Document:

EX-10.4

 Exhibit 10.4 

AMENDMENT NO. 2 
 TO

 TERM LOAN CREDIT AGREEMENT 

This AMENDMENT NO. 2 TO TERM LOAN CREDIT AGREEMENT (this “Amendment”), dated as of the 17th day of November, 2015, among
HUDSON PACIFIC PROPERTIES, L.P., a Maryland limited partnership (the “Borrower”), each of the financial institutions a signatory hereto (the “Lenders”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative
Agent (the “Administrative Agent”). 
 WITNESSETH: 

WHEREAS, the Borrower, each of the Lenders, the Administrative Agent, and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner and Smith
Incorporated, and Goldman Sachs Bank USA, Inc., as lead arrangers, have entered into that certain Term Loan Credit Agreement, dated as of March 31, 2015 as amended by that certain Amendment No. 1 to Term Loan Credit Agreement, dated as of
the 9th day of October, 2015, among the Borrower and the Administrative Agent (collectively, the “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrower; and

 WHEREAS, the Borrower has requested that the Lenders and the Borrower amend the Credit Agreement as set forth in this Amendment; 

NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto do hereby agree as follows: 
 1. DEFINED TERMS. 

Each defined term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Credit Agreement. 

2. AMENDMENT TO THE CREDIT AGREEMENT. 

2.1 Amendment to Section 1.1. Section 1.1 of the Credit Agreement shall be amended by deleting the definition of
“Capitalization Rate” and adding the following new definition of “Capitalization Rate” in lieu thereof: 

“Capitalization Rate” means, as applicable, (i) eight and one half percent (8.50%) for Studio
Properties and (ii) six percent (6.00%) for Office Properties or any other Properties.” 
 2.2 Amendment to
Section 1.1. Section 1.1 of the Credit Agreement shall be amended by deleting the definition of “Capital Reserves” and adding the following new definition of “Capital Reserves” in lieu thereof: 

“Capital Reserves” means, for any period and with respect to a Property, an amount equal to (a) $0.25 per
square foot for Office Properties or any other Properties other than Studio 

 
Properties or (b) $0.40 per square foot for Studio Properties multiplied by a fraction, the numerator of which is the number of days in such period and the denominator of which is three
hundred sixty-five (365). If the term Capital Reserves is used without reference to any specific Property, then the amount shall be determined on an aggregate basis with respect to all Properties of Hudson REIT and its Subsidiaries on a consolidated
basis and Hudson REIT’s Ownership Share of all Properties of all Unconsolidated Affiliates. 
 2.3 Amendment to
Section 8.2. Section 8.2 of the Credit Agreement shall be amended by deleting such Section in its entirety and substituting the following new Section 8.2 in lieu thereof: 

“Section 8.2 Compliance with Applicable Law. 

The Borrower shall comply, and shall cause each other Loan Party and each other Subsidiary to comply, with all Applicable Law,
including the obtaining of all Governmental Approvals, except where the failure to comply could not reasonably be expected to have a Material Adverse Effect.” 

2.4 Amendment to Section 10.1. Clause (f) of Section 10.1 of the Credit Agreement [Ratio of Secured Recourse
Indebtedness to Total Asset Value] shall be deleted in its entirety and replaced with “Intentionally Omitted”. 
 2.5
Amendment to Section 11.1. Clause (l)(ii) of Section 11.1 of the Credit Agreement shall be amended by deleting such Section in its entirety and substituting the following new clause (l)(ii) in lieu thereof: 

