Document:

EX-10.23

 Exhibit 10.23 

FORM OF FIRST SUPPLEMENTAL INDENTURE 

First Supplemental Indenture (this “Supplemental Indenture”), dated as of November
        , 2016, among Hilton Grand Vacations Borrower LLC, a Delaware limited liability company (the “Issuer”), Hilton Grand Vacations Borrower Inc., a Delaware corporation (the
“Co-Issuer” and, together with the Issuer, the “Issuers”), the Guarantors party to the Indenture (as defined below) from time to time and Wilmington Trust, National Association, a national banking association,
as trustee (the “Trustee”). 
 W I T N E S S E T H 

WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an Indenture, dated as of October 24, 2016 (the “Original
Issue Date”) (as amended, supplemented or otherwise modified, the “Indenture”) providing for the issuance on such date of an unlimited aggregate principal amount of 6.500% Senior Notes due 2024 (the “PHRI
Notes”) to Park Hotels & Resorts Inc., a Delaware corporation (“PHRI”), in connection with the Issuer Capitalization; 

WHEREAS, Section 9.07 of the Indenture provides that if, following the Original Issue Date, in connection with the marketed offering of all of
the then outstanding PHRI Notes (such marketed PHRI Notes, the “Marketed Notes”), the terms agreed to in connection the offering of such Marketed Notes as set forth in the final offering memorandum dated November 18, 2016, relating
to the Notes (the “Offering Memorandum”), differ from the terms of the PHRI Notes as set forth in the PHRI Notes or in the Indenture, then the Issuers, the Guarantors and the Trustee shall, on or prior to the Reset Date, amend or
supplement the Indenture, any Guarantees and the Notes with effect from the Reset Date to conform the text of the Indenture, the Guarantees and the Notes to the “Description of the Notes” section of the Offering Memorandum, subject to the
conditions described in Section 9.07 of the Indenture; 
 WHEREAS, pursuant to Section 9.07 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture without the consent of the Holders. 
 NOW THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows: 

(1) Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 (2) Amendments. Each of the following amendments shall be effective as of the Reset Date, which is the date of this Supplemental
Indenture. 
 (a) Clause (a)(ii) of the defined term “EBITDA” in Section 1.01 of the Indenture is hereby amended
and restated in its entirety to read as follows: 
 “(ii) Fixed Charges of such Person for such period (including (x)
net losses on Hedging Obligations or other derivative instruments entered into for the purpose of hedging interest rate risk, (y) bank fees and other financing fees and (z) costs of surety bonds in connection with financing activities, plus amounts
excluded from Consolidated Interest Expense as set forth in clauses (a)(q) through (w), (y) and (z) in the definition thereof); plus” 

(b) Section 3.07(c) of the Indenture is hereby amended by replacing the table in such Section in its entirety with the
following table: 
  

					
	Year	  	Percentage	 
		
	 2021
	  	 	103.063	% 
	 2022
	  	 	101.532	% 
	 2023 and thereafter
	  	 	100.000	% 

 (c) Section 4.07(b)(xvii) of the Indenture is hereby amended and restated in its
entirety to read as follows: 
 “(xvii) (A) the Spin-Off Transaction and (B) the distribution (or other Restricted
Payment) by the Issuer to its immediate parent of (i) the cash proceeds from the term loans under the Credit Agreement and from additional borrowings under the Timeshare Facility and (ii) an additional amount of cash to the extent the balance of
available cash (including restricted cash) as of the date of the Spin-Off exceeds $125.0 million;” 
 (d) The Indenture
is hereby amended by replacing each reference to “6.500% Senior Notes due 2024” with “6.125% Senior Notes due 2024.” 

(e) The form of Note set forth in Exhibit A-1 to the Indenture is hereby amended by: 

(i) replacing each reference to “6.500% Senior Notes due 2024” in such Exhibit A-1 with “6.125% Senior Notes due
2024”; 
 (ii) replacing the reference to “6.500%” in Section 1 of the reverse of such form of Note with
“6.125%”; 
 (iii) replacing the table in Section 5(c) on the reverse of such form of Note in its entirety with the
following table: 
  

					
	Year	  	Percentage	 
		
	 2021
	  	 	103.063	% 
	 2022
	  	 	101.532	% 
	 2023 and thereafter
	  	 	100.000	% 

 (iv) replacing each reference to “CUSIP [–]” with “CUSIP
[43283QAA8][U4328TAA8]” and each reference to “ISIN [–]” with “ISIN [US43283QAA85][USU4328TAA89].” 

