Document:

hgv-ex104_997.htm

 

Exhibit 10.4

OMNIBUS 

Amendment No. 9 to

Receivables Loan Agreement

AMENDMENT NO. 4 TO

SALE AND CONTRIBUTION AGREEMENT

This OMNIBUS Amendment no. 9 to Receivables Loan Agreement AND AMENDMENT NO. 4 TO SALE AND CONTRIBUTION AGREEMENT (this “Amendment”), effective as of May 14, 2018 (the “Effective Date”), is executed by and among HILTON GRAND VACATIONS TRUST I LLC, a Delaware limited liability company (together with its successors and assigns, the “Borrower”), HILTON RESORTS CORPORATION, a Delaware corporation (the “Seller”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Paying Agent and Securities Intermediary, the financial institutions signatory hereto as Managing Agents, the financial institutions signatory hereto as Conduit Lenders, the financial institutions signatory hereto as Committed Lenders and DEUTSCHE BANK SECURITIES, INC., as Administrative Agent.  Capitalized terms used, but not otherwise defined herein, shall have the meanings ascribed thereto in the “Receivables Loan Agreement” (defined below).

WITNESSETH:

WHEREAS, the Borrower, the Managing Agents party thereto, the Administrative Agent, Wells Fargo Bank National Association, as Securities Intermediary and Paying Agent, the Conduit Lenders party thereto, and the Committed Lenders party thereto are parties to that certain Receivables Loan Agreement dated as of May 9, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Receivables Loan Agreement”); 

WHEREAS, the Borrower and Seller are party to that certain Sale and Contribution Agreement, dated as of May 9, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Sale and Contribution Agreement”); and

WHEREAS, as provided herein, the parties hereto have agreed to provide certain waivers under the Receivables Loan Agreement and Sale and Contribution Agreement and amend certain provisions of the Receivables Loan Agreement and the Sale and Contribution Agreement, each as further described below;

NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.Annual Financial Statements.  The Administrative Agent and the Majority Managing Agents agree that the financial statements and related compliance certificate with respect to the Seller and its Subsidiaries on a consolidated basis as at the end of the 2017 fiscal year delivered to the Borrower on March 30, 2018 are in compliance with Section 4.2(a)(ii) and 4.2(b) of the Sale and Contribution Agreement.

SECTION 2.Amendment to the Receivables Loan Agreement.  Effective as of the Effective Date, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Receivables Loan Agreement is hereby amended as follows:

 

 

 2.1Annex 2 to Exhibit I to the Receivables Loan Agreement is hereby amended to replace the Notice Addresses for Hilton Grand Vacations Trust I LLC and Grand Vacations Services LLC with the following: 

HILTON GRAND VACATIONS TRUST I LLC

6355 Metro West Blvd, Suite 180

#1549

Orlando, FL 32835

Attn: VP Treasury

Grand Vacations Services LLC

5323 Millenia Lakes Blvd 

Suite 400

Orlando, FL 32839

Attn: General Counsel

 2.2Schedule III to the Receivables Loan Agreement is hereby amended to replace the Notice Addresses for Hilton Grand Vacations Trust I LLC and Grand Vacation Services, LLC with the following:

Borrower

Hilton Grand Vacations Trust I LLC 

6355 Metro West Blvd, Suite 180

#1549

Orlando, FL 32835

Attention: VP Treasury

Telephone: 407.722.3100

Facsimile: 407.722.3776

Servicer: 

Grand Vacations Services, LLC,

as Servicer

Attention: VP Treasury

6355 Metro West Blvd., Suite 180 

Orlando, FL 32835

Phone: (407) 722-3270

Fax: (407) 722-3032

SECTION 3.Amendment to the Sale and Contribution Agreement.  Effective as of the Effective Date, and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Sale and Contribution Agreement is hereby amended as follows:

 3.1Exhibit D to the Sale and Contribution Agreement is hereby amended to replace the Notice Addresses for Hilton Resorts Corporation and Hilton Grand Vacations Trust I LLC with the following:

Hilton Resorts Corporation

5323 Millenia Lakes Blvd 

Suite 400

Orlando, FL 32839

Attn: General Counsel

Tel. 407.722.3100

Fax: 407.722.3776

2

 

