Document:

Exhibit

Exhibit 10.16
SEPARATION AGREEMENT, GENERAL RELEASE OF CLAIMS
AND COVENANT NOT TO SUE

This Separation Agreement, General Release of Claims and Covenant Not to Sue (sometimes referred to herein as “Release Agreement”) is made on the date signed by Blackhawk Network, Inc., and is made by and between Blackhawk Network, Inc., an Arizona corporation, on the one hand, and Christopher Crum, on the other hand.
“Releasor,” “you”, “your” and similar pronouns as used herein, refers to Christopher Crum, and his marital community, heirs, executors, administrators and assigns.
“Blackhawk Network, Inc.” and   “Blackhawk”, as used herein, refers to Blackhawk Network, Inc. and its successors and assigns, parents, subsidiaries, affiliates, divisions, partners, directors, officers, managers, agents and employees, and each of them.
WHEREAS, Releasor desires to compromise, settle and fully release any and all claims which he may have against Blackhawk related in any way to his employment with Blackhawk, any term or condition of that employment, or the termination of that employment, Releasor freely and voluntarily enters into and executes this Release Agreement in consideration of Blackhawk's agreement as follows:
		
	A.
	Severance.  Subject to and in accordance with the terms of this Release Agreement, Blackhawk agrees to pay to Releasor One Hundred Seventy-Nine Thousand Four Hundred Seventy-Seven Dollars and Sixty-One cents ($179,477.61), which represents Twenty-Six (26) weeks of severance pay at his final base salary.  These payments shall be made after the Effective Date and during the Severance Period, as defined below, paid as follows:  bi-weekly installments will be made for the first Eight (8) weeks according to Blackhawk’s existing pay periods; and a lump sum payment will be made for the Eighteen (18) weeks which is the remainder of the severance pay.   Provided that Releasor does not exercise the right of revocation provided for in Paragraph 10(c) below, then (i) the installment severance payment will begin within five (5) business days of the pay period following the expiration of the seven (7) day revocation period described in Paragraph 10(c), and (ii) the lump sum severance payment will be made within ten (10) business days following the expiration of the seven (7) day revocation period described in Paragraph 10(c). If Releasor becomes employed in any other position with Blackhawk during the period the severance payment is paid, the employment will begin promptly, at which time the Severance Period and severance payments will end.  The period during which Releasor is entitled to receive severance pay per the terms of this Release Agreement shall be referred to herein as the “Severance Period.”  

		
	B.
	Employee Benefits.  Except as otherwise provided in this Release Agreement, Releasor’s employee benefits as a regular employee of Blackhawk shall terminate on the last day of the month of the Effective Date, in accordance with their respective terms and conditions. Blackhawk will reimburse Releasor for six (6) month(s) of COBRA insurance premiums upon Releasor’s submission of evidence of payment of such premiums.

		
	C.
	Severance Allocation.   You agree that the severance payments described in Paragraph A are allocated as follows: (1) ninety percent (90%) of the payments are allocated as consideration for your fulfillment of the obligations needed to avoid termination of payments under Paragraph 2 below, and (2) ten percent (10%) of the payments are allocated as consideration for the Release Agreement’s remaining Releasor obligations. 

	
		
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	D.
	Accelerated Vesting.  As further consideration for Releasor’s promises made and obligations under this Agreement, Blackhawk shall obtain necessary approval from the appropriate governance body to cause seven thousand one hundred fifty-five (7,155) shares which represent fifty percent (50%) of the Performance Shares that have Performance-Vested (as defined in the 2014 PSU) prior to the Effective Date (as defined below) pursuant to the 2014 Performance Share Agreement (the “2014 PSU”) entered into by Releasor under the Blackhawk Network Holdings, Inc. 2013 Equity Incentive Award Plan to become Vested (as defined in the 2014 PSU) as of the Effective Date.  For the avoidance of doubt, Blackhawk shall cause one share of common stock to be paid for each such Vested Performance Share as soon as administrative practicable following the Effective Date, in accordance with the 2014 PSU, and the remaining Performance Shares under the 2014 PSU shall be forfeited.

		
	E.
	Tax Withholding.  Releasor shall be responsible, and agrees to hold harmless and indemnify Blackhawk, for any tax liabilities that he incurs as a result of the severance payment, any other consideration provided by Blackhawk under this Agreement and the issuance of other equity to the Releasor pursuant to the equity award agreements to which the Releasor is a party.  Any payments made to Releasor under Sections A-D above shall be less any tax withholdings required by law.   