(ii) During any period of twelve (12) consecutive months ending after the Effective Date, individuals who at the beginning
of any such twelve-month period constituted the Board of Directors of Hudson REIT (together with any new directors whose election by such Board or whose nomination for election by the shareholders of Hudson REIT was approved by a vote of at least
fifty percent (50.0%) of the total voting power of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to
constitute at least fifty percent (50.0%) of the total voting power of the Board of Directors of the Borrower then in office. 
 2.6
Amendment to Schedules. Schedules 1.1(e) (Ground Leases With Remaining Terms of Less Than 30 Years) and 1.1(f) (Ground Leases Subject To Consent) to the Credit Agreement shall be amended by deleting such schedules in their
entirety and by substituting Schedule 1.1(e) and Schedule 1.1(f) attached hereto in lieu thereof. 
 3. REPRESENTATIONS AND
WARRANTIES. 
 The Borrower hereby represents and warrants to the Administrative Agent and the Lenders as follows: 

3.1 The Amendment. This Amendment has been duly and validly executed by an authorized officer of the Borrower and constitutes the
legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms. 

  
 -2- 

 3.2 Credit Agreement. The Credit Agreement, as amended by this Amendment, and the other
Loan Documents remain in full force and effect and remain the valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms. The Borrower hereby ratifies and confirms the Credit Agreement (as amended
hereby) and the other Loan Documents. 
 3.3 Claims and Defenses. As of the date of this Amendment, the Borrower has no defenses,
claims, counterclaims or setoffs with respect to the Credit Agreement (as amended hereby) or any other Loan Document or its Obligations thereunder or with respect to any actions of the Administrative Agent, any Lender or any of their respective
officers, directors, shareholders, employees, agents or attorneys, and the Borrower irrevocably and absolutely waives any such defenses, claims, counterclaims and setoffs and release the Administrative Agent, any Lender and each of their respective
officers, directors, shareholders, employees, agents and attorneys from the same. 
 3.4 No Default. After giving effect to this
Amendment, no Default or Event of Default exists under the Credit Agreement, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof. 

3.5 Credit Agreement Representations and Warranties. After giving effect to this Amendment, all representations and warranties of the
Borrower contained in the Credit Agreement (as amended hereby) or in any other Loan Documents are true and correct as of the date hereof (as though made on and as of the date hereof), except to the extent that such representations and warranties
expressly relate to an earlier specified date, in which case such representations and warranties are true and correct as of the date when made. 

4. REAFFIRMATION. 
 The
Borrower hereby acknowledges and agrees that the terms and provisions hereof shall not affect in any way any payment, performance, observance or other obligations or liabilities of the Borrower under the Credit Agreement or under any of the other
Loan Documents, all of which obligations and liabilities shall remain in full force and effect and extend to the further loans, extensions of credit and other Obligations incurred under the Loan Documents, and each of which obligations and
liabilities are hereby ratified, confirmed and reaffirmed in all respects. 
 5. CONDITIONS PRECEDENT TO EFFECTIVENESS OF THIS
AMENDMENT. 
 In addition to all of the other conditions and agreements set forth herein, the effectiveness of this Amendment is subject
to each of the following conditions precedent: 
 5.1 Amendment No. 2 to Credit Agreement. The Administrative Agent shall have
received an original counterpart of this Amendment, executed and delivered by a duly authorized officer of the Borrower. 
 6.
MISCELLANEOUS. 
 6.1 Governing Law. This Amendment shall be governed by and construed in accordance with the law of the State of
New York, without regard to principles of conflict of law. 
 6.2 Severability. Each provision of this Amendment shall be interpreted
in such manner as to be valid under applicable law, but if any provision hereof shall be invalid under applicable law, such provision shall be ineffective to the extent of such invalidity, without invalidating the remainder of such provision or the
remaining provisions hereof. 

  
 -3- 

 6.3 Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart hereof by
facsimile shall be effective as manual delivery of such counterpart; provided, however, that, each party hereto will promptly thereafter deliver counterpart originals of such counterpart facsimiles delivered by or on behalf of such
party. 
 6.4 Nonwaiver. The execution, delivery, performance and effectiveness of this Amendment shall not operate nor be deemed to
be nor construed as a waiver (i) of any right, power or remedy of the Administrative Agent or any Lender under the Credit Agreement, nor (ii) of any term, provision, representation, warranty or covenant contained in the Credit Agreement or
any other documentation executed in connection therewith. Further, none of the provisions of this Amendment shall constitute, be deemed to be or construed as, a waiver of any Event of Default under the Credit Agreement, as amended by this Amendment.