Hilton Grand Vacations Trust I LLC

6355 Metro West Blvd, Suite 180

#1549

Orlando, FL 32835

Attn: VP Treasury

Tel. 407.722.3100

Fax: 407.722.3776

 3.2Section 4.2(a) of the Sale and Contribution Agreement is amended and restated in its entirety as follows:

“(i)within sixty (60) days after the end of each of the first three quarterly fiscal periods of each fiscal year of the Seller, the unaudited balance sheet of the Seller and its Subsidiaries on a consolidated basis as at the end of such period and the related unaudited consolidated statements of income for the Seller and its Subsidiaries for such period and the portion of the fiscal year through the end of such period; and

(ii)within one hundred and five (105) days after the end of each fiscal year of the Seller, the audited balance sheet of the Seller and its Subsidiaries on a consolidated basis as at the end of such fiscal year and the related audited consolidated statements of income for the Seller and its Subsidiaries and, if prepared, related notes, shareholders' equity and retained earnings and of cash flows for the Seller and its Subsidiaries on a consolidated basis for such year, accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall not be qualified as to scope of audit or going concern and shall state that each of the aforementioned statements fairly presents the financial condition and results of operations of the Seller and its Subsidiaries on a consolidated basis at the end of, and for, such fiscal year in accordance with GAAP, containing a footnote stating that, in making the examination necessary for their opinion, they obtained no knowledge, except as specifically stated, of any Default or Event of Default; provided, however, that such statements of the Seller and its Subsidiaries shall not be required to be audited or accompanied by an opinion thereon if the annual financial statement information of the Seller and its Subsidiaries is included in the consolidated audit of Hilton Grand Vacations Inc.”

SECTION 4.Conditions Precedent.  This Amendment shall become effective on the Effective Date upon the satisfaction of the Administrative Agent having received counterparts of this Amendment executed by each of the parties hereto.

SECTION 5.Representations, Warranties and Confirmations.  The Borrower hereby represents and warrants that:

 5.1It has the power and is duly authorized, including by all limited liability company action on its part, to execute and deliver this Amendment.

 5.2This Amendment has been duly and validly executed and delivered by it.

 5.3This Amendment, the Sale and Contribution Agreement and Receivables Loan Agreement as amended hereby, constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms.

3

 

 5.4Immediately prior, and after giving all effect, to this Amendment, the covenants, representations and warranties of the Borrower set forth in the Receivables Loan Agreement are true and correct in all material respects as of the date hereof (except to the extent such representations or warranties relate solely to an earlier date and then as of such date).

 5.5Immediately prior, and after giving all effect, to this Amendment, no event, condition or circumstance has occurred and is continuing which constitutes a Servicer Termination Event, Unmatured Servicer Termination Event, Default or Event of Default.

SECTION 6.Delivery of Executed Amendment.  The Borrower covenants and agrees that it will deliver an executed copy of this Amendment to the Servicer, the Paying Agent, the Backup Servicer and the Custodian promptly following the effectiveness hereof.

SECTION 7.Entire Agreement.  The parties hereto hereby agree that this Amendment constitutes the entire agreement concerning the subject matter hereof and supersedes any and all written and/or oral prior agreements, negotiations, correspondence, understandings and communications.

SECTION 8.Effectiveness of Amendment.  Except as expressly amended by the terms of this Amendment, all terms and conditions of the Sale and Contribution Agreement or the Receivables Loan Agreement, as applicable, shall remain in full force and effect and are hereby ratified and confirmed.  This Amendment shall not operate as a consent, waiver, amendment or other modification of any other term or condition set forth in the Sale and Contribution Agreement or the Receivables Loan Agreement or any right, power or remedy of the Administrative Agent or any Managing Agent or Lender under the Sale and Contribution Agreement or the Receivables Loan Agreement, except as expressly modified hereby.  Upon the effectiveness of this Amendment, each reference in the Sale and Contribution Agreement or the Receivables Loan Agreement to “this Agreement”, “this Sale and Contribution Agreement” or “this Receivables Loan Agreement” or words of like import shall mean and be references to the Sale and Contribution Agreement or the Receivables Loan Agreement, as applicable, as amended hereby, and each reference in any other Facility Document to the Sale and Contribution Agreement or Receivables Loan Agreement or to any terms defined in the Sale and Contribution Agreement or Receivables Loan Agreement which are modified hereby shall mean and be references to the Sale and Contribution Agreement or Receivables Loan Agreement, as applicable, or to such terms as modified hereby. 

