEFINED IN REGULATION S), (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (4) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS AND SUBJECT TO THE RIGHT OF THE ISSUER AND THE TRUSTEE PRIOR TO ANY SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER PURSUANT TO CLAUSES (2) OR (4) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION REASONABLY SATISFACTORY TO EACH OF THEM.  EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.  EACH HOLDER AND BENEFICIAL OWNER, BY ITS ACCEPTANCE OF THE RESTRICTED SECURITIES EVIDENCED HEREBY, REPRESENTS THAT IT UNDERSTANDS AND AGREES TO THE FOREGOING RESTRICTIONS AND THAT NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALES OF THE RESTRICTED SECURITIES EVIDENCED HEREBY AND AGREES THAT IT WILL NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.

 

THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF (A) THE TRANSFER OF THE RESTRICTED SECURITIES EVIDENCED HEREBY PURSUANT TO CLAUSE (3) ABOVE OR (B) THE DATE WHICH IS TWO YEARS AFTER THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF SUCH SECURITIES, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT.](1)

 

(1) Legend to be borne on any Restricted Definitive Certificate.

 

49

 

INTERNATIONAL GAME TECHNOLOGY PLC

 (Incorporated under the laws of England and Wales)

€750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066

 

The issue was approved by resolution of the Board of Directors of GTECH S.p.A. (formerly known as Lottomatica S.p.A.), a società per azioni incorporated under the laws of the Republic of Italy (“GTECH”), on 27 April 2006 (and registered at the company register in Rome on 5 May 2006). An offering circular dated 10 May 2006 was prepared by GTECH in connection with the issue and sale of the Securities.

 

The Securities represented by this certificate form part of a series of Securities designated as specified in the title (the “Securities”) of International Game Technology PLC, a public limited company incorporated in England and Wales with company number 09127533 (the “Issuer”), as successor by merger to GTECH. The Securities are constituted by a Trust Deed dated 17 May 2006, as supplemented by a first supplemental trust deed on 3 April 2015 and as further supplemented, amended and restated from time to time, made between the Issuer and BNY Mellon Corporate Trustee Services Limited (as successor to J.P. Morgan Corporate Trustee Services Limited) as Trustee (the “Trust Deed”).  The Securities are subject to, and have the benefit of, the Trust Deed and the terms and conditions (the “Conditions”) endorsed hereon.  Terms defined in the Trust Deed have the same meanings when used herein.

 

The Issuer hereby certifies that                                            of                                              is, at the date hereof, entered in the Register as the holder of Securities in the principal amount of €                                             (                                             euros).  For value received, the Issuer promises to pay the person who appears at the relevant time on the Register as holder of the Securities in respect of which this Definitive Certificate is issued such amount or amounts as shall become due and payable from time to time in respect of such Securities and otherwise to comply with the Conditions.

 

[The statements set forth in the legend above are an integral part of the Securities in respect of which this certificate is issued and by acceptance thereof each holder agrees to be subject to and bound by the terms and provisions set forth in such legend.](2)

 

This Definitive Certificate is evidence of entitlement only. Title to the Securities passes only on due registration on the Register and only the duly registered holder is entitled to payments in respect of this Definitive Certificate.

 

This Definitive Certificate shall not be valid for any purpose until authenticated by or on behalf of the Registrar.

 

This Definitive Certificate and any non-contractual obligations arising out of or in connection with it are governed by, and shall be construed in accordance with, English law.

 

(2) Delete if there is no Rule 144A Legend.

 

50

 

IN WITNESS whereof this certificate has been executed on behalf of the Issuer.

 

	
INTERNATIONAL GAME   TECHNOLOGY PLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Authorised Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated   [        ]
    	
 
    	
 
    

 

51

 

Certificate of Authentication

 

Certified by or on behalf of the Registrar that the above-named holder is at the date hereof entered in the Register as holder of the above-mentioned principal amount of Securities.

 

THE BANK OF NEW YORK MELLON (LUXEMBOURG) S.A. (as successor to J.P. Morgan Bank Luxembourg S.A.)

 

(as Registrar)

 

By:

 

 

Authorised Signatory

 

Dated:

 

On the back:

 

[Terms and Conditions of the Securities to be inserted]

 

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FORM OF TRANSFER

 

For value received the undersigned hereby sell(s), assign(s) and transfer(s) to

 

 

 

(Please print or type name and address (including postal code) of transferee)

 

€[                 ] principal amount of the Securities represented by this Definitive Certificate and all rights in respect thereof.

 

[NOTE: INSERT FOR TRANSFERS OF SECURITIES BEARING THE RULE 144A LEGEND TO TRANSFEREES THAT TAKE DELIVERY OF SECURITIES NOT BEARING THE RULE 144A LEGEND.]

 

[In connection with such request and in respect of such Securities, the undersigned hereby certifies that (i) such transfer has been effected in accordance with the transfer restrictions set forth in the Securities and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction and (ii) either:

 

(1)                                 such transfer has been effected pursuant to and in accordance with Rule 903 or Rule 904 of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly the undersigned hereby further certifies that:

 

(a)                                 the offer and sale of the Securities was not made to a person in the United States or to or for the account or benefit of a U.S. person and such offer and sale was not targeted to an identifiable group of U.S. citizens abroad;

 

(b)                                 either:

 

(i)                                     at the time the buy order was originated, the transferee was outside the United States or the undersigned and any person acting on its behalf reasonably believed that the transferee was outside the United States, or

 

(ii)                                  the transaction was executed in, on or through the facilities of a designated offshore securities market (as defined in Regulation S) and neither the undersigned nor any person acting on its behalf knows that the transaction was pre-arranged with a buyer in the United States;

 

(c)                                  no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable;

 

(d)                                 the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; and

 

(e)                                  if the undersigned is an officer or director of the Issuer or a distributor, who is an affiliate of the Issuer or distributor solely by holding such position, such

 

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sale is made in accordance with the applicable provisions of Rule 904(b)(2) of Regulation S; or

 

(2)                                 the transfer has been effected pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder.](3)

 

	
 
    	
 
    
	
Certifying Signature
    	
 
    
	
 
    	
 
    
	
Date: 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed 
    	
 
    	
 
    

 

 

N.B.

 

1.                                      This form of transfer must be accompanied by such documents, evidence and information as the Registrar may require and must be executed under the hand of the transferor or, if the transferor is a corporation, either under its common seal or under the hand of two of its officers duly authorised in writing.

 

2.                                      The signature(s) on this form of transfer must correspond with the name(s) as it/they appear(s) on the face of this Definitive Certificate in every particular. In the case of joint holders, each of the joint holders named on the Register must sign this form of transfer.

 

3.                                      A representative of the Securityholder should state the capacity in which he signs e.g. executor.

 

4.                                      The signature of the person(s) effecting a transfer shall conform to any list of duly authorised specimen signatures supplied by the registered holder or be certified by a recognised bank, notary public or in such other manner as the Registrar may require.

 

(3) Insert for transfers of Securities bearing the Rule 144A Legend to transferees that take delivery of Securities not bearing the Rule 144A Legend.

 

54

 

SCHEDULE 3
 TERMS AND CONDITIONS

 

The following, except for the paragraphs in italics, are the terms and conditions of the Securities substantially in the form in which they will be endorsed on any certificates representing the Securities:

 

The issue of the €750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066 (the “Securities”, which expression shall include any further securities issued pursuant to Condition 14 and forming a single series with the Securities) was authorised by a resolution of the Board of Directors of GTECH S.p.A. (formerly known as Lottomatica S.p.A.), a società per azioni incorporated under the laws of the Republic of Italy (“GTECH”), on 27 April 2006, and registered with the company register of Rome on 5 May 2006. The Securities are constituted by a Trust Deed dated 17 May 2006, as supplemented by a first supplemental trust deed on 3 April 2015 and as further supplemented, amended or restated from time to time (the “Trust Deed”), between International Game Technology PLC, a public limited company incorporated under the laws of England and Wales with company number 09127533 (the “Issuer”), as successor by merger to GTECH, and BNY Mellon Corporate Trustee Services Limited (as successor to J.P. Morgan Corporate Trustee Services Limited) (the “Trustee” which expression shall include all persons for the time being the trustee or trustees under the Trust Deed) as trustee for the Securityholders (as defined below). These terms and conditions (the “Conditions”) include summaries of, and are subject to, the detailed provisions of the Trust Deed. Capitalised terms used in these Conditions and not defined herein shall have the meaning given to them in the Trust Deed. The Trust Deed shall also set out the forms of the Global Certificates and Definitive Certificates (each as defined below) from time to time representing the Securities. Copies of the Trust Deed and of the Paying and Transfer Agency Agreement dated 17 May 2006 relating to the Securities, as supplemented by a supplemental paying and transfer agency agreement on 3 April 2015 and as further supplemented, amended or restated from time to time (the “Paying Agency Agreement”), between the Issuer, the Trustee, The Bank of New York Mellon acting through its London Branch (as successor to JPMorgan Chase Bank, N.A.) as agent bank (the “Agent Bank” which expression includes any bank appointed as the Agent Bank from time to time), The Bank of New York Mellon (Luxembourg) S.A. (as successor to J.P. Morgan Bank Luxembourg S.A.) as registrar (the “Registrar” which expression includes any bank appointed as the Registrar from time to time), The Bank of New York Mellon acting through its London Branch (as successor to JPMorgan Chase Bank, N.A.) as the initial principal paying and transfer agent (the “Principal Paying and Transfer Agent”) and the other paying and transfer agents named therein (together with the Principal Paying and Transfer Agent, the “Paying and Transfer Agents”), are available for inspection during usual business hours at the principal office of the Trustee (presently at One Canada Square, London, E14 5AL) and at the specified offices of the Registrar and the Paying and Transfer Agents. The Securityholders are entitled to the benefit of, are bound by, and are deemed to have notice of, all the provisions of the Trust Deed, and are deemed to have notice of those provisions applicable to them of the Paying Agency Agreement.

 

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1.                                      FORM AND DENOMINATION, TITLE AND TRANSFERS

 

1.1                               Form and denomination

 

The Securities are issued in registered form in an initial aggregate principal amount of €750,000,000, each in the denomination of €50,000 and integral multiples of €1,000 above such amount (each, an “Authorised Denomination”).

 

The Securities are being offered and sold in offshore transactions in reliance on Regulation S under the Securities Act, and may be offered and sold to qualified institutional buyers in reliance on an exemption from the registration requirements of the Securities Act (including the exemption provided by Rule 144A).

 

Securities sold in reliance on Regulation S shall be known as “Unrestricted Securities”. The Unrestricted Securities are initially evidenced by a single global certificate in registered form without interest coupons (the “Unrestricted Global Certificate”). The Unrestricted Global Certificate shall be deposited with a common depositary (the “Common Depositary”) of Euroclear Bank S.A./N.V. (“Euroclear”) and Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) and registered in the name of a nominee of the Common Depositary.

 

Securities sold to qualified institutional buyers in reliance on an exemption from the registration requirements of the Securities Act (including the exemption provided by Rule 144A) shall be known as “Restricted Securities”. Restricted Securities are initially evidenced by a single global certificate in registered form without interest coupons (the “Restricted Global Certificate” and, together with the Unrestricted Global Certificate, the “Global Certificates”). The Restricted Global Certificate shall be deposited with the Common Depositary of Euroclear and Clearstream, Luxembourg and registered in the name of a nominee of the Common Depositary. The Restricted Global Certificate is subject to certain restrictions on transfer set forth therein and in the Paying Agency Agreement and bears the legend regarding such restrictions as set out in the Trust Deed.

 

Except in the limited circumstances set out therein, the Global Certificates shall not be exchangeable for definitive certificates (“Definitive Certificates” and, together with the Global Certificates, the “Certificates”).

 

1.2                               Title

 

Title to the Securities passes only by transfer and registration in the Register as described below. The registered holder of any Security shall (except as otherwise required by law or as ordered by a court of competent jurisdiction) be treated as its absolute owner for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in it or any writing on, or the theft or loss of, the related Certificate issued in respect of it (other than a duly executed transfer thereof)) and no person (including, without limitation, the Issuer and the Trustee) shall be liable for so treating the holder. In these Conditions, “Securityholders” and “holder” means the persons or person in whose name a Security is registered.

 

1.3                               Register

 

The Issuer will cause to be kept at the specified office of the Registrar and in accordance with the terms of the Paying Agency Agreement, a register (the “Register”) on which shall be entered the names and addresses of the holders and the particulars of the Securities held by them and of all transfers of, and payments on, the

 

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Securities. If Definitive Certificates are issued, each Securityholder will be entitled to receive only one Definitive Certificate in respect of its entire holding.

 

1.4                               Transfers

 

Subject to the provisions contained herein and in the Paying Agency Agreement, and mandatory provisions of applicable law, the Securities may be transferred, in whole or in part in an Authorised Denomination, by the delivery of the Certificate issued in respect of such Security, with the form of transfer on the back duly completed and signed by the holder or his attorney duly authorised in writing, to the specified office of the Registrar or any Paying and Transfer Agent. No transfer of title shall be valid unless entered on the Register.

 

Ownership of interests in the Global Certificates (“Book-Entry Interests”) shall be limited to persons that have accounts with Euroclear and Clearstream, Luxembourg, or persons that may hold interests through their participants. Book-Entry Interests shall be shown on, and transfers thereof shall be effected only through, records maintained in book-entry form by Euroclear and Clearstream, Luxembourg and their participants. Transfers of beneficial interests in the Securities will be subject to the applicable rules and procedures of Euroclear and Clearstream, Luxembourg and their respective direct or indirect participants, which rules and procedures may change from time to time.

 

1.5                               Delivery of Certificates

 

Each new Certificate to be issued upon a transfer of Securities will, within seven business days (at the place of the specified office of the Registrar or the relevant Paying and Transfer Agent) of receipt by the Registrar or the relevant Paying and Transfer Agent of the form of transfer (duly completed), be mailed by uninsured mail at the risk of the holder entitled to the Securities to the address specified in the form of transfer. For the purposes of this Condition 1.5 and Condition 1.6, unless otherwise specified, “business day” means a day which is both a day on which commercial banks and foreign exchange markets settle payment and are open for general business (including dealing in foreign exchange and foreign currency deposits) in London and the city in which the specified office of the Registrar or the relevant Paying and Transfer Agent with whom a Certificate is deposited in connection with a transfer is located.

 

Where some but not all the Securities in respect of which a Certificate is issued are to be transferred, a new Certificate in respect of the Securities not so transferred shall, within seven business days of deposit or surrender of the original Certificate with or to the Registrar or the relevant Paying and Transfer Agent, be mailed free of charge to the holder of the Securities not so transferred at the Issuer’s expense by uninsured mail, at the risk of such holder, to the address of such holder appearing on the Register.

 

Registration of any transfer of Securities and the issuance of new Certificates will be effected without charge by or on behalf of the Issuer, the Registrar or any of the Paying and Transfer Agents, subject to (a) payment (or the giving of such indemnity as the Issuer, the Registrar or any of the Paying and Transfer Agents may require) in respect of any tax or other governmental charges which may be imposed in relation to

 

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such transfer, (b) the Registrar being satisfied with the documents of title and/or the identity of the person making the application for transfer and (c) the Registrar being satisfied that the regulations concerning transfer of the Securities have been complied with.