 6.5 Reference to and Effect on the Credit Agreement. Upon the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby, and each reference to the Credit Agreement in
any other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement, as amended hereby. This Amendment is a Loan Document for all purposes. 

[Signature pages follow] 

  
 -4- 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered by
its duly authorized officer as of the date first above written. 
  

					
	BORROWER:
	
	 HUDSON PACIFIC PROPERTIES, L.P.,
 a
Maryland limited partnership

		
	By:	 	Hudson Pacific Properties, Inc.
		 	a Maryland corporation, its general partner
			
		 	By:	 	 /s/ Mark T. Lammas

		 	Name:	 	Mark T. Lammas
		 	Title:	 	Chief Financial Officer

 
					
	ADMINISTRATIVE AGENT:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Kevin A. Stacker

		 	Name:	 	Kevin A. Stacker
		 	Title:	 	Senior Vice President

 
					
	LENDERS:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Kevin A. Stacker

		 	Name:	 	Kevin A. Stacker
		 	Title:	 	Senior Vice President

 
					
	BANK OF AMERICA, N.A.
		
	By:	 	 /s/ Helen Chan

		 	Name:	 	 Helen Chan

		 	Title:	 	 Vice President

 RATIFICATION AND AFFIRMATION OF GUARANTORS 

As of the date hereof, the undersigned Guarantor hereby expressly (a) acknowledges the terms of this Amendment, (b) ratifies and affirms its
obligations under the Guaranty dated as of March 31, 2015, to which it is a party (the “Guaranty Agreement”), (c) acknowledges, renews and extends its continued liability under the Guaranty Agreement and agrees that the Guaranty
Agreement remains in full force and effect notwithstanding the matters contained herein and (d) represents and warrants to the Administrative Agent and the Lenders that, as of the date hereof, after giving effect to the terms of this Amendment, all
representations and warranties of the Guarantor under the Guaranty Agreement are true and correct as of the date hereof (as though made on and as of the date hereof), except to the extent that such representations and warranties expressly relate to
an earlier specified date, in which case such representations and warranties are true and correct as of the date when made. 
 Dated as of
November 17, 2015. 
  

			
	 HUDSON PACIFIC PROPERTIES, INC.,
 a
Maryland corporation

		
	By:	 	/s/ Kay L. Tidwell
	Name:	 	Kay L. Tidwell
	Title:	 	Secretary

 Schedule 1.1(e) 

Ground Leases With Remaining Terms of Less Than 30 Years 
  

	1.	3400 Hillview (3400 Hillview Avenue, Palo Alto, CA 94304) 

  

	2.	Foothill Research Center (4001, 4005, 4009 & 4015 Miranda Avenue, Palo Alto, CA 94304) 

  

	3.	Lockheed (3176 Porter Drive, Palo Alto, CA 94304) 

  

	4.	Page Mill Center (1500, 1510, 1520 & 1530 Page Mill Road, Palo Alto, CA 94304) 

  

	5.	Palo Alto Square (3000 El Camino Real, Palo Alto, CA 94306) 

 Schedule 1.1(f) 

Ground Leases Subject To Consent 
 1. 3400
Hillview (3400 Hillview Avenue, Palo Alto, CA 94304) 
 2. Foothill Research Center (4001, 4005, 4009 & 4015 Miranda Avenue, Palo Alto, CA 94304)

 3. Lockheed (3176 Porter Drive, Palo Alto, CA 94304) 
 4.
Page Mill Center (1500, 1510, 1520 & 1530 Page Mill Road, Palo Alto, CA 94304) 
 5. Metro Center (919, 939, 977 & 989 East Hillsdale
Blvd. and 950 Tower Lane, Foster City, CA 94404) 
 6. Clocktower Square (600, 620, 630 & 660 Hansen Way, Palo Alto, CA 94304) 