		
	F.
	Existing Equity Plans.     Except as set forth above in Section D, all of Releasor’s outstanding equity grants will be treated strictly in accordance with the terms of the respective grants and plans.    

In consideration of the foregoing and each payment made thereunder, Releasor agrees as follows:
1.    Termination Date:  Releasor’s employment will terminate with Blackhawk effective September 30, 2016 (the “Effective Date”).   For clarity, the parties acknowledge that the Effective Date is neither shortened nor extended based on the date when Releasor ceases to engage in work for Blackhawk.  
2.    Termination of Severance Payments.  As of the Execution Date and the Effective Date, Releasor's entitlement to any  future payment under Paragraph A of this Release Agreement shall end, and Blackhawk shall have no further obligations to Releasor, immediately upon Releasor's commencement of employment with, or undertaking to provide any paid or unpaid consulting services to, any person or entity in the gift card payments business, including those listed on Schedule A (“Gift Card Payments Business Companies”) in any geographical location, regardless of whether that is the geographical location in which Releasor was, is or will be assigned to work.  Blackhawk shall be entitled to recover (and Releasor shall be deemed to have forfeited) any payments made to Releasor under Paragraph A, if Releasor accepts any employment with such Gift Cards Payments Business Companies during the period equal to twelve (12) months following the Effective Date.  Notwithstanding this Paragraph, Releasor shall be entitled to 10% of the total amount of severance payments under this Release Agreement as consideration for Releasor’s remaining obligations under the Release Agreement, including the Release of Claims in Paragraph 3. 
3.    Release of Claims. As of the Execution Date and the Effective Date, Releasor hereby releases and forever discharges Blackhawk of and from any and all claims, demands, actions, causes of action, damages and liabilities (all hereinafter referred to as "Claims"), whether or not now known, suspected or claimed, which Releasor possesses from his employment with Blackhawk, and any status, term or condition of such employment or the termination of that employment (“Release”).  This Release and Release Agreement is expressly intended to, and does, extend to and include, but is not limited to, Claims under the following (as amended): Title VII of the Civil Rights Act of 1964;  the Civil Rights Acts of 1866 and 1867; the Equal Pay Act; the Fair Labor Standards Act; the Age Discrimination in Employment Act of 1967; the Americans With Disabilities Act; the Employee Retirement Income Security Act; the Older Workers Benefit Protection Act; the California Fair Employment & Housing Act; the California Labor Code; the Employee Retirement Income Security Act of 1974; the Civil Rights and Women’s Equity Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code; the Occupational Safety and Health Act of 1970; the Consolidated Omnibus Budget Reconciliation Act of 1985; the Family and Medical Leave Act of 1993; the Worker Adjustment and Retraining Notification Act of 1988; the Vocational Rehabilitation Act of 1973; the Equal Pay Act of 1963; the National Labor Relations Act; the California Unruh Civil Rights Act; the California Equal Pay Law; any similar or comparable statute or statutes in any state, including, without limitation, the civil rights laws of Arizona, California, Missouri, Nevada and Texas; and any other federal, state or local statutes, ordinances, constitutional provisions or regulations prohibiting any form or forms of discrimination in employment and/or relating to the payment of wages and benefits.  This Release and Release Agreement also extends to and includes, but is not limited to, any Claims by Releasor for breach of any express or implied written or oral contract; intentional or negligent infliction of emotional distress; 

	
		