 

All transfers of Securities and entries on the Register will be made subject to the detailed regulations concerning the transfer of Securities set forth in the Paying Agency Agreement. These regulations may be changed by the Issuer from time to time, with the prior written approval of the Trustee and the Registrar to reflect changes in applicable laws. A copy of the current regulations will be mailed (at the Issuer’s expense) by the Registrar to any Securityholder who requests a copy.

 

1.6                               Closed Periods

 

Neither the Issuer nor the Registrar will be required to register the transfer of any Security (or part thereof) (a) during the period of 15 days immediately prior to the Maturity Date or any earlier date fixed for redemption of the Securities pursuant to Condition 6 and (b) during the period of 15 days ending on (and including) the due date in respect of any payment of interest in respect of the Securities.

 

2.                                      STATUS

 

The Securities constitute direct, unsecured and subordinated obligations of the Issuer as set out herein.

 

In the event of (i) the commencement of a voluntary or involuntary liquidation, dissolution or winding-up of the Issuer due to corporate action or an administrative and/or court order, or (ii) the occurrence of any Insolvency Proceedings, subject to applicable bankruptcy law, the rights of the Securityholders and the Trustee to payments of principal, accrued but unpaid Scheduled Interest Amounts, Optionally Deferred Interest and Additional Amounts thereon, if any, payable in respect of the Securities (regardless of whether such amounts have become payable before, or as a result of, such event) will rank:

 

(a)                                 pari passu and without any preference among themselves;

 

(b)                                 pari passu with any other present or future obligations of the Issuer under any Liquidation Parity Securities;

 

(c)                                  junior to the claims of all other unsubordinated and subordinated creditors of the Issuer, other than holders of Liquidation Parity Securities; and

 

(d)                                 in priority to (i) the claims of holders of all classes of share capital of the Issuer and (ii) any claims against the Issuer which, by their terms or by operation of law, rank pari passu with, or junior to, the claims described in (i) above (together, “Junior Obligations”).

 

In the event of (i) the commencement of a voluntary or involuntary liquidation, dissolution or winding-up of the Issuer due to corporate action or an administrative and/or court order, or (ii) the occurrence of any Insolvency Proceedings, subject to applicable bankruptcy law, the rights of the Securityholders and the Trustee to payment of unpaid Equity Funded Deferred Interest and Additional Amounts thereon,

 

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if any, payable in respect of the Securities (regardless of whether such amounts have become payable before, or as a result of, such event) will rank:

 

(a)                                 pari passu and without any preference among themselves;

 

(b)                                 in priority to (i) the claims of holders of all classes of share capital of the Issuer and (ii) any claims against the Issuer which, by their terms or by operation of law, rank pari passu with, or junior to, the claims described in (i) above; and

 

(c)                                  junior to the claims of all unsubordinated and subordinated creditors of the Issuer, including holders of Liquidation Parity Securities and the holders of any preference shares of the Issuer and any other equity interest (other than ordinary shares) in the Issuer (to the extent that such claims do not relate to the nominal capital thereof).

 

A Securityholder may not, subject to mandatory provisions of applicable law, set-off any claims arising under the Securities against any claims the Issuer may have against it.

 

As at the date of this Offering Circular no Liquidation Parity Securities, preference shares or other equity instruments which may be issued by the Issuer were outstanding.

 

3.                                      INTEREST

 

3.1                               Fixed Rate Payment Dates

 

Subject to Condition 6.4, the Securities bear interest on their aggregate principal amount, on a daily basis, at a rate of 8.25% per annum (the “Fixed Interest Rate”) from (and including) the Issue Date to (but excluding) the Reset Date payable (subject to Condition 4) annually in arrear on 31 March in each year (each, a “Fixed Rate Payment Date”), commencing on 31 March 2007 and ending on (and including) the Reset Date.

 

The period beginning on (and including) the Issue Date and ending on (but excluding) the first Fixed Rate Payment Date and each successive period beginning on (and including) a Fixed Rate Payment Date and ending on (but excluding) the next succeeding Fixed Rate Payment Date, regardless of any deferral of payments in accordance with Condition 4, is called a “Fixed Rate Interest Period”. The amount of interest payable for the Fixed Rate Interest Period or part thereof on each Security determined in accordance with this Condition 3.1 is called a “Fixed Rate Interest Amount”. The Fixed Rate Interest Amount scheduled to be paid (subject to Condition 4) in respect of each full Fixed Rate Interest Period shall be €4,125 per €50,000 in principal amount of the Securities, except that the first Fixed Rate Interest Amount scheduled to be paid (subject to Condition 4) on 31 March 2007 in respect of the period from (and including) 17 May 2006 to (but excluding) 31 March 2007, shall be €3,593.84 per €50,000 in principal amount of the Securities. Where, prior to the Reset Date, interest is to be calculated in respect of a period which is shorter than a Fixed Rate Interest Period, the day-count fraction used will be the number of days in the relevant period, from (and including) the date from which interest begins to accrue to 

 

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(but excluding) the date on which it becomes payable, divided by the number of days in the Fixed Rate Interest Period in which the relevant period falls.

 

3.2                               Floating Rate Payment Dates

 

Subject to Condition 6.4, the Securities bear interest on their aggregate principal amount from (and including) the Reset Date to (but excluding) the Maturity Date at the rates determined in accordance with Conditions 3.3 and 3.4 (the “Floating Interest Rate”) payable (subject to Condition 4) semi-annually in arrear on or about 31 March and 30 September in each year (each a “Floating Rate Payment Date” and together with the Fixed Rate Payment Dates, the “Interest Payment Dates”) commencing on the Floating Rate Payment Date falling in September 2016 and ending on (and including) the Maturity Date. If any Floating Rate Payment Date would otherwise fall on a day which is not a business day, it shall be postponed to the next day which is a business day unless it would thereby fall into the next calendar month in which event it shall be brought forward to the immediately preceding business day.

 

The period beginning on (and including) the Reset Date and ending on (but excluding) the first Floating Rate Payment Date and each successive period beginning on (and including) a Floating Rate Payment Date and ending on (but excluding) the next succeeding Floating Rate Payment Date, regardless of any deferral of payments in accordance with Condition 4, is called a “Floating Rate Interest Period” and, together with each Fixed Rate Interest Period, an “Interest Period”. The amount of interest payable in respect of the relevant Floating Rate Interest Period or part thereof determined in accordance with this Condition 3.2 and Conditions 3.3 and 3.4 is called a “Floating Rate Interest Amount”, and, together with each Fixed Rate Interest Amount, a “Scheduled Interest Amount” (which shall include interest accrued which becomes payable in respect of part of an Interest Period).

 

3.3                               Floating Interest Rate

 

The Floating Interest Rate in respect of the Securities will be determined by the Agent Bank on the following basis:

 

(a)                                 On the second business day before the beginning of each Floating Rate Interest Period (the “Interest Determination Date”) the Agent Bank will determine the Euro Interbank Offered Rate (“EURIBOR”) for six-month euro deposits as at 11.00 a.m. (Brussels time) on the relevant Interest Determination Date. Such offered rate will be that which appears on the display designated as page “248” on the Telerate Monitor (or such other page or service as may replace it for the purpose of displaying such rates). The Floating Interest Rate for such Floating Rate Interest Period shall be the aggregate of the Margin and the rate which so appears, as determined by the Agent Bank.

 

(b)                                 If for any reason such offered rate does not so appear, or if the relevant page is unavailable, the Agent Bank will determine EURIBOR based on quotations from five major banks in the Euro-zone interbank market chosen by the Agent Bank (the “Reference Banks”) for a period of six months as at 11.00 a.m. (Brussels time) on the relevant Interest Determination Date. The Floating Interest Rate for such Floating Rate Interest Period shall be the aggregate of

 

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the Margin and the arithmetic mean (rounded, if necessary, to the nearest fifth decimal place, with 0.000005 being rounded upwards) of such quotations (or of such of them, being at least two, as are so provided), as determined by the Agent Bank.

 

(c)                                  If the relevant Floating Interest Rate cannot be determined in accordance with the above provisions, the Floating Interest Rate for such Floating Rate Interest Period shall be the Floating Interest Rate determined as at the last preceding Interest Determination Date or, if none, the Fixed Interest Rate.

 

3.4                               Determination of Floating Interest Rate and calculation of Floating Rate Interest Amount

 

The Agent Bank will, as soon as practicable after 11.00 a.m. (Brussels time) on each Interest Determination Date, determine the Floating Interest Rate and the Floating Rate Interest Amount for the relevant Floating Rate Interest Period. The Floating Rate Interest Amount shall be calculated by applying the Floating Interest Rate to each €50,000 in principal amount of the Securities, multiplying such product by the actual number of days in the Floating Rate Interest Period concerned (or, in respect of any shorter period, such shorter period) divided by 360 and rounding the resulting figure to the nearest €0.01 (€0.005 being rounded upwards). The determination of the Floating Interest Rate and the Floating Rate Interest Amount by the Agent Bank shall (in the absence of manifest error, wilful default, bad faith and gross negligence) be final and binding upon all parties.

 

3.5                               Publication of Floating Interest Rate and Floating Rate Interest Amount

 

The Agent Bank will cause the Floating Interest Rate and the corresponding Floating Rate Interest Amount for each Floating Rate Interest Period and the relevant Floating Rate Payment Date to be notified to the Issuer, the Trustee, the Registrar, each of the Paying and Transfer Agents and any stock exchange on which the Securities are for the time being listed and to be notified to Securityholders (in accordance with Condition 15) as soon as possible after their determination, but in no event later than the second business day thereafter. The Floating Rate Interest Amount and Floating Rate Payment Date so published may subsequently be amended (or appropriate alternative arrangements made by way of adjustment) without notice in the event of an extension or shortening of the Floating Rate Interest Period.

 

3.6                               Determination or calculation by Trustee

 

If the Agent Bank does not at any time for any reason so determine the Floating Interest Rate or calculate the corresponding Floating Rate Interest Amount for a Floating Rate Interest Period, the Trustee (or an agent appointed by it) shall do so and such determination or calculation shall be deemed to have been made by the Agent Bank. In doing so, the Trustee shall apply the provisions of Conditions 3.2 to 3.4 (inclusive), with any necessary consequential amendments, to the extent that, in its opinion, it can do so, and, in all other respects it shall determine and/or calculate the same in such manner as it shall deem fair and reasonable in all the circumstances.

 

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3.7                               Scheduled Interest Amounts

 

Each Security will cease to bear interest from the due date for redemption thereof unless, upon due presentation of the relevant Certificate representing such Security, payment of principal is improperly withheld or refused. In such event, it shall continue to bear interest in accordance with this Condition 3 (both before and after judgment) until whichever is the earlier of (a) the day on which all sums payable in respect of such Security up to (but excluding) that day are received by or on behalf of the relevant Securityholder, and (b) the day seven days after the Trustee or the Principal Paying and Transfer Agent has notified Securityholders of receipt of all sums payable in respect of all the Securities up to (but excluding) that seventh day (except to the extent that there is failure in the subsequent payment to the relevant Securityholders under these Conditions).

 

3.8                               Notifications etc. to be binding

 

All notifications, opinions, determinations, certifications, conditions, quotations and decisions given, expressed, made or obtained for the purposes of this Condition 3, whether by the Agent Bank or the Trustee (or its agent), shall (in the absence of wilful default, bad faith, gross negligence or manifest or proven error) be binding on the Issuer, the Agent Bank, the Trustee, the Registrar, the Paying and Transfer Agents and on all Securityholders and (in the absence of wilful default, bad faith and gross negligence) no liability to the Securityholders or the Issuer shall attach to the Agent Bank or the Trustee (or its agent) in connection with the exercise or non-exercise by them of any of their powers, duties or discretions.

 

4.                                     DEFERRALS OF INTEREST

 

The Issuer shall pay each Scheduled Interest Amount on the relevant Interest Payment Date subject to and in accordance with these Conditions, in particular the provisions relating to interest deferral set out in this Condition 4.

 

4.1                               Optional deferral of interest

 

(a)                                 Subject to Conditions 4.1(b), 4.2 and 4.3, the Issuer may, by giving notice (an “Optional Deferral Notice”) to the Principal Paying and Transfer Agent, the Registrar and the Trustee (in an Officer’s Certificate of the Issuer) and the Securityholders in accordance with Condition 15, not less than ten business days prior to an Interest Payment Date, at its sole discretion elect to defer payment of any Scheduled Interest Amount (or part thereof) on the Securities. Any Scheduled Interest Amount (or part thereof) not paid pursuant to the provisions of this Condition 4.1 (“Optionally Deferred Interest”, which term does not include any Old Optionally Deferred Interest), shall be deemed accrued on the relevant Interest Payment Date notwithstanding deferral of the payment thereof, and shall remain accrued until paid in full but shall not itself accrue interest. Non-payment of any Scheduled Interest Amount (or part thereof) pursuant to the provisions of this Condition 4.1 shall not constitute an Enforcement Event or otherwise be subject to enforcement except as provided in Condition 9.

 

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(b)                                 Optionally Deferred Interest may be paid by the Issuer at its discretion in cash at any time (having given not less than seven business days notice thereof to the Principal Paying and Transfer Agent, the Registrar, the Trustee and the Securityholders in accordance with Condition 15) on or before the fifth anniversary of the Interest Payment Date on which payment thereof was first deferred in accordance with this Condition 4.1, and during such period will become immediately payable in cash on the date which is the earliest to occur of:

 

(i)                                     the date on which the Issuer next pays any interest amount in respect of the Securities or any interest amount is payable in respect of the Securities (unless payment thereof is deferred by the Issuer pursuant to these Conditions);

 

(ii)                                  the date on which a Capital Payment is next made;

 

(iii)                               the due date for redemption of the Securities, whether at their Maturity Date, any Early Redemption Date or the date on which the Securities become immediately due and repayable pursuant to Condition 9;

 

(iv)                              the date which is 180 days after the date on which any petition is filed by any third party in connection with any Insolvency Proceedings in respect of the Issuer, where such petition has not been dismissed by such 180th day; and

 

(v)                                 the date on which an order is made or a resolution is passed for the voluntary or involuntary liquidation, dissolution or winding up of, or an administrative and/or court order is made for any Insolvency Proceedings in respect of, the Issuer, or the date on which the Issuer takes any corporate action for the purposes of opening, or initiates or consents to, Insolvency Proceedings in respect of it.

 

Any Optionally Deferred Interest that has not been paid in full in cash by the Issuer on or before the fifth anniversary of the Interest Payment Date on which payment thereof was first deferred in accordance with this Condition 4.1 shall, from such fifth anniversary, no longer be referred to Optionally Deferred Interest but shall be referred to as “Old Optionally Deferred Interest”, and may only be paid pursuant to Conditions 4.3 and 5.

 

4.2                               Mandatory deferral of interest

 

The Issuer shall not pay any Scheduled Interest Amount on an Interest Payment Date if, as at the relevant Test Date, a Mandatory Deferral Event has occurred, unless and to the extent that the Issuer has available cash proceeds raised from the offer, issue and sale or contribution of Issuer Equity during the six month period ending on such Interest Payment Date and specified at the time of such offer, issue and sale or contribution to be for the purpose of enabling the payment of all or part of such Scheduled Interest Amount. Any Scheduled Interest Amount (or part thereof) not paid pursuant to the provisions of this Condition 4.2 (“Mandatorily Deferred Interest”) shall be deemed accrued on the relevant Interest Payment Date notwithstanding deferral of the payment thereof, and shall remain accrued until paid in full but shall

 

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not itself accrue interest. Non-payment of any Scheduled Interest Amount (or part thereof) pursuant to this Condition 4.2 shall not constitute an Enforcement Event or otherwise be subject to enforcement except as provided in Condition 9. Mandatorily Deferred Interest may only be paid pursuant to Conditions 4.3 and 5.

