TWI 12.31.2012 EX 10.11

EX-10.11 2 twi12312012ex1011.htm EXHIBIT 10.11 TWI 12.31.2012 EX 10.11

Private & Confidential Execution copy

Dated 2 September 2011

ltaltractor Operations S.p.A. as Borrower

lntesa Sanpaolo S.p.A. as Arranger

lntesa Sanpaolo S.p.A. as ITO Facility Agent

lntesa Sanpaolo S.p.A. as lntercreditor Agent

Titan Europe pic and ltaltractor I.T.M. S.p.A. as ITO Guarantors

and

The Financial Institutions listed in Schedule 1 as ITO Lenders

AMENDMENT AND RESTATEMENT AGREEMENT No. 2

relating to a Euro 40,000,000

FACILITY AGREEMENT

dated 2 February 2006 and amended and restated on 19 May 2009

Contents

Clause Page

Definitions and interpretation......................................................................................................... 3

2 Amendments to the Principal Agreement...................................................................................... 4

3 Representations and warranties.................................................................................................... 4

4 Confirmation of the Guarantor ....................................................................................................... 6

5 Fees and expenses ....................................................................................................................... 6

6 Miscellaneous ................................................................................................................................ 7

7 Conditions precedent..................................................................................................................... 8

8 Conditions subsequent .................................................................................................................. 9

9 Governing Law............................................................................................................................. 10

10 Enforcement ................................................................................................................................ 10

Schedule 1 The ITO Lenders................................................................................................................. 13

Schedule 2 Amended and Restated Agreement ................................................................................... 14

THIS AMENDMENT AND RESTATEMENT AGREEMENT No. 2 is dated 2 September 2011 and made in London BETWEEN:

(1) ITALTRACTOR OPERATIONS S.p.A. as Borrower;

(2) TITAN EUROPE pic and ITALTRACTOR I.T.M. S.p.A. as ITO Guarantors; (3) INTESA SANPAOLO S.p.A. as Arranger;

(4) INTESA SANPAOLO S.p.A. as ITO Facility Agent;

(5) INTESA SANPAOLO S.p.A. as lntercreditor Agent; and

(6) THE FINANCIAL INSTITUTIONS listed in schedule 1 (The ITO Lenders), as ITO Lenders. WHEREAS:

(A) This Amendment and Restatement Agreement No. 2 is supplemental to an agreement made between the same parties dated 2 February 2006, amended and restated on 19 May 2009 and further amended on 15 June 2009, 28 May 2010 and 18 October 2010 (the Principal Agreement), whereby the ITO Lenders agreed to make available to the Borrower a facility of up to Euro 40,000,000.00 upon the terms and subject to the conditions therein contained.

(B) The parties to the Principal Agreement have agreed to enter into this Amendment and Restatement Agreement No. 2 to amend certain provisions of the Principal Agreement upon satisfaction of the conditions precedent indicated in clause 7 (Conditions precedent).

NOW IT IS AGREED as follows:

1 Definitions and interpretation

1.1 Definitions in Principal Agreement


1.1.1	Unless the context otherwise requires and save as mentioned below, words and expressions defined in the Principal Agreement shall have the same meanings when used in this Amendment and Restatement Agreement.

1.1.2 In addition to the foregoing:

(a) in the Principal Agreement and in this Amendment and Restatement Agreement No. 2 the expression "Amendment and Restatement Agreement No. 2" shall mean this Amendment and Restatement Agreement No. 2; and

(b) the term "Effective Date" has the meaning given to it in clause 7.1 (Conditions precedent).

1.2 Interpretation of Principal Agreement

References in the Principal Agreement to "this Agreement" shall unless the context otherwise requires, be references to the Principal Agreement as amended by this Amendment and Restatement Agreement No. 2 and words such as "herein", "hereof', "hereunder", "hereafter", "hereby" and "hereto", where they appear in the Principal Agreement, shalf be construed accordingly.

1.3 Incorporation of certain references

Clauses 1.2 (Construction), 1.3 (Italian terms) and 1.4.1 (Third party rights) of the Principal Agreement shall be deemed to be incorporated in this Amendment and Restatement Agreement No. 2 in full, mutatis mutandis.

1.4 Designation

In accordance with the Principal Agreement, the parties hereto designate this Amendment and

Restatement Agreement No. 2 as an ITO Finance Document.

2 Amendments to the Principal Agreement

With effect from the Effective Date the Principal Agreement shalf be amended and restated so that it shall be read and construed for all purposes as set out in Schedule 2 (Amended and Restated Agreement).

3 Representations and warranties

Each of the Obligors makes the representations and warranties set out in this clause 3 (Representations and warranties) on the date of this Amendment and Restatement Agreement No. 2 and the Effective Date.

3.1 Representations and warranties in Principal Agreement

The Repeating Representations are true and correct as if made at the date of this Amendment and Restatement Agreement No. 2 (or the Effective Date, as applicable) with reference to the facts and circumstances existing at such date.

3.2 Corporate power

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, this Amendment and Restatement Agreement No. 2 and the transactions contemplated by this Amendment and Restatement Agreement No. 2

3.3 Binding obligations

The obligations expressed to be assumed by it in this Amendment and Restatement Agreement No. 2 are, subject to any general principles of law limiting its obligations which are specifically referred to in any legal opinion delivered pursuant to clause 4 (Conditions of Utilisation) and Schedule 2 (Conditions Precedent) of the Principal Agreement, legal, valid, binding and enforceable obligations.

3.4 No conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, this Amendment and Restatement Agreement No. 2 do not and will not conflict with:

3.4.1 any law or regulation applicable to it;

3.4.2 its or any of its Subsidiaries' constitutional documents, or

3.4.3 any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries' assets.

3.5 Consents obtained

All Authorisations required or desirable:

3.5.1 to enable it lawfully to enter into, exercise its rights and comply with its obligations in this

Amendment and Restatement Agreement No. 2, and


3.5.2	to make this Amendment and Restatement Agreement No. 2 admissible in evidence in its jurisdiction of incorporation,

have been obtained or effected and are in full force and effect.

3.6 No filings required

Under the law of its jurisdiction of incorporation it is not necessary that this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents or the transactions contemplated by this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents, except for any taxes imposed by Italy and required in connection with the Security Documents or as applicable upon occurrence of a "caso d'uso" (case of use) or of "enunciazione" (explicit reference), according to articles 6 and 22 of the Presidential Decree n. 131, dated 26 April 1986.

4 Confirmation of the Guarantor

Each ITO Guarantor acknowledges the amendment and restatement of the Principal Agreement pursuant to clause 2 (Amendments to the Principal Agreement) of this Amendment and Restatement Agreement No. 2. Each ITO Guarantor acknowledges and agrees that the amendments to the Principal Agreement set forth in this Amendment and Restatement Agreement No. 2 shall not constitute for the purposes of the Security Documents and the guarantee granted by it pursuant to clause 17 (Guarantee and indemnity) of the Principal Agreement, novation of any of the obligations thereunder and confirms that, subject to any amendments to the Security Documents, its obligations under the ITO Finance Documents (including, for the avoidance of doubt, clause 17 (Guarantee and indemnity) of the Principal Agreement, and the Security Documents) and any Security, guarantee, suretyship and indemnity provided pursuant thereto, remain in full force and effect.

5 Feesandexpenses

5.1 Expenses

Within 5 Business Days of the date of this Amendment and Restatement Agreement No. 2 the Borrower shall pay the ITO Facility Agent and the Arranger the amount of all costs and expenses (including legal fees) incurred by any of them in connection with the negotiation, preparation, printing and execution of this Amendment and Restatement Agreement No. 2 and any other related document.

5.2 Stamp and other duties

The Borrower shall pay and, within three Business Days of demand, indemnify each ITO Finance Party against any cost, loss or liability that that ITO Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of this Amendment and Restatement Agreement No. 2 and any other related document.

5.3 Fee

The Borrower shall pay to the ITO Facility Agent (for the account of the ITO Lenders) a fee in the amount of €158,182 (the Upfront Fee). The Upfront Fee shall be payable to the ITO Facility Agent (for the account of the ITO Lenders) as follows:


(a)	50% by no later than the date falling 10 Business Days from the date of this Amendment and Restatement Agreement No. 2; and

(b) 50% by no later than 30 September 2011.

6 Miscellaneous

6.1 Continuation of Finance Documents


6.1.1	Save as amended by this Amendment and Restatement Agreement No. 2, the provisions of the Finance Documents shall continue in full force and effect and the Principal Agreement and this Amendment and Restatement Agreement No. 2 shall be read and construed as one instrument.

6.1.2

It is hereby acknowledged and agreed that the amendments to the Principal Agreement set forth in this Amendment and Restatement Agreement No. 2 shall not constitute for the purposes of the Security Documents and the guarantee granted by the ITO Guarantors pursuant to clause 17 (Guarantee and indemnity) of the Principal Agreement, novation of any of the obligations thereunder and, therefore, the parties hereto acknowledge and agree on the continuation of the Security created under the Security Documents.

6.2 Counterparts

This Amendment and Restatement Agreement No. 2 may be executed in any number of counterparts and by the different parties on separate counterparts, each of which when so executed and delivered shall be an original but all counterparts shall together constitute one and the same instrument.

6.3 Partial invalidity

If, at any time, any provision of this Amendment and Restatement Agreement No. 2 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 in any other respect or under the law of any other jurisdiction will be affected or impaired in any way.

6.4 No waiver

Save as specifically set out in this Amendment and Restatement Agreement No. 2, no waiver of any provision of any ITO Finance Document is given by the terms of this Amendment and Restatement Agreement No. 2 and the ITO Lenders expressly reserve all their rights and remedies in respect of any breach of, or other Default under the ITO Finance Documents.

6.5 Italian Transparency Provisions- Summary sheet ("Documento di Sintesr')

For the purposes of the transparency provisions set forth in the CICR Resolution of 4 March 2003 and in the "Oisposizioni sulfa trasparenza delle operazioni e dei servizi bancari e finanziari" issued by the Bank of Italy and amended from time to time, each party he to acknowledges and confirms that:


6.5.1	it has appointed and has been assisted by its respective legal counsel in connection with the negotiation, preparation and execution of this Amendment and Restatement Agreement No. 2; and


6.5.2	this Amendment and Restatement Agreement No. 2, and all of its terms and conditions, including the recitals and the schedules hereto, have been specifically negotiated {in Italian, "oggetto di trattativa individuate") between the parties hereto.

7 Conditions precedent

7.1 Conditions precedent

The amendments to be made to the Principal Agreement by this Amendment and Restatement Agreement No. 2 shall take effect on and from the date on which the ITO Facility Agent notifies the Company and the ITO Lenders in writing that it has received the following documents in form and substance satisfactory to it (the Effective Date):

7.1.1 any Security Document (other than the lntertractor 2011 Share Pledge) or amendment to the

Security Documents in form and substance satisfactory to the ITO Facility Agent;

7.1.2

satisfactory evidence that all corporate approvals which are required by the Obligors to approve the terms of, and the transactions contemplated by, this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents have been obtained, including a transcript, certified as true by a Director of the Company, of resolutions of the Board of Directors of the Obligors evidencing approval of this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents and related documents and authorising its appropriate officers to execute and deliver this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents and related documents and to give all notices and take all other action required by the Obligors under this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents;


7.1.3	specimen signatures of the persons authorised in the resolutions of the Board of Directors referred to in clause 7.1.2 above if different from those delivered in relation to the Principal Agreement;

7.1.4

a copy of any other Authorisation or other document, opinion or assurance which the ITO Facility Agent considers to be necessary or desirable following a change in law, banking regulations or banking practice in connection with the entry into and performance of the transactions contemplated by this Amendment and Restatement Agreement No.2, any Security Document or any amendments to the Security Documents or for the validity and enforceability of this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents; and

7.1.5 evidence that the fees, costs and expenses then due from the Borrower pursuant to clause 5

(Fees and expenses) above have been paid.

7.2 Further conditions precedent

The ITO Facility Agent shall only give notice pursuant to clause 7.1 (Conditions precedent)

above if on the date of such notice:


7.2.1	the representations and warranties set out in clause 3 (Representations and warranties) above are true and correct; and

7.2.2 no Default has occurred and is continuing under the ITO Finance Documents.

8 Conditions subsequent

8.1

Within 20 Business Days following the Effective Date, the Borrower shall deliver to the ITO Facility Agent a copy, certified as a true copy by a Director of the Company, of the original resolutions of the Board of Directors of the Borrower and ITM, duly signed and recorded in the relevant minute books, evidencing approval of this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents and related documents and authorising its appropriate officers to execute and deliver this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents and related documents and to give all notices and take all other action required by the Borrower and ITM under this Amendment and Restatement Agreement No. 2, any Security Document or any amendments to the Security Documents.


8.2	Within 30 days following the date of this Amendment and Restatement Agreement No. 2, the Company and the ITO Facility Agent shall agree a revised hedging policy setting out provisions relating to Hedging Agreements to be entered into pursuant to the Principal Agreement, in the same format as the Hedging Policy.

8.3

Within 30 days following the Effective Date, the Obligors shall procure that the shareholders of lntertractor enter into a new pledge agreement (the lntertractor 2011 Share Pledge) granting a pledge over 100% of the share capital of lntertractor in favour of the lntercreditor Agent for the benefit of the Secured Parties, such pledge agreement to be in form and substance reasonably satisfactory to the lntercreditor Agent and substantially the same form as the lntertractor Share Pledge and to be executed before a notary in Germany.


8.4	Within 10 Business Days following the date of this Amendment and Restatement Agreement No. 2, the Obligors shall procure that the following legal opinions are delivered to the ITO Facility Agent in form and substance satisfactory to the ITO Facility Agent:


8.4.1	a legal opinion of Gateley LLP as English legal advisers to the Company on power, capacity and due authorisation of the Company in substantially the same form as the legal opinion of HBJ Gateley Wareing issued on 19 May 2009 in connection with the Amendment and Restatement Agreement No. 1; and


8.4.2	a legal opinion of Gianni, Origoni, Grippo & Partners as Italian legal advisers to the Obligors on power, capacity and due authorisation of the Borrower, ITM and NewCo.

9 Governing Law

This Amendment and Restatement Agreement No. 2 shall be governed by English law.

10 Enforcement

The provisions of clause 38. (Enforcement) of the Principal Agreement shall apply mutatis mutandis to this Amendment and Restatement Agreement No. 2 as if set out in this Amendment and Restatement Agreement No. 2 in full.

IN WITNESS whereof the parties hereto have caused this Amendment and Restatement Agreement

No. 2 to be duly executed the day and year first above written.

EXECUTION PAGE

THE COMPANY

TITAN EUROPE PLC

acting by a director:

Director

THE BORROWER

ITALTRACTOR OPERATIONS S.P.A. acting by a director:

Director

THE ITO GUARANTORS TITAN EUROPE PLC

acting by a director:

Director

ITALTRACTOR I.T.M. S.P.A.

acting by a director:

Director

THE ARRANGER

SIGNED by

for and on behalf of

INTESA SANPAOLO S.P.A. pursuant to a power of attorney

THE INTERCREDITOR AGENT

SIGNED by

for and on behalf of

INTESA SANPAOLO S.P.A.

pursuant to a power of attorney

THE ITO FACILITY AGENT

SIGNED by ..

for and on behalf of

INTESA SANPAOLO S.P.A.

pursuant to a power of attorney

THE ITO LENDERS SIGNED by

for and on behalf of

INTESA SANPAOLO S.P.A.

pursuant to a power of attorney

SIGNED by

for and on behalf of

UNICREDIT S.P.A.

pursuant to a power of attorney

Schedule 1

The ITO Lenders



Name of the ITO Lender
Intesa Sanpalo S.p.A
Unicredit S.p.A

Schedule 2

Amended and Restated Agreement

Private & Confidential Execution copy

Dated 2 February 2006 and amended and restated on 19 May 2009 and 2

September2011

ltaltractor Operations S.p.A.

as Borrower

lntesa Sanpaolo S.p.A.

as Arranger

lntesa Sanpaolo S.p.A.

as ITO Facility Agent

lntesa Sanpaolo S.p.A.

as lntercreditor Agent

Titan Europe pic and ltaltractor I.T.M. S.p.A.

as ITO Guarantors

and

The Financial Institutions listed in Part 2 of Schedule 1 as OriginalITO Lenders

FACILITY AGREEMENT

NORTON ROSE

Contents

Clause Page

SECTION 1 INTERPRETATION................................................................................................ ............. 7

1 Definitions and interpretation .........................................................................................................7

SECTION 2 THE.FACILITY ......................................................;.....·....................................................... 34

2 The Facility...................................................................................................................................34

3 Purpose........................................................................................................................................34

4 Conditions of Utilisation ...............................................................................................................34

SECTION 3 UTILISATION .....................................................................................................................36

5 Utilisation......................................................................................................................................36

SECTION 4 REPAYMENT, PREPAYMENT AND CANCELLATION ....................................................38

6 Repayment...................................................................................................................................38

7 Prepayment and cancellation ........:.............................................................................................39

SECTION 5 COSTS OF UTILISATION .............................................................................,...................42

8 Interest .........................................................................................................................................42

9 Interest Periods ............................................................................................................................43

10 Changes to the calculation of interest..........................................................................................44

11 Fees .............................................................................................................................................45

SECTION 6 ADDITIONAL PAYMENT OBLJGATIONS..........................................................................47

12 Tax gross up and indemnities ......................................................................................................47

13 Increased costs ............................................................................................................................50

14 Other indemnities.........................................................................................................................51

15 Mitigation by the ITO Lenders...................................................................................................... 52

16 Costs and expenses ....................................................................................................................53

SECTION 7 GUARANTEE.....................................................................................................................54

17 Guarantee and indemnity.............................................................................................................54

SECTION 8 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT ......................... 57

18 Representations.............................................................................................................57

19 Information undertakings .............................................................................................................61

20 Financial covenants .....................................................................................................................65

21 General undertakings...................................................................................................................66

22 Events of Default..........................................................................................................................70

SECTION 9 CHANGES TO PARTIES ...................................................................................................77

23 Changes to the ITO Lenders ...................;...................................................................................77

24 Changes to the Obligors .........................................................................;......................................80

SECTION 10 THE FINANCE·PARTIES.............................:....................................................................81

25 Role of the ITO Facility Agent and the Arranger..........................................................................81

26 Conduct of business by the ITO Finance Parties ........................................................................87

27 Sharing among the ITO Finance Parties .............,.......................................................................87

SECTION 11 ADMINISTRATION .......................................................................................................... 90

28 Payment mechanics..................................................,..................................................................90

29 Set-off...................................................................................................:....................................... 93

30 Notices .........................................................................................................................................93

31 Calculations and certificates ........................................................................................................96

32 Partial invalidity ............................................................................................................................ 97

33 Remedies and Waivers................................................................................................................97

34 Amendments and Waivers...........................................................................................................97

35 Counterparts ........................................................................................,..............·.........................98

36 Summary Document ....................................................................................................................98

SECTION 12 GOVERNING LAW AND ENFORCEMENT.....................................................................99

37 Governing law ..............................................................................................................................99

38 Enforcement.................................................................................................................................99

Schedule 1 The Original Parties .......................................................................................................... 101

Schedule 2 Conditions precedent ........................................................................................................103

Schedule 3 Form of Utilisation Request............................................................................................... 107

Schedule 4 Form of Transfer Certificate ..............................................................................................109

Schedule 6 Form of Compliance Certificate ........................................................................................113

Schedule 7 Existing Security................................................................................................................114

Schedule 8 Timetables.........................................................................................................................115

Schedule 9 Repayment Schedule........................................................................................................116

Schedule 10 Hedging Policy ................................................................................................................118

Schedule 11 Existing Financial Indebtedness .....................................................................................120

THIS AGREEMENT is dated 2 February 2006 and amended and restated on 19 May 2009 and 2

September 2011 and made in London between:

(1) ltaltractor Operations. S.p.A. ("ITO" or the "Borrower");

(2) lntesa Sanpaolo S.p.A. (formerly Banca lntesa S.p.A.) as mandated lead arranger (the

"Arranger");

{3) Titan Europe pic and ltaltractor I.T.M S.p.A. ("ITM") as guarantors (the "ITO Guarantors");

(4) The Financial Institutions listed in Part 2 of Schedule 1 (the Original Parties) as lenders (the

"Original ITO Lenders");

(5) lntesa Sanpaolo S.p.A. (formerly Banca lntesa S.p.A.} as agent of the other ITO Finance

Parties (the "ITO Facility Agent");

(6) lntesa Sanpaolo S.p.A. (formerly Banca lntesa S.p.A.) as intercreditor agent of the Secured

Parties (the "lntercreditor Agent"). WHEREAS:

(A) the Company has acquired the Rome Group (as defined below) through the acquisition of the entire share capital of NewCo, 17.74 per cent. of the shares in ITM (all as defined below) and 1 per cent. of the shares in ltaltractor ITM S.A. a company incorporated and existing under the laws of the Grand Duchy of Luxembourg and having its registered office at 23 Avenue Monterey, L-2086, Luxembourg (Luxco) pursuant to the Acquisition Documents (as defined below) (the "Acquisition"). The 1 per cent of the shares in Luxco were subsequently transferred to NewCo (as defined below);

(B) the Company's enlarged share capital has been admitted to trading on the alternative investments market ("AIM"} in accordance with the rules of AIM (the "Admission") on the basis of, inter alia, an admission document dated 7 December 2005 prepared for the purpose of filing the application for the Admission (the "Admission Document");

(C) the Company wishes to secure the financial means to implement a restructuring plan of certain outstanding indebtedness of the Rome Group and has requested that the Facility be made available to the Borrower;

(D) the Company has further requested that a term loan facility of €100,000,000 and a revolving facility of €30,000,000 (the "Revolving Facility") are provided to ITM as part of the restructuring plan referred to in recital (C) above (the "ITM Facility");

(E) on 1 January 2007 Banca lntesa S.p.A. changed its co porate name to lntesa Sanpaolo S.p.A.;

(F)

on 20th October 2008 Banca di Roma S.p.A. and Bipop Carire S.p.A., inter alias, were merged into and formed part of Unicredit S.p.A., which became the legal successor in all the rights and obligations of Banca di Roma S.p.A. and Bipop Carire S.p.A.. On the same date Unicredit S.p.A. assigned its Corporate line of business (Ramo di Azienda Corporate) (comprehensive of any right and obligation formerly of Banca di Roma S.p.A. and Bipop Carire S.p.A. pertaining to this Agreement) to Unicredit Corporate Banking S.p.A. Subsequently, as of 1 November 2010, Unicredit Corporate Banking S.p.A has been merged into and is now part of Unicredit S.p.A., which became the legal successor in all the rights and obligations of Unicredit Corporate Banking S.p.A.;

(G) pursuant to a resolution passed at an extraordinary shareholders' meeting of 19 December

2006, NewCo S.p.A. changed its corporate name to "Titan ITM Holding S.p.A." and its registered office was moved to Crespellano (Bologna), Via Confortino no. 23/28, Localita Calcara;

(H) the Revolving Facility has been repaid in full by the Borrower and automatically cancelled at the end of the relevant Availability Period;

·(I) pursuant to the Amendment and Restatement Agreement No.1 the Parties agreed to amend the repayment schedule in respect of the loans outstanding under the Facility as at the date of the Amendment and Restatement Agreement No.1;

{J) the principal amount outstanding of the loans made under the Facility as at the date of the Amendment and Restatement Agreement No.2 is € 27,000,000 and the. Borrower has requested (amongst other amendments) that such principal amount be divided into two Loans, being Loan A in a principal amount of € 21,000,000, and Loan B in a principal amount o f6,000,000.