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impairment or interference with economic activities or opportunities; unlawful interference with employment rights; defamation; wrongful termination; wrongful discharge in violation of public policy; breach of any express or implied covenant of good faith and fair dealing; and any and all other common law contract and/or tort Claims.  Released claims shall include any claims for additional compensation, unvested benefits, including any form of unvested equity grants under any Blackhawk equity plan, and future bonus or commissions.
4.    Covenant Not to Sue.  Releasor covenants and agrees never, individually or with any other person or entity or in any way, voluntarily to commence, aid in any way, prosecute or cause or permit to be commenced or prosecuted against Blackhawk any action or other proceeding based upon any Claim which is covered and released by this Release Agreement. Notwithstanding this Section, nothing in this Release Agreement prevents me from participating in any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency.
5.    Sole Right to Claims.  Releasor represents and warrants that no other person or entity had or has any interest in the Claims referred to in this Release Agreement; that he has the sole right and exclusive authority to execute this Release Agreement; and that he has not sold, assigned, transferred, conveyed or otherwise disposed of any Claim or demand relating to any matter covered by this Release Agreement. 
6.    No Admission of Liability.  Releasor acknowledges and understands that the consideration referred to herein is provided without admission or concession by Blackhawk of any violation of any law or liability to Releasor; and that said consideration provides his with valuable benefits in addition to any to which he already is entitled under Blackhawk's employee benefit plans or otherwise.
7.    No Other Consideration.  Releasor acknowledges and agrees that no consideration other than as provided for in this Release Agreement has been or will be paid or furnished by Blackhawk; that he will make no Claim and hereby waives any right he may now have or may hereafter have, based upon any alleged oral alteration, amendment, modification or any other alleged change in this Release Agreement; and that Releasor understands and has freely and voluntarily entered into and executed this Release Agreement.
 8.    Agreement Is Confidential.  Releasor and Blackhawk covenant and agree that each will maintain in confidence the terms of this Release Agreement and  that, unless required to do so by subpoena or other lawful process, and then only to the extent so required, they will not disclose any information  concerning the Release or Release Agreement, or any of its specific terms or provisions, to any person or entity other than Releasor’s attorneys, spouse, accountants or certified financial or tax advisors or Blackhawk’s officers, directors, attorneys, parents, subsidiaries, affiliates or certified or in-house accountants, financial or tax advisors, each of whom upon receipt of such information or this Release Agreement shall be bound by the terms of this Paragraph 8. Notwithstanding the foregoing or the provisions of Paragraph 11, nothing in this Release Agreement prohibits Releasor from exercising rights as specified in Paragraph 13 of this Release Agreement. Pursuant to the Defend Trade Secrets Act of 2016, Releasor understands that he shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. He shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.
9.    Waiver of Civil Code Section 1542.  Releasor expressly waives any right or benefit available in any capacity under the provisions of Section 1542 of the California Civil Code, which section provides:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
Releasor expressly waives any right or benefit available in any capacity under the provisions of any state, federal or local statute, ordinance, constitutional provision or regulation similar or comparable to the foregoing Section 1542 of the California Civil Code. 

	
		
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10.    Releasor’s Rights.  Releasor understands and agrees that:
(a)    he has a period of twenty-one (21) days to consider this Release Agreement and determine whether he wishes to execute the same (Releasor may waive this 21-day period);
(b)    any rights or claims that may arise after the Effective Date of this Release Agreement are not waived by his execution of the Release;
(c)    he has a non-waivable period of seven (7) days after the  Execution Date (as defined in the signature block, below), within which he may revoke the Release Agreement and that the Release Agreement shall not become effective or enforceable until the seven-day revocation period has expired; and        
(d)    in the event that Releasor fails timely to execute this Release Agreement and return the executed original thereof to Blackhawk, or if Releasor timely exercises the right of revocation provided for in Paragraph 10(c), above, then Blackhawk shall be relieved of any and all obligations to Releasor under this Release Agreement.
To the extent Christopher Crum has executed this Release Agreement within less than twenty-one (21) days after its delivery to him; Christopher Crum hereby acknowledges that his decision to execute this Release Agreement before the expiration of such twenty-one (21) day period was entirely voluntary. This Release Agreement is delivered to Releasor on September 23, 2016.
11.    Confidential Information and Non-Solicitation.  Releasor covenants and agrees that, without the express written consent of an executive officer of Blackhawk:  
A.    He will not at any time, directly or indirectly, reveal or disclose to any person or entity, or otherwise use or exploit for the Releasor’s own benefit or for the benefit of any other person, any confidential, proprietary or trade secret information of or about Blackhawk, or any other Confidential Information, obtained during the course of his employment with Blackhawk; provided, however, that this paragraph shall not in any manner limit the protection of the Blackhawk’s trade secrets afforded by law, and, provided further, that Releasor’s obligations as to trade secrets shall continue indefinitely as provided by law.  For purposes of this Paragraph 11, “Confidential Information” shall mean information and the compilation of information related to Blackhawk’s operation and business which derives economic value, actual or potential, from not being generally known to or readily ascertainable by other persons.  Confidential Information includes, but is not limited to, the following:  any information designated or labeled as ‘confidential’ or ‘proprietary’; any information which is of the type one would reasonably expect a business to maintain in confidence, including without limitation the following:  legal or business development strategies, technical information, business information, contractual information, personnel information and information relating to innovative activities, confidential information of third parties to which Blackhawk owes a duty of confidentiality or non-use, financial information, procedures, prototypes and samples, proposals or quotes made to or prepared for customers or prospective customers, vendor and customer lists and pricing information, compilations of information concerning clients or customers and prospective clients or customers, the composition or description of any future products or services that are or may be provided by Blackhawk, Blackhawk marketing or sales information, know how (including but not limited to the unique manner in which Blackhawk conducts business), and payment arrangements with customers or business accounts.