 

A “Mandatory Deferral Event” shall be deemed to occur in respect of an Interest Payment Date if the Coverage Ratio as of the relevant Test Date is less than or equal to 1.35. The Issuer will give to the Principal Paying and Transfer Agent, the Registrar and the Trustee (in an Officer’s Certificate of the Issuer) and the Securityholders in accordance with Condition 15 notice not later than five business days prior to the relevant Interest Payment Date of the occurrence of a Mandatory Deferral Event as at the relevant Test Date. An Officer’s Certificate of the Issuer addressed to the Trustee as to the amount of Capital Expenditure, EBITDA, ESOP Cashflow, Interest Expense and Taxes Paid, as to the Coverage Ratio or as to whether a Mandatory Deferral Event has occurred or will occur or not occur at any time may, in the absence of manifest error be relied upon by the Trustee and, if so relied upon, shall be conclusive and binding on the Issuer and the Securityholders.

 

4.3                               Equity Funded Deferred Interest

 

For so long as any Old Optionally Deferred Interest or Mandatorily Deferred Interest (together, “Equity Funded Deferred Interest”) remains unpaid, the Issuer must take all steps necessary (in compliance with applicable law) to fund payment of the same pursuant to Condition 5.2, but such Equity Funded Deferred Interest will become immediately payable in cash on the date which is the earliest to occur of:

 

(a)                                 7 business days following the settlement of an issue, offer and sale or contribution of Issuer Equity in accordance with Condition 5, to the extent of the proceeds thereof received by the Issuer;

 

(b)                                 the tenth anniversary of the Interest Payment Date on which such payment thereof was first deferred in accordance with these Conditions;

 

(c)                                  the due date for redemption of the Securities, whether at the Maturity Date, any Early Redemption Date, or the date on which the Securities become immediately due and repayable pursuant to Condition 9.3;

 

(d)                                 the date which is 180 days after the date on which any petition is filed by any third party in connection with any Insolvency Proceedings in respect of the Issuer, where such petition has not been dismissed by such 180th day; and

 

(e)                                  the date on which an order is made or a resolution is passed for the voluntary or involuntary liquidation, dissolution or winding up of, or an administrative and/or court order is made for any Insolvency Proceedings in respect of, the Issuer, or the date on which the Issuer takes any corporate action for the purposes of opening, or initiates or consents to, Insolvency Proceedings in respect of it.

 

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5.                                      EQUITY FUNDING OF EQUITY FUNDED DEFERRED INTEREST

 

5.1                               Authorised Equity

 

For so long as any Securities are outstanding (as defined in the Trust Deed), the Issuer undertakes to take all steps necessary (in compliance with applicable law) to keep available, as of the date of each Annual General Meeting, Sufficient Authorised Equity.

 

Such steps shall include, but not be limited to the following:

 

(a)                                 if, in the opinion of the board of directors of the Issuer prior to the date of each Annual General Meeting, the Issuer will not have available on the date of such Annual General Meeting a sufficient amount of Authorised Equity to fund the payment of all outstanding Equity Funded Deferred Interest, the board of directors of the Issuer shall, in compliance with any applicable law, propose a resolution at such Annual General Meeting for shareholders to resolve on the authorisation for the issuance of ordinary shares in such number as will enable the Issuer to (i) pay in full all accrued and unpaid Equity Funded Deferred Interest pursuant to Condition 5.2 and (ii) after doing so, have available Sufficient Authorised Equity. The Issuer shall estimate the number of ordinary shares required for this purpose based on the prevailing market price for such ordinary shares on or around the time of proposing such resolution; and

 

(b)                                 if any resolution relating to the authorisation and issuance of new ordinary shares for the payment of Equity Funded Deferred Interest proposed as provided in Condition 5.1(a) is not approved and adopted by the shareholders of the Issuer at such Annual General Meeting, the board of directors of the Issuer shall, in compliance with applicable law, propose a similar resolution at the next Annual General Meeting of the Issuer. This process shall be repeated, in compliance with applicable law, until the relevant resolution is approved and adopted.

 

If the Issuer does not have a sufficient number of ordinary shares available for issue, then the Issuer shall give notice thereof to the Trustee (in an Officer’s Certificate of the Issuer) and the Securityholders in accordance with Condition 15. The Issuer shall thereafter give notice to the Trustee (in an Officer’s Certificate signed of the Issuer) and the Securityholders in accordance with Condition 15 of the subsequent approval and adoption by the shareholders of the Issuer of any resolution relating to the authorisation for issuance of ordinary shares to fund the payment of such unpaid Equity Funded Deferred Interest, promptly following the date of the Annual General Meeting at which such resolution is passed.

 

The shareholders of the Issuer initially authorised for issuance Authorised Equity of up to €170 million in connection with these provisions.

 

5.2                               Payment of Equity Funded Deferred Interest

 

For as long as any Equity Funded Deferred Interest (or part thereof) remains unpaid, the Issuer must, after obtaining all shareholder authorisations for the issue or creation of Issuer Equity, in compliance with any applicable law and subject to Condition 5.3,

 

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promptly fund the full payment in cash of such Equity Funded Deferred Interest, using the proceeds derived from the issue, offer and sale or contribution of Issuer Equity raised in accordance with this Condition 5.2.

 

Promptly following the date on which Mandatorily Deferred Interest or Old Optionally Deferred Interest, as the case may be, arises, the Issuer shall, after obtaining all shareholder authorisations for the issue or creation of Issuer Equity, in compliance with any applicable law and subject to Condition 5.3:

 

(i)                                     procure the issue, offer and sale or contribution of such amount of Issuer Equity as will result in proceeds received by the Issuer, after any expenses relating thereto, of not less than the aggregate amount of unpaid Equity Funded Deferred Interest; and

 

(ii)                                  deliver to the Trustee or to the Principal Paying Agent a cash amount equal to the amount of unpaid Equity Funded Deferred Interest as soon as practicable, but in any event within twenty business days following the settlement of the relevant issue, offer and sale or contribution of Issuer Equity. If such cash amount is received by the Trustee, the Trustee shall pay such amount to the Principal Paying and Transfer Agent. The Principal Paying and Transfer Agent shall pay the amount received by it to the Securityholders in respect of the relevant Equity Funded Deferred Interest within ten business days following receipt thereof by the Principal Paying and Transfer Agent (such date, the “Equity Funded Deferred Interest Payment Date”).

 

If the proceeds of the issue, offer and sale or contribution of Issuer Equity received by the Issuer pursuant to paragraph (i) above are insufficient to pay in full all unpaid Equity Funded Deferred Interest on the relevant Equity Funded Deferred Interest Payment Date, then: (A) the Issuer’s obligations pursuant to this Condition 5.2 shall continue until all unpaid Equity Funded Deferred Interest has been paid in full; and (B) any payment in respect of Equity Funded Deferred Interest made to Securityholders on such Equity Funded Deferred Interest Payment Date will be applied pro rata to all Securityholders and the Issuer shall be released and discharged from its obligations under this Condition 5.2 only to the extent of such amount applied, and the Securityholders shall have no further claim against the Issuer to that extent (without prejudice to any claims in respect of any amount of Equity Funded Deferred Interest that remains unpaid).

 

5.3                               Market Disruption Event

 

The Issuer shall not be obliged to pay Equity Funded Deferred Interest pursuant to Condition 5.2 if a Market Disruption Event has occurred and for so long as it is continuing, but the Issuer’s obligations contained in Condition 5.2 shall recommence immediately upon the cessation of such Market Disruption Event. The Issuer shall, as soon as practicable after becoming aware of the occurrence of a Market Disruption Event at any time whilst any Equity Funded Deferred Interest remains unpaid, notify the same to the Trustee (in an Officer’s Certificate of the Issuer) and to the Securityholders in accordance with Condition 15. An Officer’s Certificate of the Issuer addressed to the Trustee as to the occurrence of a Market Disruption Event may be relied upon by the Trustee as sufficient evidence thereof and if so relied upon shall be conclusive and binding on the Issuer, the Trustee and the Securityholders.

 

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5.4                               Capital Restriction

 

Until such time as all unpaid Equity Funded Deferred Interest has been paid in full in cash in accordance with Conditions 4.3 and 5.2 (and, in the case of paragraph (c) below, for a period of one year thereafter) the Issuer:

 

(a)                                 shall not declare or make a payment of, or resolve on the declaration or payment of, a distribution or any other similar payment with respect to any Junior Obligations (other than ordinary share capital) or Distribution Parity Securities, other than a payment in the form of Issuer Equity; and

 

(b)                                 subject to paragraph (c) below, shall not redeem, repurchase or acquire any Junior Obligations or Parity Securities for any consideration, other than the purchase of fractional interests in Junior Obligations or Parity Securities pursuant to any conversion or exchange provisions of such Junior Obligations or Parity Securities; and

 

(c)                                  shall not redeem, repurchase or acquire any Issuer Equity for any consideration, other than (i) in connection with any existing or future employee benefit plan, directors’ and senior management’s stock based compensation, directors’ stock option plan or similar arrangement; or (ii) a reclassification of Issuer Equity or exchange or conversion of one class or series of Issuer Equity into another class or series of Issuer Equity; or (iii) the purchase of fractional interests in Issuer Equity pursuant to any conversion or exchange provisions of such Issuer Equity,

 

such restrictions shall be called the “Capital Restriction”.

 

As at the date of this Offering Circular, no Parity Securities or Junior Obligations falling within the exceptions to Condition 5.4(b) above were outstanding.

 

6.                                      REDEMPTION AND PURCHASE

 

The Securities may not be redeemed at the option of the Issuer other than in accordance with this Condition 6.

 

6.1                               Maturity date

 

If not redeemed or purchased and cancelled earlier, the Securities will be redeemed on the Maturity Date at their principal amount together with any accrued and unpaid Scheduled Interest Amount, any unpaid Optionally Deferred Interest and Equity Funded Deferred Interest (which Equity Funded Deferred Interest may only be paid from the proceeds of the issue, offer and sale or contribution of Issuer Equity as described in Condition 5) together with any Additional Amounts thereon (the “Redemption Price”).

 

6.2                               Redemption at the option of the Issuer

 

On giving not less than 30 nor more than 60 days’ notice to the Trustee and the Securityholders in accordance with Condition 15 (which notice shall be irrevocable and shall specify the date fixed for redemption) the Issuer may, at its option, redeem all but not some only of the Securities in cash on the Reset Date or on any Floating

 

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Rate Payment Date thereafter, at the Redemption Price. Upon the expiry of any such notice, the Issuer shall be obliged to redeem the Securities in accordance with this Condition 6.2.

 

6.3                               Redemption for taxation reasons

 

On giving not less than 30 nor more than 60 days’ notice to the Trustee and the Securityholders in accordance with Condition 15 (which notice shall be irrevocable and shall specify the date fixed for redemption), the Issuer may, at its option, redeem all but not some only of the Securities in cash on any date prior to the Reset Date:

 

(a)                                 upon the occurrence of a Withholding Tax Event, at the Redemption Price; or

 

(b)                                 upon the occurrence of a Tax Event, at the Make-Whole Price together with any accrued and unpaid Scheduled Interest Amount, any unpaid Optionally Deferred Interest and Equity Funded Deferred Interest (which Equity Funded Deferred Interest may only be paid from the proceeds of the issue, offer and sale or contribution of Issuer Equity as described in Condition 5) and any Additional Amounts thereon.

 

Prior to the publication of any notice of redemption pursuant to the above paragraphs, the Issuer shall deliver or procure that there is delivered to the Trustee:

 

(A)                               an Officer’s Certificate of the Issuer stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred (including, in the case of a Withholding Tax Event, that such obligation to pay Additional Amounts cannot be avoided by the Issuer taking reasonable measures available to it); and

 

(B)                               an opinion of an independent legal advisor of recognised standing under the laws of the Relevant Taxing Jurisdiction to the effect that either (1) the Issuer has or will become obliged to pay such Additional Amounts as a result of a Withholding Tax Event, or (2) that a Tax Event has occurred.

 

Upon the expiry of any such notice, the Issuer shall be obliged to redeem the Securities in accordance with this Condition 6.3. Notwithstanding the foregoing, no such notice of redemption will be given in respect of the occurrence of a Withholding Tax Event (a) earlier than 90 days prior to the earliest date on which the Issuer would be obliged to make such payment of Additional Amounts or withholding if any amounts in respect of the Securities were then payable and (b) unless at the time such notice is given, the obligation to pay Additional Amounts remains in effect.

 

6.4                               Change of Control Call Event

 

(a)                                 If at any time while the Securities are outstanding a Change of Control Event occurs prior to the Reset Date, the Issuer may, not later than 60 days following the occurrence of such Change of Control Event and on giving not less than 30 nor more than 60 days’ notice to the Trustee and the Securityholders in accordance with Condition 15 (which notice shall be irrevocable and shall specify the date fixed for redemption), at its option, redeem all but not some

 

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only of the Securities in cash at the Make-Whole Price together with any accrued and unpaid Scheduled Interest Amount, any unpaid Optionally Deferred Interest and Equity Funded Deferred Interest (which Equity Funded Deferred Interest may only be paid from the proceeds of the issue, offer and sale or contribution of Issuer Equity as described in Condition 5) and any Additional Amounts thereon.

 

(b)                                 If at any time while the Securities are outstanding a Change of Control Event occurs on or after the Reset Date, the Issuer may, on the next Floating Rate Payment Date thereafter or, if the next succeeding Floating Rate Payment Date falls less than 30 days from the date such Change of Control Event occurs, then on the next Floating Rate Payment Date thereafter), on giving not less than 30 nor more than 60 days’ notice to the Trustee and the Securityholders in accordance with Condition 15 (which notice shall be irrevocable and shall specify the date fixed for redemption), at its option, redeem all but not some only of the Securities in cash at the Redemption Price.

 

Upon the expiry of any such notice, the Issuer shall be obliged to redeem the Securities in accordance with this Condition 6.4.

 

If a Change of Control Event occurs and the Issuer does not elect to redeem the Securities by giving notice to the Trustee and the Securityholders in accordance with the provisions of Condition 6.4(a) or (b), as the case may be, within the periods described therein, then the Securities shall, from the date on which the Change of Control Event occurred, bear interest on their aggregate principal amount at a rate which is (a) prior to the Reset Date, equal to the Change of Control Fixed Rate or (b) from (and including) the Reset Date, equal to the Change of Control Floating Rate.

 

6.5                              Purchase

 

The Issuer or any of its subsidiaries may, at any time, purchase Securities in the open market or otherwise at any price. Any Securities so purchased, pending cancellation in accordance with Condition 6.7, shall not entitle the holder to vote at any meetings of the Securityholders and shall not be deemed to be outstanding for the purposes of calculating quorums at meetings of the Securityholders or for the purposes of Condition 12.1.