7. Palo Alto Square (3000 El Camino Real, Palo Alto, CA 94306) 

8. 222 Kearny and 180 Sutter Street (220-222 Kearny Street, San Francisco, CA 94108 and 180 Sutter Street, San Francisco, CA 94104) 

9. Techmart Commerce Center (5201 Great America Parkway, Santa Clara, CA 95054)glla_ex1020.htm

Exhibit 10.20

 

SECURED PROMISSORY NOTE

THIS AGREEMENT (this “Agreement”) is entered into on this 29th day of June, 2015 (the “Effective Date”) by and between Gilla Inc. (“Gilla” or the “Company”), and Gravitas Financial Inc. (“Gravitas”) to enter into a secured promissory note.

RECITALS:

A. Gilla and Gravitas have entered into secured promissory notes dated February 13, 2014 and July 14, 2014. Such promissory notes were amended on November 10, 2014.

B. On February 13, 2014, Gilla granted Gravitas a general security interest over all the assets of the Company (the “GSA”), apart from the specific inventory and receivables pledged to Sarasvati Investments In.

C. Gilla and Gravitas intend to enter into a new Secured Promissory Note, attached hereto as Exhibit “A”, secured under the GSA entered into on February 13, 2014. A schedule of promissory notes secured under the GSA can be found on Exhibit B.

NOW, THEREFORE, for and in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Gilla and Gravitas, intending to be legally bound hereby, agree as follows:

1. Recitals, Secured Promissory Notes and GSA. The foregoing recitals are true and correct and, together with the secured promissory notes and the GSA, are incorporated herein by this reference.

2. Secured Promissory Note. Gilla covenants and promises to pay Gravitas the principal sum of three hundred thousand Canadian dollars plus accrued interest (CAD $300,000) (the “Secured Promissory Note”), such Secured Promissory Note attached hereto as Exhibit “A”. The Secured Promissory Note shall be due and payable on or before January 1, 2016 and will be subject to ten percent (10%) interest per annum, such interest will accrue monthly and will be added to the principal. The proceeds of the Secured Promissory Note will be used to finance the acquisition of E Liquid Wholesale, Inc. (the “Target”), a Florida based E-liquid manufacturer, and related capital expenditures and working capital needs. The Secured Promissory Note is secured under the GSA entered into as of February 13, 2014 whereby Gilla granted Gravitas a general security interest over all of the assets of Gilla, apart from the specific inventory and receivables pledged to Sarasvati Investments Inc., as well as the shares and assets of the Target. Gravitas will also have the first right of refusal to provide additional debt financing on future acquisitions for a period of one (1) year.

3. Warrants. Upon execution of this Agreement, Gravitas shall receive five hundred thousand (500,000) fully vested purchase warrants (each a “Warrant” and collectively the “Warrants”), each Warrant entitling Gravitas to purchase one (1) common share of Gilla, a publicly listed company trading on the OTCQB under the symbol “GLLA”. The Warrants shall have an exercise price of fifteen United States cents (US $0.15) per share and shall expire one (1) year from the date of issuance. The securities, if exercised and issued, will be subject to the standard restrictions as required by the regulators, the stock exchange and the U.S. Securities and Exchange Commission.

 

  

  

  

 

4. Entire Agreement. The provisions of this Agreement along with the unaltered provisions of the Secured Promissory Note and GSA, incorporated herein by reference, collectively constitutes the entire agreement (the “Entire Agreement”) between the parties with respect to its subject matter. All prior or contemporaneous oral and written agreements, memoranda and representations relating to Secured Promissory Note are superseded by this Entire Agreement.

5. Amendments. The Entire Agreement may be amended only by a subsequent writing signed by authorized representatives of both parties hereto, indicating an intent to amend the Entire Agreement.