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

1 Definitions and interpretation

1.1 Definitions

In this Agreement, including the recitals:

"Acquisition" has the meaning given to it in recital (A).

"Acquisition Documents" means:

(a) a share option agreement dated 18 July 2005 and entered into by the Shareholders in NewCo and lTM in favour of the Company (as amended on 7 December 2005 (the "Option Agreement"));

(b) an option notice dated 7 December 2005 from the Company to the shareholders of

NewCo and ITM (the "Option Notice"); and

(c) any other document entered into or to be entered into for the purpose of implementing the transaction contemplated in the Option Agreement.

"Admission" has the meaning given to it in recital (B).

"Admission Document" has the meaning given to it in recital (B).

"Affiiiate" means, in relation to any person, a Subsidiary of thaiperson or a Holding Company of that person or any other Subsidiary of that Holding Company.

"AIM" has the meaning given to it in recital (B).

"Amendment and Restatement Agreement No.1" means the amendment and restatement agreement dated 19 May 2009, whereby the Parties hereto have amended and restated this Agreement upon the terms and subject to the conditions set out therein.

"Amendment and Restatement Agreement No.2" means the amendment and restatement agreement dated 2 September 2011, whereby the Parties hereto have amended and restated this Agreement upon the terms and subject to the conditions set out therein.

"Approved Market" means either (i) AIM; or (ii) the Official List of the London Stock Exchange or any other recognised investment exchange, reasonably acceptable to the lntercreditor Agent.

"Authorisation" means an authorisation, consent, filing, notarisation or registration.

"Availability Period" means the period from and including the date of this Agreement to and including 31 May 2006.

"Available Commitmene means an ITO Lender's Commitment minus:

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


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

"Available Facility" means the aggregate for the time being of each ITO Lender's Available

Commitment.

"Bond" means the "€100,000,000, 6.5% Guaranteed Notes due 2004" issued by Luxco and guaranteed by ITM (ISIN code no. XS0141764620).

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


(a)	the interest which an ITO 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 the principalamount or Unpaid Sum received been paid on the last day of that Interest Period;

exceeds:

(b) the amount which that ITO 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.

"Business Day" means a day (other than a Saturday or Sunday) on which banks are open for generalbusiness in Milan and London and which is also a TARGET Day.

"Business Plan" means business plan for the Titan Group for the period 2011 to 2015 dated

April 2011, a copy of which is in the agreed form, as revised from time to time in accordance with the ITO Finance Documents and in consultation with the ITO Facility Agent.

"Cashflow" means, in respect of any period, cash generated from operations, less income taxes paid, less net cash used in investing activities, less dividends paid, plus any proceeds from the issue of shares, and provided that no amount is taken into account more than once.

"Calculation Date" means 31 December 2006 and each 30 June and 31 December in each year thereafter until the end of the Facility Period.

"Commitment" means:

(a) in relation to an Original ITO Lender, the amount set opposite its name under the heading "Commitment" in Part 2 of Schedule 1 (The Original Parties) and the amount of any other Commitment transferred to it under this Agreement; and

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

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

"Company" means Titan Europe pic, a public limited company incorporated and existing under the laws of England and Wales with company number 03018340 and having its registered office at Bridge Road, Coakley, Kidderminster, Worcestershire, DY10 3SD, United Kingdom.

"Compliance Certificate" means a certificate substantially in the form set out in Schedule 6

(Form of Compliance Certificate).

"Consolidated Net Interest Payable" means, in respect of any relevant period, the aggregate amount of the interest (including the interest element of leasing and hire purchase payments and capitalised interest), commission, fees, discounts and other finance payments payable by any member of the Titan Group (including any commission, fees, discounts and other finance payments payable by any such member of the Titan Group under any hedging arrangement but deducting any commission, fees, discounts and other finance payments receivable by it under any interest rate hedging instrument) in respect of Financial Indebtedness but· deducting any other interest receivable by any member of the Titan Group on any deposit or bank account and any interest payable in respect of the Convertible Credits and excluding any interest charged (but not payable) as a result of the fair value adjustment of the Convertible Credits and other loans under the Framework Agreement.

"Convertible Creditsn means the portion of the consideration payable by the Company to the Existing Banks under the Framework Agreement, together with accrued interest on such consideration, the payment of which is deferred to a date falling on the eighth anniversary of the Framework Agreement (which indebtedness and interest may be converted, at the option of an Existing Bank, into shares in the Company).

"Currently Planned Financial Indebtedness" means additional Financial Indebtedness from time to time to be incurred by members of the Titan Group not exceeding in any financial year €5,000,000 in aggregate in respect of general borrowings and €6,000,000 in aggregate in respectoffinanceleases.

"Debt Service" means, in respect of any period, the aggregate of all cash payments made by the Titan Group in such period in respect of:

(a) interest, commission, fees, discounts, prepayment fees, premiums or charges and other finance payments in respect of Financial Indebtedness excluding such items relating to intra-group indebtedness; and

(b) repayments and prepayments of Financial Indebtedness, excluding

(i) any prepayment made under clause 7.5 (Mandatory prepayment - Excess

Cashflow);


(ii)	any amounts falling due under Short Term Financial Indebtedness (except in . respect of Short Term Financial Indebtedness that is accelerated or terminated); and

(iii) repayments of intra-group indebtedness

and provided that no amount is taken into account more than once.

"Debt Service Cover Ratio" means, in respect of any period, the ratio of Cashflow to Debt

Service.

"Default" means ali Event of Default or any event or circumstance specified in clause 22 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the ITO Finance Documents or any combination of any of the foregoing) be an Event of Default.

"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 Facility (or otherwise in order for the transactions contemplated by the ITO 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 ITO Finance Documents; or


(ii)	from communicating with other Parties in accordance with the terms of the ITO 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 any payment of dividends or other distribution (whether in cash or in kind) and any bonus issue or any return of capital including any payment in respect, or on the redemption, of any share capital whether at a premium or otherwise.

"EBITDA" means, in respect of any period, the consolidated profit on ordinary activities of the

Titan Group for such period:


{a)	before any exceptional items and extraordinary items (including any costs of restructuring the Titan Group following the Acquisition);

(b) after deducting (to the extent otherwise included) any gain over book value earned by a member of the Titan Group, and after adding back (to the extent otherwise deducted) any loss against book value incurred by a member of the Titan Group, on:


{i)	a disposal of an asset (not being an asset disposed of in the ordinary course of trading); and/or

(ii) a revaluation of an asset.

(d) after adding back {to the extent otherwise deducted) amortisation and impairment charges in relation to goodwill and other intangible assets;

{e) after adding back (to the extent otherwise deducted) depreciation and impairment charges;

(f) before any deduction for interest payable by any member of the Titan Group; (g) before Tax;

(h) before taking into account the applicable share of any profit (except to the extent received by a member of the Titan Group in cash) or loss of any joint venture, associate or other person which is not a member of the Titan Group;


(i)	before provision for any employee costs arising from share options or other employee share incentives; and

0) after deducting (to the extent otherwise included) profits {or adding back losses)

attributable to minority interests in members of the Titan Group,

in each case for such period. When used in relation to an individual member of the Titan Group, "EBITDA" shall be construed to mean the earnings before interest, tax, depreciation and

amortisation (calculated on the same basis as EBITDA, mutatis mutandis) of that member of the Titan Group calculated on an unconsolidated basis.

"EURIBOR" means, in relation to any Loan:

(a) the applicable Screen Rate; or

(b) (if no Screen Rate is available for the Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the ITO Facility Agent at its request quoted by the Reference Banks to leading banks in the European interbank market,

as of the Specified Time on the Quotation Day for the offering of deposits in euro for a period comparable to the Interest Period of the relevant Loan.

"euro" and "€" means the single currency of the Participating Member States.

"Event of Default" means any event or circumstance specified as such in clause 22 (Events of

Default).

"Excess Cashflow·means for aliy financial year of the Titan Group, the amount by which the aggregate of:

(a) Cashflow; less

(b) any of such Cashflow generated by any member of the Titan Group which the relevant member of the Titan Group is not permitted to distribute lend or transfer to the Rome Group or Titan Europe or where to do so would cause material taxation or other liabilities to be incurred; less

(c) provision for any Distribution to be made by Titan Europe pic in respect of such financial year (unless such Distribution is prohibited under this Agreement);

exceeds 140% of Debt Service for such financial year.

"Existing Banks" means collectively Abaxbank S.p.A., Banca Agricola Mantovana S.p.A., Banca CRV Cassa di Risparmio eli Vignola S.p.A., Unicredit S.p.A (formerly Unicredit Corporate Banking S.p.A, Banca di Roma S.p.A and Bipop Carire S.p.A}, lntesa Sanpaolo S.p.A. (formerly Banca lntesa S.p.A.), Banca Monte dei Paschi di Siena S.p.A., Banca Nazionale del Lavoro S.p.A., Banca Popolare deii'Emilia Romagna S.p.A., Banco di Sicilia S.p.A., Banco Popolare di Verona e Novara S.c.r.l, Centrobanca S.p.A., Credito Emiliano S.p.A., lnterbanca S.p.A., S.p.A., Mediocredito Trentino S.p.A., Meliorbanca S.p.A., CARISBO - Cassa di Risparmio In Bologna S.p.A, Unicredit Banca Mediocredito S.p.A. and "Existing Bank" means any one them.

"Existing Debt Chart" means a paper describing all Financial Indebtedness owed by the Rome

Group to third parties under existing facilities pre completion of the Acquisition.

"Existing Secured Facilities" means collectively: (a) the $24,385,000 facility owed by lntertractor America Co. as borrower to La Salle Bank N.A.; and (b) the Reals 29,251,000 facility owed by ltaltractor Brazil to Banco National do Desenvolvimento.

"Extension Option" means the option to extend the maturity of all or any part of the Loan B

outstanding as at the Termination Date in accordance with clause 6.2 (Extension Option).

"Facility" means the term loan facility made available under this Agreement as. described in clause 2 (The Facility).

"Facility Office" means the office or offices notified by an ITO Lender to the ITO Facility Agent in writing on or before the date it becomes an ITO Lender (or, following that date, by not less than five Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement.

"Facility Period" means the period from the date of this Agreement until all amounts (actual or contingent) payable by any Obligor under the ITO Finance Documents have been unconditionally and irrevocably paid or discharged in full by or on behalf of such Obligor to the satisfaction of the ITO Finance Parties.

"Fee Letter" means any letter or letters dated on or about the date of this Agreement between the Arranger, the lntercreditor Agent, the ITO Facility Agent and the Company setting out any of the fees referred to in clause 11 (Fees).

"FinancialCovenants" means the covenants contained in clause 20 (Financial covenants).

"Financial Indebtedness" means any indebtedness for or in respect of: (a) moneys 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 (including the Convertible Credits);

(d) the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, lAS or IFRS (as applicable), 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) any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing;

(g) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market valueshall be taken into account);

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

(i) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (h) above.

"Financial Quarter Day" means each 31 March, 30 June, 30 September and 31 December in any year.

"First Repayment Date" means 31 January 2011.

"First Triggering Date" means the date (being not earlier than the First Repayment Date) on which the Borrower delivers a Compliance Certificate showing that the Net Financial Indebtedness to EBITDA ratio is equal to or Jess than 3:1.

"Framework Agreement" means an agreement entered or to be entered into on or around the

21 December 2005 between, inter alios, the Existing Banks and the Company providing, inter alia, for the without recourse assignment to the Company of certain existing indebtedness of the Rome Group owed to the Existing Banks.

"GAAP" means:

(a) in relation to the Borrower and ITM, generally accepted accounting principles in Italy; and

(b) in relation to the Company, generally accepted accounting principles in the United Kingdom.

"Group" means the Titan Group or the Rome Group.

"Hedging Policy" means the provisions relating to ITO Hedging Agreements set out in

Schedule 10 (Hedging Policy}, as revised from time to time in accordance with the ITO Fina c

Documents and in consultation with the ITO Facility Agent.

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

"lAS" means the International Accounting Standards, as amended, replaced or supplemented from time to time by the InternationalFinancial Reporting Standards.

· "IFRS" means International Financial Reporting Standards issued and/or adopted by the

International Accounting Standards Board.

"lntercreditor Deed" means the. intercreditor deed dated as of the date hereof between inter alia the Obligors, the lntercredi.tor Agen. t, the ITO Facility Agent, the ITO Lenders and the ITO Lenders.

"Interest Payment Date" means each 31 January, 30 April, 31 July and 31 October in any year.

"Interest Period" means, in relation to a Loan, each period determined in accordance with clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with clause 8.3 (Default interest).

"lntertractor" means Titan lntertractor GmbH, a joint stock company incorporated and existing under the laws of Germany and having its registered office at Hagener Stn:isse 325, D-58285 Gevelsberg, Germany.

"lntertractor Acknowledgement of Debt" means the agreement acknowledging the debt owed by the Obligors to the ITO Finance Parties to be entered into by the Obligors in form and substance reasonably satisfactory to the lntercreditor Agent.

"lntertractor Share Pledge" means a pledge agreement granting a pledge over 100% of the share capital of lntertractor for the benefit of the Secured Parties to be entered into by the shareholders in lntertractor in form and substance reasonably satisfactory to the lntercreditor Agent.

"lntertractor 2011 Share Pledge" means a pledge agreement granting a pledge over 100% of the share capital of lntertractor for the benefit of the Secured Parties to be entered into by the shareholders in lntertractor pursuant to the Amendment and Restatement Agreement No.2 in form and substance reasonably satisfactory to the lntercreditor Agent and substantially the same form as the lntertractor Share Pledge.

"lntertractor USA" means lntertractor America Co., a company incorporated and existing under the laws of the state Wisconsin and having its registered office at 960 Proctor Drive, 53121 Elkhorn (WI), United States of America.

"lntertractor USA Share Pledge" means a pledge agreement granting a first priority pledge over 100% of the shares of ltaltractor USA in favour of the Secured Parties to be entered into by

the shareholders in lntertractor USA in accordance with clause 21.9.2 in form and substance reasonably satisfactory to the lntercreditor Agent.

"Italian Resident Lender" means an institution which, at any time:


(a)	is authorised or licensed to carry out banking activities within the territory of Italy pursuant to Legislative Decree No. 385 dated 1 September 1993; or

(b) is a financial institution pursuant to Article 107 of Legislative Decree No. 385 dated 1 September 1993; or


(c)	is a branch office iri Italy of an institution which is authorised or licensed in a country which is a member state of the European Union to carry out banking activities; and

(d) in each case is deemed to be tax resident in Italy pursuant to applicable Italian tax laws.

"Italian Security Documents" has the meaning given to it in the lntercreditor Deed.

"ltaltractor Brazil" means ltaltractor Landroni Ltda, a company incorporated and existing under the laws of Brazil and having its registered office at Rodovia Edgard Maximo Zambotto, km 79, Atibaia (SP), Brazil.

"Italy" means the Italian Republic.

"ITM" means ltaltractor I.T.M. S.p.A., a joint stock company (societa per aziom) incorporated and existing under the laws of Italy and having its registered office at Zona lndustriale Loc. Betlemme, 85100 Potenza, Italy.

"ITM Facility" has the meaning given to it in recital (D).

"ITM Facility Agent" means lntesa Sanpaolo S.p.A. in its capacity as agent under the ITM Facility Agreement.

"ITM Facility Agreement" means a facility agreement date as of the date hereof in relation to the ITM Facility and made, inter alios, between ITM as borrower, the Company and ITM as guarantors and the ITM Lenders.

"ITM Lenders" means the financial institutions named as original lenders in the ITM Facility Agreement.

"ITM Share Pledge" means a pledge agreement granting a pledge over 100% of the shares in ITM in favour of the Secured Parties to be entered into by the shareholders in ITM in form and substance reasonably satisfactory to the lntercreditor Agent.

"ITO" means ltaftractor Operations S.p.A., a joint stock company (societa per aziom) incorporated and existing under the laws of Italy and having its registered office at Via per Modena 152, 41014 Castelvetro di Modena, Italy.

"ITO Finance Document" means: (a) this Agreement;

(b) any Fee Letter;

(d) the lntercreditor Deed;

(e) any ITO Hedging Agreement;

(f) any Security Document;

(g) the Amendment and Restatement Agreement No.1;

(h) the Amendment and Restatement AgreementNo.2; and

(i) any other document designated as such by the lntercreditor Agent and the Borrower.

"ITO Finance Parties" means the lntercreditor Agent, lTd Facility Agent,. the Arranger, an ITO Lender or an ITO Hedging Bank.

"ITO Hedging Agreement" means any agreement or instrument relating to the protection against or benefit from any rate or price (including a swap, option, cap, collar, forward or floor) and any other derivative or risk hedging agreement or instrument entered into in connection with the Facility and in accordance with the Hedging Policy.

"ITO Hedging Banks" means a person that has entered into an ITO Hedging Agreement with the Borrower ·and who, at the date of entering into the ITO Hedging Agreement, satisfies the requirements of paragraph 2.2 of Schedule 10 (Hedging Policy).

"ITO Lender" means:

(a) any Original ITO Lender; and


(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with clause 23 (Changes to the ITO Lenders),

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

Agreement.

"ITO Share Pledge" means a pledge agreement granting a pledge over 100% of the share capital of ITO for the benefit of the Secured Parties in form and substance reasonably satisfactory to the lntercreditor Agent.

"loan" means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan and includes the Loan A and the Loan B.

"loan A" means a loan in a principal amount of €21,000,000 owed to the Lenders in the proportions set out in Part 2 of Schedule 1 (The Original Parties) as at the date of the Amendment and Restatement Agreement No.2.

"loan B" means a loan in a principal amount of €6,000,000 owed to the Lenders in· the proportions set out in Part 2 of Schedule 1 (The Original Parties) as at the date of the Amendment and Restatement Agreement No.2.

"Majority ITO lenders" means:

(a) if there are no Loans then outstanding, an ITO Lender or ITO Lenders whose

Commitments aggregate more than 66 2/3 % of the Total Commitments (or, if the Total

Commitments have been reduced to zero, aggregated more than 66%% of the Total

Commitments immediately prior to the reduction); or

(b) at any other time, an ITO Lender or ITO Lenders whose participations in. the Loans then

outstanding aggregate more than 66 2/3 % of all the Loans then outstanding.

"Majority Senior lenders" has the meaning given to it in the Jntercreditor Deed. "Margin" means 3.50 per cent. per annum provided that if:

(a) no Event of Default has occurred which is continuing; and


(b)	the ratio of the aggregate Net Financial Indebtedness of the Titan Group (including for the avoidance of doubt Financial Indebtedness created under any ITO Finance Document) to EBITDA on the most recent Calculation Date falling on or after 30 June 201is within a range set out below,

then the Margin for each Loan will be the percentage per annum set out below in the column opposite that range:



Ratio of Net Financial Indebtedness to EBITDA	Margin
Greater than 3.5:1	3.75 per cent. per annum
Less than or equal to 3.5:1 but greater than 3.0:1	3.50 per cent. per annum



Less than or equal to 3.0:1 but greater than 2.5:1	3.25 per cent. per annum
Less than or equal to 2.5:1 but greater than 2.0:1	2.75 per cent. per annum
Less than or equal to 2.0:1	2.50 per cent. per annum

However:

(A) any increase or decrease in the Margin for a Loan shall take effect on the date which is the first day of the Interest Period following receipt by the ITO Facility Agent of the Compliance Certificate for a period ending on the relevant Calculation Date pursuant to 19.2 (Compliance Certificate);

(B) if, following receipt by the ITO Facility Agent of the financial statements to be delivered pursuant to clause 19.1 (Financial Statements) and the relevant Compliance Certificate, those statements and Compliance Certificate do not confirm the basis for a reduced Margin, then the Margin for .a Loan shall be the percentage per annum determined using the table above and the revised ratio of aggregate Net Financial Indebtedness of the Titan Group (including for the avoidance of doubt Financial Indebtedness created under any ITO Finance Document) to EBITDA calculated using the figures in the Compliance Certificate; and

(C) while 1) an Event of Default is continuing or 2) any requirement of clause 20 (Financial covenants) is not satisfied, the Margin for any Loan shall be 3.75 per cent. per annum.

"Material Adverse Effect" means an effect or likely effect which is, or would be, material and adverse on:

(a) the business or financial condition of the Titan Group (taken as a whole);

(b) the ability of any Obligor to perform its financial obligations under any ITO Finance Document;

(d) the Security created under any Security Document or the ranking of such Security; or

{e) any right or remedy of an ITO Finance Party under an ITO Finance Document.

"Material Company" means, at any time: (a) an Obligor; or

(b) a wholly-owned member of the Titan Group that directly or indirectly holds shares in an

Obligor; or


(c)	a member of the Titan Group which: (i) is an Operating Affiliate; or

(ii) has gross assets, net assets or turnover (excluding intra-group items) which represents at least 10 per cent. of EBITDA, gross assets, net assets or turnover of the Titan Group, calculated on a consolidated basis

Compliance with the conditions set out in paragraph (c)(ii) shall be determined by reference to the most recent Compliance Certificate supplied under this Agreement and the latest audited consolidated financial statements of the Titan Group.