 

The Issuer’s intention is (without assuming a legal obligation) only to redeem, repurchase or otherwise acquire the Securities for cash consideration prior to the Maturity Date if the Issuer has received from parties that are not members of the Issuer Group cash proceeds at least amounting to such consideration within a period of six months prior to such redemption, repurchase or other acquisition from the issue, offer and sale or contribution of (a) Issuer Equity or (b) other securities which contain terms that are substantially the same as the Securities in respect of (i) enforcement rights and remedies of holders thereof, (ii) subordination of such holders’ claims in the event of a liquidation, dissolution or winding up or Insolvency Proceedings in respect of the Issuer, (iii) initial maturity and any early redemption provisions, (iv) the payment, deferral or non-payment of scheduled distributions, (v) scheduled step up in distribution rate, if any, and (vi) replacement conditions pertaining to early redemption, repurchase or acquisition of such other securities.

 

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6.6                               Cancellation

 

All Securities so redeemed or purchased in accordance with this Condition 6 will be cancelled and may not be re-issued or resold.

 

7.                                      PAYMENTS

 

7.1                               Method of Payment

 

(a)                                 Subject to Condition 4, payments of principal in respect of the Securities will be made to the person shown in the Register at the close of business on the seventh business day in London and the city in which the specified office of the Registrar is located before the due date for the relevant payment (the “Record Date”), and against presentation and surrender (or, in the case of a partial payment, endorsement) of the relevant Certificate at the specified office of the Registrar or any Paying and Transfer Agent by euro cheque drawn on, or by transfer to a euro account maintained by the payee with, a bank in a city in which banks have access to the TARGET System.

 

(b)                                 Payments of interest due on an Interest Payment Date and payments in respect of Optionally Deferred Interest and Equity Funded Deferred Interest will be made to the person shown in the Register at the close of business on the relevant Record Date. Such payments on each Security shall be made by euro cheque drawn on, or by transfer to a euro account maintained by the payee with, a bank in a city in which banks have access to the TARGET System.

 

(c)                                  Where payment is to be made by cheque, the cheque will be mailed, on the business day in London and the city in which the specified office of the Registrar is located preceding the due date for payment or, in the case of payments referred to in Condition 7.1(a), if later, on the business day (in the city on which the specified office of the Registrar or the relevant Paying and Transfer Agent with whom the Certificate is deposited is located) on which the relevant Certificate is presented for surrender or endorsement, as applicable (at the risk and, if mailed at the request of the holder otherwise than by ordinary mail, at the expense of the holder) to the holder (or the first named of joint holders) of the Securities at its address appearing in the Register.

 

(d)                                 Securityholders will not be entitled to any interest or other payment for any delay after the due date in receiving the amount due (i) as a result of the due date not being a business day, (ii) if the Securityholder is late in presenting the relevant Certificate for surrender (or endorsement, as applicable) or (iii) if a cheque mailed in accordance with this Condition 7.1 arrives after the date for payment.

 

7.2                               Payments subject to laws

 

All payments are subject in all cases to any applicable fiscal or other laws and regulations in the place of payment, but without prejudice to the provisions of Condition 8. No commissions or expenses shall be charged to the Securityholders in respect of such payments.

 

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7.3                               Payments on business days

 

A Certificate may only be presented for payment on a day which is a business day in the place of presentation (and, in the case of payment by transfer to a euro account, in a city where banks have access to the TARGET System). No further interest or other payment will be made if the day on which the relevant Certificate may be presented for payment under this paragraph is a day falling after the due date. In this Condition 7 “business day” means a day on which commercial banks and foreign exchange markets settle payment and are open for general business (including dealing in foreign exchange and foreign currency deposits) in the relevant city.

 

7.4                               Agents

 

The initial Registrar, Paying and Transfer Agents and Agent Bank and their initial specified offices are listed below. The Issuer reserves the right at any time with the approval of the Trustee to vary or terminate the appointment of any Paying and Transfer Agent or the Agent Bank and appoint additional or other agents, provided that it will, at all times while any Security is outstanding, maintain (a) a Registrar, (b) a Principal Paying and Transfer Agent (and for so long as any amounts remain payable in respect of the Securities), (c) an Agent Bank, (d) Paying and Transfer Agents having specified offices in at least two major European cities approved by the Trustee and (e) a Paying and Transfer Agent with a specified office in a European Union member state that will not be obliged to withhold or deduct tax pursuant to European Council Directive 2003/48/EC or any other Directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November 2000 on the taxation of savings income or any other law implementing or complying with, or introduced in order to conform to, such Directive.

 

If any of the Registrar, Agent Bank or Principal Paying and Transfer Agent is unable or unwilling to act as such or if it fails to make any determination or calculation or otherwise fails to perform its duties under these Conditions or the Paying Agency Agreement, as the case may be, the Issuer shall appoint, on terms acceptable to the Trustee, an independent investment bank acceptable to the Trustee to act as such in its place.

 

7.5                               Fractions

 

When making payments to Securityholders, if the relevant payment is not of an amount which is a whole multiple of €0.01, such payment will be rounded down to the nearest €0.01.

 

8.                                      TAXATION

 

8.1                               Additional Amounts

 

All payments in respect of principal, premium (if any) and interest (including, without limitation, any Optionally Deferred Interest and Equity Funded Deferred Interest) by or on behalf of the Issuer in respect of the Securities shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges (including, without limitation, any interest, penalties and other similar liabilities related thereto) of whatever nature imposed, levied, collected,

 

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withheld or assessed by or within the United Kingdom  or the United States of America or any political subdivision thereof or therein that has the power to tax (each a “Relevant Taxing Jurisdiction”) (such amounts being hereafter referred to as “Taxes”), unless such withholding or deduction is required by law (including, but not limited to, as a consequence of any change in tax law or any change in the interpretation of Tax law). In such event the Issuer shall pay such additional amounts (“Additional Amounts”) as will result in the receipt by the Securityholders (which for all purposes of this Condition 8 shall include the beneficial owners of the Securities) of the same amounts as would have been received by them had no such withholding or deduction been required; except that no such Additional Amounts shall be due from the Issuer to the extent that the relevant Tax is a direct result of one or more of the following circumstances:

 

(a)                                 Other connection:  in respect of any Securityholder who is liable to such Taxes by reason of his having some present or future connection with the Relevant Taxing Jurisdiction (other than by reason of (i) the mere receipt or holding of the Security or (ii) the mere receipt of payments under the Securities); or

 

(b)                                 Declaration of non-residence or other exemption claim:  in respect of any Securityholder who would not be liable or subject to the withholding or deduction by making a declaration (including, without limitation, a U.S. Internal Revenue Service Form W-8 BEN or W-9) of non-residence or other similar claim for exemption (in each case, which the relevant Securityholder was legally entitled to make) to the relevant tax authority after notification by the Issuer of the requirement to comply with the same (which notification shall be accomplished by providing written notice of the same to the Trustee, the Principal Paying and Transfer Agent and the relevant clearing systems and by publication of an appropriate notice in at least two international economic newspapers, which publication shall be made at a time which would enable the Securityholders, acting reasonably, to comply with such requirement; or

 

(c)                                  Presentation more than 30 days after the Relevant Date:  in respect of any Certificate presented for payment (where presentation is required) more than 30 days after the Relevant Date except to the extent that the Securityholder thereof would have been entitled to such Additional Amounts on presenting such Certificate for payment on the last day of such period of 30 days; or

 

(d)                                 European Council Directive:  where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or any Directive implementing the conclusions of the ECOFIN Council meeting of 26-27 November 2000 on the taxation of savings income or any other law implementing or complying with, or introduced in order to conform to, such Directive; or

 

(e)                                  Payment by another Paying and Transfer Agent:  in respect of any Certificate presented for payment (where presentation is required) by or on behalf of a Securityholder who would have been able to avoid such withholding or deduction by presenting the relevant Certificate to another Paying and Transfer Agent in a Member State of the European Union; or

 

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(f)                                   U.S. Backup Withholding:  where such withholding or deduction is in respect of backup withholding imposed under Section 3406 of the United States Internal Revenue Code of 1986, as amended (the “Code”) and the U.S. Treasury regulations thereunder.

 

Such Additional Amounts will also not be payable where, had the beneficial owner of the Security been the registered Securityholder, it would not have been entitled to payment of Additional Amounts by reason of Conditions 8.1(a) to (g) (inclusive) above.

 

The Issuer will (i) make such withholding or deduction required by applicable law and (ii) remit the full amount withheld or deducted to the relevant taxing authority in accordance with applicable law.

 

At least 30 calendar days prior to each date on which any payment under or with respect to the Securities is payable, if the Issuer will be obliged to pay Additional Amounts with respect to such payment (unless such obligation to pay Additional Amounts arises after the 30th day prior to the date on which payment under or with respect to the Securities is payable, in which case it will be promptly thereafter), the Issuer will deliver to the Trustee an Officer’s Certificate of the Issuer stating that such Additional Amounts will be payable and the amounts so payable and will set forth such other information necessary to enable the Trustee, the Registrar or the Paying and Transfer Agent, as the case may be, to pay such Additional Amounts to Securityholders on the relevant payment date. The Trustee shall, without further investigation, be entitled to rely absolutely on each such Officer’s Certificate as conclusive proof that such payments are necessary. The Issuer will promptly publish a notice in accordance with the provisions set forth in Condition 15 stating that such Additional Amounts will be payable and describing the obligation to pay such amounts.

 

Upon request, the Issuer will make reasonable efforts to furnish to the Trustee or a Securityholder within a reasonable time certified copies of Tax receipts evidencing the payment by the Issuer of any Taxes imposed or levied by a Relevant Taxing Jurisdiction, in such form as provided in the normal course by the taxing authority imposing such Taxes and as is reasonably available to the Issuer. If, notwithstanding the efforts of the Issuer to obtain such receipts, the same are not obtainable, the Issuer will provide the Trustee or Securityholder with other evidence reasonably satisfactory to the Trustee or such Securityholder of such payments by the Issuer. The Issuer will attach to each copy a certificate stating that the amount of Taxes evidenced by the certified copy was paid in connection with payments in respect of the principal amount of Securities then outstanding.

 

The Trust Deed shall further provide that if the Issuer becomes subject to the taxing jurisdiction of any country or any political subdivision thereof or therein that has the power to tax (an “Additional Taxing Jurisdiction”) other than or in addition to a Relevant Taxing Jurisdiction, this Condition 8 shall be deemed to apply as if references therein to “Taxes” included taxes imposed by way of withholding or deduction by any such Additional Taxing Jurisdiction (or any political subdivision thereof or therein).

 

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In addition, the Issuer will pay (i) all present and future stamp, issue, registration, court, documentation, or any excise or property taxes or other similar taxes, charges and duties, including interest and penalties with respect thereto, imposed by any Relevant Taxing Jurisdiction in respect of the execution, issue, delivery or registration of the Securities, the Trust Deed, or any other document or instrument referred to therein, and any such taxes, charges, or similar levies imposed by any jurisdiction as a result of, or in connection with, the enforcement of the Securities, the Trust Deed or any other such document or instrument, or (ii) any stamp, court, or documentary taxes (or similar charges or levies) imposed with respect to the receipt of any payments with respect to the Securities.

 

The preceding provisions will survive any termination, defeasance or discharge of the Trust Deed and redemption of the Securities and shall apply mutatis mutandis to any jurisdiction in which the Issuer is organised, incorporated or otherwise resident for tax purposes and any political subdivision or taxing authority or agency thereof or therein.

 

8.2                               References

 

Any reference in these Conditions to principal, interest and/or any other amounts in respect of the Securities shall be deemed to include any Additional Amounts which may be payable under this Condition or any undertaking given in addition to or substitution for it under the Trust Deed.

 

9.                                      ENFORCEMENT EVENTS

 

9.1                               Enforcement Events

 

An “Enforcement Event” shall have occurred if:

 

(a)                                 the Issuer fails to pay any Optionally Deferred Interest in respect of the Securities within fifteen business days of the due date for payment thereof;

 

(b)                                 the Issuer fails to pay in full any Equity Funded Deferred Interest, in the manner described herein by the tenth anniversary of the Interest Payment Date on which payment of the relevant Scheduled Interest Amount was first deferred in accordance with these Conditions, or the Issuer breaches the Capital Restriction;

 

(c)                                  the Issuer defaults in the performance or observance of any of its other obligations in respect of the Securities (other than any of its obligations under the Trust Deed) and such default (i) is, in the reasonable opinion of the Trustee, incapable of remedy or (ii) being a default which is, in the reasonable opinion of the Trustee, capable of remedy, remains unremedied for 60 days or such longer period as the Trustee may agree after the Trustee has given notice thereof to the Issuer;

 

(d)                                 any petition is filed by any third party in connection with any Insolvency Proceedings in respect of the Issuer, and such petition is not dismissed within 180 days of such filing; or

 

(e)                                  an order is made or a resolution is passed for the voluntary or involuntary liquidation, dissolution or winding up of, or an administrative and/or court

 

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order is made for any Insolvency Proceedings in respect of, the Issuer, or the Issuer takes any corporate action for the purposes of opening, or initiates or consents to, Insolvency Proceedings in respect of it.

 

9.2                               Enforcement in respect of Optionally Deferred Interest

 

Upon the occurrence of an Enforcement Event described in Condition 9.1(a) and subject to mandatory provisions of applicable law, the Trustee at its discretion may, and if so instructed by Securityholders holding not less than 25% in aggregate principal amount of the outstanding Securities or if so directed by an Extraordinary Resolution (as defined in the Trust Deed) shall, subject in each case to its being indemnified and/or secured to its satisfaction, by written notice addressed to the Issuer, institute proceedings to obtain payment of the amounts due, provided that the Issuer shall not by virtue of the institution of any such proceedings be obliged to pay any sum or sums sooner than the same would otherwise have been payable by it and the Trustee shall not, in these circumstances, be entitled to declare the principal amount of the Securities due and payable.

 

The proviso to this Condition 9.2 shall not apply to amounts due to the Trustee in its personal capacity under the Trust Deed.

 

9.3                               Enforcement in respect of Equity Funded Deferred Interest and Capital Restriction

 

Upon the occurrence of an Enforcement Event described in Condition 9.1(b) above and subject to Condition 12.1 and mandatory provisions of applicable law, the Trustee at its discretion may, and if so instructed by Securityholders holding not less than 25% in aggregate principal amount of the outstanding Securities or if so directed by an Extraordinary Resolution shall, subject in each case to it being indemnified and/or secured to its satisfaction, (a) give notice to the Issuer that the Securities are, and they shall accordingly forthwith become, immediately due and repayable at their principal amount, together with any accrued and unpaid Scheduled Interest Amount, any Deferred Interest and any Additional Amounts thereon, and/or (b) institute steps in order to obtain a judgment against the Issuer for any amounts due in respect of the Securities, including the institution of Insolvency Proceedings.

 

9.4                               Enforcement in respect of Breach of Other Obligations

 

Upon the occurrence of an Enforcement Event described in Condition 9.1(c) above or upon the breach by the Issuer of any of its obligations under the Trust Deed and subject to mandatory provisions of applicable law, the Trustee at its discretion may, and if so instructed by Securityholders holding not less than 25% in aggregate principal amount of the outstanding Securities or if so directed by an Extraordinary Resolution shall, subject in each case to it being indemnified and/or secured to its satisfaction, institute such proceedings and/or take any other action against the Issuer as it may think fit to enforce any obligation, condition, undertaking or provision binding on the Issuer under the Securities or the Trust Deed (other than as provided in Conditions 9.2 and 9.3); provided that the Issuer shall not by virtue of the institution of any such proceedings be obliged to pay any sum or sums sooner than the same would otherwise have been payable by it and the Trustee shall not, in these

 

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circumstances, be entitled to declare the principal amount of the Securities due and repayable.