	
		
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B.    He shall not, for a period ending one (1) year after the Effective Date hereof, directly or indirectly, for himself or for any other person or entity (i) employ, attempt to employ, or assist in the employment of any of Blackhawk’s current employees with whom Releasor had material contacts, unless such employee has not been employed by Blackhawk for a period in excess of six (6) months, and/or (ii) call on or solicit any of the actual vendors or suppliers (except for legal service vendors or suppliers), customers or targeted prospective customers or clients (including, without limitation, content providers and distribution partners) of Blackhawk with whom Releasor has had material contacts during Releasor’s employment with Blackhawk, for the purpose of providing the same or similar services which Releasor provided to Blackhawk, nor shall Releasor make known the names and addresses of such customers or clients, or any such information relating in any manner to Blackhawk’s trade or business relationships with such customers or clients.  Releasor agrees that for purposes of this non-solicitation covenant and agreement, Releasor shall be reasonably considered to have had “material contact” if Releasor dealt on behalf of Blackhawk with the employee, customer or client, or if Releasor supervised any employee or contractor who dealt with the same. 
12.    Cooperation in Legal Proceedings.  Releasor covenants and agrees that he will cooperate fully when and as reasonably required by Blackhawk in the defense or prosecution of any claims, charges, complaints or lawsuits that have been or may hereafter be filed by or against Blackhawk, in which event Blackhawk will indemnify Releasor in the same manner and to the same extent as if he were still employed by Blackhawk.  Such cooperation will include, but is not limited to, meeting with Blackhawk’s counsel and being available for deposition and/or trial testimony upon reasonable notice.  Blackhawk agrees that indemnification shall include reimbursement of Releasor for reasonable expenses incurred by his in furnishing such cooperation.
13.    Non-Disparagement; Administrative Charges.  Christopher Crum on his own behalf and on behalf of each Releasor covenants and agrees that for a period of one year after the Effective Date, he shall not, whether acting for Releasor or for any third party, disparage the image or reputation of Blackhawk or any of its subsidiaries or affiliates.  Blackhawk covenants and agrees that for a period of one year after the Effective Date its officers, senior management employees and professional employees shall not disparage the image or reputation of Christopher Crum. Nothing in any provision of this Release Agreement shall affect Christopher Crum’s right to file a charge with the EEOC, the NLRB, SEC or any other federal, state or local administrative agency, waive his right to file an application for an award for original information submitted pursuant to Section 21F of the Securities Exchange Act of 1934, or limit Christopher Crum’s lawful opportunity to cooperate with or participate in any administrative proceeding or investigation.  However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Christopher Crum by this Release Agreement shall be the sole monetary relief available to Christopher Crum for the Claims being released in this Release Agreement, and Christopher Crum will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded against Blackhawk in the future without regard to who filed or brought such claim. In addition, nothing in this Agreement shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Release Agreement prevents me from filing any non-legally waivable claim (including a challenge to the validity of this Release Agreement) with the Equal Employment Opportunity Commission (“EEOC”), National Labor Relations Board (“NLRB”), the Securities and Exchange Commission (“SEC”) or comparable federal, state or local agency or participating in any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable state or local agency; however, I understand and agree that, where this is not prohibited by applicable law, rule, or regulation, I am waiving any and all rights to recover any monetary or personal relief or recovery as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions.
14.    Injunctive Relief.  Releasor understands and agrees that a breach of any of the agreements, covenants, representations or warranties set forth in Paragraphs A, B, 2, 3, 4, 5, 8, 9, 11, 12 and 13 above, shall be a material breach of the Release Agreement, for which Blackhawk may, at its sole option: i) immediately cease providing to Releasor any of the benefits provided for in this Release Agreement; and/or ii) seek injunctive relief, reimbursement, damages, attorneys’ fees and costs.
15.    Governing Law.  This Release Agreement shall be governed by the laws of the State of Arizona, without regard to the choice of law provisions thereof.  Releasor hereby expressly consents to personal jurisdiction and venue in the State and federal courts located in Contra Costa county, California for any lawsuit arising from or relating to this Release Agreement, without regard to his then-current residence or domicile, and hereby expressly and irrevocably waives any objection to such jurisdiction and venue.