"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.

"Net Financial Indebtedness" means, at any date of determination, any indebtedness for or in respect of:

(a) moneys 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 (including the Convertible Credits);

(d) the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, lAS or IFRS (as applicable), 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) any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing;

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

institution; and

(i) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (h) above,

less,

cash and cash equivalent investments.

"Net Worth" means at any time and in respect of the Titan Group, the aggregate at such time of:

(a) the amount paid up or credited as paid up on the issued share capital of the Company (excluding any amount in respect of issued share capital that is required to be classified as a financial liability in accordance with the applicable GAAP);

(b) the amount standing to the credit of the share premium account of the Company (excluding any amount in respect of issued share capital that is required to be classified as a financial liability in accordance with the applicable GAAP);

(c) the amount standing to the credit (or less the amount standing to the debit) on the consolidated capital and revenue reserves of the Titan Group;

but after deducting the aggregate of:

(i) any amount in respect of goodwill and other intangible assets of the Titan Group;

(ii) any amount of the capital reserves of the Titan Group arising from the writing up of the book value of assets;

(iii} any amount of the revenue or other reserves of the Titan Group created by any surplus on the sale of any investment or other asset (not including stock-in-trade} of the Group; and

(iv} any amount attributable to minority interests.

"NewCo" means Titan ITM Holding S.p.A., a joint stock company .(societe per aziom) incorporated and existing under the laws of Italy and having its registered office at Crespellano (Bologna}, Via Confortino no. 23/28, Localita Calcara, Italy.

"NewCo Share Pledge" means a pledge agreement granting a shares pledge over 100% of the share capital of NewCo for the benefit of the Secured Parties entered into by the shareholders in NewCo.

"NewCo 2007 Share Pledge" means a pledge agreement over 100% of the increase in share capital of NewCo pursuant to the resolution of Newco dated 19 December 2006 for the benefit of the Secured Parties entered into on 26 January 2007 by the shareholders in NewCo.

"Notes" means the notes issued in respect of the Bond.

"Obligor'' means the Company, the Borrower or each ITO Guarantor. "Operating Affiliates" means collectively:

(a) intertractor USA; (b) ltaltractor Brazil; (c) lntertractor; and (d) NewCo.

"Option Notice" has the meaning given to it in paragraph (b) of the definition of Acquisition Documents.

"Original FinancialStatements" means:

(a) in relation to the Company, its audited consolidated financial statements of the Titan

Group for the financial year ended 31 December 2004; and

(b) in relation to the Borrower, its audited financial statements for the financial year ended on

31 December 2004 and the audited consolidated semi annual financial statements of

NewCo for the period up to 30 June 2005.

"Participating Member State" means any member state of the European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union.

"Party" means a party to this Agreement.

"Passin! Group S.r.l." means Passini Group S.r.l., a limited liability company (societe a responsabilita limitata), incorporated and existing under the laws of Italy and having its registered office at Via Cesare Costa 19/d,41100 Modena, Italy.

"Permitted Acquisitions" means at any time after the First Repayment Date, acquisition of a company or companies having an enterprise value (in aggregate) not exceeding €10,000,000 or its equivalent in any currency (it being understood that the "enterprise value" of the company shall be the value of its liabilities plus the net worth of such company) or otherwise with the prior written consent of the lntercreditor Agent (acting on the instructions of the Majority Lenders), such consent not to be unreasonably withheld.

"Permitted Disposals" means:

(a) up to and including the First Repayment Date, any sale, lease, transfer or other disposal:

(i) made in the ordinary course of trading of the disposing entity;

(ii) of assets in exchange for other assets comparable or superior as to type, value and quality;

(iii) of the assets identified in the audited financial statements of the Group for the year ended 31 December 2008 as being held for safe and (valued at £4,647,000 in such financial statements);

(iv) of assets from one member of the Group to another member of the Group provided that the acquiring company has not granted Security to any third party;

(v) of obsolete or redundant assets for cash; or

(vi) of receivables under any agreement relating to the provision of Short Term

Financial Indebtedness; and

(b) thereafter, any safe, lease, transfer or other disposal:

(i) under paragraph (a) of this definition; or


{ii)	where the higher of the market value or consideration receivable {when aggregated with the higher of the market value or consideration receivable for any other sale, lease, transfer or other disposal, other than any permitted under sub-paragraph (i) above) does not exceed €5,000,000 (or its equivalent in another currency or currencies) in any financial year.

"Permitted FinancialIndebtedness" means:

(a) up to and including the First Repayment Date:

(i)

Financial Indebtedness incurred under facilities existing as of the date of the Amendment and Restatement Agreement No.1 as listed in Schedule 11 (Existing Financial Indebtedness) as the same may from time to time be replaced, renewed or varied provided that the amount that is replaced, renewed or varied does not exceed the amount of the relevant facilities as at the date of the Amendment and Restatement Agreement No.1 and provided further that if, at any time: (i) the aggregate Financial Indebtedness of the Titan Group under the faci!ities referred to in Schedule 11 (Existing Financial Indebtedness) is less than (ii) the aggregate maximum amount permitted under this paragraph (a)(i) (as shown in column 3 (headed "Financial Indebtedness") of Part I (Existing Financial Indebtedness) and Part II (Existing Short Term FinancialIndebtedness) of Schedule 11 (Existing Financial Indebtedness)) (such difference, the Shortfall), the Titan Group may incur Financial Indebtedness not exceeding, in aggregate, the Shortfall under new facilities entered into by any member of the Titan Group, whether or not such new facilities replace, renew or vary facilities in existence at the date of the ITO Facility Agreement. It is understood that such new facilities shall constitute Permitted Financial Indebtedness under this paragraph (a} provided alwo; ys that the aggregate amount of all Financial Indebtedness under the existing facilities listed in Schedule 11 (Existing Financial Indebtedness} (as they may, from time to time, be replaced, renewed or varied) and any such additional facilities entered into pursuant to this paragraph (a){i), does not exceed the aggregate maximum amount of Financial Indebtedness permitted under this paragraph (a), as shown in the columns headed "Financial Indebtedness" in Parts I (Existing Financial Indebtedness) and II (Existing Short Term Financial Indebtedness) of Schedule 11 (Existing Financial Indebtedness)

(ii} intercompany loans within the Titan Group;

(iii) Currently Planned Financial Indebtedness; and

(iv) Short Term Financial Indebtedness; and

(v) Financial Indebtedness incurred with the written consent of the lntercreditor

Agent (acting on the instructions of the Majority Lenders);and


(b)	from the day immediately after the First Repayment Date, to the First Triggering Date:

(i) Financial Indebtedness referred to in paragraph (a) above; and

(ii) any other Financial Indebtedness not exceeding in aggregate €10,000,000 (or its

equivalent in any currency); (c) thereafter:

(i) Financial Indebtedness referred to in paragraphs (a) and (b) above (save that the consent of the lntercreditor Agent (acting on the instructions of the Majority Lenders) under sub-paragraph {a)(v) shall not be unreasonably withheld);

(ii) intercompany loans within the Titan Group; and

(iii) any other Financial Indebtedness which does not cause the ratio of Net Financial

Indebtedness to EBITDA to exceed the relevant level required under clause

20.1.1(b).

"Permitted Loans" means:

(a) up to an including the First Repayment Date:

(i) intercompany loans within the Titan Group;

(ii) loans made in accordance with normal trade credit;

(iii) loans made in accordance with the Business Plan in respect of investments in

India and China;

(iv) short-term loans to employees not exceeding £5,000 or its equivalent in any other currency;

(v) loans made with the written consent of the lntercreditor Agent (acting on the instructions of the Majority Lenders); and

(b) thereafter:

(i) loans permitted under paragraph (a) above (save that the consent of the lntercreditor Agent (acting on the instructions of the Majority Lenders) under s - paragraph (a)(vi) shall not be unreasonably withheld);


(ii)	intercompany loans wi 1n the Titan Group;

(iii) loans to third parties, provided that such loans to third parties shall not exceed in aggregate €5,000,000 (or any equivalent in any currency).

"Permitted Security Interest" means:

(a) up to and including the First Repayment Date:

(i) any netting or set-off arrangement entered into by any member of the Titan Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

(ii) any lien arising by operation of law and in the ordinary course of trading;

(iii) any Security entered into pursuant to any Security Document; or

(iv) any Security over or affecting any asset of Titan Steel if such Security is required by Lloyds TSB Bank pic or its Affiliates to secure indebtedness the principal amount of which does not exceed £15,000,000 (or its .equivalent in another currency or currencies) provided that, prior to the .creation of the Security, Titan Steel shall provide the other ITO Lenders (through the ITO Facility Agent) with details of the nature, type and extent of the Security and the progress of negotiations in relation .to such Security;

(v) any Security held by lntesa Sanpaolo S.p.A. in respect of the facilities provided to lntertractor USA as at the date of the Amendment and Restated Agreement; or

(vi) any Security created under further insurance obligations of the relevant member of the Titan Group owed to the ITO Finance Parties in relation to the Security Documents or to lntesa Sanpaolo S.p.A. in relation to the facilities referred to in sub-paragraph (a)(v) above; and

(b) thereafter:

(i) any Security permitted under paragraph (a) above;

(ii) any Security over or affecting any asset acquired by a member of the Titan Group after the First Repayment Date if:


(A)	the Security was not created in contemplation of the acquisition of that asset by a member of the Titan Group;


(B)	the principal amount secured has not been increased in contemplation or since the acquisition of that asset by a member of the Titan Group; an


(C)	the Security is removed or discharged within 6 Months of the date of acquisition of such asset; or

(iii) any Security over or affecting any asset of any company which becomes a member of the Titan Group after the First Repayment Date, where the Security is created prior to the date on which that company becomes a member of the Titan Group, if:


(A)	the Security was not created in contemplation of the acquisition of that company;


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


(C)	the Security is removed or discharged within 6 Months of that company becoming a member of the Titan Group;

(iv) any Security securing indebtedness the principal amount of which (when aggregated with the principal amount of any other indebtedness which has the benefit of Security given by any member of the Titan Group other than any permitted under paragraphs (b)(i) to (b) (iii) above) does not exceed €15,000,000 (or its equivalent in another currency or currencies).

"Placing" has the meaning given to it in recital (B).

"Qualifying Lender" means a bank or other financial institution:

(a) which is an Italian Resident Lender lending through a Facility Office located in Italy; or


(b)	has the benefit of a complete exemption from Italian withholding tax pursuant to an applicable tax treaty.

"Quotation Day" means, in relation to any period for which an interest rate is to be determined, two TARGET Days before the first day of that period unless market practice differs in the Relevant Interbank Market, in which case the Quotation Day will be determined by the ITO Facility Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

"Reference Banks" means the principal office in Milan of lntesa Sanpaolo S.p.A., Unicredit S.p.A. and San Paolo IMI S.p.A. or such other banks as may be appointed by the ITO Facil" Agent in consultation with the Borrower.

"Relevant Interbank Market" means the European interbank market

"Relevant Period" means each rolling period of twelve months ending on a Financial Quarter

Day.

"Repayment Date" means each date specified in the first column of Schedule 9 (Repayment

Schedule).

"Repayment Instalmerit" means each instalment for the repayment of the Loan A.

"Repeating Representations" means each of the representations repeated or deemed to be repeated under clause 18.21 (Time for making the representations).

"Revised Business Plan" has the meaning·given to it in clause 19.4.6.

"Rome Group" means NewCo and its Subsidiaries as at the date of completion of the

Acquisition.

"Screen Rate" means the percentage rate per annum determined by the Banking Federation of the European Union for the relevant period displayed on the appropriate page of the Telerate screen. If the agreed page is replaced or service ceases to be available, the ITO Facility Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the ITO Lenders.

"Secured Parties" has the meaning given to it in the lntercreditor Deed.

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

"Security Documents" means:

(a) the lntertractor USA Shares Pledge (when entered into);

(b) the NewCo Share Pledge;

{d) the lntertractor Acknowledgement of Debt;

(e) the lntertractor Share Pledge;

(f) the lntertractor 2011 Share Plege;

(g) the ITM Share Pledge;

(h) the ITO Share Pledge; and

(i) any other document designated as such by the lntercreditor Agent acting reasonably.

"Security Provider" means a person that is from time to time party to one or more Security Documents pursuant to which it grants any Security in favour of the Secured Parties otherwise for the benefit of the Secured Parties.

"Short Term Financial Indebtedness" means any unsecured Financial Indebtedness having a term not exceeding 12 months for or in respect of receivables sold or discounted or under any overdraft or other form of short term working capital finance in an aggregate amount not

exceeding at any one time the aggregate maximum amount of facilities for similar short term Financial Indebtedness existing as at 17 April 2009 as shown in Schedule 11 (Existing Financial Indebtedness).

"Specified Time" means a time determined in accordance with Schedule 8 (Timetables).

"Structure Memorandum" means a structure paper describing the Titan Group pre and post completion of the Acquisition.

"Subsidiary" means in respect of any person, any entity which is controlled directly or indirectly by that person or of whose dividends or distributions that person is entitled to receive more than 50 per cent. and any entity (whether or not so controlled) treated as a subsidiary in the latest financial statements of that person from time to time, and control for this purpose means the direct or indirect ownership of the majority of the voting share capital of such entity or the right or ability to direct management to comply with the type of material restrictions and obligations contemplated in this Agreement or to determine the composition of a majority of the board of directors (or like board) of such entity, in each case whether by virtue of ownership of share capital, contract or otherwise (and so that at the date of completion of the Acquisition the Subsidiaries of the Company shall include the Rome Group).

"Summary Document" means a document substantially in the form of Schedule 5 (Summary

Document) to be duly signed and delivered by the Borrower on the date of this Agreement.

"TARGET" means Trans-European Automated Real-time Gross Settlement Express Transfer payment system.

"TARGET Day" means any day on which TARGET is open for the settlement of payments 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).

"Termination Date" means 31 October 2015.

"Titan Group" means the Company and its Subsidiaries for the time being (and shall (or shall be deemed to) include any member of the Rome Group).

"Total Commitments" means the aggregate of the Commitments being €40,000,000 at the date of this Agreement.

"Titan Steel" means Titan Steel Wheels Limited, a company incorporated under the laws of England and Wales and having its registered office at Bridge Road, Coakley, Near Kidderminster, Worcestershire DY10 3SD.

"Transfer Certificate" means a certificate substantially in the form set out in Schedule 4 (Form of Transfer Certificate).

"Transfer Date" means, in relation to a transfer, the later of:

(a) the proposed Transfer Date specified in the Transfer Certificate; and

{b) the date on which the ITO Facility Agent executes the Transfer Certificate.

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

"Utilisation" means a utilisation of the Facility.

"Utilisation Date" means the date of a Utilisation, being the date on which the relevant Loan is to be made.

"Utilisation Request" means a notice substantially in the form set out in Schedule 3

(Requests).

"VAT" means value added tax and any other tax of a similar nature. "£"means the lawful currency of the United Kingdom.

1.2 Construction

1.2.1 Unless a contrary indication appears, any reference in this Agreement to:

(a) the "Arranger", the "lntercreditor Agent", the" ITO Facility Agent", any "ITO Finance Parties", any "ITO Lender", any "Obligor" or any "Material Company", the "lntercreditor Agent", any "Secured Party" or any "Party" shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

(b) "assets" includes present and future properties, revenues and rights of every description;

(c) references to "certified copy" means that the copy should (a) in relation to a document to which a person incorporated outside of the United Kingdom is a party, be certified as a true copy in accordance with normal practice in the relevant jurisdiction by a public notary, or one or two directors or other authorised representative of the party providing those documents or, (b) in relation to a document to which a person incorporated in the United Kingdom is a party, be certified as a true copy by a director or other authorised signatory of that person or by any of the lawyers to that person;

(d) a "ITO Finance Document" or any other agreement or instrument is a reference to that ITO Finance Document or "Acquisition Document" or other agreement or instrument as amended or novated;

(e) "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;

(f) 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;

(g) 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;

(h) "including" shall be construed as meaning "including without limitations";

(i) .an "obligation" means any duty, obligation or liability of any kind;

0) a "right" means any right, privilege, power, immunity or other interest or remedy of any kind;

(k) a reference to "extraordinary administration" in respect of a person or assets which are subject to the laws of Italy is a reference to extraordinary administration (amministrazione straordinaria) under Italian law;

(I) a reference to "insolvency proceedings" or "insolvency procedure" in respect of any person incorporated in Italy is a reference to any insolvency proceeding (procedura concorsuale) under the Bankruptcy Law;

(m) a provision of law is a reference to that provision as amended or re-enacted;

(n) unless otherwise specified a time of day is a reference to Brussels time;

(o) the "equivalent" of an amount specified in a particular currency (the "specified currency amount" shall be construed as a reference to the amount of the other relevant currency which can be purchased with the specified currency amount in the London foreign exchange market at or about 11 a.m. on the date the calculation falls to be made for spot delivery, as conclusively determined by the ITO Facility Agent; and

{p) words importing the plural include the singular and vice versa.

1.2.2 Section, clause and schedule headings are for ease of reference only.


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

1.2.4 A Default is "continuing" if it has not been remedied or waived.

1.3 Italian terms

In this Agreement, a reference to:

(a) a "liquidator" includes a curatore;

(b) a "winding-up, administration or dissolution" (and each of those terms) includes a person being declared bankrupt (fallimento);

(c) a "step or procedure" taken in connection with insolvency proceedings for any person includes it formally making a proposal to assign its assets pursuant to Article 1977 of the Italian Civil Code (cessione dei beni ai crediton) or filing a petition for a concordato preventivo or entering into a similar arrangement for the majority of its creditors;

(d) the "Italian Civil Code" means the Italian Civil Code approved by the Royal Decree of

16th March, 1942, no. 267 as amended and supplemented from time to time;

(e) the "Bankruptcy Law" means the Italian bankruptcy law set out in Royal Decree No

267 of 16th March 1942 of Italy as amended and supplemented from. time to time; and

(f) for the purposes of the definition of "Facility Period" and the other relevant provisions of the ITO Finance Documents, an amount is "irrevocably" paid or discharged on the date on which payment of the relevant amount is not capable of being revoked pursuant to the Bankruptcy Law or upon such earlier date as may be agreed by the Majority ITO Lenders acting reasonably following a financial analysis of the Borrower, having obtained the advice of their legal counsel and having regard to the financial condition of

the Borrower and any other circumstance which could trigger the revocation or discharge of such payment.

1.4 Third party rights


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


1.4.2	Notwithstanding any terms of any ITO Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time.

SECTION 2

THE FACILITY

2 The Facility

2.1 The Facility

2.1.1 Subject to the terms of this Agreement, the ITO Lenders make available to the Borrower a euro term loan facility in an aggregate amount equal to the Total Commitments.


2.2	ITO Finance Parties' rights and obligations


2.2.1	The obligations of each ITO Finance Party under the ITO Finance Documents are several. Failure by an ITO Finance Party to perform its obligations under the ITO Finance Documents does not affect the obligations of any other Party under the ITO Finance Documents. No ITO Finance Party is responsible for the obligati9ns of any other ITO Finance Party under the ITO Finance Documents.


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


2.2.3	An ITO Finance Party may, except as otherwise stated in the ITO Finance Documents, separately enforce its rights under the ITO Finance Documents.

3 Purpose

3.1 Purpose

The Borrower shall utilise all amounts borrowed by it under the Facility to (i) repay its existing intercompany indebtedness; (ii) finance its short term working capital requirements; and (iii) grant intercompany loans.

3.2 Monitoring

No ITO 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


4.1.1	No Utilisation Request may be delivered unless the ITO Facility Agent has received all of the documents and other· evidence listed in Schedule 2 (Conditions precedent) in form and substance reasonably satisfactory to the ITO Facility Agent.


4.1.2	The ITO Facility Agent shall notify the Company and the ITO Lenders promptly upon being so satisfied.

4.2 Further conditions precedent

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

4.2.1 no Default is continuing or would result from the proposed Loan;

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

SECTION 3

UTILISATION

5 Utilisation

5.1 Delivery of a Utilisation Request

The Facility may be utilised by delivery to the ITO Facility Agent of a duly completed Utilisation

Request not later than the Speqified Time.

5.2 Completion of a Utilisation Request


5.2.1	Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

(a) it includes the information as to the principal amount (or its equivalent in euro) of the

Existing Secured Facilities outstanding as at the date of such Utilisation Request;

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

·(d) the proposed Interest Period complies with clause 9 (Interest periods);

5.2.2 Only one Loan may be requested in each Utilisation Request.

5.3 Currency and amount and evidence.

5.3.1 The currency specified in a Utilisation Request must be euro.

5.3.2 Subject to clause 5.3.3, multiple Utilisations are permitted in respect of the Facility.

5.3.3 The amount of any proposed Loan must be an amount which is not more than the Available

Facility and which is a minimum of €5,000,000 or, if less, the relevant Available Facility.

5.4 ITO Lenders' participation


5.4.1	If the conditions set out in this Agreement have been met, each ITO Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.


5.4.2	The amount of each ITO Lender's participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.


5.4.3	The ITO Facility Agent shall notify each ITO Lender of the amount of each Loan and the amount of its participation in that Loan, in each case by the Specified Time.

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

6 Repayment

6.1 Repayment of the Loans


6.1.1	ITO shan repay the Loan A in 16 Repayment Instalments on each Repayment Date provided that ITO shall repay the Loan A in full on the Termination Date.


6.1.2	Each Repayment Instalment to be repaid in accordance with clause 6.1.1 shall be in an amount which reduces the Loan A by the amount set out opposite that Repayment Date in Schedule 9 (Repayment Schedule).


6.1.3	ITO shall (subject to clause 6.2 (Extension Option) below) repay the Loan B in full on the Termination Date.


6.1.4	Any part of the Facility which is repaid may not be re-borrowed.


6.2	Extension Option


6.2.1	ITO may request that the maturity date for all or any part of the Loan B outstanding as at the Termination Date, be automatically extended by one (1) year (so that ITO shall repay such amounts in full on 31 October 2016) on the terms of this Agreement, by notice to the ITO Facility Agent no laler than 11.00 a.m (Milan time) not less than ten (10) Business Days prior to the Termination Date.