 

The proviso to this Condition 9.4 shall not apply to amounts due to the Trustee in its personal capacity under the Trust Deed.

 

9.5                               Enforcement in respect of Insolvency Proceedings

 

Upon the occurrence of an Enforcement Event described in Condition 9.1(d) or (e) above and subject to Condition 12.1 and mandatory provisions of applicable law, the Trustee at its discretion may, and if so instructed by Securityholders holding not less than 25% in aggregate principal amount of the outstanding Securities or if so directed by an Extraordinary Resolution shall, subject in each case to it being indemnified and/or secured to its satisfaction, (a) give notice to the Issuer that the Securities are, and they shall accordingly forthwith become, immediately due and repayable at their principal amount, together with any accrued and unpaid Scheduled Interest Amount, any Deferred Interest and any Additional Amounts thereon, and/or (b) institute steps in order to obtain a judgment against the Issuer for any amounts due in respect of the Securities, including filing a proof of claim and participating in the relevant Insolvency Proceedings or proceedings for the liquidation, dissolution or winding-up of the Issuer.

 

9.6                               Non-Payment of Principal

 

If the Issuer shall default in the payment of principal or premium in respect of any Security which has become due and repayable, or fails to redeem the Securities when obliged to do so, in each case in accordance with the terms hereof, the Trustee at its discretion may, and if so instructed by Securityholders holding not less than 25% in aggregate principal amount of the outstanding Securities or if so directed by an Extraordinary Resolution (as defined in the Trust Deed) shall, subject in each case to its being indemnified and/or secured to its satisfaction, institute proceedings to obtain payment of the amounts due, including the institution of Insolvency Proceedings.

 

9.7                               Other Remedies and Rights of Securityholders

 

No remedy against the Issuer other than the institution of the steps or the proceedings or taking of other action by the Trustee referred to in Conditions 9.2, 9.3, 9.4, 9.5 and 9.6 shall be available to the Trustee or the Securityholders whether for the recovery of amounts owing in respect of the Securities or in respect of any breach by the Issuer of any other obligation, condition, or provision binding on it under the Securities or the Trust Deed, provided that the second paragraph of Conditions 9.2 and 9.4 shall apply to this Condition 9.7.

 

9.8                              Holders not entitled to proceed directly

 

No Securityholder shall be entitled to proceed directly against the Issuer unless the Trustee, having become bound so to proceed, fails to do so within a reasonable period and such failure is continuing.

 

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10.                               PRESCRIPTION

 

Claims against the Issuer for payment in respect of the Securities shall be prescribed and become void unless made within a period of 10 years (in the case of principal) or five years (in the case of interest) from the appropriate Relevant Date in respect of such payment and thereafter any principal, interest or other sums payable in respect of such Securities shall be forfeited and revert to the Issuer.

 

11.                               REPLACEMENT OF CERTIFICATES

 

If any Certificate is lost, stolen, mutilated, defaced or destroyed it may be replaced at the specified office of the Paying and Transfer Agent in Luxembourg (for so long as the Securities are listed on the Luxembourg Stock Exchange, otherwise at the specified office of the Registrar) subject to all applicable laws and stock exchange or other relevant authority requirements, upon payment by the claimant of the expenses incurred in connection with such replacement and on such terms as to evidence, security, indemnity and otherwise as the Issuer may require (provided that the requirement is reasonable in the light of prevailing market practice). Mutilated or defaced Certificates must be surrendered before replacements will be issued.

 

12.                               MEETINGS OF SECURITYIIOLDERS, MODIFICATION AND WAIVER

 

12.1                        Meetings of Securityholders

 

The Trust Deed contains provisions for convening meetings of Securityholders to consider any matter affecting their interests, including a modification of any of these Conditions or any provisions of the Trust Deed in accordance with any applicable provisions of law. Any such modification may be made if sanctioned by an Extraordinary Resolution. Such a meeting may be convened by the board of directors of the Issuer or by the Securityholders’ Representative and shall be convened upon the request in writing of Securityholders holding not less than 5% in aggregate principal amount of the Securities for the time being outstanding. Such a meeting will be validly held if (a) there are one or more persons present, being or representing Securityholders holding at least one half of the aggregate principal amount of the Securities for the time being outstanding, or (b) at any adjourned meeting, following adjournment of the first meeting for lack of quorum, there are one or more persons present being or representing Securityholders whatever the principal amount of the Securities represented, provided, however, that if the business of such meeting includes consideration of proposals, inter alia, (i) to modify the Maturity Date or the dates on which, or manner in which, interest is payable in respect of the Securities, (ii) to reduce or cancel the principal amount of, or interest on or to vary the method of calculating the rate of interest on, the Securities, (iii) to change the currency of payment of the Securities, (iv) to modify the provisions relating to status or (v) to modify the provisions concerning the quorum required at any meeting of Securityholders or the majority required to pass an Extraordinary Resolution (each, a “Reserved Matter”), the necessary quorum shall be one or more persons present, being or representing Securityholders holding at least three quarters of the aggregate principal amount of the Securities for the time being outstanding or, at any adjourned meeting one or more persons present, being or representing Securityholders holding at least one quarter of the aggregate principal amount of the Securities for the time being. The majority required to pass a resolution at any meeting convened to vote on an

 

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Extraordinary Resolution (including any meeting convened following adjournment of the previous meeting for want of quorum) shall be one or more persons present being or representing Securityholders holding at least two thirds of the aggregate principal amount of the Securities represented at the meeting. Any Extraordinary Resolution duly passed shall be binding on all Securityholders (whether or not they were present at the meeting at which such resolution was passed).

 

In addition, a Written Resolution will take effect as if it were an Extraordinary Resolution.(4)

 

12.2                        Modification and Waiver

 

The Trustee may agree, without the consent of the Securityholders, to (i) any modification of any of the provisions of the Trust Deed which, in its opinion, is of a formal, minor or technical nature or is made to correct a manifest error, and (ii) any other modification, and any waiver or authorisation of any breach or proposed breach, of any of the provisions of the Trust Deed (except a Reserved Matter) which is in the opinion of the Trustee not materially prejudicial to the interests of the Securityholders. Any such modification, authorisation or waiver shall be binding on the Securityholders and, if the Trustee so requires, such modification, authorisation or waiver shall be notified to the Securityholders as soon as practicable in accordance with Condition 15.

 

12.3                        Entitlement of the Trustee

 

In connection with the exercise by it of any of its trusts, powers, authorities and discretions (including, without limitation, any modification, waiver, authorisation or determination), the Trustee shall have regard to the general interests of Securityholders as a class but shall not have regard to any interests arising from circumstances particular to individual Securityholders (whatever their number) and, in particular but without limitation, shall not have regard to the consequences of any such exercise for individual Securityholders (whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject to the jurisdiction of, any particular territory or any political sub-division thereof and the Trustee shall not be entitled to require, nor shall any Securityholder be entitled to claim, from the Issuer, the Trustee or any other person any indemnification or payment in respect of any tax consequence of any such exercise upon individual Securityholders except to the extent already provided for in Condition 8 and/or any undertaking given in addition to, or in substitution for, Condition 8 pursuant to the Trust Deed.

 

13.                              INDEMNIFICATION OF THE TRUSTEE

 

The Trust Deed contains provisions for the indemnification of the Trustee and for its relief from responsibility. The Trustee is entitled to enter into business transactions with the Issuer and any entity related to the Issuer without accounting for any profit.

 

(4)  To be further conformed against amended Trust Deed meeting provisions as necessary

 

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14.                               FURTHER ISSUES

 

The Issuer may from time to time without the consent of the Securityholders create and issue further securities having the same terms and conditions as the Securities in all respects (or in all respects except for the first payment of interest on them) and so that such further issue shall be consolidated and form a single series with, and have the same ISIN and Common Code numbers as, the Securities. References in these Conditions to the Securities include (unless the context requires otherwise) any such securities and forming a single series with the Securities. Any further securities forming a single series with the Securities shall be constituted by a deed supplemental to the Trust Deed.

 

15.                               NOTICES

 

Notices to Securityholders shall be validly given when: (i) delivered in person or when sent by first class registered or certified mail, postage pre-paid, to them at their respective addresses as set out in the Register; or (ii) so long as the Securities are listed on the Luxembourg Stock Exchange and the rules of that stock exchange so require, notices will be published in a leading newspaper having general circulation in Luxembourg (which is expected to be d’Wort), at least 21 days prior to the meeting (exclusive of the day on which the notice is published and of the day on which the meeting is to be held). Any notice shall be deemed to have been given on the date of publication or, if published more than once or on different dates, on the first date on which publication is made in all required publications, provided that, if notices are mailed, such notice shall be deemed to have been given on the later of such publication and the fifth day after being so mailed. Failure to mail a notice or communication to any holder, or any defect in any such notice or communication, shall not affect its validity with respect to other holders. If a notice or communication is mailed in the manner provided above, it shall be deemed validly given, whether or not the addressee receives it.

 

While any Securities are represented by a Global Certificate, notices may be delivered to Euroclear and Clearstream, Luxembourg, each of which shall give notice of such notice to holders of Book-Entry Interests instead of publication as described above.

 

16.                               CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

No person shall have any right to enforce any term or condition of the Securities under the Contracts (Rights of Third Parties) Act 1999.

 

17.                               GOVERNING LAW

 

The Trust Deed and the Securities, and any non-contractual obligations arising out of or in connection with them, are governed by and shall be construed in accordance with English law.

 

17.1                        Jurisdiction

 

The courts of England are to have non-exclusive jurisdiction to settle any disputes which may arise out of or in connection with the Securities and accordingly any legal action or proceedings arising out of or in connection with the Securities

 

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(“Proceedings”) may be brought in such courts. The Issuer has in the Trust Deed irrevocably submitted to the non-exclusive jurisdiction of such courts.

 

17.2                        Agent for Service of Process

 

The Issuer has irrevocably appointed an agent in England to receive service of process in any Proceedings in England based on any of the Securities or the Trust Deed.

 

18.                               DEFINITIONS

 

“Accounting Principles” means (i) generally accepted accounting principles in the United States, the United Kingdom or Italy or (ii) IFRS.

 

“Additional Amounts” has the meaning given to it in Condition 8.

 

“Additional Taxing Jurisdiction” has the meaning given to it in Condition 8.

 

“Advance Capital Contributions” means any irrevocable, unconditional and non-reimbursable (except upon the voluntary or involuntary liquidation, dissolution or winding-up of, the Issuer) capital contribution made or to be made by a shareholder of the Issuer.

 

“Agent Bank” has the meaning given to it in the preamble.

 

“Annual General Meeting” means the shareholders’ meeting of the Issuer convened in accordance with the articles of association of the Issuer in force from time to time.

 

“Audited Accounts” means, as at a Test Date, the most recent annual consolidated audited financial statements of the Issuer Group taken as a whole, prepared in accordance with Accounting Principles and having been approved by the board of directors of the Issuer and filed with the competent companies’ registrar.

 

“Authorised Denomination” has the meaning given to it in Condition 1.1.

 

“Authorised Equity” means from time to time, ordinary shares authorised for issuance pursuant to a resolution approved and adopted by the shareholders of the Issuer or, to the extent delegated by such resolution, the board of directors of the Issuer, in connection with the Securities.

 

“B&D Holding” means B&D Holding di Marco Drago e C. S.a.p.a., a company incorporated under the laws of Italy as a società in accomandita per azioni.

 

“Benchmark Rate” means 0.75% plus the annualised offer yield to maturity, as calculated by the Agent Bank to be the average of three market quotations, of the then current Euro government benchmark security selected by the Agent Bank, after consultation with the Issuer, as having a maturity comparable to the remaining term of the Securities to the Reset Date that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the Reset Date.

 

“Book-Entry Interests” has the meaning given to it in Condition 1.

 

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“business day” means, except in Conditions 1 and 7, a day which is both a day on which commercial banks and foreign exchange markets settle payment and are open for general business (including dealing in foreign exchange and foreign currency deposits) in London and a day on which the TARGET System is operating.

 

“Capital Expenditure” means the amount of capital expenditure (in the Issuer’s reporting currency) incurred by the Issuer Group in respect of the annual financial period ending on the date of the relevant Audited Accounts, as determined in accordance with such Audited Accounts.

 

“Capital Payment” means:

 

(a)                                 the redemption, repurchase or acquisition of any Parity Securities, or Junior Obligations for any consideration, other than (i) in connection with any existing or future employee benefit plan, directors’ and senior management’s stock based compensation, directors’ stock option plan or similar arrangement; or (ii) a reclassification of Issuer Equity or exchange or conversion of one class or series of Issuer Equity into another class or series of Issuer Equity; or (iii) the purchase of fractional interests in Parity Securities or Junior Obligations pursuant to any conversion or exchange provisions of such Parity Securities or Junior Obligations; or

 

(b)                                 the declaration or payment of, or the resolution of, a dividend or distribution or any other similar payment with respect to any Distribution Parity Securities or Junior Obligations, other than a payment in the form of Issuer Equity.

 

“Capital Restriction” has the meaning given to it in Condition 5.4.

 

A “Change of Control” will be deemed to have occurred if any person or any persons acting in concert (as defined in the City Code on Takeovers and Mergers), other than a holding company (as defined in Section 1159 of the Companies Act 2006 (as amended)) whose shareholders are or are to be substantially similar to the pre-existing shareholders of the Issuer, shall become interested (within the meaning of Part 22 of the Companies Act 2006 (as amended)) in (A) more than 50% of the issued or allotted ordinary share capital of the Issuer or (B) shares in the capital of the Issuer carrying more than 50% of the voting rights normally exercisable at a general meeting of the Issuer, provided that a Change of Control shall not be deemed to have occurred if the Principal Shareholder continues, without interruption, to hold the percentage of shares specified in (A) or (B) above.

 

A “Change of Control Downgrade” shall be deemed to have occurred if a relevant Rating Agency publicly announces that in connection with, anticipation of or as a result of, a Change of Control occurring, the Corporate Credit Rating or Corporate Family Rating assigned to the Issuer by such Rating Agency is withdrawn, or downgraded to a rating of or below BB+ by S&P or Ba1 by Moody’s (or their respective equivalents at such time).

 

A “Change of Control Event” shall be deemed to have occurred on the earliest date on which both a Change of Control Downgrade and the respective Change of Control have occurred.

 

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“Change of Control Fixed Rate” means the Fixed Interest Rate plus an additional margin of 5% per annum.

 

“Change of Control Floating Rate” means, in respect of a Floating Rate Interest Period, the relevant Floating Interest Rate determined in accordance with Conditions 3.3 and 3.4, plus an additional margin of 5% per annum.

 

“Clearstream, Luxembourg” has the meaning given to it in Condition 1.

 

“Code” has the meaning given to it in Condition 8.

 

“Common Depositary” has the meaning given to it in Condition 1.

 

“Corporate Credit Rating” means the corporate credit rating assigned from time to time to the Issuer by S&P, representing the highest rating that S&P may assign to any unsecured obligation of any member of the Issuer Group, and being on the Issue Date, BBB.

 

“Corporate Family Rating” means the corporate family rating assigned from time to time to the Issuer by Moody’s, representing the highest rating that Moody’s may assign to any unsecured obligation of any member of the Issuer Group, and being on the Issue Date, Baa3.