	
		
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16.    Attorneys’ Fees and Expenses.  If an action is brought by either Party for breach of any provision of this Agreement, the non-breaching Party shall be entitled to recover all reasonable attorneys' fees and costs in defending or bringing such an action.  
17.    Severability.  In case any provision of this Release Agreement shall be determined to be invalid, illegal, or unenforceable for any reason, the remaining provisions of this Release Agreement shall be unaffected and unimpaired thereby and shall remain in full force and effect to the fullest extent permitted by law.
18.    Voluntary Execution of Agreement.  This Release Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of the parties hereto, with the full intent of releasing all claims.  Christopher Crum hereby acknowledges that (a) he has read this Release Agreement, (b) he has been represented in the preparation, negotiation, and execution of this Release Agreement by legal counsel of his own choice or that he has voluntarily declined to seek such counsel, (c) he understands the terms and consequences of this Release Agreement and of the releases it contains, and (d) he is fully aware of the legal and binding effect of this Release Agreement.
19.    Counterparts.  This Release Agreement may be signed in counterpart originals with the same force and effect as though a single original were executed.
20.    Entire Agreement.  Except to the extent subject matter in this Release Agreement limits rights of Blackhawk (including its predecessors) in any prior agreements between the parties, this Release Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter of the Release Agreement, and the Release Agreement supersedes all prior agreements between the parties with respect to the subject matter covered herein, whether written or oral, except as otherwise expressly provided herein.  Notwithstanding the foregoing, nothing herein is intended to supersede, limit or replace any prior non-competition, non-solicitation, and/or non-disclosure covenants or agreements, which shall continue and remain in full force and effect per the terms of those covenants/agreements. Where the subject matter in this Release Agreement would otherwise limit Blackhawk’s rights in any prior agreements between the parties, all Blackhawk rights related to such subject matter are incorporated herein and preserved to the fullest extent allowable by applicable law.  

	
					
	Dated:
	October 13, 2016
	 
	 
	/s/ Christopher Crum

	 
	(“Execution Date”)
	 
	 
	Christopher Crum

	 
	 
	 
	 
	 

	Dated:
	October 17, 2016
	 
	 
	Blackhawk Network Inc.

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ Suzanne Kinner

	 
	 
	 
	Name:
	Suzanne Kinner

	 
	 
	 
	Its:
	GVP, Human Resources

	
		
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	Blackhawk ConfidentialExhibit 10.1

 

FIFTH AMENDMENT

 

 This FIFTH AMENDMENT, dated as of October 14, 2016 (this “Amendment”), to the Credit Agreement referred to below is made among INTRAWEST OPERATIONS GROUP HOLDINGS, LLC, a Delaware limited liability company (“Holdings”), INTRAWEST OPERATIONS GROUP, LLC, a Delaware limited liability company (the “Borrower”), the Consenting Lenders and the Replacement Lender (each as defined below) and GOLDMAN SACHS LENDING PARTNERS LLC, as administrative agent (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein shall have the meanings assigned to them in the Credit Agreement.  This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.

A.            Reference is hereby made to the Credit Agreement, dated as of December 9, 2013 (as amended by the Incremental Amendment, dated as of September 19, 2014, the Second Amendment, dated as of April 29, 2015, the Third Amendment, dated as of June 1, 2015, and the Fourth Amendment, dated as of April 8, 2016, and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Holdings, the Borrower, the several banks and other financial institutions or entities from time to time parties thereto (the “Lenders”), the Administrative Agent, Goldman Sachs Lending Partners, LLC, as swing line lender, and Goldman Sachs Bank USA, as issuing bank.

B.             The Borrower has requested that the Lenders agree to amend certain provisions of the Credit Agreement as provided for herein.

C.             Subject to the conditions set forth herein, each Lender party to the Credit Agreement immediately prior to the effectiveness of this Amendment that is executing a counterpart of this Amendment (each, a “Consenting Lender”) is willing to agree to such amendments of the Credit Agreement.