(f) Annex A to the form of Certificate of Transfer set forth in Exhibit B to the Indenture is hereby amended by: 

(i) replacing each reference to “[        ] 144A Global Note (CUSIP:
[–])” with “[        ] 144A Global Note (CUSIP: 43283QAA8)”; and 

(ii) replacing each reference to “[        ] Regulation S Global Note (CUSIP:
[–])” with “[        ] Regulation S Global Note (CUSIP: U4328TAA8).” 
 (3)
Notices. All notices or other communications to the parties hereto shall be given as provided in Section 12.02 of the Indenture. 

(4) Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in
all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or
hereafter authenticated and delivered shall be bound hereby. 
 (6) No Recourse Against Others. No past, present or future
director, officer, employee, incorporator, or direct or indirect member, partner or stockholder of the Parent, any Issuer or any Guarantor shall have any liability for any obligations of the Issuers or the Guarantors under the Notes, any Guarantees,
the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting Notes waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. 

  
 2 

 (7) Governing Law. THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE
ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

(8) Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original,
but all of them together represent the same agreement. This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument. The exchange of copies of this Supplemental Indenture
and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.
Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
 (9)
Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 
 (10)
The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein. This Supplemental Indenture
is executed and accepted by the Trustee subject to all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect
hereto. For the avoidance of doubt, the Trustee is entering into this Supplemental Indenture at the request of the Issuers in accordance with Section 9.07 of the Indenture. 

(11) Successors. All agreements of the Issuers and the Guarantors in this Supplemental Indenture shall bind its Successors, except
as otherwise provided in this Supplemental Indenture. All agreements of the Trustee in this Supplemental Indenture shall bind its successors. 

(12) Conflicts. If there is any conflict or inconsistency between the Indenture and this Supplemental Indenture, the provisions of
this Supplemental Indenture shall control. 
 [Signatures on following page] 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the date first above written. 
  

					
	HILTON GRAND VACATIONS BORROWER LLC, as Issuer
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON GRAND VACATIONS BORROWER INC., as Co-Issuer
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON GRAND VACATIONS INC., as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON GRAND VACATIONS PARENT LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON RESORTS CORPORATION, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	48TH STREET HOLDING LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 4 

 
					
	GRAND VACATIONS REALTY, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	GRAND VACATIONS SERVICES LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	GRAND VACATIONS TITLE, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON GRAND VACATIONS CLUB, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON GRAND VACATIONS COMPANY, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON GRAND VACATIONS FINANCING, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 5 

 
					
	HILTON GRAND VACATIONS MANAGEMENT, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON KINGSLAND 1, LLC, as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON RESORTS MARKETING CORP., as Guarantor
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HILTON TRAVEL, LLC, as Guarantors
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	HRC ISLANDER LLC, as Guarantors
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 6wmih-ex101_6.htm

Exhibit 10.1

 

Amendment No. 3 to Transition Services Agreement

Reference is made to that certain Transition Services Agreement, dated as of March 22, 2012 (as amended, modified or supplemented prior to the date hereof, the “TSA”), entered into by and between WMI Liquidating Trust (the “Trust”) and WMIH Corp. (formerly known as WMI Holdings Corp. “WMIH”). Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the TSA.

 

The Trust and WMIH hereby agree to amend and supplement the TSA as follows: Section 1.  Office Space Arrangements.

Each of the Trust and WMIH acknowledge that effective as of June 30, 2015, the Trust ceased providing WMIH with office space and that from and after July 1, 2015, WMIH has independently arranged for its own office space.  On the basis of the foregoing, the Trust and WMIH agree that the TSA shall be amended by deleting therefrom any obligation on the part of the Trust to provide WMIH with office space and that such amendment will be given effect as if entered into by the parties effective July 1, 2015. The Trust acknowledges and confirms that from and after July 1, 2015, it has not been seeking reimbursement from WMIH for any office space charges and that WMIH is not liable to the Trust for any reimbursements relating to office space charges from such date. The Trust further acknowledges and confirms that WMIH has fulfilled all of its payment obligations under the office sharing arrangements set forth in the TSA, as amended by Amendment No. 1 and Amendment No. 2 to the TSA.

 

Section 2.  Hourly Rates and Other Adjustments.

 

The parties agree that each of Schedule D and Schedule E to the TSA shall be amended and restated in their entirety with the new forms of Schedule D and Schedule E, respectively, attached hereto. The services, new rates and other charges reflected on such new Schedule D and Schedule E, as the case may be, shall be given effect as if entered into as of January 1, 2015.