 

“Coverage Ratio” means the ratio (to be calculated to the fourth decimal place, with 0.00005 being rounded upwards) of (a) Free Cash-flow Before Debt Service, divided by (b) Interest Expense, in each case in respect of the annual financial period ending on the date of the relevant Audited Accounts.

 

“Definitive Certificates” has the meaning given to it in Condition 1.

 

“Deferred Interest” means any unpaid Optionally Deferred Interest and any unpaid Equity Funded Deferred Interest.

 

“Distribution Parity Securities” means any securities (including Liquidation Parity Securities) or other instruments issued, entered into or guaranteed by the Issuer which, in each case, by their terms or by operation of law, constitute obligations of the Issuer to make periodic payments, taking into account provisions for the Issuer to suspend or defer such payments at its discretion or subject to certain conditions, that are substantially the same as those of the Securities.

 

“Early Redemption Date” means any date fixed for redemption of the Securities (other than the Maturity Date) in accordance with the provisions of Condition 6.

 

“EBITDA” means the amount of the consolidated net pre-taxation profits of the Issuer Group (in the Issuer’s reporting currency), as adjusted by (without double counting):

 

(a)                                 adding back the amount of Interest Expense;

 

(b)                                 adding back the amount of depreciation and amortisation expense, if any;

 

(c)                                  eliminating the effect of any extraordinary item or any non-cash items;

 

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(d)                                 eliminating the effect of any revaluation of an asset, or any loss or gain on the disposal of an asset (otherwise than in the ordinary course of trading); and

 

(e)                                  excluding the amount of any EBITDA attributable to minority shareholders in members of the Issuer Group,

 

in each case, in respect of the annual financial period ending on the date of the relevant Audited Accounts and as determined in accordance with such Audited Accounts.

 

“Enforcement Event” has the meaning given to it in Condition 9.1.

 

“Equity Funded Deferred Interest” has the meaning given to it in Condition 4.3.

 

“Equity Funded Deferred Interest Payment Date” has the meaning given to it in Condition 5.2(ii).

 

“ESOP Cashflow” means the cash amount (in the Issuer’s reporting currency), if any, received by the Issuer or any member of the Issuer Group in respect of the exercise of stock options by employees in respect of the annual financial period ending on the date of the relevant Audited Accounts, as determined in accordance with such Audited Accounts.

 

“EURIBOR” has the meaning given to it in Condition 3.3(a).

 

“Euro-zone” means the region comprised of Member States of the European Union that adopt or have adopted the single currency in accordance with the Treaty establishing the European Community, as amended by the Treaty on the European Union.

 

“Euroclear” has the meaning given to it in Condition 1.

 

“Fixed Interest Rate” has the meaning given to it in Condition 3.1.

 

“Fixed Rate Interest Amount” has the meaning given to it in Condition 3.1.

 

“Fixed Rate Interest Period” has the meaning given to it in Condition 3.1.

 

“Fixed Rate Payment Date” has the meaning given to it in Condition 3.1.

 

“Floating Interest Rate” has the meaning given to it in Condition 3.2.

 

“Floating Rate Interest Amount” has the meaning given to it in Condition 3.2.

 

“Floating Rate Interest Period” has the meaning given to it in Condition 3.2.

 

“Floating Rate Payment Date” has the meaning given to it in Condition 3.2.

 

“Free Cash-flow Before Debt Service” means EBITDA plus ESOP Cashflow less Capital Expenditure less Taxes Paid, in each case in respect of the annual financial period ending on the date of the relevant Audited Accounts.

 

“Global Certificates” has the meaning given to it in Condition 1.

 

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“IFRS” means the International Financial Reporting Standards issued by the International Accounting Standards Board, as from time to time adopted by the European Commission for use in the European Union.

 

“Insolvency Proceedings” means any insolvency proceedings or proceedings equivalent or analogous thereto including, but not limited to, (i) the Issuer becoming insolvent or unable to pay its debts as they fall due, (ii) an administrator or liquidator being appointed in respect of the Issuer, (iii) the Issuer taking any action for a readjustment or deferment of any of its obligations or makes a general assignment or an arrangement or composition with or for the benefit of its creditors or declares a moratorium in respect of any of its indebtedness or any guarantee of any indebtedness given by it, or (iv) an order being made or an effective resolution is passed for the winding up or liquidation of the Issuer.

 

“Interest Determination Date” has the meaning given to it in Condition 3.3(a).

 

“Interest Expense” means the amount of (a) the expense relating to interest and amounts in the nature of interest, discount, acceptance and commitment fees, amounts payable under interest rate hedging agreements and the interest element of payments under finance leases (including interest expense relating to the Securities), less (b) the income relating to interest and amounts in the nature of interest or premium, or amounts receivable under interest rate hedging agreements, in each case in respect of the annual financial period ending on the date of the relevant Audited Accounts, as determined in accordance with such Audited Accounts, plus (c) the amount of accrued but unpaid Deferred Interest, if any, as of the relevant Test Date.

 

“Interest Payment Date” has the meaning given to it in Condition 3.2.

 

“Interest Period” has the meaning given to it in Condition 3.2. “Issue Date” means 17 May 2006.

 

“Issuer Equity” means all present or future ordinary share capital and Advance Capital Contributions of the Issuer.

 

“Issuer Group” means the Issuer and its consolidated subsidiaries.

 

“Junior Obligations” has the meaning given to it in Condition 2.

 

“Liquidation Parity Securities” means any securities (including Distribution Parity Securities) or instruments issued, entered into or guaranteed by the Issuer which, in each case, rank (or in relation to which the Issuer’s payment obligations under any relevant guarantee rank), by their terms or by operation of law, pari passu with the claims of the holders of the Securities as regards entitlement to distributions representing principal on the voluntary or involuntary liquidation, dissolution or winding up of the Issuer.

 

“Make-Whole Price” means, per Security, the higher of (a) the principal amount of such Security and (b) the Net Present Value.

 

“Mandatorily Deferred Interest” has the meaning given to it in Condition 4.2.

 

“Margin” means 5.05% per annum.

 

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“Market Disruption Event” means any one of the following events or circumstances:

 

(a)                                 the occurrence of an outbreak or escalation of hostilities involving the Republic of Italy, the United Kingdom or the United States of America, or the declaration by the Republic of Italy, the United Kingdom or the United States of America of a national emergency or war or act of terrorism or other material national or international calamity or crisis;

 

(b)                                 the occurrence of a general banking moratorium on commercial banking activities by any relevant authority, or the occurrence of a material disruption in commercial banking or securities settlement or clearance services in each case in the Republic of Italy, the United Kingdom or the United States of America;

 

(c)                                  a change in national or international financial, political or economic conditions or currency exchange rates or exchange controls in the Republic of Italy, the United Kingdom or the United States of America, including, without limitation as a result of an act of terrorism or the effect of international market conditions on the financial markets in the Republic of Italy, the United Kingdom or the United States of America; or

 

(d)                                 trading generally on the Luxembourg Stock Exchange, the Mercato Telematico Azionario, the London Stock Exchange or the New York Stock Exchange has been suspended or materially limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices for securities have been required by any such exchanges or by order of any governmental authority;

 

in each case (a) to (d) above, having the effect that trading in the Issuer’s ordinary shares is suspended or materially limited on any stock exchange or in any over-the-counter market; or

 

(e)                                  all consents, clearances, approvals, authorisations, orders, registrations or qualifications of or with any governmental or regulatory authority having jurisdiction over the Issuer required in connection with the issue of the Issuer’s ordinary shares have not been obtained despite the Issuer’s best endeavours to obtain them; or

 

(f)                                   the occurrence of any event which would, in the Issuer’s opinion, result in the offering documents relating to the issue of the Issuer’s ordinary shares containing an untrue statement of a material fact or omitting to state a material fact therein or necessary in order to make the statements therein not misleading, and either (i) the disclosure of that event at such time, in the Issuer’s opinion, would have a material adverse effect on the Issuer’s and the Issuer Group’s business; or (ii) the disclosure relates to a previously undisclosed proposed or pending material business transaction, the disclosure of which would impede the Issuer’s ability to consummate such transaction; provided that no suspension period as contemplated by this paragraph shall exceed 90 days in any 360-day period.

 

“Maturity Date” means the Interest Payment Date falling in March 2066.

 

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“Net Present Value” means, with respect to any Security, the sum of (i) the present value of the principal amount as at the Reset Date plus (ii) the present values of all Scheduled Interest Amounts that would otherwise be payable on such Security during the period from the relevant Early Redemption Date to (and including) the Reset Date (excluding accrued but unpaid interest), such present values calculated using a discount rate equal to the Benchmark Rate as of 11.00 a.m. London time five business days prior to the date fixed for redemption, and discounting the relevant amounts to the date fixed for redemption of the Securities.

 

“Officer’s Certificate” means a certificate signed by the chief financial officer or two directors of the Issuer.

 

“Old Optionally Deferred Interest” has the meaning given to it in Condition 4.1.

 

“Optional Deferral Notice” has the meaning given to it in Condition 4.1.

 

“Optionally Deferred Interest” has the meaning given to it in Condition 4.1.

 

“Parity Securities” means all Distribution Parity Securities and Liquidation Parity Securities of the Issuer.

 

“Paying and Transfer Agents” has the meaning given to it in the preamble.

 

“Principal Paying and Transfer Agent” has the meaning given to it in the preamble.

 

“Principal Shareholder” means De Agostini S.p.A. (a company incorporated under the laws of Italy as a società per azioni), its Subsidiaries or B&D Holding, or any other entity; provided that in each case, it is controlled by one or more of the beneficial holders, provided further that for the purposes of this definition, an entity or B&D Holding shall be treated as being controlled, directly or indirectly, by any such holder(s) if the latter (whether by way of ownership of shares, proxy, contract, agency or otherwise) have or has (as applicable) the power to (i) appoint or remove all, or the majority, of its directors or other equivalent officers or (ii) direct its operating and financial policies.  For the purpose of this definition, “beneficial holder” means each of the beneficial holders that directly or indirectly control B&D Holding as at the Holdco Merger Effective Date (as defined in the Trust Deed) (an “original beneficial holder”) and any spouse, legal or testamentary heir, legal or testamentary executor and legal or testamentary administrator of an original beneficial holder.

 

“Proceedings” has the meaning given to it in Condition 18.2.

 

“Rating Agency” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies Inc (“S&P”), or any of its subsidiaries and their successors or Moody’s Investors Service Limited (“Moody’s”) or any of its subsidiaries and their successors or any rating agency substituted for any of them by the Issuer from time to time with the prior written approval of the Trustee.

 

“Redemption Price” has the meaning given to it in Condition 6.1.

 

“Reference Banks” has the meaning given to it in Condition 3.3(b).

 

“Register” has the meaning given to it in Condition 1.3.

 

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“Registrar” has the meaning given to it in the preamble.

 

“Regulation S” means Regulation S under the Securities Act.

 

“Relevant Date” means whichever is the later of (i) the date on which such payment first becomes payable and (ii) if the full amount payable has not been received by the Principal Paying and Transfer Agent or the Trustee on or prior to such date, the date on which, the full amount payable having been so received, notice to that effect shall have been given to the Securityholders.

 

“Relevant Taxing Jurisdiction” has the meaning given to it in Condition 8.

 

“Reserved Matters” has the meaning given to it in Condition 12.1.

 

“Reset Date” means 31 March 2016.

 

“Restricted Securities” has the meaning given to it in Condition 1.

 

“Restricted Global Certificate” has the meaning given to it in Condition 1.

 

“Rule 144A” means Rule 144A under the Securities Act.

 

“Scheduled Interest Amount” has the meaning given to it in Condition 3.2.

 

“Securities” has the meaning given to it in the preamble.

 

“Securities Act” means the U.S. Securities Act of 1933, as amended.

 

“Securityholder” means a registered holder of Securities.

 

“Subsidiary” means, in relation to any company, corporation or other legal entity (a “holding company”), a company, corporation or other legal entity (i) which is controlled, directly or indirectly, by the holding company; (ii) more than half the issued share capital of which is beneficially owned directly or indirectly by the holding company; (iii) which is a subsidiary of another Subsidiary of the holding company; or (iv) whose financial statements are, in accordance with applicable law and generally accepted accounting principles applicable to the Issuer, consolidated with those of that company or corporation. For the purposes of this definition, a company or corporation shall be treated as being controlled by another entity if the latter (whether by way of ownership of shares, proxy, contract, agency or otherwise) has the power to (a) appoint or remove all, or the majority, of its directors or other equivalent officers or (b) direct its operating and financial policies.

 

“Sufficient Authorised Equity” means, as of an Annual General Meeting, an amount of Authorised Equity that would enable the Issuer to pay in full, pursuant to Condition 5.2, an amount of Equity Funded Deferred Interest equal to the aggregate of the Scheduled Interest Amounts expected to accrue on the Securities during the two years following the date of such Annual General Meeting. The board of directors of the Issuer shall estimate such amounts at the time of such Annual General Meeting based on prevailing market prices for the Issuer’s ordinary shares, interest and foreign exchange rates, as applicable.

 

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“TARGET System” means the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) System or any successor thereto.

 

A “Tax Event” means the receipt by the Issuer of an opinion of counsel in the United Kingdom (experienced in such matters) to the effect that, as a result of (a) any amendment to, clarification of, or change (including any announced prospective change) in, the laws or treaties (or any regulations thereunder) of the United Kingdom affecting taxation, (b) any governmental action or (c) any amendment to, clarification of, or change in the official position or the interpretation of such governmental action that differs from the previously generally accepted position, in each case, by any legislative body, court, governmental authority or regulatory body, which amendment, clarification or change is effective, or such pronouncement or decision is announced, on or after the Issue Date, there is a more than insubstantial risk that the treatment of any of the Issuer’s items of income or expense with respect to the Securities as lawfully reflected on the tax returns (including estimated returns) filed (or to be filed) by the Issuer will not be respected by a taxing authority, which results in the Issuer being subject to a more than a de minimis amount of additional taxes, duties or other governmental charges with respect to the Securities in the United Kingdom.

 

“Taxes” has the meaning given to it in Condition 8.

 

“Taxes Paid” means the amount (in the Issuer’s reporting currency) paid by the Issuer or any member of the Issuer Group in respect of corporation or income taxes, or similar in respect of the annual financial period ending on the date of the relevant Audited Accounts, as determined in accordance with such Audited Accounts.

 

“Test Date” means the tenth business day prior to an Interest Payment Date.

 

“Trust Deed” has the meaning given to it in the preamble.

 

“Trustee” has the meaning given to it in the preamble.

 

“Unrestricted Global Certificate” has the meaning given to it in Condition 1.

 

“Unrestricted Securities” has the meaning given to it in Condition 1.

 

A “Withholding Tax Event” shall mean:

 

(a)                                 any change in, or amendment to, the laws or treaties (or any regulations or rulings promulgated thereunder) of any Relevant Taxing Jurisdiction affecting taxation which becomes effective on or after the Issue Date; or, if the Relevant Taxing Jurisdiction has changed since the Issue Date, the date on which the then current Relevant Taxing Jurisdiction became the Relevant Taxing Jurisdiction; or

 

(b)                                 any change in the official application, administration, or interpretation of the laws, treaties, regulations or rulings of any Relevant Taxing Jurisdiction (including a holding, judgment, or order by a court of competent jurisdiction), on or after the Issue Date or, if the Relevant Taxing Jurisdiction has changed since the Issue Date, the date on which the then current Relevant Taxing Jurisdiction became the Relevant Taxing Jurisdiction,

 

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in either case, resulting in a requirement for the Issuer to pay Additional Amounts in respect of payments on the Securities which the Issuer cannot avoid by the use of reasonable measures available to it.