D.            The Borrower is electing to replace each Lender that holds an Initial Term Loan immediately prior to the effectiveness of this Amendment that is not executing a counterpart of this Amendment (each, a “Non-Consenting Lender”) pursuant to Section 2.24 of the Credit Agreement.

E.             The Borrower has requested that the Revolving Lenders agree to amend certain provisions of the Credit Agreement as provided for herein.

F.             Subject to the conditions set forth herein, each Revolving Lender party to the Credit Agreement immediately prior to the effectiveness of this Amendment is willing to agree to such amendments of the Credit Agreement.

G.            Deutsche Bank Securities Inc. (“DBSI”), Credit Suisse Securities (USA) LLC, Goldman Sachs Lending Partners LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated will act as joint lead arrangers and joint bookrunners for this Amendment (in such capacities, the “Fifth Amendment Arrangers”).

 

H.            Deutsche Bank AG New York Branch (the “Replacement Lender”) wishes to purchase the Initial Term Loans of each of the Non-Consenting Lenders and to consent to the amendments set forth herein.

Accordingly, in consideration of the mutual agreements contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1.    Amendments to Credit Agreement.  Effective as of the Fifth Amendment Effective Date, the Credit Agreement is hereby amended as follows:

(a)  Section 1.1 of the Credit Agreement is hereby amended by inserting the following defined terms in the appropriate alphabetical order therein:

“Fifth Amendment”:  the Fifth Amendment, dated as of October 14, 2016, among Holdings, the Borrower, the Lenders party thereto and the Administrative Agent.

 

“Fifth Amendment Effective Date”:  the effective date of the Fifth Amendment, which was October 14, 2016.

 

(b)  The definition of the term “Applicable Margin” set forth in Section 1.1 of the Credit Agreement is hereby amended by deleting clause (i) thereof in its entirety and inserting in lieu thereof the following new clause (i):

“(i) with respect to Initial Term Loans, a rate per annum equal to (A) with respect to Base Rate Loans, (1) prior to the Second Amendment Effective Date, 3.50%, (2) on and after the Second Amendment Effective Date but prior to the Fourth Amendment Effective Date, 2.75%, (3) on and after the Fourth Amendment Effective Date but prior to the Fifth Amendment Effective Date, 3.00% and (4) on and after the Fifth Amendment Effective Date 2.50% and (B) with respect to Eurodollar Rate Loans, (1) prior to the Second Amendment Effective Date, 4.50%, (2) on and after the Second Amendment Effective Date but prior to the Fourth Amendment Effective Date, 3.75%, (3) on and after the Fourth Amendment Effective Date but prior to the Fifth Amendment Effective Date, 4.00% and (4) on and after the Fifth Amendment Effective Date 3.50%;”.

(c)  The definition of the term “Applicable Margin” set forth in Section 1.1 of the Credit Agreement is hereby amended by deleting the table set forth in clause (ii) thereof in its entirety and replacing it with the following table:

 

2

	
Total Secured 

Debt Leverage 

Ratio

	
Applicable 

Margin for

Eurodollar 

Rate Loans 

prior to the 

Third 

Amendment 

Effective Date

	
Applicable 

Margin for

Eurodollar 

Rate Loans on 

or after the 

Third 

Amendment 

Effective Date 

and prior to the 

Fifth

 Amendment 

Effective Date

	
Applicable 

Margin for

Eurodollar 

Rate Loans on 

and after the 

Fifth 

Amendment

 Effective Date

	
Applicable 

Margin for

Base Rate 

Loans prior to 

the Third 

Amendment

 Effective Date

	
Applicable 

Margin for

Base Rate 

Loans on or 

after the Third 

Amendment 

Effective Date 

and prior to the 

Fifth 

Amendment 

Effective Date

	
Applicable 

Margin for

Base Rate 

Loans on and 

after the Fifth 

Amendment 

Effective Date

	
> 4.50:1.00

	
4.50%

	
3.75%

	
3.50%

	
3.50%

	
2.75%

	
2.50%

	
< 4.50:1.00

	
4.25%

	
3.50%

	
3.25%

	
3.25%

	
2.50%

	
2.25%

 

(d)  Section 2.9(f) of the Credit Agreement is hereby amended by (i) inserting the following parenthetical “(as in effect prior to the Second Amendment Effective Date)” immediately following the words “in the case of LC Facility Letters of Credit, the rate of interest” in the first clause (y) therein and (ii) inserting the following parenthetical “(as in effect prior to the Second Amendment Effective Date)” immediately following the words “in the case of LC Facility Letters of Credit, the rate of interest” in the clause (y) of the proviso at the end of the section therein.