6.2.2	If ITO does not exercise the Extension Option the outstanding Loan B shall be repaid in full on the Termination Date.


6.2.3	For the avoidance of doubt, the Extension Option may be exercised by ITO once only.


6.2.4	If the conditions set out in clause 6.2.5 below have been met, then the maturity date of each of the ITO Lenders' participations in the Loan B (or any part thereof) subject of the Extension Option shall be automatically extended pro rata to 31 October 2016 on the terms of this Agreement.


6.2.5	The ITO Lenders will only be obliged to comply with clause 6.2.4 above if the Borrower has notified the ITO Facility Agent in accordance with clause 6.2.1, the ITO Facility Agent has received the extension fee due from the Borrower pursuant to clause 11.4 (Extension Fee) and on the date of such notice and on the Termination Date:

(a} no Default is continuing or would result from the proposed extension of maturity; and

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

7 Prepayment and cancellation

7.1 Illegality

If it becomes unlawful in any applicable jurisdiction for an ITO Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan:


7.1.1 .	that ITO Lender shall promptly notify the ITO Facility Agent upon becoming aware of that event;


7.1.2	upon the ITO Facility Agent notifying the Borrower, the Commitment of that ITO Lender will be immediately cancelled; and

7.1.3 the Borrower shall repay that ITO Lender's participation in the Loans made to that Borrower on the last day of the Interest Period for each Loan occurring after the ITO Facility Agent has notified the Borrower or, if earlier, the date specified by the ITO Lender in the notice delivered to the ITO Facility Agent (being no earlier than the last day of any applicable grace period permitted by law).

7.2 Voluntary cancellation

The Borrower may, if it gives the ITO Facility Agent not less than 5 Business Days' (or such shorter period as the Majority ITO Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of €5,000,000) of any Available Facility. Any cancellation under this clause 7.2 (Voluntary Cancellation) shall reduce the Commitments of the ITO Lenders rateably.

7.3 Voluntary prepayment


7.3.1	Subject to the other provisions of this clause 7 (Prepayment and cancellation) the Borrower may, if it gives the ITO Facility Agent not less than 5 Business Days' (or such shorter period as the Majority ITO Lenders may agree) prior notice, prepay the whole or any part of any Loan (but, if in part, being an amount that reduces the amount of that Loan by a minimum amount of €2,000,000).

7.3.2 The Loan A may only be prepaid if:

(a) the whole of the Loan B and the whole of the Term Loan B (as defined in the ITM Facility Agreement) under the ITM Facility have been prepaid or will be prepaid at the same time;

{b) such Loan A and the Term Loan A (as defined in the ITM Facility Agreement) under the ITM Facility are prepaid at the same time in amounts which reduce each such loan by the same proportion.


7.3.3	Any prepayment of the Loan A under this clause 7.3 (Voluntary prepayment) shall satisfy the obligations under clause 6.1 (Repayment of Loans}, in inverse order.


7.4	Right of repayment and cancellation in relation to a single ITO lender


7.4.1	If:

{a) any sum payable to any ITO Lender by an· Obligor is required to be increased under clause 12.2.3 (Tax gross-up); or

{b) any ITO Lender claims indemnification from the relevant Borrower under clause 12.3

(Tax indemnity) or clause 13.1 (Increased costs),

the Borrower may, whilst the circumstance giving rise to the requirement or indemnification continues, give the ITO Facility Agent notice of cancellation of the Commitment of that ITO Lender and ·its intention to procure the repayment of that ITO Lender's participation in the Loans.

7.4.2 On receipt of a notice referred to in clause 7.4.1 above, the Commitment of that ITO Lender shall immediately be reduced to zero;


7.4.3	On the last day of each Interest Period which ends after the Borrower has given notice under clause 7.4.1 above (or, if earlier, the date specified by the relevant Borrower in that notice), the Borrower shall repay that ITO Lender's participation in that Loan.


7.5	Mandatory Prepayment - Excess Cashflow


7.5.1	If for any financial year of the Titan Group ending on any Calculation Date falling on or after 31 December 2012 until the end of the Facility Period, the Debt Service Cover Ratio is greater than 1.4:1, the Company shall procure that an amount equal to the Excess Cashflow shall be applied in prepayment of any outstanding Loans and any loans outstanding under the ITM Facility.


7.5.2	Any prepayment under this clause 7.5 (Excess Cashflow) shall be made within 20 Business Days of delivery to the ITO Facility Agent of the audited consolidated financial statements of the Titan Group under clause 19.1 (Financial statements) and shall be applied in the following order or priority:

(a) first, in prepayment of the Loan B and the Term Loan B {as defined in the ITM Facility

Agreement) in amounts which reduce each such loan by the same proportion; and

(b) secondly, in prepayment of the Loan A and the Term Loan A (as defined in the ITM Facility Agreement) in amounts which reduce each such loan by the same proportion (and in satisfaction of the repayment obligations in respect of each such loan in inverse order of maturity).

7.6 Restrictions


7.6.1	Any notice of cancellation or prepayment given by any Party under this clause 7 (Prepayment and cancellation) shall be irrevocable and, unless a contrary indication appears in this Agreement, 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.·


7.6.2	Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs and the provisions of clause 7.6.3, without premium or penalty.


7.6.3	Any prepayment made or to be made on or before 31 January 2008 shall be made together with a prepayment fee of 0.50% on the amount prepaid.

7.6.4

Without prejudice to the obligations to pay Break Costs pursuant to clause 10.4 (Break Costs) (if appropriate), no prepayment fee shall be payable by the Borrower in respect of a prepayment made in connection with the restructuring of the Titan Group which involves that Loan (or an equivalent new facility) being assumed or made available to another member of the Titan Group provided that the Majority Senior Lenders (acting reasonably) have provided their written consent to the restructuring.


7.6.5	Any other prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs due in accordance with clause 10.4 (Break Costs), with no prepayment fee, premium or penalty.


7.6.6	The Borrower may not re-borrow any part of a Loan which is prepaid.


7.6.7	The Borrower shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.


7.6.8	No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.


7.6.9	If the ITO Facility Agent receives a notice under this clause 7 (Prepayment and cancellation) it shall promptly forward a copy of that notice to either the Borrower or the affected ITO Lender, as appropriate.

SECTION 5

COSTS OF UTILISATION

8 Interest

8.1 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:

8.1.1 Margin; and

8.1.2 EURIBOR.

8.2 Payment of interest

The Borrower shall pay accrued interest on each Loan on the last day of each Interest Period.

8.3 Default interest

8.3.1

If an Obligor fails to pay any amount payable by it under an ITO Finance Document on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to clause 8.3.2 below, is 1.5 per cent. higher than the rate which would have been payable if the Unpaid Sum had, during the period of non-payment, constituted a Loan in the currency of the Unpaid Sum for successive Interest Periods, each of a duration selected by the ITO Facility Agent (acting reasonably). Any interest accruing under this clause 8.3 (Default interest) shall be immediately payable by the Obligor on demand by the ITO Facility Agent.


8.3.2	If any Unpaid Sum 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:

(a) the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

(b) the rate of interest applying·to the Unpaid Sum during that first Interest Period shall be 1.5 per cent. higher than the rate which would have applied if the Unpaid Sum had not become due.


8.3.3	Default interest (if unpaid) arising on an Unpaid Sum will be calculated in accordance with the provisions of article 1283 of the Italian Civil Code but will remain immediately due and payable.

8.4 Notification of rates of interest

The ITO Facility Agent shall promptly notify the ITO Lenders and the Borrower of the determination of a rate of interest under this Agreement.

8.5 Interest cap

If at the date of this Agreement the interest rate stated to be payable under this Agreement (including default interest) in respect of any Facility exceeds the maximum amount permitted for the relevant type of facility under Italian Law 108/1996, as amended, and Law. 24/2001 as amended (collectively the "Italian Usury Law"), then the interest rate payable by the Borrower hereunder shall be capped at the maximum amount permitted under such Italian Usury Law in relation to the relevant type of facility in each case.

9 Interest Periods

9.1 Duration of Interest Periods


9.1.1	Each Interest Period shall start on the Utilisation Date or (if already made) on the last day of its preceding interest Period.

9.1.2 The duration of each Interest Period for will be three Months provided that:

(a) subjectto sub-paragraph (b) of this clause.9.1.2, the first Interest Period shall end on the next Interest Payment Date;

(b) where a Loan is made less than 30 days before an Interest Payment Date, the first Interest Period shall end on the second Interest Payment Date after the Utilisation Date for that Loan;

(c) each Interest Period other than the first relating to a Loan shall end on the next succeeding Interest Payment Date; and

(d) in respect of the Loan A, no Interest Period shall extend beyond a Repayment Date.

9.2 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).

10 Changes to the calculation of interest

10.1 Absence of quotations

Subject to clause 10.2 (Market disruption), if EURIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable EURIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

10.2 Market disruption

10.2.1. If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on

each ITO Lender's share of that Loan for the Interest Period shall be the rate per annum which is the sum of:

{a) the Margin; and

(b) the rate notified to the ITO Facility Agent by that ITO 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 that ITO Lender

of funding its participation in that Loan from whatever source it may reasonably select.

10.2.2 In this Agreement "Market Disruption Event" means: .

(a) at or about noon on the Quotation Day for the relevant Interest Period the Screen

Rate is not available and none or only one of the Reference Banks supplies a rate to

the ITO Facility Agent to determine EURIBOR for euros for the relevant Interest Period;

(b) before close of business in London on the Quotation Day for the relevant Interest

Period, the ITO Facility Agent receives notifications from an ITO Lender or ITO Lenders

(whose participations in a Loan exceed 30 per cent. of that Loan) that the cost to it

or them of obtaining matching deposits in the Relevant Interbank Market would be

in excess of EURIBOR.

10.3 Alternative basis of interest or funding

10.3.1 If a Market Disruption Event occurs and the ITO Facility Agent or the Borrower so require, the

ITO Facility Agent and the Borrower shall enter into negotiations (for a period of not more than

thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

10.3.2 Any alternative basis agreed pursuant to clause 10.3.1 above shall, with the prior consent of all the ITO

Lenders and the Borrower, be binding on all Parties.

10.4 Break Costs

10.4.1 The Borrower shall, within three Business Days of demand by an ITO Finance Party, pay to that ITO Finance

Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by the Borrower on a

day other than the last day of an Interest Period for that Loan or Unpaid Sum.

10.4.2 Each ITO Lender shall, as soon as reasonably practicable after a demand by the ITO Facility Agent, provide a

certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

11 Fees

11.1 Commitment fee

11.1.1 The Borrower shall pay to the ITO Facility Agent (for the account of each ITO Lender) a fee computed at the

rate of 0.50 per cent. per annum on that ITO Lender's Available Commitment from the date of this Agreement

to the end of the Availability Period.

11.1.2 The first payment of the accrued commitment fee is payable on 30 April · 2006, and the subsequent

payments shall be made on each subsequent Financial Quarter Day which occurs during the Availability

Period and on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the

relevant ITO Lender's Commitment at the time the cancellation is effective.

11.2 Other fees

The Company shall pay to the Arranger {for its own account) the other fees in the amounts and at the times agreed in a Fee Letter.

11.3 Agency fee

The Company shall pay to the ITO Facility Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

11.4 Extension fee

If ITO exercises the Extension Option, ITO shall pay to the ITO Facility Agent (for the account of each ITO Lender) an extension fee in an amount equal to 0.30% of the amount of the Loan B which is the subject of the Extension Option, such extension fee to be payable on or before the Termination Date.

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

12 Tax gross up and indemnities

12.1 Definitions

12.1.1 In this Agreement:

"Protected Party" means an ITO 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 an ITO Finance Document to the extent the relevant

liabilities or required payments are not due to fraud or gross negligence of the Protected Party.

"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 under an ITO

Finance Document.

"Tax Payment" means either the increase in a payment made by an Obligor to an ITO Finance Party under

clause 12.2 (Tax gross-up) or a payment under clause 12.3 (Tax indemnity).

12.1.2 Unless a contrary indication appears, in this clause 12 (Tax gross up and indemnities) a reference to

"determines" or "determined" means a determination made in the absolute discretion of the person making

the determination.

12.2 Tax gross up

12.2.1 Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax

Deduction is required by law.

12.2.2 Each Obligor shall promptly upon becoming aware that an Obligor must make a Tax Deduction {or that there

is any change in the rate or the basis of a Tax Deduction) notify the ITO Facility Agent accordingly. Similarly,

an ITO Lender shall notify the ITO Facility Agent on becoming so aware in respect of a payment payable to

that ITO Lender. If the ITO Facility Agent receives such notification from an ITO Lender it shall notify the

Company and that Obligor.

12.2.3 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.


12.2.4	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 allowed and in the minimum amount required by law.

12.2.5 An Obligor shall not be required to make an increased payment to an ITO Lender under clause

12.2.3 for a Tax Deduction in respect of a Tax from a payment of interest on a Loan if, on the date on which the payment falls due, such payment could have been made to the relevant ITO Lender without a Tax Deduction if it was a Qualifying ITO Lender but, on that date, that ITO Lender is not or has ceased to be a Qualifying ITO Lender other than as a result of any change after the date it became an ITO 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.

12.2.6

Within thirty 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 ITO Facility Agent for the ITO Finance Parties entitled to the payment evidence reasonably satisfactory to that ITO Finance Parties that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

12.3 Tax indemnity

12.3.1 The Borrower shall (within three Business Days of demand by the ITO Facility Agent) pay 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 any Tax by that Protected Party in respect of an ITO Finance Document.

12.3.2 Clause 12.3.1 above shall not apply:

(a) with respect to any Tax assessed on an ITO Finance Party:

(i) under the law of the jurisdiction in which that ITO Finance Party is incorporated or:, if different, the

jurisdiction (or jurisdictions) in which that ITO Finance Party is treated as resident for tax purposes; or

(ii) under the law of the jurisdiction in which that ITO Finance Party's 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 (but not

any sum deemed to be received or receivable) by that ITO Finance Party; or

(b) to the extent a loss, liability or cost is compensated for by an increased payment under clause 12.2 (Tax gross-up).

12.3.3 A Protected Party making, or intending to make a claim under clause 12.3.1 above shall promptly notify the

ITO Facility Agent of the event which will give, or has given, rise to the claim, following which the ITO Facility

Agent shall notify the Borrower.

12.3.4 A Protected Party shall, on receiving a payment from an Obligor under this clause 12 (Tax gross up and

indemnities), notify the ITO Facility Agent.

12.4 Tax Credit

If an Obligor makes a Tax Payment and the relevant ITO Finance Parties determines that:

12.4.1 a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax

Payment; and

12.4.2 that ITO Finance Parties has obtained, utilised and retained that Tax Credit, the ITO Finance Parties shall pay

an amount to the Obligor which that ITO Finance Parties 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.

12.5 Stamp taxes

The Borrower shall pay and, within three Business Days of demand, indemnify each ITO

Finance Party against any cost, loss or liability that ITO Finance Parties incurs in relation to all

stamp duty, registration and other similar Taxes payable in respect of any ITO Finance

Document.

12.6 Value added tax

12.6.1 All amounts set out, or expressed to be payable under an ITO Finance Document by any Party to

an ITO 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 such supply, and accordingly,

subject to clause 12.6.3 below, if VAT is chargeable on any supply made by any ITO Finance

Parties to any Party under an ITO Finance Document, that Party shall pay to the ITO Finance

Parties (in addition to and at the same time as paying the consideration) an amount equal to

the amount ofthe VAT (and such ITO Finance Parties shall promptly provide an appropriate VAT

invoice to such Party).

12.6.2 If VAT is chargeable on any supply made by any ITO Finance Parties (the "Supplier") to any other ITO

Finance Parties (the "Recipient") under an ITO Finance Document, and any Party (the "Relevant Party") is

required by the terms of any ITO Finance Document to pay an amount equal to the consideration for such

supply to the Supplier (rather than being required to reimburse the Recipient in respect of that

consideration), such Party shall also pay to the

amount of such VAT. The Recipient will promptly pay to the Relevant Party an amount equal to any credit or repayment from the relevant tax authority which it reasonably determines relates to

the VAT chargeable on that supply.

12.6.3 Where an ITO Finance Document requires any Party to reimburse an ITO Finance Party for any costs or

expenses, that Party shall also at the same time pay and indemnify the ITO Finance Parties against all VAT

incurred by the ITO Finance Parties in respect of the costs or expenses to the extent that the ITO Finance

Parties reasonably determines that neither it nor any other member of any group of which it is a member

for VAT purposes is entitled to credit or repayment from the relevant tax authority in respect of the VAT.

13 Increased costs

13.1 Increased costs

13.1.1 Subject to clause 13.3 (Exceptions) the Borrower shall, within three Business Days of a demand by the ITO

Facility Agent, pay for the account of an ITO Finance Party the amount of any Increased Costs incurred by

that ITO Finance Parties 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 or (ii) compliance with any law or

regulation made after the date of this Agreement.

13.1.2 In this Agreement "Increased Costs" means:

(a) a reduction in the rate of return from a Facility or on an ITO Finance Party's (or its Affiliate's) overall

capital;

(b) an additional or increased cost; or

which is incurred or suffered by an ITO Finance Party or any of its Affiliates to the extent that it

is attributable to that ITO Finance Parties having entered into its Commitments or funding or

performing its obligations under any ITO Finance Document.

13.2 Increased cost claims

13.2.1 An ITO Finance Party intending to make a claim pursuant to clause 13.1 (Increased costs) shall notify the ITO

Facility Agent of the event giving rise to the claim, following which the ITO Facility Agent shall promptly notify

the Borrower.

13.2.2 Each ITO Finance Parties shall, as soon as practicable after a demand by the ITO Facility Agent, provide a

certificate confirming the amount of its Increased Costs.

13.3 Exceptions

13.3.1 Clause 13.1 (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 12.3 (Tax indemnity} (or would have been compensated for under clause 12.3

(Tax indemnity) but was not so compensated solely because any of the exclusions in clause 12.3.2 (Tax indemnity)

applied); or

13.3.2 In this clause 13.3 (Exceptions}, a reference to a "Tax Deduction" has the same meaning given to the term in

clause 12.1 (Definitions).

14 Other indemnities

14.1 Currency indemnity

14.1.1 If any sum due from an Obligor under the ITO 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:

(a) making or filing a claim or proof against that Obligor;

(b) obtaining or enforcing an order, judgment or awaid in ielation to any litigation or arbitration

proceedings,

that Obligor shall as an independent obligation, within three Business Days .of demand, indemnify each

ITO 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.

14.1.2 Each Obligor waives any right it may have in any jurisdiction to pay any amount under the ITO Finance

Documents in a currency or currency unit other than that in which it is expressed to be payable.

14.2 Other indemnities

The Borrower shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify each ITO Finance Party against any cost, loss or liability incurred by that

ITO Finance Parties as a result of:

14.2.1 the occurrence of any Event of Default;

14.2.2 a failure by an Obligor to pay any amount due under an ITO Finance Document on its due date, including

without limitation, any cost, loss or liability arising as a result of clause 27 (Sharing among the ITO Finance

Parties);

14.2.3 funding, or making arrangements to fund, its participation in a Loan requested by the Borrower 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 ITO Lender alone); or

14.2.4 a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower.

14.3 Indemnity to the ITO Facility Agent

The Borrower shall promptly indemnify the ITO Facility Agent against any cost, loss or liability incurred by the

ITO Facility Agent (acting reasonably) as a result of:

(a) investigating any event which it reasonably believes is a Default; or

(b) acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct

and appropriately authorised.

15 Mitigation by the ITO lenders

15.1 Mitigation

15.1.1 Each ITO Finance Parties shall, in consultation with the Borrower, take all reasonable steps 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 7.1 (Illegality), clause 12 (Tax gross-up and

indemnities) or clause 13 (Increased costs) including (but not limited to) transferring its rights and

obligations under the ITO Finance Documents to another Affiliate or Facility Office.

15.1.2 Clause 15.1.1 above does not in any way limit the obligations of any Obligor under the ITO

Finance Documents.

15.2 Limitation of liability

15.2.1 The Borrower shall indemnify each ITO Finance Party for all costs and expenses reasonably incurred by that

ITO Finance Parties as a result of steps taken by it under clause 15.1 (Mitigation}.

15.2.2 An ITO Finance Party is not obliged to take any steps under clause 15.1 (Mitigation} if, in the opinion of that

ITO Finance Party (acting reasonably), to do so might be prejudicial to it.

16 Costs and expenses

16.1 Transaction expenses

The Borrower shall promptly on demand pay the ITO Facility Agent and the Arranger the amount of all

reasonable costs and expenses (including legal fees) incurred by any of them in connection with the

negotiation, preparation, printing, execution of {but not costs of syndication after the date of this Agreement):

16.1.1 this Agreement and any other documents referred to in this Agreement; and

16.1.2 any other ITO Finance Documents executed after the date of this Agreement.

16.2 Amendment costs

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to

clause 28.9 (Change of currency), the Borrower shall, within three Business Days of demand, reimburse the

ITO Facility Agent for the amount of all costs and expenses (including legal fees} incurred by the ITO

Facility Agent in responding to, evaluating, negotiating or complying with that request or requirement.

16.3 Enforcement costs

The Borrower shall, within three Business Days of demand, pay to each ITO Finance Party the amount of all

costs and expenses (including legal fees} incurred by that ITO Finance Parties in connection with the

enforcement of, or the preservation of any rights under, any ITO Finance Document.

SECTION 7

GUARANTEE

17 Guarantee and indemnity

17.1 Guarantee.and indemnity

Each ITO Guarantor irrevocably and unconditionally, jointly and severally:

17.1.1 guarantees to each ITO Finance Party punctual performance by the Borrower of all the

Borrower's obligations under the ITO Finance Documents;

17.1.2 undertakes with each ITO Finance Party that whenever the Borrower does not pay any amount when due

under or in connection with any ITO Finance Document, that ITO Guarantor shall immediately on demand pay

that amount as if it was the principal obligor; and

17.1.3 indemnifies each ITO Finance Party immediately on demand against any cost, loss or liability suffered by that

ITO Finance Parties ·if my 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 ITO Finance Parties would

otherwise have been entitled to recover.