SECTION 9.GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 10.Binding Effect.  This Amendment shall be binding upon and shall be enforceable by parties hereto and their respective successors and permitted assigns.

SECTION 11.Headings.  The Section headings herein are for convenience only and will not affect the construction hereof.

SECTION 12.Novation.  This Amendment does not constitute a novation or termination of the Receivables Loan Agreement, the Sale and Contribution Agreement or any Facility Document and all obligations thereunder are in all respects continuing with only the terms thereof being modified as provided herein.

4

 

SECTION 13.Counterparts.  This Amendment may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or by electronic mail in a “.pdf” file shall be effective as delivery of a manually executed counterpart of this Amendment.

SECTION 14.Fees, Costs and Expenses.  The Borrower agrees to pay on demand all reasonable fees and out-of-pocket expenses of Sidley Austin LLP, counsel for the Administrative Agent, incurred in connection with the preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered in connection herewith.

 

Signature Pages Follow

 

5

 

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

 

	
 
	
HILTON GRAND VACATIONS TRUST I LLC,

as Borrower

	
 
	
 

	
 
	
By:
	
 
	
/s/ Charles Corbin

	
 
	
Name:
	
 
	
Charles Corbin

	
 
	
Title:
	
 
	
EVP & Secretary

 

	
 
	
HILTON RESORTS CORPORATION,

as Seller

	
 
	
 

	
 
	
By:
	
 
	
/s/ Charles Corbin

	
 
	
Name:
	
 
	
Charles Corbin

	
 
	
Title:
	
 
	
EVP & Secretary

 

 

 

Signature Page to Omnibus Amendment No. 9 to Receivables Loan Agreement and Amendment No. 4 to Sale and Contribution Agreement

 

 

	
 
	
Deutsche Bank SECURITIES, INC.,

as Administrative Agent

	
 
	
 

	
 
	
By:
	
 
	
/s/ Nicole Byrns

	
 
	
Name:
	
 
	
Nicole Byrns

	
 
	
Title:
	
 
	
Director

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Suji Kang

	
 
	
Name:
	
 
	
Suji Kang

	
 
	
Title:
	
 
	
Vice President

 

	
 
	
DEUTSCHE BANK AG, NEW YORK BRANCH

as a Committed Lender and a Managing Agent

	
 
	
 

	
 
	
By:
	
 
	
/s/ Nicole Byrns

	
 
	
Name:
	
 
	
Nicole Byrns

	
 
	
Title:
	
 
	
Director

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Rob Sannicandro

	
 
	
Name:
	
 
	
Rob Sannicandro

	
 
	
Title:
	
 
	
Director

 

 

 

Signature Page to Omnibus Amendment No. 9 to Receivables Loan Agreement and Amendment No. 4 to Sale and Contribution Agreement

 

 

	
 
	
BANK OF AMERICA, N.A.,

as a Committed Lender and a Managing Agent

	
 
	
 

	
 
	
By:
	
 
	
/s/ Carl W. Anderson

	
 
	
Name:
	
 
	
Carl W. Anderson

	
 
	
Title:
	
 
	
Managing Director

 

 

Signature Page to Omnibus Amendment No. 9 to Receivables Loan Agreement and Amendment No. 4 to Sale and Contribution Agreement

 

 

	
 
	
BARCLAYS BANK PLC,

as a Committed Lender and a Managing Agent

	
 
	
 

	
 
	
By:
	
 
	
/s/ Chin-Yong Choe

	
 
	
Name:
	
 
	
Chin-Yong Choe

	
 
	
Title:
	
 
	
Director

 

	
 
	
SHEFFIELD RECEIVABLES COMPANY LLC,

as a Conduit Lender

	
 
