AMENDMENT NUMBER TWO TO FINANCING AGREEMENT
ba
8. MISCELLANEOUS.
AMENDMENT
NUMBER TWO
This
AMENDMENT
NUMBER TWO TO FINANCING AGREEMENT (this
“Amendment”), dated
as
of October 3, 2007, is entered into by and among GAMETECH
INTERNATIONAL,
INC., a
Delaware corporation (the “Borrower”), each
subsidiary of the Borrower
listed as a “Guarantor” on the signature pages thereto (each a “Guarantor” and
collectively,
jointly and severally, the “Guarantors”), the
lenders from time to time party thereto (each
a
“Lender”
and
collectively, the “Lenders”), ABLECO
FINANCE LLC, a
Delaware limited liability company (“Ableco”),
as
collateral agent for the Lenders (in such capacity, together
with any successor collateral agent, the “Collateral Agent”),
and
Ableco as administrative agent for the Lenders (in such capacity, together
with
any successor administrative agent, the “Administrative
Agent”
and
together with the Collateral Agent, each an “Agent”
and
collectively, the “Agents”).
WITNESSETH
WHEREAS,
Borrower, the Guarantors, Administrative Agent, Collateral Agent, and
the
Lenders are parties to that certain Financing Agreement, dated as of March
28,
2007 (as amended, restated, supplemented or otherwise modified from time to
time, the “Financing Agreement”);
WHEREAS,
Borrower has been successful in its litigation with Trend Gaming Systems,
LLC (“Trend”),
which
litigation is identified on Schedule
6.01(f)
to the
Financing Agreement
(the “Litigation”);
WHEREAS,
as a consequence of Borrower’s success in the Litigation, two of the
three
appeal bonds posted by Borrower in respect of the Litigation will be released
to
Borrower. Those two bonds total $4,485,000, plus any interest accrued thereon
(collectively, the “Bond Proceeds”);
WHEREAS,
receipt by Borrower of the Bond Proceeds constitutes an Extraordinary Receipt
under Section
1.01 of
the
Financing Agreement;
WHEREAS,
pursuant to Section
2.05(c)(vii) of
the
Financing Agreement, Borrower
must pay any Extraordinary Receipts to Administrative Agent, and pursuant to
Section
2.05(d)
of the
Financing Agreement, payments of Extraordinary Receipts to Administrative Agent
shall be applied as mandatory prepayments, subject to a prepayment penalty,
against first the Term Loan and second the Revolving Loans (the “Extraordinary Receipts
Requirement”);
WHEREAS,
Borrower, the Guarantors, Administrative Agent, Collateral Agent, and the
Lenders entered into that certain Amendment Number One to Financing Agreement,
dated as of August 24, 2007 (“Amendment
One”);
WHEREAS,
the parties have agreed, subject to the terms set forth herein, that the
Bond
Proceeds shall be paid pursuant to the Financing Agreement Requirement instead
of the terms
in
Section
2(a) of
Amendment One; and
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WHEREAS,
in connection with the foregoing, and subject to the satisfaction of
the
conditions set forth herein, Borrower, Administrative Agent, Collateral Agent,
and the Lenders have agreed to amend the Financing Agreement on the terms set
forth herein.
NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency
of
which are hereby acknowledged, the parties agree as follows:
1.
DEFINITIONS
Capitalized
terms used herein and not otherwise defined herein shall have the meanings
ascribed
to them in the Financing Agreement.
2. CONSENT
Bond
Proceeds. Section
2(a) of
Amendment One is hereby deleted in its entirety and the Bond
Proceeds shall be paid and applied pursuant to the Extraordinary Receipts
Requirement.
3.
REPRESENTATIONS
AND WARRANTIES
Borrower
hereby represents and warrants to Agents and each Lender as
follows:
(a)
It
has the requisite power and authority to execute and deliver this Amendment
and
to perform its obligations hereunder and under the Loan Documents to which
it is
a party. The execution,
delivery and performance by it of this Amendment and the performance by it
of
each Loan Document to which it is a party (i) have been duly approved by all
necessary action and no other
proceedings are necessary to consummate such transactions, and (ii) are not
in
contravention
of (A) any law, rule, or regulation, or any order, judgment, decree, writ,
injunction, or
award
of any arbitrator, court or governmental authority binding on it, (B) the terms
of its organizational documents, or (C) any provision of any contract or
undertaking to which it is a party
or
by which any of its properties may be bound or affected;
(b)
This
Amendment has been duly executed and delivered by Borrower. This Amendment
and each Loan Document to which Borrower is a party is Borrower’s legal, valid
and binding obligation, enforceable against Borrower in accordance with its
terms, and is in full force
and
effect except as such validity and enforceability is limited by the laws of
insolvency and
bankruptcy, laws affecting creditors’ rights and principles of equity applicable
hereto;
(c)
No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly
or indirectly, the consummation of the transactions contemplated herein has
been
issued and
remains in force by any Governmental Authority against Borrower, any Guarantor,
Agent or any
Lender;
(d)
No
Default or Event of Default has occurred and is continuing on the date hereof
or
as
of the
date of the effectiveness of this Amendment; and
(e)
The
representations and warranties in the Financing Agreement and the other Loan
Documents
are true and correct in all material respects on and as of the date hereof,
as
though made
on
such date (except to the extent that such representations and warranties relate
solely to an
earlier date).