17.2 Continuing guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the ITO Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

17.3 Reinstatement

If any payment by an Obligor or any discharge given by an ITO Finance Party(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:

17.3.1 the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and

17.3.2 each ITO Finance Party shall be· entitled to recover the value or amount of that security or payment from each

Obligor, as if the payment, discharge, avoidance or reduction had not occurred.

17.4 Waiver of defences

The obligations of each ITO Guarantor under this clause 17 (Guarantee and indemnity) will not be affected by an act, omission, matter r thing which, but for this clause, would reduce, release

or prejudice any of its obligations under this clause 17 (Guarantee and indemnity) (without

limitation and whether or not known to it or any ITO Finance Parties) including:

17.4.1 any time, waiver or consent granted to, or composition with, any Obligor or other person;

17.4.2 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;

17.4.3 the taking, variation, compromiseexchange, 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;

17.4.4 any incapacity or lack of power, authority or legal personality of or dissolution or change in !he

members or status of an Obligor or any other person;

17.4.5 any amendment (however fundamental) or replacement of an ITO Finance Document or any other document

or security;

17.4.6 any unenforceability, illegality or invalidity of any obligation of any person under any ITO

Finance Document or any other document or security; or

17.4.7 any insolvency or similar proceedings.

17.5 Immediate recourse

Each ITO Guarantor waives any right it may have of first requiring any ITO Finance Parties (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 ITO Guarantor under this clause 17 (Guarantee and indemnity) This waiver

applies irrespective of any law or any provision of an ITO Finance Document to the contrary.

17.6 Appropriations

Until all amounts which may be or become payable by the Obligors under or in connection with the ITO

Finance Documents have been irrevocably paid in full, each ITO Finance Party(or any trustee or agent on its

behalf) may:

17.6.1 refrain from applying or enforcing any other moneys, security or rights held or received by that

ITO Finance Parties (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 ITO Guarantor shall be entitled to the benefit of the same; and

17.6.2 hold in an interest-bearing suspense account any moneys received from any ITO Guarantor or on account of

that ITO Guarantor's liability under this clause 17 (Guarantee and indemnity).

17.7 Deferral of ITO Guarantor's rights

Until all amounts which may be or become payable by the Obligors under or in connection with the ITO

Finance Documents have been irrevocably paid in full and unless the ITO Facility Agent otherwise directs, no

ITO Guarantor will exercise any rights which it may have by reason of performance by it of its obligations

under the ITO Finance Documents:

17.7.1 to be indemnified by an Obligor;

17.7.2 to claim any contribution from any other ITO Guarantor of any Obligor's obligations under the

ITO Finance Documents; and/or

17.7.3 to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the ITO

Finance Parties under the ITO Finance Documents or of any security taken pursuant to, or in connection with,

the ITO Finance Documents by any ITO Finance Parties.

17.8 Additionalsecurity

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 ITO Finance Parties.

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

18 Representations

Each Obligor makes the representations and warranties set out in this clause 18 (Representations) to each ITO Finance Parties.

18.1 Status

18.1.1 It is a corporation, duly incorporated .and validly existing under the law of its jurisdiction of incorporation.

18.2 Binding obligations

The obligations expressed to be assumed .by it in each ITO Finance Document are, subject to any general

principles of law limiting its obligations which are specifically referred to in any legal opinion delivered pursuant

to clause 4 (Conditions of Utilisation) and Schedule 2 (Conditions Precedent), legal, valid, binding and

enforceable obligations.

18.3 Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the ITO Finance

Documents do not and will not conflict with:

18.3.1 any Ia/( or regulation applicable to it;

18.3.2 its or any of its Subsidiaries' constitutional documents, except, insofar as this representation applies to the

NewCo Share Pledge, the ITO Share Pledge and the ITM Share Pledge, clause 7.2 of the by-laws of ITM, ITO

and NewCo in the 60 days following execution of this Agreement; or

18.3.3 any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries'

assets.

18.4 Power and authority

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 ITO Finance Documents to which it is a party and the transactions

contemplated by those ITO Finance Documents.

18.5 Validity and admissibility in evidence

All Authorisations required or desirable:

18.5.1 to enable it lawfully to enter into, exercise its rights and comply with its obligations in the ITO Finance

Documents to which it is a party; and

18.5.2 to make the ITO Finance Documents to which it is a party admissible in evidence in its jurisdiction of

incorporation,

have been obtained or effected and are in full force and effect.

18.6 Governing law and enforcement

18.6.1 The choice of English law as the governing law of the ITO Finance Documents governed by

English law will be recognised and enforced in its jurisdiction of incorporation.

18.6.2 Any judgment obtained in England in relation to an ITO Finance Document governed by English law will be

recognised and enforced in its jurisdiction of incorporation.

18.7 Deduction of Tax

It is not required to make any deduction for or on account of Tax from any payment it may make under

any ITO Finance Document.

18.8 No filing or stamp taxes

Under the law of its jurisdiction of incorporation it is not necessary that the ITO Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the ITO Finance Documents or the transactions contemplated by the ITO Finance Documents except for taxes imposed by Italy and required in connection with the Security Documents as specified in any of the legal opinions to be delivered pursuant to clause 4.1 (Initial conditions precedent) or as applicable upon occurrence of a "caso d'uso" (case of use) or of "enunciazione" (explicit reference), according to articles 6 and 22 of the Presidential Decree n. 131, dated 26 April

1986.

18.9 No default

18.9.1 No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation.

18.9.2 No other event or circumstance is outstanding which constitutes a default 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 w · might have a Material Adverse Effect.

18.10 No misleading information

18.10.1 All information provided by any member of the Titan Group to the ITO Finance Parties for the purposes of the

transaction contemplated in the ITO Finance Documents (collectively "Information") was true and accurate in

all material respects as at the date it was provided or as at the date (if any) at which it is stated.

18.10.2 The financial projections contained in the Business Plan and the Revised Business Plan (as applicable) have

been prepared on the basis of recent historical information and on the basis of reasonable assumptions.

18.10.3 To the best of its knowledge, having made reasonable enquiry nothing has occurred or been omitted from the

Information and no information has been given or withheld that results in that Information being untrue or

misleading in any material respect.

18.10.4 Any information provided in the Admission Document was to the best of its knowledge in accordance with the

facts and contains no omission likely to affect its import at the date such document was published.

18.11 Structure Memorandum

18.11.1 The Structure Memorandum:

(a) shows all members of the Titan Group and contains descriptions which in all material respects are true,

complete and correct of the corporate ownership structure of the Titan Group; and

(b) shows all inter company loans between members of the Rome Group as the date of its delivery,

except to the extent stated in a footnote in the Structure Memorandum.

18.12 Existing Debt Chart

As at the date of its delivery, the Existing Debt Chart provides accurate details of all indebtedness owed by the Rome Group to third parties as at the date falling 15 days prior to the date of its delivery and a projection of such indebtedness of the Borrower and ITM as at the

date of delivery (such projection to be prepared on the basis of reasonable assumptions).

18.13 Original Financial statements

18.13.1 Its Original Financial Statements were prepared in accordance with GAAP consistently applied.

18.13.2 Its Original Financial Statements fairly represent its financial condition and operations

(consolidated) during the relevant financial year.

18.13.3 There has been no material adverse change in its business or financial condition (or the business or

consolidated financial condition of the Titan Group or Rome Group) since the date on which such Original

Financial Statements were drawn up.

18.14 Pari passu ranking

Its payment obligations under the ITO 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.

18.15 Representations on the Acquisition Documents

18.15.1 To the best of its knowledge on the date of this Agreement, no representation or warranty (as qualified by any

related disclosure letter, Acquisition Document or schedule to an Acquisition Document) given by any party in

an Acquisition Document is untrue or misleading in any material respect.

18.15.2 The Acquisition Documents contain all the material terms of the Acquisition.

18.16 No proceedings pending or threatened

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if

adversely determined, might reasonably be expected to have a Material Adverse Effect have been started

or threatened against it or any of its Subsidiaries.

18.17 Status of Security

Each Security Document confers or following execution will confer (in each case on proper registration or

notification thereof, as the case may be) valid, fully perfected first ranking Security over the relevant

assets securing all the obligations expressed to be secured by that Security Document and those Security

other than any obligation mandatorily preferred by law.

18.18 Immunity

18.18.1 The execution by it of each ITO Finance Document to which it is a party constitutes, and the exercise by it of

its rights and performance of its obligations under each ITO Finance Document will constitute, private and

commercial acts performed for private and commercial purposes; and

18.18.2 It will not be entitled to claim immunity from suit, execution, attachment or other legal process in any

proceedings taken in its jurisdiction of incorporation in relation to any ITO Finance

18.19 Insolvency Proceedings

It has not taken any steps and, to its knowledge, no steps have been taken, for its winding up or dissolution, bankruptcy, extraordinary administration or any other insolvency proceedings or for the appointment of a receiver, administrator, administrative receiver, trustee or similar officer of it or of all or any of its assets.

18.20 Corporate benefit

The entry into and performance of its obligations under each ITO Finance Document to which it is a party is in

its commercial interests and to its corporate benefit and the competent corporate bodies have assessed and

satisfied themselves as to the existence of such corporate benefit.

18.21 Times for making representations

18.21.1 The representations set out in this clause are made on the date of this Agreement.

18.21.2 Unless a representation is expressed to be given at a specific date and except for those in clauses 18.9.2,

18.10, 18.11, 18.12 and 18.15.1, each representation is deemed to be repeated by each Obligor on the date of

each Utilisation Request and on the first day of each Interest.Period.

18.21.3 When a representation is repeated, it is applied to the circumstances existing at the time of repetition.

19 Information undertakings

The undertakings in this clause 19 (Information undertakings) remain in force from the date of this Agreement until the end of the Facility Period.

19.1 Financial statements

The Borrower.shall supply to the ITO Facility Agent in sufficient copies for all the ITO Lenders:

19.1.1 as soon as the same become available, but in any event within 180 days after the end of each relevant

financial years:

(a) its audited financial statements (consolidated where the financial statements

have been prepared on such basis) and its audited balance sheet (bilancio

civilistico) for that financial year; and

(b) the audited consolidated financial statements of the Company for that financial year;

and

19.1.2 as soon as the same become available, but in any event within 90 days after the end of each half of each

relevant financial years:

(a) its financial statements (consolidated where the financial statements have been prepared-on such

basis) for that financial half year;

(b) the consolidated financial statements of the Company for that financial year; and

19.2 Compliance Certificate

19.2.1 The Borrower shall supply to the ITO Facility Agent, with each set of financial statements delivered pursuant to

clause 19.1.1 or 19.1.2 (Financial statements), a Compliance Certificate setting out (in reasonable detail)

computations as to compliance with clause 20 (Financial covenants) as at the date as at which those financial

statements were drawn up and at any applicable Calculation Date.

19.2.2 Each Compliance Certificate shall be signed by two directors of the Borrower and, if required to be delivered

with any audited financial statements delivered pursuant to clause 19.1 (Financial statements) accompanied

by a report from the auditors of the Company, which report shall be in form and substance reasonably

satisfactory to the ITO Facility Agent.

19.3 Requirements as to financial statements

19.3.1 Each set of financial statements to be delivered pursuant to clause 19.1 (Financial statements) shall be

certified by a director of the relevant company as fairly representing the financial condition of such company

as at the date as at which those financialstatements were drawn up.

19.3.2 The Borrower shall procure that each set of financial statements delivered pursuant to clause 19.1 (Financial

statements) is prepared using the applicable GMP.

19.3.3 The Borrower shall procure that each set of financial statements of each ITO Guarantor delivE)red pursuant

to clause 19.1 (Financial statements) is prepared using GAAP, accounting practices and financial reference

periods consistent with those applied in the preparation of the Original Financial Statements of that ITO

Guarantor unless, in relation to any set of financial statements, it notifies the ITO Facility Agent that there has

been a change in GMP, the accounting practices or reference periods and the auditors of the relevant ITO

Guarantor deliver to the ITO Facility Agent:

(a) a description of any change necessary for those financial statements to reflect the GMP,

accounting practices and reference periods upon which that the Original Financial Statements of the

relevant ITO Guarantor were prepared; and

(b) sufficient information, in form and substance as may be reasonably required by the ITO Facility

Agent, to enable the ITO Lenders to determine whether clause 20 (Financial covenants) has been

complied with and make an accurate comparison between the financial position indicated in those

financial statements and the Original Financial Statements of the relevant ITO Guarantor

Any reference in this Agreement to those financial statements shall be construed as a reference to those

financial statements as adjusted to reflect the basis upon which the Original Financial Statements were

prepared.

19.4 «nformation:miscellaneous

Each Obligor shall supply to the ITO Facility Agent (in sufficient copies for all the ITO Lenders, if

the ITO Facility Agent so requests):

19.4.1 all documents dispatched by it to its shareholders (or any class of them) or its creditors generally at the

same time as they are dispatched;

19.4.2 promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings

which are current, threatened or pending against any member of the Titan Group, and which might, if

adversely determined, have a Material Adverse Effect;

19.4.3 promptly all material details of any material claim under the Acquisition Documents;

19.4.4 promptly any amendments to the Acquisition Documents made following the execution of this

Agreement;

19.4.5 promptly, such further information regarding the financial condition, business and operations of any member of

the Titan Group as any ITO Finance Parties (through the ITO Facility Agent) · may reasonably request;

19.4.6 by no later than 30 June 201Q, a revised business plan of the Titan Group (the "Revised Business Plan")

for the period from 2009 to 31 December 2014, in the same format as the Business Plan, revised to take in to

account all material changes in the financial and economic position of the Titan Group from the date of the

Business Plan to the date of preparation of the Revised Business Plan;

19.4.7 promptly upon having determined to acquire any company or merge with or into another company

proceed to any disposal of their assets, or to exercise any of the options referred to in clauses 21.6.2 and

21.7.3 below, a notice informing the ITO Facility Agent .of any such intention, together with a detailed

memorandum of the proposed transaction and a certificate signed by 2 (two) duly authorised representatives

confirming that in their reasonable opinion having made

due enquiry with appropriate professional advisers, such transaction will not lead to a Material

Adverse Effect.

19.5 Notification of default

19.5.1 Each Obligor shall notify the ITO Facility 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).

19.5.2 Promptly upon. a request by the ITO Facility Agent in circumstances where the ITO Facility Agent has

reasonable grounds for believing that a Default has occurred and is continuing, the Borrower shall supply to

the ITO Facility Agent a certificate signed by two of its directors or senior officers on its behalf certifying that no

Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to

remedy it).

19.6 "Know your customer" checks

19.6.1 If:

(a) 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;

(b) any change in the status of an Obligor after the date of this Agreement; or

under this Agreement to a party that is not an ITO Lender prior to such assignment or transfer;

obliges the ITO Facility Agent or any ITO Lender (or, in the case of paragraph (c) above, any

prospective new ITO Lender) to comply with "know your customer" or similar identification

procedures in any jurisdiction in circumstances where the necessary information is not already

available to it, each. Obligor shall promptly upon the request of the ITO Facility Agent or any ITO

Lender supply, or procure the supply of, such documentation and other evidence as is

reasonably requested by the ITO Facility Agent (for itself or on behalf of any ITO Lender) or any ITO

Lender (for itself or, in the case of the event described in paragraph (c) above, on behalf of any

prospective new ITO Lender) in order for the ITO Facility Agent, such ITO Lender or, in the case of

the event described in paragraph (c) above, any prospective new ITO Lender to carry out and be

satisfied it has complied with all necessary "know your customer" or other similar checks under all

applicable laws and regulations pursuant to the transactions contemplated in the ITO Finance

Documents.

19.6.2 Each ITO Lender shall promptly upon the request of the ITO Facility Agent supply, or procure the supply of,

such documentation and other evidence as is reasonably requested by the ITO

Facility Agent (for itself) in order for the ITO Facility Agent to carry out and be satisfied it has complied with all

necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to

the transactions contemplated in the ITO Finance Documents.

20 Financial covenants

20.1.1 The Obligors shall ensure that on each Calculation Date from and including 30 June 2011 unti.l the end of the Facility Period the following semi-annual financial covenants are met:

· (a) the ratio of EBITDA of the ·Titan Group to Consolidated Net Interest Payable of the

Titan Group shall not be at any time less than:

(i) 2.95:1 for the Calculation Date falling on 30 June 2011;

(ii) 3.70:1 for the Calculation Date falling on 31 December 2011;

{iii) 4,35:1 for the Calculation Date falling on 30 June 2012; and

(iv) 5.00:1 for each Calculation Date thereafter.

(b) the ratio of aggregate Net Financial Indebtedness of the Titan Group (including for the avoidance of doubt FinanCial Indebtedness created under any ITO Finance Document) to EBITDA shall not at any time be greater than:

(i) 5.00:1 for the Calculatioh Date falling on 30 June 2011;

(ii) 3.75:1 for the Calculation Date falling on 31 December 2011; (iii) 3.00:1 for the Calculation Date falling on 30 June 2012; and

(iv)2.20:1 for each Calculation Date thereafter.

{c) the ratio of aggregate Net Financial Indebtedness of the Titan Group (including for the avoidance of doubt Financial Indebtedness created under any ITO Finance Document) to Net Worth shall not at any time be greater than:

(i) 1.78:1 for the Calculation Date falling on 30 June 2011;

(ii) 1.60:1 for the Calculation Date falling on 31 December 2011; (iii) 1.45:1 for the Calculation Date falling on 30 June 2012; and (iv) 1.10:1 for each Calculation Date thereafter.

20.1.2 The Obligors shall ensure that on each Calculation Date from and including 31 December 2012 until the end of

the Facility Period ( her than the Calculation Dates falling on 31 December

2013 and 30 June 2014) the Debt Service Cover Ratio calculated on a rolling 12 month basis shall not be less

than 1.10:1.

20.1.3 Subject to clauses 20.1.4 to 20.1.6 the financial covenants set out in this clause 20 shall be calculated on each

Calculation Date in accordance with the applicable GAAP and tested by reference to each of the financial

statements and/or each Compliance Certificate delivered pursuant to clauses 19.1 and 19.2.

20.1.4 The financial covenants set out this clause 20 shall be calculated in accordance with GAAP

applicable to the Company· at the date of 'this Agreement, notwithstanding that GAAP may

change after the date of this Agreement.

20.1.5 For the purpose of calculating compliance with the financial covenants for a Calculation Date

on 31 December in any year, the rate of exchange for the conversion of any currency used in

the preparation of the audited balance sheet of any company shall be the same as that used in

the audited profit and loss account, notwithstanding that GAAP may require different exchange

rates to be used.

20.1.6 When calculating compliance with the financial covenants for a Calculation Date on 30 June in

any year, the rate of exchange for the conversion of any currency used shall be the average of

the rates of exchange used in the preparation of the profit and loss account in (i) the audited

financial statements for the financial year ending on the preceding 31 December; and (ii) the

unaudited financial statements for the 6 months ending on such 30 June, and the same rate of

exchange shall be applied to the unaudited balance sheet of any company and the unaudited

profit and loss account, notwithstanding that GAAP may require different exchange rates to be

used.

21 General undertakings

The undertakings in this clause 21 (General undertakings) remain in force from the date of this

Agreement until the end of the Facility Period.

21.1 Purpose

Each Obligor must ensure that that each Utilisation under a Facility is used for one of the

purposes specified for the Facility in clause 3 {Purpose).

21.2 Authorisations

Each Obligor shall promptly:

21.2.1 obtain, comply with and do all that is necessary to maintain in full force and effect; and

21.2.2 supply certified copies to the ITO Facility Agent of,

any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the ITO Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any ITO Finance Document.

21.3 Compliance with laws

Each Obligor shall comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the ITO Finance Documents.

21.4 Paripassu ranking

Each Obligor must ensure that its payment obligations under the ITO Finance Documents rank at least pari passu with all its other and future unsecured payment obligations, except for obligations mandatorily preferred by law applying to companies generally.

21.5 Negative pledge

21.5.1 No Obligor shall (and shall ensure that no other member of the Titan Group will) create or permit

to subsist any Security over any of its assets.

21.5.2 No Obligor shall (and shall ensure that no other member of the Titan 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 Titan Group;

(b) sell, transfer or otherwise dispose of any of its receivables on recourse terms unless entered

into in respect of Permitted Financial Indebtedness;

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.

21.5.3 No Obligor incorporated in Italy shall (and shall ensure that no other member of the Titan Group incorporated

in Italy will) segregate assets for the purpose of article 2447-bis of the Italian Civil Code ("Patrimoni

Destinati ad uno Specifico Affare'J nor shall it (and shall ensure that no other member of the Titan Group

incorporated in Italy will) issue any class of stock or other financial instruments under article 2447-ter of the

Italian Civil Code without the prior written consent of the lntercreditor Agent (acting on the instructions of the

Majority Senior Lenders)

21.5.4 Clauses 21.5.1 and 21.5.2 above do not apply to Permitted Security Interests.

21.6 Disposals

21.6.1 No Obligor shall (and ensure that no other member of the Titan 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.

21.6.2 Clause 21.6.1 above does not apply to Permitted Disposals.

21.7 Merger and Acquisitions

21.7.1 No Obligor shall (and shall ensure that no other member of the Titan Group will) enter into any amalgamation,

demerger, merger or corporate reconstruction without the prior written consent of the Majority Senior lenders.

21.7.2 No Obligor shall (and shall ensure that no other member of the Titan Group will) make an acquisition of a

company without the prior consent of the Majority Senior Lenders.

21.7.3 Clause 21.7.2 above shall not apply to Permitted Acquisitions.

21.8 Hedging

The Borr()wer shall comply in all material respects with the terms of the Hedging Policy.

21.9 Security Interests

21.9.1 Each Obligor shall maintain and preserve the Security (and ensure that such Security is maintained and

preserved) created by the Security Documents and the priority created by the Security Documents.

21.9.2 Each Obligor shall ensure that the lntertractor USA Share Pledge is executed by not later than 30 Business

Days from the date on which the lntercreditor Agent has provided the Borrower with a draft thereof and that a

legal opinion of a reputable US firm in relation to the lntertractor USA Share Pledge is delivered to the lntercreditor

Agent in a form and substance reasonably satisfactory to the lntercreditor Agent.