6. Counterparts. This Agreement may be executed by each party upon a separate counterpart, each of which shall be deemed an original and all of which together shall constitute one agreement. Facsimile signature pages shall be acceptable as originals.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their duly authorized representatives as of the day and year first written above.

	
GILLA INC.

	
Per:

	
/s/ J. Graham Simmonds

	
Name:

	
J. Graham Simmonds

	
Title:

	
CEO

	
GRAVITAS FINANCIAL INC.

	
Per:

	
/s/ David Carbonaro

	
Name:

	
David Carbonaro

	
Title:

	
Officer

  

  

  

 

Exhibit “A”

SECURED PROMISSORY NOTE

 

	CAD $300,000 	 
Toronto, Ontario

June 29, 2015

 

 

FOR VALUE RECEIVED, Gilla, Inc. (“Gilla” or the “Borrower”), a Nevada Corporation hereby covenants and promises to pay to Gravitas Financial Inc. (“Gravitas” or the “Lender”), in the manner hereinafter provided, the principal sum of three hundred thousand Canadian dollars plus accrued interest (CAD $300,000) (the “Loan”).

The Loan shall be due and payable on or before January 1, 2016 and the Loan will be subject to ten percent (10%) interest per annum, such interest will accrue monthly and will be added to the principal. The proceeds of the Loan will be used to finance the acquisition of E Liquid Wholesale, Inc., (the “Target”), a Florida based E-liquid manufacturer, and related capital expenditures and working capital needs. The Loan is secured under the General Security Agreement entered into as of February 13, 2014 whereby Gilla granted the Lender a general security interest over all of the assets of the Borrower, apart from the specific inventory and receivables pledged to Sarasvati Investments Inc., as well as the shares and assets of the Target. The Lender will also have the first right of refusal to provide additional debt financing on future acquisitions for a period of one (1) year.

 

 

Events of Default:  In the event of default (missed payment) the Borrowers will have 15 days to liquidate sufficient assets to cover the Loan plus interest.  Interest will continue to accrue during the default period.

Except as otherwise expressly provided herein, any notice, report or other communication which may be or is required to be given or made pursuant to this Agreement shall be in writing and shall be deemed to have been validly served, given or hand delivered or sent by facsimile, or other electronic communication, or three (3) days after deposit in the mail with Canada Post, with proper first class postage prepaid and addressed to the party to be notified or to such other address as any party hereto may designate for itself by like notice, as follows:

if to the Borrowers, at:

Gilla Inc.

70 York Street

Suite 1610

Toronto, ON

M5J 1S9

Attention:  Graham Simmonds

Email: graham@gillainc.com

if to the Lender, at:

Gravitas Financial Inc.

333 Bay Street,

Suite 650

Toronto, ON

M5H 2S5

Attention:  David Carbonaro

 

  

  

  

 

This Loan is intended as a contract under and shall be construed and enforceable in accordance with the laws of the Province of Ontario, and the laws of Canada applicable therein.

IN WITNESS WHEREOF, the Borrower has caused this Loan to be executed and delivered by its duly authorized officer as of the date and at the place first above written.

 

	 	

GILLA INC.

By: /s/ J. Graham Simmonds 

Name: J. Graham Simmonds

Title: Chief Executive Officer

GRAVITAS FINANCIAL INC.

By: /s/ David Carbonaro 

Name: David Carbonaro

Title: Officer

 

 

 

 

  

  

  

Exhibit “B”

The following chart indicates the promissory notes that are secured under the GSA dated February 13, 2014.

	
Promissory Note

	
Interest Rate

	
Issuance Date

	
Maturity Date

	
CAD $500,000

	
10% per annum

	
February 13, 2014

	
January 1, 2016

	
US $100,000

	
10% per annum

	
July 18, 2014

	
January 1, 2016

	
CAD $300,000

	
10% per annum

	
June 26, 2015

	
January 1, 2016

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