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4.
CONDITIONS
PRECEDENT TO AMENDMENT
The
satisfaction of each of the following shall constitute conditions precedent to
the effectiveness
of this Amendment and each and every provision hereof
(a)
Agents shall have received this Amendment, duly executed by
Borrower;
(b)
The
representations and warranties in this Amendment and the Financing Agreement,
as
amended by this Amendment, shall be true and correct in all respects on and
as
of the date hereof,
as though made on such date (except to the extent that such representations
and
warranties
relate solely to an earlier date); and
(c)
No
Default or Event of Default shall have occurred and be continuing on the date
hereof
or
as of the date of the effectiveness of this Amendment.
5.
GOVERNING
LAW
THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.
6.
ENTIRE
AMENDMENT; EFFECT OF AMENDMENT
This
Amendment, and the terms and provisions hereof, constitute the entire agreement
among
the
parties pertaining to the subject matter hereof and supersedes any and all
prior
or contemporaneous
amendments relating to the subject matter hereof. Except for the amendments
to
the
Financing Agreement expressly set forth herein, the Financing Agreement and
other Loan Documents shall remain unchanged and in full force and effect. To
the
extent any terms or provisions
of this Amendment conflict with those of the Financing Agreement or other Loan
Documents,
the terms and provisions of this Amendment shall control. This Amendment is
a
Loan
Document.
7.
COUNTERPARTS
This
Amendment may be executed in any number of counterparts, all of which taken
together
shall constitute one and the same instrument and any of the parties hereto
may
execute this
Amendment by signing any such counterpart. Delivery of an executed counterpart
of this Amendment
by telecopy shall be equally as effective as delivery of an original executed
counterpart
of this Amendment. Any
party
delivering an executed counterpart of this Amendment
by telecopy also shall deliver an original executed counterpart of this
Amendment, but
the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability,
and binding effect of this Amendment.
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8. MISCELLANEOUS.
(a)
Upon
the effectiveness of this Amendment, each reference in the Financing
Agreement
to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import
referring
to the Financing Agreement shall mean and refer to the Financing Agreement
as
amended
by this Amendment.
(b)
Upon
the effectiveness of this Amendment, each reference in the Loan Documents to
the
“Financing Agreement”, “thereunder”, “therein”, “thereof” or words of like
import referring to
the
Financing Agreement shall mean and refer to the Financing Agreement as amended
by this Amendment.
[Signature
Page Follows]
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IN
WITNESS
WHEREOF, the parties
have
caused
this Amendment
to
be
executed
and delivered as of the date first written above.
BORROWER:
GAMETECH
INTERNATIONAL, INC., a Delaware
corporation
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By: | ||
Name:
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Title:
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COLLATERAL
AGENT:
ABLECO
FINANCE LLC, a Delaware limited liabilty
company,
as Collateral Agent
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By: | ||
Name:
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Title:
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ADMINISTRATIVE
AGENT:
ABLECO
FINANCE LLC, a Delaware limited liability
company,
as Administrative Agent
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By: | ||
Name:
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Title:
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LENDERS:
ABLECO
FINANCE LLC, a Delaware limited liability
company,
on behalf of itself and its Affiliate assigns, as
Lenders
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By: | ||
Name:
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Title:
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(SIGNATURE
PAGE TO AMENDMENT NUMBER TWO TO FINANCING AGREEMENT)
BORROWER:
GAMETECH
INTERNATIONAL, INC., a Delaware
corporation
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By: | ||
Name:
|
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Title:
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COLLATERAL
AGENT:
ABLECO
FINANCE LLC, a Delaware limited liabilty
company,
as Collateral Agent
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By: | ||
Name:
|
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Title:
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ADMINISTRATIVE
AGENT:
ABLECO
FINANCE LLC, a Delaware limited liability
company,
as Administrative Agent
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By: | ||
Name:
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Title:
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LENDERS:
ABLECO
FINANCE LLC, a Delaware limited liability
company,
on behalf of itself and its Affiliate assigns, as
Lenders
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By: | ||
Name:
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Title:
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(SIGNATURE
PAGE TO AMENDMENT NUMBER TWO TO FINANCING AGREEMENT)