21.9.3 If the Revised Business Plan delivered pursuant to clause 19.4.6 shows a deterioration in the financial

projections for the Titan Group in respect of the figures shown in the Business Plan, such that the Financial

Covenants are projected to be breached or require further amendment, then the Obligors and the lntercreditor

Agent shall meet to discuss the execution by Material Companies of such further Security over the assets of a

Material Company as may reasonably be required by the lntercreditor Agent, such Security to be in a form and

substance satisfactory to the lntercreditor Agent, acting reasonably

21.10 Syndication

21.10.1 Each Obligor will give the Arranger all the assistance it reasonably requires to facilitate the

syndication of the Facility.

21.10.2 Each Obligor will provide such further information as the Arranger may reasonably require for the

purpose of syndication of the Facility including (i) promptly providing all reasonably. requested

financial and other information in its possession, including information and projections

prepared by it or its advisers; and (ii) making its senior officers available to attend a reasonable

number of presentations and/or site visits to be granted, to prospective Lenders at reasonable

times upon reasonable notice. In complying with this clause 21.10 (Syndication); the Obligors

shall not be required to provide any information that it has provided previously to the Arranger.

21.11 Change of business

Each Obligor shall procure that no substantial change is made to the general nature of the business

of that Obligor or any member of the Titan Group from that carried on at the date of this Agreement.

21.12 Maintenance of Status

Each Obligor will maintain its separate corporate existence and remain in good standing under the

laws of its jurisdiction of incorporation.

21.13 Loans and Credit

21.13.1 The Obligors may not (and shall ensure that any member of the Titan Group will not) make any loans,

provide any credit or issue any guarantee other than Permitted Loans.

. 21.13.2 Clause 21.13.1 above shall not apply to Permitted Loans.

21.14 Taxes

Each member of the Titan Group must pay all Taxes due and payable by it, unless:

21.14.1 payment of those Taxes is being contested in good faith and adequate reserves are being

maintained for those Taxes; or

21.14.2 failure to pay those Taxes is not reasonably likely to have a Material Adverse Effect.

21.15 FinancialIndebtedness

21.15.1 No member of the Titan Group shall incur any Financial Indebtedness nor shall it have any

Financial Indebtedness outstanding.

21.15.2 Clause 21.15.1 does not apply to Permitted Financial Indebtedness.

21.15.3 The Parties agree that:

(a) following the First Triggering Date, the restriction set out in clause 21.15.1 above shall

-, apply to the Rome Group only; and

(b) for the purposes of calculating whether Financial Indebtedness falls within the levels

permitted under clause 21.15.2, Financial Indebtedness incurred in a currency other

than Euro will be converted into Euro at

(i) in ttie case of facilities existing at the date of the Amendment and

Restatement Agreement No.1, the rate of exchange for such currency used by

the Company to prepare its financial statements as at 31 March 2009; and

(ii) in the case of other Financial Indebtedness, at the ITO Facility Agent's

spot rate of exchange for such currency on the date on which the facility under

which such Financial Indebtedness is incurred is first made available to the

relevant member of the Titan Group.

21.16 Distributions

21.16.1 Up to and including 31 December 2013, no Obligor shall (and shall ensure that no member of the

Titan Group will) make, pay or permit a Distribution without the prior written consent of the Senior

Lenders.

21.16.2 From 1 January 2014 up to and including 31 December 2015 no Obligor shall (and shall ensure that

no member of the Titan Group will) make, pay or permit a Distribution if an Event of Default has

occurred or is continl)ing or would result from such Distribution.

22 Events of Default

Each of the events or circumstances set out in clause 22 is an Event of Default.

22.1 Non-payment

22.1.1 An Obligor does not pay on the due date any amount payable pursuant to an ITO Finance

Document at the place at and in the currency in which it is expressed to be payable :

22.1.2 No Event of Default will occur under clause 22.1.1 above:

(a) if its failure to pay is caused by:

(i) administrative or technical error, or

(ii) a Disruption Event; and

payment is made within 3 Business Days of its due date, or

(b) in relation to a failure to repay a Loan or to pay interest in respect thereof (the Unpaid

Amount), if within 6 months of the date on which such Unpaid Amount fell due and was not

paid, the Company has procured thatn investment (including, for the avoidance of doubt,

any third party investment) is received by it, in the form of (i) an increase in the equity share

capitalof the Company, (ii) the issue of preference shares in the Company, or (iii)

subordinated loan(s) to the Company (payments in respect of which are to be subordinated

to the repayment of the Loans and any interest in respect thereof on terms approved by the

ITO Facility Agent {acting reasonably)), and the proceeds of such investment are applied in

payment of the Unpaid Amount.

22.2 Financial covenants

22.2.1 Any requirement of clause 20 (Financial covenants) is not satisfied for two consecutive

Calculation Dates.

22.2.2 No Event of Default will occur under clause 22.2.1 above if, within 6 months of the earlier of:

(a) an Obligor notifying the ITO Facility Agent of such event or circumstance pursuant to clause 19.5 (Notification of default), and

(b) the date of delivery of the Compliance Certificate in respect of the Calculation Date on which an Event of Default would have occurred pursuant to clause 22.2.1 but for the operation of this clause,

the Company has procured that an investment (including, for the avoidance of doubt, any third party investment) is received by it, in the form of (i) an increase in the equity share capital of the Company, (ii) the issue of preference shares in the Company or (iii) subordinated loan(s) to the Company (payments in respect of which are to be subordinated to the repayment of the Loans and any interest in respect thereof on terms approved by the ITO Facility Agent (acting reasonably)) at a level which is adequate to remedy the relevant breach(es) of the Financial Covenants. The amount of such investment shall be deemed to be added to "EBITDA" and/or "Net Worth" (as applicable) on the Calculation Date on which an Event of Default would have occurred pursuant to clause 22.2.1 but for the operation of this clause (the Relevant Calculation Date). The relevant breach(es) of the Financial Covenants shall be remedied if, after inclusion of the amount of the investment in "EBITDA" and or/ "Net Worth" (as applicable) pursuant to this clause 22.2.2, the Borrower would have complied with the requirements of clause 20 (Financial Covenants) on the Relevant Calculation Date.

22.3 Other obligations

22.3.1 An Obligor does not comply with any provision of the ITO Finance Documents (other than those referred to in

clause 22.1 (Non-payment) and clause 22.2 (Financial covenants)).

22.3.2 No Event of Default under clause 22.3.1 above will occur if the failure to comply is in the reasonable opinion

of the ITO Facility Agent capable of remedy and is remedied within 30 Business Days of the ITO Facility Agent

giving notice to the Borrower or the Borrower becoming aware of the failure to comply

. 22.4 Compulsory acquisition and destruction

22.4.1 All or a material part of the assets of the Titan Group are seized, expropriated, nationalised, acquired,

confiscated, requisitioned or administered (whether compulsorily or not).

22.4.2 All or a material part of the assets of the Titan Group are destroyed or damaged by any event of force majeure

or otherwise and such destruction or damage is likely to have a Material Adverse Effect.

22.5 Litigation and court orders

Any claim, litigation, arbitration or administrative proceeding is taking place or threatened

against any member of the Titan Group which, if adversely determined, is reasonably likely to

have a Material Adverse Effect.

22.6 Misrepresentation

Any representation or statement made or deemed to be made by an Obligor in the ITO Finance

Documents or any other document delivered by or on behalf of any Obligor under or in connection

with any ITO Finance Document is or proves to have been incorrect or misleading in any

materialrespect when made or deemed to be made.

22.7 Cross default

22.7.1 Any Financial Indebtedness of any member of the Titan Group (including under the Convertible

Credit) is not paid when due nor within any originally applicable grace period.

22.7.2 Any Financial Indebtedness of any member of the Titan Group (including under the Convertible Credit) 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).

22.7.3 Any commitment for any Financial Indebtedness of any member of the Titan Group (including under the

Convertible Credit) is cancelled or suspended by a creditor of any member of either Group as a result of an

event of default {however described).

22.7.4 Any creditor of any member of the Titan Group becomes entitled to declare any Financial Indebtedness of any

member of the Titan Group (including under the Convertible Credit) due and payable prior to its specified

maturity as a result of an event of default (however described).

22.7.5 No Event of Default will occur under this clause 22.7 (Cross default) if the aggregate amount of

Financial Indebtedness or original commitment for Financial Indebtedness falling within clauses

22.7.1 to 22.7.4 above is less than €10,000,000 (or its equivalent in any other currency or

. currencies).

22.8 Insolvency

22.8.1 Any Obligor or any Material Company is unable or admits inability to pay its debts as they fall due, suspends

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.

22.8.2 Any member of the Titan Group not already referred to in clause 22.8.1, is unable or admits inability to pay its

debts as they fall due, suspends 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 and such occurrence has a Material Adverse Effect.

22.8.3 The value of the assets of any Obligor or any Material Company (or where such event would havea Material

Adverse Effect, any other member of the Titan Group) is less than its liabilities (taking into account contingent

and prospective liabilities).

22.8.4 A moratorium is declared in respect of any indebtedness of any Obligor or any Material Company or,

where such event would have a Material Adverse Effect, any other member of the Titan Group.

22.9 Insolvency proceedings

Any corporate action, legal proceedings or other insolvency procedure or step is taken in relation to:

22.9.1 the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or

reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any Obligor or any

Material Company (or, where such event would have a Material Adverse Effect, any other member of the Titan

Group) other than a solvent liquidation or reorganisation of any member of the Titan Group which is not an

Obligor;

22.9.2 a composition, compromise, assignment or arrangement with any creditor of any Obligor or any Material

Company or, where such event would have a Material Adverse Effect, any other member of the Titan Group;

22.9.3 the appointment of a liquidator (other than in respect of a solvent liquidation of a Material Company which is

not an Obligor), receiver, administrative receiver, administrator, compulsory. manager or other similar officer in

respect of any Obligor or any Material Company (or, where such event would have a Material Adverse Effect,

any other member of the Titan Group) or any of their assets; or

22.9.4 enforcement of any Security over any assets of any member of the Titan Group"; or

22.9.5 any analogous procedure or step is taken in any jurisdiction.

22.10 Article 2447 or 2482-ter of the Italian Civil Code

The occurrence of the circumstances set forth in Article 2447, or 2482-ter, as .applicable, of the Italian Civil

Code in relation to a Material Company incorporated in Italy unless, no later than 30 days from the date on

which such Titan Group member's directors have knowledge of such occurrence, a shareholders' meeting is

convened to vote on a resolution approving a capital increase to comply with the minimum capital

requirements under Italian law (and such capital increase has been fully paid up in the next following 30 days).

22.11 Creditors' process

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets

of a member of the Group having an aggregate value of €15,000,000 and is not discharged

within 45 days.

22.12 Ownership of ITO and trading of the Company on the AIM

22.12.1 ITO is not or ceases to.be a member of the Titan Group.

22.12.2 The shares of the Company cease to be traded on an Approved Market.

22.13 Change of control

A person or group of persons acting in concert acquires control of the Company. For the purposes of this

clause "control" means the direct or indirect ownership of more than 50% of the voting share capital (or

equivalent right of ownership) of the Company or the power to direct its policies and management (including

the power to determine the composition of a majority of the board of directors of the Company) whether by

virtue of contract or otherwise and "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 directly or indirectly of shares in the Borrower by any of

them, either directly or indirectly, to obtain or consolidate control of the Borrower.

22.14 Unlawfulness

It is or becomes unlawful for an Obligor to perform any of its material obligations under the ITO Finance

Documents

22.15 Repudiation

22.15.1 Any provision of an ITO Finance Document is not effective in accordance with its terms or an ITO Finance

Document is repudiated or a party to an ITO Finance Document (other than an ITO Finance Party) evidences

an intention to repudiate an ITO Finance Document.

22.15.2 Any of the Security Documents is not or ceases to be effective and (if the lntercreditor Agent is satisfied (in its

absolute discretion) that steps are being diligently taken to remedy the defect) the defect is not remedied

within 10 Business Days of its occurrence.

22.16 Material adverse change

Any event or series of events occurs which has a Material Adverse Effect and the Borrower and/or the

Company are not able to demonstrate, to the reasonable satisfaction of the Majority Senior Lenders (within 10

Business Days of the notice given to the Borrower by the lntercreditor Agent that, in its opinion, a Material

Adverse Effect has occurred) that following such event or series of events the Obligors will continue to be able

to meet their payment obligations under the ITO Finance Documents and the Financial Covenants.

22.17 United States Bankruptcy Laws

22.17.1 In this clause:

"U.S. Bankruptcy Law" means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101 et seq), as

amended and in effect from time to time and the regulations issued from time to time thereunder, or any other

United States Federal or State bankruptcy, insolvency or similar law.

22.17.2 Any of the following occurs in respect of lntertractor USA:

(a) it makes a general assignment for the benefit of creditors;

(b) it commences a voluntary case or proceeding under any U.S. Bankruptcy Law; or

(c) an involuntary case under any U.S. Bankruptcy Law is commenced against it and is not controverted within 30 days or is not dismissed or stayed within 90 days after commencement of the case.

22.18 Acceleration


22.18.1	On and at any time after the occurrence of an Event of Default the ITO Facility Agent may; and shall if so directed by the Majority ITO Lenders, by notice to the Borrower:

. {a) cancel the Total Commitments whereupon they shall immediately be cancelled;.

{b) declare that all or part of the Loans, together with accrued interest, and· all other amounts accrued or outstanding under this Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or

(c) declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the ITO Facility Agent; and

{d) subject to the provisions of the lntercreditor Deed, instruct the lntercreditor Agent to take all the steps necessary to enforce the Security Documents.

SECTION 9

CHANGES TO PARTIES

23 Changes to the ITO Lenders

23.1 Assignments and transfers by the ITO Lenders

23.1.1 Subject to this clause 23 (Changes to the ITO Lenders), an ITO Lender {the "Existing ITO Lender'') may:

(a) assign any of its rights; or

{b) transfer any of its rights and obligations,

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 and which is a Qualifying ITO Lender (the "New ITO Lender'').

23.2 Conditions of assignment or transfer

23.2.1 The consent of the Borrower is not required for an assignment or transfer by an Existing ITO Lender.

23.2.2 An assignment will only be effective on:

(a) receipt by the ITO Facility Agent of written confirmation from the New ITO Lender (in form and

substance satisfactory to the ITO Facility Agent) that the New ITO Lender will assume the same

obligations to the other ITO Finance Parties as it would have been under if it was an Original ITO

Lender;and

{b) performance by the ITO Facility Agent of all necessary "know your customer" or other similar

checks under all applicable laws and regulations in any jurisdiction in relation to such assignment to a

New ITO Lender,_ the completion of which the ITO Facility Agent shall promptly notify to the Existing

ITO Lender and the New ITO Lender.

23.2.3 A transfer will only be effective if the procedure set out in clause 23.5 (Procedure for transfer) is complied with.

23.2.4 If:

(a) an ITO Lender assigns or transfers any of its rights or obligations under the ITO Finance

Documents or changes its Facility Office; and

(b) 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 ITO Lender or ITO Lender acting through its new Facility

Office under clause 12 (Tax gross-up and indemnities) or clause 13 (Increased Costs},

then the New ITO Lender or ITO Lender acting through its new Facility Office is only entitled to receive payment under those clauses to the same extent as the Existing ITO Lender or ITO Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.

23.3 Assignment or transfer fee

The New ITO Lender shall, on the date upon which an assignment or transfer takes effect, pay to

the ITO Facility Agent (for its own account) a fee of €1,750.

23.4 Limitation of responsibility of Existing ITO Lenders


23.4.1	Unless expressly agreed to the contrary, an Existing ITO Lender makes no representation or

warranty and assumes no responsibility to a New ITO Lender for:

(a) the legality, validity, effectiveness, adequacy or enforceability of the ITO Finance

Documents or any other documents;

(b) the financial condition of any Obligor or any operating Subsidiary;

(c) the performance and observance by any Obligor of its obligations under the ITO Finance Documents or any other documents; or

(d) the accuracy of any statements (whether written or oral) made in or in connection with any ITO Finance Document or any other document,

and any representations or warranties implied by law are excluded.


23.4.2	Each New ITO Lender confirms to the Existing ITO Lender and the other ITO Finance Parties that

it:

(a) has made (and shall continue to make) its own independent investigation and assessment of the

finaf"!cial condition and affairs of each Obligor or any operating Subsidiary 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 ITO lender in connection with any ITO Finance Document; and

(b) 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

ITO Finance Documents or any Commitment is in force.

23.4.3 Nothing in any ITO Finance Document obliges an Existing ITO Lender to:

(a) accept a re-transfer froin a New ITO Lender of any of the rights and obligations assigned

or transferred under this clause 23 (Changes to the ITO Lenders); or

(b) support any losses directly or indirectly incurred by the New ITO Lender by reason of the non-

performance by any Obligor of its obligations under the ITO Finance Documents or otherwise.

23.5 Procedure for transfer

23.5.1 Subject to the conditions set out in clause 23.2 (Conditions of assignment or transfer) a transfer is effected in

accordance with clause 23.5.3 below when the ITO Facility Agent executes an otherwise duly completed

Transfer Certificate delivered to it by the Existing ITO Lender and the New ITO Lender. The ITO Facility

Agent shall, subject to clause 23.5.2 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.

23.5.2 The ITO Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing ITO

Lender and the New ITO Lender once it is satisfied it has complied with all necessary "know your customer"

or other similar checks under all applicable laws and regulations in any jurisdiction in relation to the

transfer to such New ITO Lender.

23.5.3 On the Transfer Date:

(a) to the extent that in the Transfer Certificate the Existing ITO Lender seeks to transfer by

novation its rights and obligations under the ITO Finance Documents each of the Obligors

and the Existing ITO Lender shall be released from further obligations towards one another

under the ITO Finance Documents and their respective rights against one another under the·

ITO Finance Documents shall be cancelled (being the "Discharged Rights and Obligations");

(b) each of the Obligors and the New ITO Lender shall assume obligations towards one

another and/or acquire rights against one another which differ from the Discharged Rights

and Obligations only insofar as that Obligor and the New ITO Lender have assumed and/or

acquired the same in place of that Obligor and the Existing ITO Lender;

(c) the ITO Facility Agent, the Arranger, the New ITO Lender and other ITO Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New ITO Lender been an Original ITO Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the ITO Facility Agent, the Arranger and the Existing ITO Lender shall each be released from further obligations to each other under the ITO Finance Documents; and

(d) the New ITO Lender shall become a Party as a "ITO Lender".

23.6 Copy of Transfer Certificate to the.Borrow r

The ITO Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer

Certificate, send to the Borrower a copy of that Transfer Certificate.

23.7 Disclosure of information

Any ITO Lender may disclose to any of its Affiliates·and any other person:

23.7.1 to (or through) whom that ITO Lender assigns or transfers (or may potentially assign or transfer)

all or any of its rights and obligations under this Agreement;


23.7.2	with (or through) whom that ITO Lender enters into (or may potentially enter into) any sub participation in relation to, or any other transaction under which payments are to be made by reference to, this Agreement or any Obligor; or


23.7.3	to whom, and to the extent that, information is required to be disclosed by any applicable Jaw or regulation,

any information about any Obligor, the Titan Group, the Acquisition and the ITO Finance

Documents as that ITO Lender shall consider appropriate.

24 Changes to the Obligors

24.1 Assignments and transfer by Obligors

No Obligor may assign any of its rights or transfer any of its rights or obligations under the ITO Finance Documents.

SECTION 10

THE FINANCE PARTIES

25 Role of the ITO Facility Agent and the Arranger

25.1 Appointment of the ITO Facility Agent

25.1.1 Each ITO Finance Party.(other than the ITO Facility Agent and the lntercreditor Agent) appoints the ITO

Facility Agent to act as its agenunder and in connection with the ITO Finance Documents.

25.1.2 Each ITO Finance Party (other than the ITO Facility Agent and the lntercreditor Agent) authorises the

ITO Facility Agent to exercise the rights, powers, authorities and discretions specifically given to the ITO

Facility Agent under or in connection with the ITO Finance Documents together with any other incidental

rights, powers, authorities and discretions.

25.2 Duties of the ITO Facility Agent

25.2.1 The lTO Facility Agent shaU promptly forward to a Party the original or a·copy of any document which is

delivered to the ITO Facility Agent for that Party by any other Party.

25.2.2 Except where an ITO Finance Document specifically provides otherwise, the ITO Facility Agent is not obliged

to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

25.2.3 If the ITO Facility 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 ITO Finance Parties.

25.2.4 If the ITO Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee

payable to an ITO Finance Party (other than the ITO Facility Agent or the Arranger) under this Agreement it

shall promptly notify the other ITO Finance Parties.

25.2.5 The ITO Facility Agent's duties under the ITO Finance Documents are solely mechanical and administrative in

nature.

25.3 Role of the Arranger

Except as specifically provided in the ITO Finance Documents, the Arranger has no obligations of any kind

to any other Party under or in connection with any ITO Finance Document.

25.4 No fiduciary duties

25.4.1 Nothing in this Agreement constitutes the ITO Facility Agent or the Arranger as a trustee or fiduciary of any

other person.

25.4.2 Neither the ITO Facility Agent nor the Arranger shall be bound to account to any ITO Lender for any sum or

the profit element of any sum received by it for its own account.

25.5 Business with the Titan Group

The ITO Facility Agent and the Arranger may accept deposits from, lend money to and

generally engage in any kind of banking or other business with any member of the Titan

Group or with the Borrower or any of their Subsidiaries.

25.6 Rights and discretions of the ITO Facility Agent

25.6.1 The ITO Facility Agent may rely on:

(a) any representation, notice or document believed by it to be genuine, correct and appropriately

authorised; and

(b) 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.

25.6.2 The ITO Facility Agent may assume (unless it has received notice to the contrary in its capacity as agent for

the ITO Lenders) that:

(a) no Default has occurred (unless it has actual knowledge of a Default arising under clause

22.1 (Non-payment));

(b) any right, power, authority or discretion vested in any Party or the Majority ITO

Lenders has not been exercised; and

of and with the consent and knowledge of all the Obligors.

25.6.3 The ITO Facility Agent may engage, pay for and rely on the advice or services of any lawyers, accountants,

surveyors or other experts.

25.6.4 The ITO Facility Agent may act in relation to the ITO Finance Documents through its personnel and agents.

25.6.5 The ITO Facility Agent may disclose to any other Party any information it reasonably believes it has received

as agent under this Agreement.