(e)  Section 2.14(c) of the Credit Agreement is hereby amended by (i) inserting a “,” at the end of clause (x) therein, (ii) deleting the word “or” appearing immediately prior to clause (y) therein, (iii) deleting the “,” at the end of clause (y) therein and (iv) inserting the phrase “or (z) after the Fifth Amendment Effective Date and on or prior to the date that is six months from the Fifth Amendment Effective Date, all or any portion of the Initial Term Loans,” immediately prior to the phrase “in each case, (i) are voluntarily prepaid or terminated”.

SECTION 2.    Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, each of Holdings and the Borrower hereby represents and warrants to the Administrative Agent and each of the Lenders that, as of the Fifth Amendment Effective Date: (i) such Person (A) has the requisite corporate or other organizational power and authority to make, deliver and perform this Amendment and to perform the Credit Agreement after giving effect to this Amendment (the Credit Agreement as so amended, the “Amended Agreement”) and (B) has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of this Amendment and the performance of the Amended Agreement, (ii) this Amendment has been duly executed and delivered by such Person and constitutes a legal, valid and binding obligation of each such Person enforceable against each of them in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law), (iii) the execution, delivery and performance of this Amendment, the performance of the Amended Agreement and the consummation of the transaction contemplated hereby will not violate in any material respect any Requirement of Law (except this shall not apply to tax, employee benefit or environmental matters, which are covered exclusively by Sections 3.10, 3.13 and 3.17 of the Amended Agreement, respectively) or any Contractual Obligation of any Intrawest Group Member, other than any violation that could not reasonably be expected to have a Material Adverse Effect, and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security Documents and Liens permitted by Section 6.3), (iv) no material consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority is required in connection with the borrowings hereunder or the execution, delivery or performance of this Amendment or the performance of the Amended Agreement, except (1) those consents, authorizations, filings and notices that have been obtained or made and are in full force and effect, (2) those consents, authorizations, filings and notices, the failure to obtain or make could not reasonably be expected to have a Material Adverse Effect and (3) the filings or other actions referred to in Section 3.19 of the Amended Agreement and (v)(A) after giving effect to this Amendment, the representations and warranties contained in the Amended Agreement and in the other Loan Documents are true and correct in all material respects on and as of the Fifth Amendment Effective Date to the same extent as though made on and as of the Fifth Amendment Effective Date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof, and (B) no event has occurred and is continuing or would result from the consummation of this Amendment that would constitute a Default or an Event of Default.

 

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SECTION 3.    Effectiveness.  This Amendment shall become effective as of the first date (such date being referred to as the “Fifth Amendment Effective Date”) that each of the following conditions precedent shall have been satisfied or waived in accordance with the terms of the Credit Agreement:

(a)  The Administrative Agent shall have received this Amendment, executed and delivered by a duly authorized officer or signatory of (i) Holdings, (ii) the Borrower, (iii) the Consenting Lenders representing the Required Lenders under the Credit Agreement (as in effect immediately prior to effectiveness of this Amendment) and each of the Lenders directly affected by this Amendment and (iv) the Replacement Lender, which together with such Consenting Lenders, shall represent each of the Lenders directly affected by this Amendment after giving effect to any assignment contemplated by Section 5 below, and an Acknowledgement of Guarantors, executed and delivered by a duly authorized officer or signatory of each Guarantor.

(b)  The Administrative Agent shall have received a duly executed Assignment and Acceptance in respect of each Non-Consenting Lender’s Initial Term Loans in accordance with Section 2.24 of the Credit Agreement.

(c)  The representations and warranties of Holdings and the Borrower set forth in Section 2 hereof shall be true and correct as of the Fifth Amendment Effective Date, and the Administrative Agent shall have received a certificate, dated the Fifth Amendment Effective Date and signed by a Responsible Officer of the Borrower, confirming the truth and correctness thereof, which shall be in form and substance reasonably satisfactory to the Administrative Agent.

 

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(d)  As of the Fifth Amendment Effective Date, no event shall have occurred and be continuing or would result from the consummation of this Amendment that would constitute a Default or an Event of Default.