 

The parties agree that Schedule A to the TSA shall be amended by adding thereto the “Description of Administrative Support Services” set forth on Schedule 1 attached hereto.

 

Section 3.  Schedule F to the TSA is hereby deleted in its entirety

 

Section 4. Miscellaneous.

 

Except as expressly amended and supplemented hereby (and as previously amended by Amendment No. 1 and Amendment No. 2 to the TSA), the parties agree that all terms and conditions of the TSA shall remain unchanged and are hereby ratified, confirmed and remain in full force and effect.  This Amendment No. 3 (the “Amendment”) shall be governed by the law of the State of Washington. This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or electronic mail shall be effective delivery of a manually executed counterpart to this Amendment.

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by its officers thereunto duly authorized as of this 18th day of November, 2016.

 

 

 

 

 

 

 

 

 

 

Schedule D – Monthly Employee Rates – WMI Liquidating Trust

 

 

						
	
 

 

Employee
	
Maximum Hours Allocation
	
2012-2014

Applicable Hourly Rate
	
 

 

2015 Rate
	
 

 

2016 Rate
	
 

 

2017 Rate

	
 

Chad Smith
	
 

40
	
 

387.64
	
 

427.71
	
 

442.68
	
 

458.17

	
Doreen Logan
	
40
	
224.42
	
247.62
	
256.28
	
265.25

	
Curt Brouwer
	
10
	
207.69
	
475.00
	
475.00
	
475.00

	
Dennis Suzuki
	
20
	
55.26
	
60.97
	
63.11
	
70.59

	
Yana Soriano
	
40
	
59.72
	
65.89
	
68.20
	
70.59

	
Helen Grayson
	
40
	
N/A
	
51.35
	
53.15
	
55.01

	
Employee Overhead Charge per hour
	
 
	
 

17.04
	
 

18.80
	
 

19.46
	
 

20.14

 

 

 

 

 

 

Schedule E – Monthly Overhead Expenses

 

							
	
 
	
 
	
 
	
 

 

Original Allocation
	
Allocation

under Nov 2014

Revision
	
 

July 1, 2015 Revision
	
 

	
Overhead
	
Vendor
	
Allocation
	
 
	
 

	
 

Cell Phones
	
 

AT&T Mobility
	
 

22.2%
	
 

$298.09
	
 

$150.00
	
 

$150.00
	
 

No change

	
 

Phones
	
 

Integra Telecom
	
 

12.5%
	
 

$165.96
	
 

$500.00
	
 

-
	
Charged directly by Regus so not needed in overhead charge

	
 

Network System and Support
	
 

 

Z7 Networks
	
 

 

12.5%
	
 

 

$2,500.00
	
 

 

$3,984.23
	
 

 

$3,984.00
	
25% of Z7 bill, 50% of data backup/recovery charge (with updates to services at 800 Fifth Avenue)

	
 

Copier/Printer Lease
	
 

AGI Lease
	
 

25%
	
 

$355.77
	
 

$662.72
	
 

$388.00
	
1⁄2 of AGI lease cost and support for copier allocated to WMIH Corp

	
Copier/Printer Service
	
Pacific Office Automation
	
 

40%
	
 

$135.62
	
 

$150.00
	
 

-
	
 

Included above

	
 

Supplies
	
Office Depot / Puget Sound
	
 

12.5%
	
 

$43.47
	
 

$75.00
	
 

$75.00
	
 

Paper and other office supplies

	
 
	
 
	
 
	
 

$8,468.19
	
 

$5,521.95
	
 

$4,597.00
	
 

	
 
	
Total monthly change from prior agreement:
	
 
	
 
	
 
	
 

$(924.95)
	
 

 

 

 

 

Schedule 1

 

Description of Administrative Support Services

 

Among other services as may be requested under the TSA from time to time and in accordance with the terms thereof, personnel from the Trust may provide WMIH with the following administrative services:

 

	
 
	
-
	
Compile documents and coordinate signature requests

	
 
	
-
	
Coordinate office facility requests (e.g., repair services, building announcements)

	
 
	
-
	
Order supplies, as needed

	
 
	
-
	
Process expense reports, when submitted

	
 
	
-
	
Book travel itineraries, if needed

	
 
	
-
	
File paper work as directed

	
 
	
-
	
Handle incoming and outgoing mail and FedEx

	
 
	
-
	
Assist with setting up and sending out meeting invites

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