25.6.6 Notwithstanding any other provision of any ITO Finance Document to the contrary, neither the ITO Facility

Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion

constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

25.7 Majority ITO Lenders' instructions

25.7.1 Unless a contrary indication appears in an ITO Finance Document, the ITO Facility Agent shall (i) exercise any

right, power, authority or discretion vested in it as ITO Facility Agent in accordance with any instructions given

to it by the Majority ITO Lenders (or, if so instructed by the Majority ITO Lenders, refrain from exercising any

right, power, authority or discretion vested in it as ITO Facility Agent) and (ii) not be liable for any act (or

omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority ITO

Lenders.

25.7.2 Unless a contrary indication appears in an ITO Finance Document, any instructions given by the

Majority ITO Lenders will be binding on all the ITO Finance Parties.

25.7.3 The ITO Facility Agent may refrain from acting in accordance with the instructions of the Majority ITO

Lenders (or, if appropriate, the ITO Lenders) until it has received such security as it may require for any cost,

loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

25.7.4 In the absence of instructions from the Majority ITO Lenders, (or, if appropriate, the ITO Lenders) the ITO

Facility Agent may act (or refrain from taking action) as it considers to be in the best interest of the ITO

Lenders.

25.7.5 The ITO Facility Agent is not authorised to act on behalf of an ITO Lender (without first obtaining that ITO

Lender's consent) in any legal or arbitration proceedings relating to any ITO Finance Document.

25.8 Responsibility for documentation

Neither the ITO Facility Agent nor the Arranger:

25.8.1 is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written)

supplied by the ITO Facility Agent, the Arranger, an Obligor or any other person given in or in connection with

any ITO Finance Document or the Information Memorandum; or

25.8.2 is responsible for the legality, validity, effectiveness, adequacy or enforceability of any ITO Finance Document

or any other agreement, arrangement or document entered into, made or executed in anticipation of or in

connection with any ITO Finance Document.

25.9 Exclusion of liability


25.9.1	Without limiting clause 25.9.2 below and without prejudice to the provisions of clause 28.10.5 (Disruption to Payment Systems etc.), the ITO Facility Agent will not be liable for any action taken by it under or in connection with any ITO Finance Document, unless directly caused by its gross negligence or wilful misconduct.


25.9.2	No Party (other than the ITO Facility Agent) may take any proceedings against any officer, employee or agent of the ITO Facility Agent in respect of any claim it might have against the ITO Facility Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any ITO Finance Document and any officer, employee or agent of the ITO

Facility Agent may rely on this clause. Subject to clause 1.4 (Third paity rights) and the

provisions of the Third Parties Act.

25.9.3

The ITO Facility Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the ITO Finance Documents to be paid by the ITO Facility Agent if the ITO Facility Agent 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 ITO Facility Agent for that purpose.

25.9.4

Nothing in this Agreement shall oblige the ITO Facility Agent or the Arranger to carry out any "know your customer" or other checks in relation to any person on behalf of any ITO Lender and each ITO Lender confirms to the ITO Facility Agent and the Arranger 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 ITO Facility Agent or the Arranger.

25.10 ITO Lenders' indemnity to the ITO Facility Agent

Each ITO Lender shall (in proportion to its share of the TotalCommitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the ITO Facility Agent, within three Business Days of demand, against any cost, loss or liability {including, without iimitation, for negligence or any other category of liability whatsoever) incurred by the ITO Facility Agent (otherwise than by reason of the ITO Facility Agent's gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to clause 28.10 (Disruption to Payment Systems etc.) notwithstanding the ITO Facility Agent's negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the ITO Facility Agent) in acting as ITO Facility Agent under the ITO Finance Documents (unless the ITO Facility Agent has been reimbursed by an Obligor pursuant to an ITO Finance Document).

25.11 Resignation of the ITO Facility Agent

25.11.1 The ITO Facility Agent may resign and appoint one of its Affiliates as successor by giving notice to the other

ITO Finance Parties and the Company.

25.11.2 Alternatively the ITO Facility Agent may resign by giving notice to the other ITO Finance Parties and the

Borrower, in which case the Majority ITO Lenders (after consultation with the Company) may appoint a

successor ITO Facility Agent.

25.11.3 If the Majority ITO Lenders have not appointed a successor ITO Facility Agent in accordance with clause

25.11.2 above within 30 days after notice of resignation was given, the ITO Facility Agent (after consultation

with the Company) may appoint a successor ITO Facility Agent.

25.11.4 The retiring ITO Facility Agent shall, at its own cost, make available to the successor JTO Facility Agent

such documents and records and provide such assistance as the successor ITO Facility Agent may

reasonably request for the purposes of performing its functions as ITO Facility Agent under the ITO Finance

Documents.

25.11.5 The ITO Facility Agent's resignation notice shall only take effect upon the appointment of a successor.

25.11.6 Upon the appointment of a successor, the retiring ITO Facility Agent shall be discharged from any further

obligation in respect of the ITO Finance Documents but shall remain entitled to the benefit of this clause 25

(Role of the ITO Facility Agent and the Arranger). Its successor 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.

25.11.7 After consultation with the Company, the Majority ITO Lenders may, by notice to the ITO Facility

Agent, require it to resign in accordance with clause 25.11.2 above. In this event, the ITO

. Facility Agent shall resign in accordance with clause 25.11.2 above.

25.12 Confidentiality

25.12.1 In acting as agent for the ITO Finance Parties, the ITO Facility 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.

25.12.2 If information is received by another division or department of the ITO Facility Agent, it may be treated as

confidential to that division or department and the ITO Facility Agent shall not be deemed to have notice of it.

25.13 Relationship with the ITO Lenders-

The ITO Facility Agent may treat each ITO Lender as an ITO Lender, entitled to _payments under this

Agreement and acting through its Facility Office unless it has received not less than five Business Days prior

notice from that ITO Lender to the contrary in accordance with the terms of this Agreement.

25.14 Credit appraisal by the ITO Lenders

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf

in connection with any ITO Finance Document, each ITO Lender confirms to the ITO Facility

Agent and the Arranger that it has been, and will continue to be, solely responsibie for making

its own independent appraisal and investigation of all risks arising under or in connection with

any ITO Finance Document including but not limited to:

25.14.1 the financial condition, status and nature of each member of the Titan Group;

25.14.2 the legality, validity, effectiveness, adequacy or enforceability of any ITO Finance Document and any other

agreement, arrangement or document entered into, made or executed in anticipation of, under or in

connection with any ITO Finance Document;

25.14.3 whether that ITO Lender 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 ITO Finance Document,

the transactions contemplated by the ITO Finance Documents or any· other agreement,

arrangement or document entered into, made or executed in anticipation of, under or in

connection with any ITO Finance Document; and

25.14.4 the adequacy, accuracy and/or completeness of the Information Memorandum and any other information

provided by the ITO Facility Agent, any Party or by any other person under or in connection with any ITO

Finance Document, the transactions contemplated by the ITO Finance Documents or any other agreement,

arrangement or document entered into, made or executed in anticipationof, under or in connection with any

ITO Finance Document.

25.15 Reference Banks

If a Reference Bank (or, if a Reference Bank is not an ITO Lender, the ITO Lender of which it is an Affiliate)

ceases to be an ITO Lender, the ITO Facility Agent shall {in consultation with the Company) appoint another

ITO Lender or an Affiliate of an ITO Lender to replace that Reference Bank.

25.16 Deduction from amounts payable by the ITO Facility Agent

If any Party owes an amount to the ITO Facility Agent under the ITO Finance Documents the

ITO Facility Agent may, after giving nofce to that Party, deduct an amount not exceeding that

amount from any payment to that Party which the ITO Facility Agent would otherwise be obliged to make under the ITO Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the ITO Finance Documents that Party shall be regarded as having received any amount so deducted.

26 Conduct of business by the ITO Finance Parties

No provision of this Agreement will:

26.1.1 interfere with the right of any ITO Finance Parties to arrange its affairs (tax or otherwise) in

. whatever manner it thinks fit;

26.1.2 oblige any ITO Finance Parties to investigate or claim any credit, relief, remission or repayment available to it

or the extent, order and manner of any claim; or

26.1.3 oblige any ITO Finance Parties to disclose any information relating to its affairs {tax or otherwise) or

any computations in respect of Tax.

27 Sharing among the ITO Finance Parties

27.1 Payments to ITO Finance Parties

Subject to the provisions of the lntercreditor Deed, if an ITO Finance Party (a "Recovering ITO Finance Party") receives or recovers any amount from an Obligor other than in accordance with clause 28 (Payment mechanics) and applies that amount to a payment due under this

Agreement then:

27.1.1 the Recovering ITO Finance Party shall, within three Business Days, notify details of the receipt or recovery, to

the ITO Facility Agent;

27.1.2 the ITO Facility Agent shall determine whether the receipt or recovery is in excess of the amount the

Recovering ITO Finance Party would have been paid had the receipt or recovery been received or made by

the ITO Facility Agent and distributed in accordance with clause 28 (Payment mechanics), without taking

account of any Tax which would be imposed on the ITO Facility Agent in relation to the receipt, recovery or

distribution; and

27.1.3 the Recovering ITO Finance Party shall, within three Business Days of demand by the ITO Facility Agent, pay

to the ITO Facility Agent an amount (the "Sharing Payment") equal to such receipt or recovery less any

amount which the ITO Facility Agent determines may be retained by the Recovering ITO Finance Party as its

share of any payment to be made, in accordance with clause 28.5 (Partial payments).

27.2 Redistribution of payments

The ITO Facility Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the ITO Finance Parties (other than the Recovering ITO Finance Party) in accordance with clause 28.5 (Partial payments).

27.3 Recovering ITO Finance Parties's rights

27.3.1 On a distribution by the ITO Facility Agent under clause 27.2 (Redistribution of payments), the Recovering ITO

Finance Party will be subrogated to the rights of the ITO Finance Parties which have shared in the

redistribution.

27.3.2 If and to the extent that the Recovering ITO Finance Party is not able to rely on its rights under clause 27.3.1

above, the relevant Obligor shall be liable to the Recovering ITO Finance Party for a debt equal to the Sharing

Payment which is immediately due and payable.

27.4 Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering ITO Finance Party

becomes repayable and is repaid by that Recovering ITO Finance Parties; then:

27.4.1 each ITO Finance Party which has received a share of the relevant Sharing Payment pursuant to clause 27.2

(Redistribution of payments) shall, upon request of the ITO Facility Agent, pay to the ITO Facility Agent for

account of that Recovering ITO 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 ITO Finance Party

for its proportion of any interest on the Sharing Payment which that Recovering ITO Finance Party is required

to pay); and

27.4.2 that Recovering ITO Finance Party's rights of subrogation in respect of any reimbursement shall be cancelled

and the relevant Obligor will be liable to the reimbursing ITO Finance Parties for the amount so reimbursed.

27.5 Exceptiohs

27.5.1 This clause 27 (Sharing among the ITO Finance Parties) shall not apply to the extent that the Recovering ITO

Finance Party would not, after making any payment pursuant to this clause, have a valid and enforceable

claim against the relevant Obligor.

27.5.2 A Recovering ITO Finance Party is not obliged to share with any other ITO Lender any amount which the

Recovering ITO Finance Party has received or recovered as a result of taking legal or arbitration proceedings,

if:

(a) it notified that other ITO Finance Parties of the legal or arbitration proceedings; and

(b) the other ITO Finance Parties 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.

SECTION 11

ADMINISTRATION

28 Payment mechanics

28.1 Payments to the ITO Facility Agent

28.1.1 On each date on which an Obligor or an ITO Lender is required to make a payment under an ITO Finance

Document, that Obligor or ITO Lender shall make the same available to the ITO Facility Agent (unless a

contrary indication appears in an ITO Finance Document) for value on the due date at the time and in such

funds specified by the ITO Facility Agent as being customary at the time for settlement of transactions in the

relevant currency in the place of payment.

28.1.2 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 ITO Facility Agent specifies.

28:2 Distributions by the ITO Facility Agent

Each payment received by the ITO Facility Agent under the ITO Finance Documents for another Party shall, subject to clause 28.3 (Distributions to Obligors) and clause 28.4 (Ciawback) be made available by the ITO Facility Agent as soon as practicable after receipt . to the Party entitled to receive payment in accordance with this Agreement (in the case of an ITO Lender, for the account of its Facility Office), to such account as that Party may notify to the ITO Facility Agent by not less than five 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).

28.3 Distributions to Obligors

Without prejudice and in addition to any other right of the ITO Finance Parties under any applicable law the ITO Facility Agent may (with the consent of the Obligor or in accordance with clause 29 (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 ITO Finance Documents or in or towards purchase of any amount of any currency to be so applied.

28.4 Clawback

28.4.1 Where a sum is to be paid to the ITO Facility Agent under the ITO Finance Documents for another Party, the

ITO Facility Agent 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.

28.4.2 If the ITO Facility Agent pays an amount to another Party and it proves to be the case that the ITO Facility

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 ITO Facility Agent shall on demand refund the same to the ITO

Facility Agent together with interest on that amount from the date of payment to the date of receipt by the ITO

Facility Agent, calculated by the ITO Facility Agent to reflect its cost of funds.

28.5 Partial payments

28.5.1 If the ITO Facility Agent receives a payment that is insufficient to discharge all the amounts then due and

payable by an Obligor under this Agreement, the ITO Facility Agent shall (subject to the relevant provisions of

the lntercreditor Deed) apply that payment towards the obligations of that Obligor under this Agreement in the

following order:

(a) first, in or towards payment pro rata of any unpaid fees, costs and expenses of the ITO Facility

Agent under this Agreement;

(b) secondly, in or towards payment pro rata of any accrued interest, fee or commission due but

unpaid under this Agreement;

and

(d) fourthly, in or towards payment pro rata of any other sum due but unpaid under this Agreement.

28.5.2 The ITO Facility Agent shall, if so directed by the Majority ITO Lenders, vary the order set out in clauses

28.5.1(b) to 28.5.1(d) above.

28.5.3 Clauses 28.5.1 and 28.5.2 above will override any appropriation made by an Obligor.

28.6 No set-off by Obligors

All payments to be made by an Obligor under·the ITO Finance Documents shall be calculated and be made

without (and free and clear of any deduction for) set-off or counterclaim.

28.7 Business Days

28.7.1 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).

28.7.2 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.

28.8 Currency of account

28.8.1 Subject to clauses 28.8.2 and 28.8.3 below, euro is the currency of account and payment for any sum due

from an Obligor under any ITO Finance Document.

28.8.2 Each payment in resp.ect of costs, expenses or Taxes shall be made in the currency in which the costs,

expenses or Taxes are incurred.

28.8.3 Any amount expressed to be payable in a currency other than euro shall be paid in that other currency.

28.9 Change of currency

28.9.1 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:

{a) any reference in the ITO Fin.ance Documents to, and any obligations arising under the ITO

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 ITO Facility Agent {after consultation with the

Company); and

(b) 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 or currency unit into the other,

rounded up or down by the ITO Facility Agent {acting reasonably).

28.9.2 If a change in any currency of a country occurs, this Agreement will, to the extent the ITO Facility Agent (acting

reasonably and after consultation with the Company) specifies to be necessary, be amended tocomply with

any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to

reflect the change in currency.

28.10 Disruption to Payment Systems etc.

If either the ITO Facility Agent determines (in its discretion) that a Disruption Event has occurred

or the ITO Facility Agent is notified by the Borrower that a Disruption Event has occurred:

28.10.1 the ITO Facility Agent may, and shall if requested to do so by the Borrower, consult with the Borrower with a

view to agreeing with the Borrower such changes to the operation or administration of the Facility as the ITO

Facility Agent may deem necessary in the circumstances;

28.10.2 the ITO Facility Agent shall not be obliged to consult with the Borrower in relation to any changes mentioned

in clause 28.10.1 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;

28.10.3 the ITO Facility Agent may consult with the ITO Finance Parties in relation to any changes mentioned in

clause 28.10.1 but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the

circumstances;

28.10.4 any such changes agreed upon by the ITO Facility Agent and the Borrower 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 ITO Finance Documents notwithstanding the provisions of clause 34

(Amendments and Waivers); ·

28.10.5 the ITO Facility 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 ITO Facility Agent) arising as a result of its taking, or failing to

take, any actions pursuant to or in connection with this clause 28.10 (Disruption to Payment Systems etc.);

and

28.10.6 the ITO Facility Agent shall notify the ITO Finance Parties of all changes agreed pursuant to clause 28.10.4

above.

29 Set-off

Subject to the relevant provisions of the lntercreditor Deed, an ITO Finance Party may set off any matured obligation due from an Obligor under the ITO Finance Documents (to the extent beneficially owned by that ITO Finance Parties) against any matured obligation owed by that ITO Finance Parties to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the ITO Finance Parties may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

30 Notices

30.1 Communications in writing

Any communication to be made under or in connection with this Agreement shall be made in writing and, unless otherwise stated, may be made by fax or letter.

30.2 Addresses

The address and fax number {and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with this Agreement is:

30.2.1 in the case of the Company, that identified below:

Address: Bridge Road, Coakley, Nr Kidderminster, Worcestershire DY10 3SD

Attention: Miss Cecilia La Manna/Mr. Gary Chesterton

Fax number: +44 {0) 1562 850 561

Telephone number: +44 {0) 1562 852 554

30.2.2 in the case of the Borrower:

Address: Via Confortino 23/28, 1-40056 Cr.espellano, Joe. Calcara (Bologna), Italy

Attention: Cecilia La Manna

Fax number:+39 051 738 2.90

30.2.3 in the case of ITM:

Address: Via Confortino 23/28, 1-40056 Crespe!lano, loc. Calcara {Bologna), Italy

Attention: Cecilia La Manna

Fax number: +39 051 738 290

30.2.4 in the case of each ITO Lender that notified in writing to the ITO Facility Agent on or prior to the date on which

it becomes a Party; and

30.2.5 in the case of the ITO Facility Agent and the lntercreditor Agent, that identified below:

Address: Loan Agency, Direzlone Investment Banking and Capital Markets, Piazza della Scala

6, Milan 20121, Italy

Attention: Miss Paola Elardo/Miss Maria Antonietta Rumbolo

Fax number: +39 02 8794 2013

Telephone number: +39 02 87943892

or any substitute address or fax number or department or officer as the Party may notify to the

ITO Facility Agent (or the ITO Facility Agent may notify to the other Parties, if a change is made by the ITO Facility Agent) by not less than five Business Days' notice.

30.3 Delivery

30.3.1 Any communication or document made or delivered by one person to another under or in connection with the

ITO Finance Documents will only be effective:

(a) if by way of fax, when received in legible form; or

(b) if by way of letter, when it has been left at the relevant'address or five Business Days after

being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided

under clause 30.2 (Addresses), if addressed to that department or officer.

30.3.2 Any communication or document to be made or delivered to the ITO Facility Agent will be effective only when

actually received by the ITO Facility Agent and then only if it is expressly marked for the attention of the·

department or officer identified with the ITO Facility Agent's signature below (or any substitute department or

officer as the ITO Facility Agent shall specify for this purpose)

30.3.3 All notices from or to an Obligor shall be sent through the ITO Facility Agent.

30.3.4 Any communication or document made or delivered to the Borrower in accordance with this clause will be

deemed to have been made or delivered to each of the Obligors.

30.4 Notification of address and fax number

Promptly upon receipt of notification of an address or fax number or change of address or fax

number pursuant to clause 30.2 (Addresses) or changing its own address or fax number, the ITO

Facility Agent shall notify the other Parties.

30.5 Electronic communication

Any communication to be made between the ITO Facility Agent and an ITO Lender under or in connection with

the ITO Finance Documents may be made by electronic mail or other electronic means, if the ITO Facility

Agent and the relevant ITO Lender:

30.5.1 agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

30.5.2 notify each other in writing of their electronic mail address and/or any other information required to enable the

sending and receipt of information by that means; and

30.5.3 notify each other of any change to their address or any other such information supplied by them.

30.6 Any electronic communication made between the ITO Facility Agent and an ITO Lender will be effective only

when actually received in readable form and in the case of any electronic communication made by an ITO

Lender to the ITO Facility Agent only if it is addressed in such a manner as the ITO Facility Agent shall specify

for this purpose.

30.7 English language

30.7.1 Any notice given under or in connection with any ITO Finance Document must be in English.

30.7.2 All other documents provided under or in connection with any ITO Finance Document must be:

(a) in English; or

(b) if not in English, and if so required by the ITO Facility Agent, accompanied by a certified

English translation and, in this case, the English translation will prevail unless the document is a

constitutional, statutory or othar official document.

31 Calculations and certificates

31.1 Accounts

In any litigation or arbitration proceedings arising out of or in connection with an ITO Finance Document, the entries made in the accounts maintained by an ITO Finance Party aie prima facie evidence of the matters to which they relate.

31.2 Certificates and Determinations

Any certification or determination by an ITO Finance Party of a rate or amount under any ITO Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

31.3 Day count convention

Any interest, commission or fee accruing under an ITO 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 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

32 Partial invalidity

If, at any time, any provision of the ITO 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.

33 Remedies and Waivers

No failure to exercise, nor any delay in exercising, on the part of any ITO Finance Parties, any right or remedy under the ITO 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.

34 Amendments and Waivers

34.1 Required consents

34.1.1 Subject to:

(a) the relevant provisions of the lntercreditor Deed; and

(b) clause 34.2 (Exceptions) below,

any term of this Agreement may be amended or waived only with the consent of the Majority

ITO Lenders and the Obligors and any such amendment or waiver will be binding on all Parties.


34.1.2	The ITO Facility Agent may effect on behalf of any ITO Finance Parties, any amendment or waiver permitted by this clause.

34.2 Exceptions


34.2.1	An amendment or waiver that has the effect of changing or which relates to: (a) the definition of "Majority ITO Lenders,. in clause 1.1 (Definitions);

(b) an extension to the date of payment of any amount under this Agreement;

(c) a reduction in the Margin not expressly provided for in this Agreement or a reduction in the amount of any payment of principal, interest, fees or commission payable;

(d) any provision which expressly requires the consent of all the ITO Lenders; or

(e) Clause 2.2 (ITO Finance Parties' rights and obligations), clause 23 (Changes to the ITO Lenders) or this clause 34 (Amendments and Waivers);

shall not be made without the prior consent of all the ITO Lenders.