(e)  DBSI shall have received payment of all fees payable in connection with this Amendment, and the Administrative Agent and the Fifth Amendment Arrangers shall have received all other amounts due and payable on or prior to the Fifth Amendment Effective Date, including payment of all expenses required to be paid in connection with this Amendment pursuant to Section 9.5 of the Credit Agreement or otherwise and for which reasonably detailed invoices have been presented at least three Business Days prior to the Fifth Amendment Effective Date.

The Administrative Agent shall notify the Borrower and the Lenders of the Fifth Amendment Effective Date, and such notice shall be conclusive and binding.

SECTION 4.    Non-Reliance on Administrative Agent.  Each of the Replacement Lender and the Consenting Lenders acknowledges that it has, independently and without reliance upon the Administrative Agent, any Fifth Amendment Arranger or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their Affiliates and made its own decisions to enter into this Amendment.  Each of the Replacement Lender and the Consenting Lenders also represents that it will, independently and without reliance upon the Administrative Agent, any Fifth Amendment Arranger or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Amendment, the Credit Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their Affiliates.

SECTION 5.    Non-Consenting Lenders. The parties hereto acknowledge that pursuant to Section 2.24 of the Credit Agreement, the Borrower may, by notice to the Administrative Agent and any Non-Consenting Lender, cause such Non-Consenting Lender to assign its outstanding Loans and Commitments in full to one or more Lenders in accordance with the provisions of Section 9.6 of the Credit Agreement, and each Non-Consenting Lender has authorized the Administrative Agent to execute and deliver such documentation on behalf of such Non-Consenting Lender as may be required to give effect to such assignment.  Subject to the satisfaction of the conditions specified in Section 3 above, but effective as of the Fifth Amendment Effective Date, each Non-Consenting Lender shall cease to be, and shall cease to have any of the rights and obligations of, a “Lender” under the Credit Agreement (except for those provisions that provide for their survival, which provisions shall survive and remain in full force and effect for the benefit of the Non-Consenting Lenders).

 

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SECTION 6.    Expenses; Indemnity.  Section 9.5 of the Credit Agreement is hereby incorporated, mutatis mutandis, by reference as if such section was set forth in full herein.

SECTION 7.   Counterparts.  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Amendment signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

SECTION 8.    Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SECTION 9.    Submission to Jurisdiction; Waivers. Each party hereto hereby irrevocably and unconditionally:

(a)  submits for itself and its Property in any legal action or proceeding relating to this Amendment, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

(b)  consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

(c)  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to its address set forth in Section 9.2 of the Credit Agreement or at such other address of which the Administrative Agent shall have been notified pursuant thereto;

(d)  agrees that the Administrative Agent and the Lenders retain the right to bring proceedings against any Loan Party in the courts of any other jurisdiction in connection with the exercise of any rights under any Security Document or the enforcement of any judgment;

(e)  agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

(f)  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 9 any special, exemplary, punitive or consequential damages.

SECTION 10.  WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWER, THE ADMINISTRATIVE AGENT, THE REPLACEMENT LENDER AND EACH CONSENTING LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AMENDMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

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SECTION 11.  Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, Holdings, the Borrower or the other Loan Parties under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  This Amendment shall apply and be effective only with respect to the provisions of the Credit Agreement.  After the date hereof, any reference to the Credit Agreement shall mean the Credit Agreement as modified hereby.

SECTION 12.  Other Agreements.  For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date of the Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Initial Term Loans as not qualifying as a  “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

 

	 	
INTRAWEST OPERATIONS GROUP HOLDINGS, LLC, as Holding

	 	 	 
	 	
By:

	
/s/ Travis Mayer

	 		
Name: Travis Mayer

	 		Title: Executive Vice President,
	 	 	Chief Financial Officer and
	 	 	Treasurer
	 	 	 
	 	
INTRAWEST OPERATIONS GROUP, LLC, as the Borrower

	 	 	 
	 	
By:

	
/s/ Travis Mayer

	 		
Name: Travis Mayer

	 	 	Title: Executive Vice President, 
	 	 	Chief Financial Officer and 
	 		
Treasurer

 

[Intrawest Fifth Amendment]

 

	 	
GOLDMAN SACHS LENDING PARTNERS LLC, as Administrative Agent

	 	
	 	
By:

	
/s/ Anna Ashurov

	 		
Name: Anna Ashurov

	 		
Title: Authorized Signatory

 

[Intrawest Fifth Amendment]

 

	 	
	 	
as a Consenting Lender

	 	 
	 	
By:

	
	 		
Name:

	 		
Title:

 

[Intrawest Fifth Amendment]

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