 

“Written Resolution” means a resolution in writing signed by or on behalf of all holders of Securities who for the time being are entitled to receive notice of a meeting in accordance with the provisions of the Trust Deed, whether contained in one document or several documents in the same form, each signed by or on behalf of one or more such holders of the Securities.

 

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PRINCIPAL PAYING AND TRANSFER AGENT

 

The Bank of New York Mellon (acting through its London Branch)

One Canada Square

London E14 5AL

England

 

LUXEMBOURG PAYING AND TRANSFER AGENT

 

The Bank of New York Mellon (Luxembourg) S.A.
 Vertigo Building

Polaris

2-4 Eugène Ruppert, L-2453 
 Luxembourg

 

REGISTRAR

 

The Bank of New York Mellon (Luxembourg) S.A.
 Vertigo Building

Polaris

2-4 Eugène Ruppert, L-2453 
 Luxembourg

 

and/or such other or further Principal Paying and Transfer Agent, Registrar or Paying and Transfer Agents, and/or specified offices as may from time to time be appointed by the Issuer with the approval of the Trustee and notice of which has been given to the Securityholders.

 

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SCHEDULE 4
 PROVISIONS FOR MEETINGS OF SECURITYHOLDERS

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               The provisions of this Schedule 4 are subject to the provisions of Condition 12.

 

1.2                               As used in this Schedule the following expressions shall have the following meanings unless the context otherwise requires:

 

“Block Voting Instruction” means a document in the English language issued by a Paying and Transfer Agent in which:

 

(a)                                 it is certified that on the date thereof Securities which are held in an account with any Clearing System (in each case not being Securities in respect of which a Voting Certificate has been issued and is outstanding in respect of the meeting specified in such Block Voting Instruction) have been deposited with such Paying and Transfer Agent or (to the satisfaction of such Paying and Transfer Agent) are held to its order or under its control or are blocked in an account with a Clearing System and that no such Securities will cease to be so deposited or held or blocked until the first to occur of:

 

(i)                                     the conclusion of the meeting specified in such Block Voting Instruction; and

 

(ii)                                  the surrender to the Paying and Transfer Agent, not less than 48 Hours before the time for which such meeting is convened (or, if such meeting has been adjourned, the time fixed for its resumption), of the receipt issued by such Paying and Transfer Agent in respect of each such deposited Security which is to be released or (as the case may require) the Securities ceasing with the agreement of the Paying and Transfer Agent to be held to its order or under its control or so blocked and the giving of notice by the Paying and Transfer Agent to the Issuer;

 

(a)                                 it is certified that each Securityholder of such Securities has instructed such Paying and Transfer Agent that the vote(s) attributable to the Securities so deposited or held or blocked should be cast in a particular way in relation to the resolution(s) to be put to such meeting and that all such instructions are, during the period commencing 48 Hours prior to the time for which such meeting is convened and ending at the conclusion or adjournment thereof, neither revocable nor capable of amendment;

 

(b)                                 the aggregate principal amount of the Securities so deposited or held or blocked is listed (and, if in definitive form, listing the relevant certificate numbers) and distinguishing with regard to each such resolution between those in respect of which instructions have been given that the votes attributable thereto should be cast in favour of the resolution and those in respect of which instructions have been so given that the votes attributable thereto should be cast against the resolution; and

 

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(c)                                  one or more persons named in such Block Voting Instruction (each hereinafter called a “proxy”) is or are authorised and instructed by such Paying and Transfer Agent to cast the votes attributable to the Securities so listed in accordance with the instructions referred to in (c) above as set out in such Block Voting Instruction.

 

“Clearing System” means Euroclear and/or Clearstream, Luxembourg and includes in respect of any Security any clearing system on behalf of which such Security is held or which is the holder or (directly or through a nominee) registered owner of a Security, in either case whether alone or jointly with any other Clearing System(s).

 

“Eligible Person” means any one of the following persons who shall be entitled to attend and vote at a meeting:

 

(a)                                 a holder of a Global Certificate;

 

(b)                                 a holder of a Definitive Certificate which is not held in an account with any Clearing System;

 

(c)                                  a bearer of any Voting Certificate;

 

(d)                                 a proxy specified in any Block Voting Instruction; and

 

(e)                                  a proxy appointed by a holder of a Definitive Certificate which is not held in an account with any Clearing System.

 

“Extraordinary Resolution” means a resolution passed by the number of Eligible Persons specified in paragraph 4.4(b) at a meeting duly convened and held in accordance with this Schedule 4.

 

“First Meeting” means an initial meeting convened in accordance with the provisions of this Schedule.

 

“Reserved Matter” means any proposal:

 

(a)                                 to modify the maturity of the Securities or the dates on which, or manner in which, interest is payable in respect of the Securities;

 

(b)                                 to reduce or cancel the principal amount of, or interest on or to vary the method of calculating the rate of interest on, the Securities;

 

(c)                                  to change the currency of payment of the Securities;

 

(d)                                 to modify the provisions relating to status; or

 

to modify the provisions concerning the quorum required at any meeting of Securityholders or the majority required to pass an Extraordinary Resolution. .

 

“Second Meeting” means a meeting convened after adjournment for want of quorum of a First Meeting convened by means of the notice described in paragraph 4.2 below.

 

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“Voting Certificate” means a certificate in English issued by a Paying and Transfer Agent in which it is stated:

 

(a)                                 that on the date thereof Securities which are held in an account with any Clearing System (in each case not being Securities in respect of which a Block Voting Instruction has been issued and is outstanding in respect of the meeting specified in such Voting Certificate) were deposited with such Paying and Transfer Agent or (to the satisfaction of such Paying and Transfer Agent) are held to its order or under its control or are blocked in an account with a Clearing System and that no such Securities will cease to be so deposited or held or blocked until the first to occur of:

 

(i)                                     the conclusion of the meeting specified in such Voting Certificate; and

 

(ii)                                  the surrender of the Voting Certificate to the Paying and Transfer Agent who issued the same; and

 

(b)                                 that the bearer thereof is entitled to attend and vote at such meeting in respect of the Securities represented by such Voting Certificate.

 

“Written Resolution” means a resolution in writing signed by or on behalf of all holders of Securities who for the time being are entitled to receive notice of a meeting in accordance with the provisions of this Schedule, whether contained in one document or several documents in the same form, each signed by or on behalf of one or more such holders of the Securities.

 

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

 

“48 Hours” means a period of 48 hours including all or part of two days upon which banks are open for business both in the place where the relevant meeting is to be held and in each of the places where the Paying and Transfer Agents have their specified offices (disregarding for this purpose the day upon which such meeting is to be held) and such period shall be extended by one period or, to the extent necessary, more periods of 24 hours until there is included as aforesaid all or part of two days upon which banks are open for business in all of the places as aforesaid.

 

All references in this Schedule to a “meeting” shall, where the context so permits, include any relevant adjourned meeting.

 

2.                                      EVIDENCE OF ENTITLEMENT TO ATTEND AND VOTE

 

2.1                               A holder of a Security which is held in an account with any Clearing System may require the issue by a Paying and Transfer Agent of Voting Certificates and Block Voting Instructions in accordance with the terms of paragraph 3.

 

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For the purposes of paragraph 3, each Paying and Transfer Agent (including the Principal Paying and Transfer Agent) shall be entitled to rely, without further enquiry, on any information or instructions received from a Clearing System and shall have no liability to any Securityholder or other person for any Liability occasioned by its acting in reliance thereon, nor for any failure by a Clearing System to deliver information or instructions to any Paying and Transfer Agent (including the Principal Paying and Transfer Agent).

 

The holder of any Voting Certificate or the proxies named in any Block Voting Instruction shall for all purposes in connection with the relevant meeting be deemed to be the holder of the Securities to which such Voting Certificate or Block Voting Instruction relates, and the Paying and Transfer Agent with which such Securities have been deposited or the person holding Securities to the order or under the control of such Paying and Transfer Agent or the Clearing System in which such Securities have been blocked shall be deemed for such purposes not to be the holder of those Securities.

 

3.                                      PROCEDURE FOR ISSUE OF VOTING CERTIFICATES, BLOCK VOTING INSTRUCTIONS AND PROXIES

 

3.1                               Definitive Certificates not held in a Clearing System — Voting Certificate

 

A holder of a Definitive Certificate which is not held in an account with any Clearing System (not being a Definitive Certificate in respect of which a Block Voting Instruction has been issued and is outstanding in respect of the meeting specified in such Voting Certificate) may obtain a Voting Certificate in respect of such Definitive Certificate from a Paying and Transfer Agent subject to such Securityholder having procured that such Definitive Certificate is deposited with such Paying and Transfer Agent or (to the satisfaction of such Paying and Transfer Agent) is held to its order or under its control upon terms that no such Definitive Certificate will cease to be so deposited or held until the first to occur of:

 

(a)                                 the conclusion of the meeting specified in such Voting Certificate; and

 

(b)                                 the surrender of the Voting Certificate to the Paying and Transfer Agent who issued the same.

 

3.2                               Global Certificates and Definitive Certificates held in a Clearing System — Voting Certificate

 

A holder of a Security (not being a Security in respect of which instructions have been given to the Principal Paying and Transfer Agent in accordance with paragraph 3.4) represented by a Global Certificate or Definitive Certificate and which is held in an account with any Clearing System may procure the delivery of a Voting Certificate in respect of such Security by giving notice to the Clearing System through which such Securityholder’s interest in the Security is held specifying by name a person (an “Identified Person”) (which need not be the Securityholder himself) to collect the Voting Certificate and attend and vote at the meeting.  The relevant Voting Certificate will be made available at or shortly prior to the commencement of the meeting by the Principal Paying and Transfer Agent against presentation by such Identified Person of the form of identification previously notified by such Securityholder to the Clearing

 

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System.  The Clearing System may prescribe forms of identification (including, without limitation, a passport or driving licence) which it deems appropriate for these purposes.  Subject to receipt by the Principal Paying and Transfer Agent from the Clearing System, no later than 24 Hours prior to the time for which such meeting is convened, of notification of the principal amount of the Securities to be represented by any such Voting Certificate and the form of identification against presentation of which such Voting Certificate should be released, the Principal Paying and Transfer Agent shall, without any obligation to make further enquiry, make available Voting Certificates against presentation of the form of identification corresponding to that notified.

 

3.3                               Definitive Certificates not held in a Clearing System — Block Voting Instruction

 

A holder of a Definitive Certificate which is not held in an account with any Clearing System (not being a Definitive Certificate in respect of which a Voting Certificate has been issued and is outstanding in respect of the meeting specified in such Block Voting Instruction) may require a Paying and Transfer Agent to issue a Block Voting Instruction in respect of such Definitive Certificate by depositing such Definitive Certificate with such Paying and Transfer Agent or (to the satisfaction of such Paying and Transfer Agent) by procuring that, not less than 48 Hours before the time fixed for the relevant meeting, such Definitive Certificate is held to the Paying and Transfer Agent’s order or under its control, in each case on terms that no such Definitive Certificate will cease to be so deposited or held until the first to occur of:

 

(a)                                 the conclusion of the meeting specified in such Block Voting Instruction; and

 

(b)                                 the surrender to the Paying and Transfer Agent, not less than 48 Hours before the time for which such meeting is convened, of the receipt issued by such Paying and Transfer Agent in respect of each such deposited or held Definitive Certificate which is to be released or (as the case may require) the Definitive Certificate ceasing with the agreement of the Paying and Transfer Agent to be held to its order or under its control and the giving of notice by the Paying and Transfer Agent to the Issuer in accordance with paragraph 3.7 hereof of the necessary amendment to the Block Voting Instruction;

 

and instructing the Paying and Transfer Agent that the vote(s) attributable to the Definitive Certificate so deposited or held should be cast in a particular way in relation to the resolution or resolutions to be put to such meeting and that all such instructions are, during the period commencing 48 Hours prior to the time for which such meeting is convened and ending at the conclusion or adjournment thereof, neither revocable nor capable of amendment.

 

3.4                               Global Certificates and Definitive Certificates held in a Clearing System — Block Voting Instruction

 

A holder of a Security (not being a Security in respect of which a Voting Certificate has been issued) represented by a Global Certificate or Definitive Certificate and which is held in an account with any Clearing System may require the Principal Paying and Transfer Agent to issue a Block Voting Instruction in respect of such Security by first instructing the Clearing System through which such Securityholder’s interest in the Security is held to procure that the votes attributable to such Security

 

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should be cast at the meeting in a particular way in relation to the resolution or resolutions to be put to the meeting.  Any such instruction shall be given in accordance with the rules of the Clearing System then in effect.  Subject to receipt by the Principal Paying and Transfer Agent of instructions from the Clearing System, no later than 24 Hours prior to the time for which such meeting is convened, of notification of the principal amount of the Securities in respect of which instructions have been given and the manner in which the votes attributable to such Securities should be cast, the Principal Paying and Transfer Agent shall, without any obligation to make further enquiry, appoint a proxy to attend the meeting and cast votes in accordance with such instructions.

 

3.5                               Global Certificates and Definitive Certificates not held in a Clearing System — Appointment of proxy

 

(a)                                 A holder of a Global Certificate or a Definitive Certificate not held in an account with any Clearing System may, by an instrument in writing in the English language (a “form of proxy”) signed by the Securityholder or, in the case of a corporation, executed under its common seal or signed on its behalf by an attorney or a duly authorised officer of the corporation and delivered to the specified office of the Registrar or any Paying and Transfer Agent not less than 48 Hours before the time fixed for the relevant meeting, appoint any proxy to act on his or its behalf in connection with any meeting.

 

(b)                                 Any proxy appointed pursuant to subparagraph (a) above shall so long as such appointment remains in force be deemed, for all purposes in connection with the relevant meeting, to be the holder of the Securities to which such appointment relates and the holders of the Securities shall be deemed for such purposes not to be the Securityholder.

 

3.6                               Each Block Voting Instruction, together (if so requested by the Trustee) with proof satisfactory to the Trustee of its due execution on behalf of the relevant Paying and Transfer Agent, shall be deposited by the relevant Paying and Transfer Agent or (as the case may be) by the Registrar at such place as the Trustee shall approve not less than 24 Hours before the time appointed for holding the meeting at which the proxy or proxies named in the Block Voting Instruction proposes to vote, and in default the Block Voting Instruction shall not be treated as valid unless the Chairman of the meeting decides otherwise before such meeting proceeds to business.  A copy of each Block Voting Instruction shall be deposited with the Trustee before the commencement of the meeting but the Trustee shall not thereby be obliged to investigate or be concerned with the validity of or the authority of the proxy or proxies named in any such Block Voting Instruction.

 

3.7                               Any vote given in accordance with the terms of a Block Voting Instruction or form of proxy shall be valid notwithstanding the previous revocation or amendment of the Block Voting Instruction or form of proxy or of any of the instructions of the relevant Securityholder or the relevant Clearing System (as the case may be) pursuant to which it was executed provided that no intimation in writing of such revocation or amendment has been received from the relevant Paying and Transfer Agent (in the case of a Block Voting Instruction) or from the Securityholder thereof (in the case of a proxy appointed pursuant to paragraph 3.5) by the Issuer at its registered office (or such other place as may have been required or approved by the Trustee for the

 

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purpose) by the time being 24 Hours (in the case of a Block Voting Instruction) or 48 Hours (in the case of a proxy) before the time appointed for holding the meeting at which the Block Voting Instruction or form of proxy is to be used.