34.2.2	An amendment or waiver which relates to the rights or obligations of the ITO Facility Agent or the Arranger may not be effected without the consent of the ITO Facility Agent or the Arranger.

34.2.3 An amendment or waiver that has the effect of changing orwhich relates to:

(a) an increase in or an extension of any Commitment under this Agreement; an

(b) any provision which expressly requires the consent of the lntercreditor Agent (whether or not on the instruction of the Majority Senior Lenders), or any consent, approval or instruction from the Majority Senior Lenders, of all the ITO Lenders; or

shall only be made in accordance with the provisions of the lntercreditor Deed.

35 Counterparts

This 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 Agreement.

36 Summary Document

The Summary Document to be delivered by the Borrower pursuant to this Agreement is solely to provide a summary of the main terms and conditions of the Agreement for the purposes of the Bank of Italy's instructions on the transparency of banking transactions and services (lstruzioni di vigilanza perle banche, Titolo X, Capitola 1). The Parties agree that the Summary Document is not intended to amend, supplement or interpret this Agreement. In case of inconsistency between this Agreement and the Summary Document, this Agreement will prevail for all purposes.

SECTION 12

GOVERNING LAW AND ENFORCEMENT

37 Governing law

This Agreement is governed by English law.

38 Enforcement

38.1 Jurisdiction

38.1.1 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) (a

"Dispute").

38.1.2 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.

38.1.3 This clause 38.1 (Jurisdiction) is for the benefit of the iTO Finance Parties only. As a result, no ITO Finance

Parties shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.

To the extent allowed by law, the ITO Finance Parties may take concurrent proceedings in any number of

jurisdictions.

38.2 Service of process

Without prejudice to any other mode of service allowed under any relevant law, the Borrower

and ITO as ITM Guarantor:

38.2.1 irrevocably appoint the Company as their agent for service of process in relation to any proceedings

before the English courts in connection with any ITO Finance Document; and

38.2.2 agree that failure by the process agent to notify the relevant of the process will not invalidate the proceedings

concerned.

38.3 Waiver of immunity

Each Obligor irrevocably and unconditionally:

(a) agrees not to claim any immunity from proceedings brought by an ITO Finance Party against it in relation to an ITO Finance Document and to ensure that no such claim is

made on its behalf;

(b) consents generally to the giving of any relief or the issue of any process in connection with those proceedings; and

This Agreement has been entered into on the date stated at the beginning of this Agreement.

100

Schedule 1

The OriginalParties

Part 1

The Original Obligors

Name of the Company Registration number (or equivalent, if any)

Titan Europe pic 3018340

Name of Borrower Tax code, VAT and Registration number


· ltaltractor Operations S.p.A.	0292550362 (Companies Register of Modena)


Name of Guarantors	Registration number (or if applicable, Tax

code and VAT number}


Titan Europe pic	301834


ltaltractor LT.M. S.p.A.	01731300362- (Companies Register of

Potenza)

101

Part2

The Original ITO lenders



Name of OriginalITO Lender	. Commitment	loan A	loan B
lntesa S.p.A	'€20,000,000	'€10,500,000	'€3,000,000
Unicredit S.p.A	'€14,100,000	'€10,500,000	3,000,000
(formerly Unicredit Corporate Banking S.p.A., formerly Banca di Roma S.p.A.)
Unicredit S.p.A.	'€5,900,000
(formerly Unicredit Corporate Banking S.p.A., formerly Bipop Carire S.p.A.)

102

Schedule 2

Conditions precedent

Conditions Precedent to InitialUtilisation

1 Obligors.

(a) A copy of the constitutional documents of the Company.

(b) A copy of a resOlution of the board of directors of the Company:·

(i) approving the terms of, and the transactions contemplated by, the ITO Finance Documents to which it is a party and resolving that it execute the ITO Finance Documents to which it is a party;

(ii) authorising a specified person or persons to execute the ITO Finance Documents to which it is a party on its behalf; and

(iii) authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection with the ITO Finance Documents to which it is a party.

(d) A certificate of the Company (signed by a director) confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on the Company to be exceeded.

(e) A certificate of an authorised signatory of each Obligor certifying that each copy

· document relating to it specified in this Part 1 of Schedule 2 (Conditions precedent) is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

(f) The Original Financial Statements of the Company.

(g) A copy of the notarised constitutional documents (statuto ed atto costitutivo) of the

Borrower.

(h) An extract of the pages of the relevant company register of the Borrower containing the resolution of the board of directors of the Borrower (or if required by the existing constitutional documents of the Borrower, a copy of a resolution of the shareholders meeting of the Borrower):

103

(i) approving the terms of, and the transactions contemplated by, the ITO Finance Documents to which it is or will become a party and resolving that it execute the ITO Finance Documents to which it is a party and grant all the Security to be granted by it under any Security Document;

(ii} authorising a specified person or persons to execute the ITO Finance Documents and the other ITO Finance Documents to which it is a party and any Security Document to which it is a party on its behalf; and

(iii}" authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (inCluding, any Utilisation Request} to be sighed and/or despatched by it under or in connection with the ITO Finance Documents.

(i) A specimen of the signature of each person authorised by the resolution referred to in paragraph (h) above, and, if necessary, a notarised copy of a power of attorney empowering such person to sign the above documents on behalf of the Borrower.


0)	A certificate of the Borrower (signed by a director or legal representative) confirming that borrowing or guaranteeing the Total Commitments would not causany borrowing, guaranteeing or similar limit binding on it to be exceeded and that none of the circumstances contemplated in article 2447 of the Italian Civil Code has occurred in respect of it.

(k) A certificato di vigenza of the Borrower including a non-insolvency statement dated not earlier than 10 Business Days prior to the date of this Agreement.

(I} Certificates from the competent court (certificato di assenza di procedure concorsuaft)

attesting that no insolvency proceedings against the Borrower have been commenced

(m) Evidence of the outstanding intercompany indebtedness to be refinanced under the Facility and a certificate signed by an authorised signatory of the Borrower describing the nature of such indebtedness and its main terms and conditions and certifying that such indebtedness is properly accounted for in the accounting books of the Borrower.

2 Legal opinions

(a} A legal opinion ofNorton Rose, English legal advisers to the Arranger. (b) A legal opinion of Norton Rose, Italian legal advisers to the Arranger

(d) A legal opinion of Norton Rose, as German legal advisers to the Arranger in relation to the lntertractor Share Pledge.

104

(e) A legal opinion of Allen & Overy, Milan, Italian legal advisers to the Company addressed to the ITO Facility Agent and the other ITO Finance Parties on issues such as, inter alia, status and capacity of the Borrower and any other Security Provider incorporated in Italy, to enter into and perform the ITO Finance Documents to which any of such entity is a party (or in the case of a Security Provider, to grant the relevant Security).

(f) A tax opinion from Allen & Overy, Milan addressing, inter alia, any issue relating to the relevant thin capitalisation rules applicable to the Company and the Borrower.

3 Other documents and evidence

(a} Evidence that the Acquisition has been fully and unconditionally completed and certified copies of all the Acquisition Documents.

(b) A certified copy of the Framework Agreement duly executed by the Existing Banks.

(c) Evidence that a capital increase in the Company of not less than £70,000,000 has been completed and fully paid in following Admission.

(d) An original of each ITO Finance Document, duly executed by the parties to it.

(e) A copy of any other Authorisation or other document, opinion or assurance which the ITO Facility Agent reasonably considers to be necessary or desirable following Cl change in law, banking regulations or banking practice in connection with the entry into and performance of the transactions contemplated by any ITO Finance Document or for the validity and enforceability of any ITO Finance Document.

(f) The final business plan relating to the Acquisition, the Structure Memorandum and the Existing Debt Chart.

(g) Evidence that the fees, costs and expenses then due from any Obligor pursuant to clause 11 (Fees), clause 16 (Costs and expenses) and the letter cancelling a facility agreement dated 7 December 2005 have been paid or will be paid by the first Utilisation Date.

(h) A copy of the Admission Document.

(i) A Summary Document (in the form of Schedule 5 (Summary Document) signed for acknowledgement and acceptance by the relevant Borrower and constituting the Documento di Sintesi required by the relevant Italian banking regulations, namely Section 10 of the Bank of Italy's regulations of 25 July 2003 and the C.I.C.R. resolution dated 4 March 2003.

105

(j) An extract of the pages (stamped with the notarial seal) of the relevant company register setting out the ITM corporate resolutions approving an equity injection (versamento in conto capita/e) in ITM for not less than €94,000,000.

(k) Evidence that the process agent specified in clause 38.2 (Service of process) has accepted its appointment in relation to the Borrower and ITM as ITO Guarantor.

4 Security

(a) Evidence that all Security to be created pursuant to the Security Documents has been :

.created and all the formalities required by any applicable law for the perfection of such

Security have been complied with.

(b) In relation to Security Providers incorporated outside Italy, copies of any corporate authorisation or evidence that any other necessary action has been taken to authorise each Security Provider to enter into, deliver and perform the Security Document to which any such Security Provider is a party and in relation to any Security Providers incorporated in Italy, an extract of the pages (stamped with the notarial seal) of the relevant company register of each Security Provider to enter into, deliver and perform the Security Document to which ith Security Provider is a party.

106

Schedule 3

Form of Utilisation Request

Utilisation Request

From: [Borrower]

To: [ITO Facility Agent]

Dated: Dear Sirs

€40,000,000 Facility Agreement dated [] {the "Agreement")


1	We refer to the Agreement. This is a Utilisation Request. Terms defined in the 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:


Proposed Utilisation Date:	[] (or, if that is not a Business Day, the next Business Day)

Amount:

[] or, if less, the Available Facility

Interest Period: []


3	The principal amount (or its equivalent in euro) of the Existing Secured Facilities outstanding as at the date of this Utilisation Request is € [].


4	We confirm that each condition specified in clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request.


5	We confirm that the proceeds of this Loan will be applied towards one or more of the purposes specified in clause 3.1 (Purpose) of the Agreement as follows:

Clause: [] Purpose: []

6 The proceeds of this Loan should be credited to [specify account detail and details of the

account holder].

7 This Utilisation Request is irrevocable.

107

Yours faithfully

authorised signatory for

108

Schedule 4

Form of Transfer Certificate

To: [] as ITO Facility Agent

From: [The Existing ITO Lender] (the "Existing ITO Lender") and [The New ITO Lender] (the

"New ITO Lender") Dated:

Dear Sirs

€40,000,000 Facility Agreement dated [] (the "Agreement")


1	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

2 We refer to clause 23.5 (Procedure for transfer):

(a) The Existing ITO Lender and the New ITO Lender agree to the Existing ITO Lender transferring to the New ITO Lender all or part of the Existing ITO Lender's Commitment. rights and obligations . referred to in the Schedule in accordance with .clause 23.5 (Procedure for transfer).

(b) The proposed Transfer Date is [].

ITO Lender for the purposes of clause 30.2 (Addresses) are set out in the Schedule.


3	The New ITO Lender expressly acknowledges the limitations on the Existing ITO Lender's obligations set out in clause 23.4.3 (Limitation of responsibility of Existing ITO Lenders).

[4/5] 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.

[5/6] This Transfer Certificate is governed by English law.

109

THE SCHEDULE CommitmenUrights and obligations to be transferred

[insert relevant details]

(Facility Office address, fax number and attention details for notices and account details for payments,]

[Existing ITO Lender] [New ITO Lender] By: By:

This Transfer Certificate is accepted by the ITO Facility Agent and the Transfer Date is confirmed as

[ITO Facility Agent] By:

110

Schedule 5

Form of Summary Document

II presente documento, redatto ai sensi delle istruzioni della Banca d'ltalia sulla trasparenza dei servizi e delle operazioni bancarie (Jstruzioni di Vigilanza per Je banche, Tito/o X, Capitola 1), evidenzia una sintesi delle piu significative condizioni contrattuali ed economiche del Facilities Agreement stipulato in data 2 febbraio 2006 come modificato in data 19 maggio 2009, tra le parti qui di seguito indicate (il "Contratto dl Flnanziamento").

II testo integrale delle clausole che regolano il finanziamento e contenuto nel Contratto di Finanziamento. Parole ed espressioni definite nel Contratto di Finanziamento hanno il medesimo significato quando usate nel presente documento.

1 PARTICONTRATTUALI E PRINCIPAL! CONDIZIONI DEL FINANZIAMENTO

1.1 Parti

Debitore {Borrower): ltaltractor Operations. S.p.A.

Banche Finanziatrici (Original ITO Lenders): lntesa Sanpaolo S.p.A (gia lntesa S.p.A.) UniCredit Corporate Banking S.p.A. (gia Banca di Roma S.p.A. e Bipop Carire

Banca Agente (ITO FAcility Agent): lntesa Sanpaolo S.p.A (gia lntesa S.p.A.) Arranger: lntesa Sanpaolo S.p.A (gia lntesa S.p.A.)

lntercreditor Agent: lntesa Sanpaolo S.p.A (gia lntesa S.p.A.) Garanti: Titan Europe pice ltaltractor Operations S.p.A.

1.2 lmporto complessivo del Finanziamento, come modificato in data 19 maggio 2009: Euro

30.000.000 (ii"Finanziamento")

·Facility: per un ammontare massimo di Euro 30.000.000

Scopo: il Debitore dovra utili:Zzare il Finanziamento per (i) rimborsare i propri debiti infragruppo nei confronti di ltaltrctor ITM S.p.A.; (ii) far fronte aile proprie esigenze di capitale circolante; e (iii) per concedere prestiti infragruppo;

Periodo di interessi: ha inizio in corrispondenza deii'Utilisation Date o (se gia avvenuta) dell'ultimo giorno del precedente periodo di interessi. II periodo di interessi durera 3 mesi aile condizioni indicate all'art. 9 (Interest Periods) del Contratto diFinanziamento;

Tasso di interesse: EURIBOR piu il Ma · e (Margin) di volta in volta applicabile;

111

Margine: 3,50% in ragione d'anno

Tasso di mora: Ia misura sara determinata aumentando il tasso di interesse di 1,5%;

Rimborso: in 20 rate di eguale importo, aile condizioni indicate all'art. 6.1 del Contratto di

Finanziamento.

2 DICHIRAZIONI E GARANZIE

Come meglio descritto all'art. 18 (Representation) del Contratto di Finanz!amento, questa riguardano, inter alia: status, poteri, pari passu, assenda di conflitti con altre obbligazioni, assenza di eventi di risoluzione, assenza di procedure concorsuali, corporate benefit.

3 PRINCIPAL! OBBLIGAZIONI DEL DEBITORE

Come meglio descritto agli artt. 19 (Information undertakings), 20 (Financial covenants) e 21 (General undertakings), queste includono, inter alia: specifici obblighi informative, if rispetto di determinati parametric finanziari, il rispetto dei termini e delle condizioni della Hedging Policy, il negative pledge, il pari passu, il non concedere prestiti ne garanzie se non nei limiti indicati nel Contralto di Finanziamento, Ia possibilita di procedere ad operazioni di fusione o acquisizione solo aile condizioni e nei termini previsti dal Contralto di Finanzianiento.

4 RISOLUZIONE

AI verificarsi di determinati eventi o per violazione di clausole contrattuali rilevanti come da art.

22 (Events of Default) del Contratto di Finanziamento.

5 INDICATORE SINTETICO Dl COSTO

L'indicatore sintetico di costo e pari a []%

6 LEGGE APPLICABILE E FORO COMPETENTE

II Contratto di Finanziamento e regolato dalla Iegge inglese e qualsiasi controversia (incluse quelle relative all'esistenza, alia validita o alia risoluzione del Contralto di Finanziamento) sara devoluta alia competenza esclusiva delle cortiinglesi.

112

Schedule 6

Form of Compliance Certificate

To:

[] as ITO Facility Agent

From: [Borrower] Dated:

Dear Sirs

€40,000,000 Facility Agreement dated [] (the "Agreement")


1	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the 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]

3 [We confirm that no Default is continuing.]'

Signed:

Director of. · Director of

[Borrower] [Borrower]

for and on behalf of

[name of the Borrower]

for and on behalf of

[name of the Borrower}

If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, If any, being taken to remedy it.

113

Schedule 7

Existing Security

Name of Obligor Security Total Principal Amount of

Indebtedness Secured

lntertractor America Co. First priority security interest in All monies and liabilities owed to La

and to any and all property of · Salle Bank N.A.

the company

ltaltractor Landroni Ltda Mortgage of real estate All monies due to Banco Nacional do

Desenvolvimento Economico e Social

114

Schedule 8

Timetables

Delivery of a duly completed Utilisation 11:00 a.m. Brussels

Request (clause 5.1 (Delivery of a time 3 Business days

Utilisation Request) before requested

Utilisation Date

ITO Facility Agent notifies the ITO

Lenders of the Loan in accordance with

clause 5.4 (ITO Lenders' participation)

EURIBOR is fixed

Quotation Day as of

11:00 am (Brussels time)

115

Schedule 9

Repayment Schedule



Repayment Date	Repayment Instalment
31 January 2012	'€750,000
30 April 2012	'€750,000
31 July 2012	'€750,000
31 October 2012	'€750,000
31 January 2013	'€750,000
30 April 2013	'€750,000
31 July 2013	'€750,000
31 October 2013	'€750,000
31 January 2014	'€1,875,000
30 April 2014	'€1,875,000
31 July 2014	'€1,875,000
31 October 2014	'€1,875,000
31 January 2015	'€1,875,000
30 April 2015	'€1,875,000

116



Repayment Date	Repayment Instalment
31 July 2015	'€1,875,000
31 October 2015	'€1,875,000

117

Schedule 10

Hedging Policy

1 Introduction


1.1	This Schedule 10 (Hedging Policy) constitutes the Hedging Policy for the purposes of the Facility Agreement between, among others, ltaltractor Operations S.pA as Borrower and lntesa Sanpaolo S.p.A. as lntercreditor Agent, ITO Facility Agent and ITO Lender. Under clause 21.8 (Hedging) of the Facility Agreement, the Borrower is obliged to comply with the terms of this Hedging Policy.

1.2 The objective of the Hedging Policy is to mitigate the Borrower's exposure to interest rate risk.


1.3	The Parties agree that the ITO Hedging Agreements are to be used solely as a risk management tool to protect the Borrower from adverse movements in financial markets. The Borrower shall not enter into the ITO Hedging Agreements or derivative transactions as a means of speculating on movements in the underlying financial markets.

2 Obligation to enter ITO Hedging Agreements

2.1 The Borrower shall:


2.1.1	enter into ITO Hedging Agreements that satisfy the requirements of paragraphs 2.2 and 2.3 of this Hedging Policy by no later than seven Business Days from the date of the Amendment and Restatement Agreement No. 1; and


2.1.2	promptly, upon entry into any ITO Hedging Agreement, deliver to the lntercreditor Agent an original or certified copy of that ITO Hedging Agreement, an original or certified copy of each confirmation in relation to that Hedging Agreement.


2.2	The Borrower shall only enter into an ITO Hedging Agreement with lntesa Sanpaolo S.p.A. or any Affiliate of lntesa Sanpaolo S.p.A. or, subject to the consent of the Arranger, another person who is a Lender or an Affiliate of a Lender and who is attributed a credit rating by S&P of at least A- or by Moody's of at least f


2.3	The Borrower shall enter into and maintain at all times ITO Hedging Agreements for an aggregate notional amount equal to the Loan in the amount of €30,000,000 at the prevailing market conditions at the time of entering into of such ITO Hedging Agreements.


2.4	The ITO Hedging Agreements contemplated by paragraph 2.3 shall match the repayment profile of the Facility in respect of which such ITO Hedging Agreement nominally relates.

118

2.5

In respect of any period ending prior to the first Repayment Date, the Borrower shall ensure that the due date for value (as referred to in Section 2(a)(ii) of the ISDA Master Agreement (2002) and as specified in the applicable confirmations) in respect of each ITO Hedging Agreement shall coincide with the Interest Payment Dates relative to the Loan in respect of which such ITO Hedging Agreement nominally relates.


2.6	In respect of any period commencing on or after the first Repayment Date, the Borrower shall ensure that each due date for value in respect of each ITO Hedging Agreement shall coincide

· with each Interest Payment Date in respect of which such ITO Hedging Agreement nominally relates.

3 Prepayment of Loans

3.1 If the Borrower:


(a)	makes a prepayment (whether in whole or in part) of any of the Loans to which any of the ITO Hedging Agreements nominally relate; or

(b) cancels all or part of any of the Commitments to which any of the ITO Hedging

Agreements nominally relate,

then the Borrower shall immediately close out and terminate sufficient ITO Hedging Agreements (or part thereof) as is necessary to ensure that the aggregate notional principal amount of the ITO Hedging Agreements is no greater than 105% of the outstanding amount under the Facility to which such ITO Hedging Agreements relate.

119

Schedule 11

Existing Financial Indebtedness

Part I

Existing Financial Indebtedness



Debtor ' ---...;_.... _	:_ -. Lender - ..	:Fii.i.allci.ai. ir- itieb··:.t_',_t-i e. ss- · (t)
Titan Europe Pic	Lloyds	'£7,500,000
Titan ltalia S.p.A.	BNUJntesa Sanpaolo	'£2,770,000
lntertractor USA	lntesa Sanpaolo	'£10,533,000
Titan Europe Pic	Pool of banks	'£24,703,000
Members of Titan Group	Various	£9,987,000 (financial lease)
JTM	lntesa Sanpaolo/Unicredit	'£74,328,000
ltaltractor Landroni Ltda	lntesa Sanpaolo	'£2,215,000

120

Part II

Existing Short Term Financial Indebtedness



Debtor	Lender	Financial Indebtedness
		(£)
Titan Europe Pic	Lloyds	'£7,500,000
Titan ltalia S.p.A.	BNUintesa Sanpaolo	'£22,985,000
Titan France S.a.s.	Various	'£1,719,000
Titan Wheels Australia	National Australian Bank	'£2,427,000
Aros del Pacifico S.A.	BBVA	'£1,514,000
Aros del Pacifico S.A.	Various	'£65,000
ITM	lntesa Saopaolo/MPS	'£17,189,000
ITO	BNL	'£5,760,000
PYRSA	Various	'£3,173,000
lntertractor	Commerzbank	'£3,716,000
PYRSA	Various	'£781,000
Titan Wheels Australia	Various	'£338,000

121