 

4.                                      CONVENING OF MEETINGS, QUORUM AND ADJOURNED MEETINGS

 

4.1                               The board of directors of the Issuer may at any time, and the Issuer shall , at the request of the Trustee or upon a requisition in writing signed by the holders of not less than 5% in aggregate principal amount outstanding of the Securities, convene a meeting of the Securityholders. Every such meeting shall be held at such time and place as the Trustee may appoint or approve in writing.

 

4.2                               At least 21 days’ notice (exclusive of the day on which the notice is given and of the day on which the relevant meeting is to be held) specifying the date, time and place of the meeting shall be given to the Securityholders prior to any meeting in the manner provided by Condition 15, and such notice shall be given to the Paying and Transfer Agents (with a copy to the Issuer and the Trustee).  Such notice, which shall be in the English language, shall (a) set out the full text of the resolutions to be proposed (unless the Trustee agrees that the notices shall instead specify the nature of the resolutions without including the full text) and (b) shall also include statements as to the manner in which Securityholders may arrange for Voting Certificates or Block Voting Instructions to be issued and, if applicable, appoint proxies and the details of the time limits applicable. Such notice may also specify the date of a Second Meeting. Notices of all meetings shall also be published and given in any other manner pursuant to the laws and regulations applicable from time to time.  A copy of the notice shall be sent by fax, following by registered mail, to the Issuer (unless the meeting is convened by the Issuer’s board of directors).

 

4.3                               A person (who may but need not be a Securityholder or agent) nominated in writing by the Issuer shall be entitled to take the chair at the relevant meeting, but if no such nomination is made or if at any meeting the person nominated shall not be present within 15 minutes after the time appointed for holding the meeting, the Securityholders or agents present shall choose one of their number to be Chairman. The Chairman of an adjourned meeting need not be the same person as was Chairman of the meeting from which the adjournment took place.

 

4.4                              Quorum

 

(a)                                 A meeting will be validly held if (i) at the First Meeting there are one or more Eligible Persons present holding or representing in aggregate at least one half of the principal amount of the Securities for the time being outstanding; or (ii) at the Second Meeting there are one or more Eligible Persons present whatever the principal amount of Securities held or represented, provided that in relation to a meeting held to consider a Reserved Matter, the necessary quorum shall be (i) at the First Meeting one or more Eligible Persons present holding or representing in aggregate at least three quarters of the principal amount of the Securities for the time being outstanding; and (ii) at the Second Meeting one or more Eligible Persons present holding or representing in aggregate at least one quarter of the principal amount of the Securities for the time being outstanding.

 

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(b)                                 The majority required to pass an Extraordinary Resolution shall be one or more Eligible Persons present holding or representing at least two thirds of the principal amount of the Securities represented at the relevant meeting

 

(c)                                  If within one hour after the time appointed for any First Meeting or Second Meeting a quorum is not present, the relevant meeting shall, if convened upon the requisition of Securityholders, be dissolved.

 

(d)                                 The Chairman may with the consent of (and shall if directed by) any meeting adjourn the same from time to time and from place to place (provided that (a) the meeting shall be dissolved if the Issuer and the Trustee together so decide and (b) no meeting may be adjourned more than once for want of quorum) but no business shall be transacted at any adjourned meeting except business which might lawfully (but for lack of required quorum) have been transacted at the meeting from which the adjournment took place.

 

(e)                                  Notice of any adjourned meeting at which an Extraordinary Resolution is to be submitted shall be given in the same manner as notice of an original meeting, provided that 10 days’ notice (exclusive of the day on which the notice is given and of the day on which the meeting is to be resumed) shall be sufficient and the notice shall otherwise be given in compliance with paragraph 4.2 and shall state the required quorum.

 

5.                                      CONDUCT OF BUSINESS AT MEETINGS

 

5.1                               Every question submitted to a meeting shall be decided in the first instance by a show of hands. Unless a poll is validly demanded before or at the time that the result is declared, the Chairman’s declaration that on a show of hands a resolution has been passed, passed by a particular majority, rejected or rejected by a particular majority shall be conclusive, without proof of the number of votes cast for, or against, the resolution. Where there is only one Eligible Person, this paragraph shall not apply and the resolution will immediately be decided by means of a poll.

 

5.2                               A demand for a poll shall be valid if it is made by the Chairman, the Issuer, the Trustee or one or more Eligible Persons representing or holding not less than one fiftieth of the aggregate principal amount of the outstanding Securities. A poll shall be taken in such manner and, subject as hereinafter provided, either at once or after an adjournment as the Chairman directs and the result of such poll shall be deemed to be the resolution of the meeting in respect of which the poll was held as at the date of the taking of the poll. A poll shall not prevent the continuance of the meeting for the transaction of any business other than the motion on which the poll will be held.

 

5.3                               Any poll at any such meeting on the election of a Chairman or on any question of adjournment shall be taken at the meeting without adjournment.

 

5.4                               Eligible Persons, the chairman, the Issuer, the Trustee, any director or statutory auditor of the Issuer and any other person approved by the meeting, including representatives of the Issuer and the Trustee and their respective lawyers and financial advisors, may attend and speak at any meeting.  Save as aforesaid, no person shall be entitled to attend and speak nor shall any person be entitled to vote at any meeting unless he is an Eligible Person. No person shall be entitled to vote at any meeting in

 

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respect of Securities which are deemed to be not outstanding by virtue of the proviso to the definition of “outstanding” in Clause 1 (Definitions and Interpretation).

 

5.5                               At any meeting, every Eligible Person present shall have:

 

(a)                                 on a show of hands, one vote; and

 

(b)                                 on a poll, one vote in respect of each €1,000 in aggregate principal amount of the outstanding Securities represented or held by such Eligible Person.

 

Without prejudice to the obligations of the proxies named in any Block Voting Instruction or form of proxy, any Eligible Person entitled to more than one vote need not use all his votes or cast all the votes to which he is entitled in the same way.

 

5.6                               The proxies named in any Block Voting Instruction or form of proxy need not be Securityholders.  Nothing herein shall prevent any of the proxies named in any Block Voting Instruction or form of proxy from being a director, officer or representative of or otherwise connected with the Issuer.

 

5.7                               A meeting shall, subject to the Conditions, and in any event, without prejudice to any powers conferred on other persons by this Trust Deed, have power by Extraordinary Resolution:

 

(a)                                 to approve any Reserved Matter;

 

(b)                                 to sanction any abrogation, modification, compromise or arrangement in respect of the rights of the Trustee, any Appointee, the Securityholders or the Issuer against any other or others of them, or against any of their property, whether such rights arise under this Trust Deed or otherwise;

 

(c)                                  to waive any breach or proposed breach by the Issuer of its obligations under or in respect of the Securities or the Trust Deed or any act or omission which might otherwise constitute an Enforcement Event under the Securities;

 

(d)                                 to appoint or revoke the appointment of the Trustee;

 

(e)                                  to give any authority or sanction which under the provisions of this Trust Deed is required to be given by Extraordinary Resolution;

 

(f)                                   to assent to any modification of the provisions of this Trust Deed or the Conditions which is proposed by the Issuer, the Trustee or any Securityholder;

 

(g)                                  to appoint any persons (whether Securityholders or not) as a committee or committees to represent the interests of the Securityholders and to confer upon such committee or committees any powers or discretions which the Securityholders could themselves exercise by Extraordinary Resolution;

 

(h)                                 to discharge or exonerate the Trustee and/or any Appointee from all liability in respect of any act or omission for which the Trustee and/or such Appointee may have become responsible under this Trust Deed;

 

99

 

(i)                                     to authorise the Trustee and/or any Appointee to concur in and execute and do all such deeds, instruments, acts and things as may be necessary to carry out and give effect to any Extraordinary Resolution;  and

 

(j)                                    to sanction the exchange or substitution for the Securities of, or the conversion of the Securities into, other securities of the Issuer or any other entity.

 

5.8                               Any resolution passed at a meeting of the Securityholders duly convened and held in accordance with this Trust Deed shall be binding upon all the Securityholders whether or not present or whether or not represented at such meeting and whether or not voting and each of them shall be bound to give effect thereto accordingly and the passing of any such resolution shall be conclusive evidence that the circumstances justify the passing thereof.  Notice of the result of the voting on any resolution duly considered by the Securityholders shall be published in accordance with Condition 15 by the Issuer within 14 days of such result being known, provided that the non-publication of such notice shall not invalidate such result.

 

5.9                               Minutes of all resolutions and proceedings at every meeting shall be made and entered in books to be from time to time provided for that purpose by the Issuer (if any) and any such minutes as aforesaid, if purporting to be signed by the Chairman of the meeting at which such resolutions were passed or proceedings transacted, shall be conclusive evidence of the matters therein contained and, until the contrary is proved, every such meeting in respect of the proceedings of which minutes have been made shall be deemed to have been duly held and convened and all resolutions passed or proceedings transacted thereat to have been duly passed or transacted.

 

6.                                      WRITTEN RESOLUTION

 

A Written Resolution shall take effect as if it were an Extraordinary Resolution.

 

7.                                      REGULATIONS

 

Subject to all other provisions of this Trust Deed, the Trustee may (after consultation with the Issuer where the Trustee considers such consultation to be practicable but without the consent of the Issuer or the Securityholders) prescribe such further or alternative regulations regarding the requisitioning and/or the holding of meetings and attendance and voting thereat as the Trustee may in its sole discretion reasonably think fit (including, without limitation, the substitution for periods of 24 Hours and 48 Hours referred to in this Schedule of shorter periods).  Such regulations may, without prejudice to the generality of the foregoing, reflect the practices and facilities of any relevant Clearing System.  Notice of any such further or alternative regulations may, at the sole discretion of the Trustee, be given to Securityholders in accordance with Condition 15 at the time of service of any notice convening a meeting or at such other time as the Trustee may decide.

 

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SCHEDULE 5
 FORM OF OFFICER’S CERTIFICATE

 

To:                             BNY Mellon Corporate Trustee Services Limited

One Canada Square

London E14 5AL

England

 

	
 
    	
[            ],   20[     ]
    

 

Dear Sirs

 

International Game Technology PLC

€750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066

 

This certificate is delivered to you in accordance with Clause 10(e) of the Trust Deed dated 17 May 2006, as supplemented by a first supplemental trust deed on 3 April 2015 and as further supplemented, amended and restated from time to time (the “Trust Deed”) and made between International Game Technology PLC, a public limited company incorporated in England and Wales with company number 09127533 (the “Issuer”) (as successor by merger to GTECH S.p.A., a società per azioni incorporated under the laws of the Republic of Italy (formerly known as Lottomatica S.p.A.)) and BNY Mellon Corporate Trustee Services Limited (as successor to J.P. Morgan Corporate Trustee Services Limited) (the “Trustee”).  All words and expressions defined in the Trust Deed shall (save as otherwise provided herein or unless the context otherwise requires) have the same meanings herein.

 

We hereby certify that, to the best of our knowledge, information and belief (having made all reasonable enquiries):

 

(a)                                 from and including [   ](5) [the Certification Date (as defined in the Trust Deed) of the last certificate delivered under Clause 10(e)](6) to and including [  ](7), the Issuer and each of its subsidiaries has complied with all the provisions relating to it as specified under this Trust Deed and/or the Conditions [other than [   ]](8); and

 

(b)                                 as at [   ](9), no Enforcement Event existed [other than [    ]](10) and no Enforcement Event has existed at any time prior to that date since [    ](11) [the Certification Date (as defined

 

(5) The Certification Date of the last certificate delivered under Clause 10(e), unless the certificate is the first certificate delivered thereunder, in which case insert date of Trust Deed.

 

(6) Include unless the certificate is the first certificate delivered under Clause 10(e), in which case delete.

 

(7) Specify a date no more than five days before the date of the certificate.

 

(8) If the Issuer or any subsidiary has failed to comply with any obligation(s), give details; otherwise delete.

 

(9) Specify a date no more than five days before the date of the certificate.

 

(10) If any Enforcement Event existed, give details; otherwise delete.

 

(11) Insert date of Trust Deed in respect of the first certificate delivered under Clause 10(e); otherwise delete.

 

101

 

in the Trust Deed) of the last certificate delivered under Clause 10(e)](12) [other than [    ]](13).

 

For and on behalf of

 

INTERNATIONAL GAME TECHNOLOGY PLC

 

	
 
    	
 
    	
 
    
	
[Chief Financial Officer/Director]
    	
[Director]
    

 

(12) Include unless the certificate is first certificate delivered under Clause 10(e), in which case delete.

 

(13) If any Enforcement Event did exist, give details; otherwise delete.

 

102

 

SCHEDULE 6
 FORM OF OFFICER’S CERTIFICATE RELATING TO MANDATORY DEFERRAL EVENT

 

To:                             BNY Mellon Corporate Trustee Services Limited

One Canada Square

London E14 5AL

England

 

	
 
    	
[            ],   20[     ]
    

 

Dear Sirs

 

International Game Technology PLC (company number: 09127533)

€750,000,000 Subordinated Interest-Deferrable Capital Securities due 2066

 

This certificate is delivered to you in accordance with Clause 10(n) of the Trust Deed dated 17 May 2006, as supplemented by a first supplemental trust deed on 3 April 2015 and as further supplemented, amended and restated from time to time (the “Trust Deed”) and made between International Game Technology PLC, a public limited company incorporated in England and Wales with company number 09127533 ((the “Issuer”) (as successor by merger to GTECH S.p.A., a società per azioni incorporated under the laws of the Republic of Italy (formerly known as Lottomatica S.p.A.)) and BNY Mellon Corporate Trustee Services Limited (as successor to J.P. Morgan Corporate Trustee Services Limited) (the “Trustee”).  All words and expressions defined in the Trust Deed shall (save as otherwise provided herein or unless the context otherwise requires) have the same meanings herein.

 

We hereby certify that, to the best of our knowledge, information and belief (having made all reasonable enquiries) that as of [    ](14), [no/a] Mandatory Deferral Event occurred. The Coverage Ratio as of such Test Date was [    ](15). The amount of available cash proceeds which may be used as provided in Condition 4.2 is €[    ].

 

[Insert additional details as necessary]

 

For and on behalf of

 

INTERNATIONAL GAME TECHNOLOGY PLC

 

	
 
    	
 
    	
 
    
	
[Chief Financial Officer/Director]
    	
[Director]
    

 

(14) The relevant Test Date

 

(15) Insert relevant Coverage Ratio calculated as of the Test Date.

 

103

 

SIGNATORIES

 

EXECUTED as a DEED by

INTERNATIONAL GAME

TECHNOLOGY PLC

by

 

Director’s signature:

 

Name of Director:

 

in the presence of:

 

Witness’s signature:

 

Name of Witness:

 

Address of Witness:

 

	
EXECUTED as a DEED   by
    	
 
    
	
BNY MELLON CORPORATE TRUSTEE SERVICES LIMITED (as successor to J.P. Morgan Corporate Trustee   Services Limited) acting by two of its   lawful attorneys:
    	
 
    

 

Attorney:

 

Attorney:

 

In the presence of

 

Witness’s signature:

 

Name:

 

Address:

 

104

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