	
 

	
 
	
By:
	
 
	
Barclays Bank PLC,

	
 
	
 
	
 
	
as attorney-in-fact

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
/s/ Chin-Yong Choe

	
 
	
Name:
	
 
	
Chin-Yong Choe

	
 
	
Title:
	
 
	
Director

 

 

Signature Page to Omnibus Amendment No. 9 to Receivables Loan Agreement and Amendment No. 4 to Sale and Contribution Agreement

 

 

	
 
	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Committed Lender and a Managing Agent

	
 
	
 

	
 
	
By:
	
 
	
/s/ Leigh Poltrack

	
 
	
Name:
	
 
	
Leigh Poltrack

	
 
	
Title:
	
 
	
Vice President

 

 

Signature Page to Omnibus Amendment No. 9 to Receivables Loan Agreement and Amendment No. 4 to Sale and Contribution Agreement

 

 

	
 
	
SUNTRUSTBANK,

as a Committed Lender and a Managing Agent

	
 
	
 

	
 
	
By:
	
 
	
/s/ Emily Shields

	
 
	
Name:
	
 
	
Emily Shields

	
 
	
Title:
	
 
	
First Vice President

 

Signature Page to Omnibus Amendment No. 9 to Receivables Loan Agreement and Amendment No. 4 to Sale and Contribution AgreementExhibit

        

Exhibit 10.1
FIFTH AMENDMENT 
TO 
LOAN AND SECURITY AGREEMENT
This Fifth Amendment to Loan and Security Agreement (the “Amendment”), is entered into as of July 9, 2018, by and among PACIFIC WESTERN BANK, a California state chartered bank (the “Bank”) and OBALON THERAPEUTICS, INC. (“Borrower”).
RECITALS
Borrower and Bank are parties to that certain Loan and Security Agreement dated as of June 14, 2013 (as amended from time to time, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.
NOW, THEREFORE, the parties agree as follows:
		
	1)
	Borrower informed Bank that Obalon Therapeutics, LLC has been dissolved and all of its assets have been transferred to Borrower.  As of the date hereof, all references to “Borrower” or “Borrowers”  in the Agreement and the other Loan Documents shall hereinafter refer to Obalon Therapeutics, Inc. 

		
	2)
	Section 2.1(b) of the Agreement is hereby amended and restated as follows:

(b)    Term Loans.

(i)    Term Loan A.  Subject to and upon the terms and conditions of this Agreement, on the Fifth Amendment Date or as soon thereafter as all conditions precedent to the making thereof have been met, Bank shall make a term loan to Borrower in the principal amount of $10,000,000 (the “Term Loan A”). The proceeds of the Term Loan A shall be used to refinance the aggregate principal amount of all indebtedness owing from Borrower to Bank under the existing Term Loan A as of the Fifth Amendment Date.

(ii)    Term Loans B.  Subject to and upon the terms and conditions of this Agreement, Bank agrees to make one (1) or more term loans to Borrower in an aggregate principal amount not to exceed $10,000,000 (each a “Term Loan B” and collectively the “Term Loans B”, and together with the Term Loan A, each a “Term Loan” and collectively, the “Term Loans”). Borrower may request Term Loans B at any time from the Fifth Amendment Date through the Availability End Date. The proceeds of the Term Loans B shall be used for general working capital purposes and capital expenditures.

(iii)    Repayment of Term Loans.  Interest shall accrue from the date of each Term Loan at the rate specified in Section 2.3(a), and prior to the Interest-Only End Date shall be payable monthly beginning on the first day of the month next following such Term Loan, and continuing on the same day of each month thereafter.  Any Term Loans outstanding on the Interest-Only End Date shall be payable in thirty-six (36) equal monthly installments of principal, plus all accrued interest, beginning on the date that is one month immediately following the Interest-Only End Date, and continuing on the same day of each month thereafter 

        

through the Term Loan Maturity Date, at which time all amounts due in connection with the Term Loans and any other amounts due under this Agreement shall be immediately due and payable. Term Loans, once repaid, may not be reborrowed. Borrower  may prepay any Term Loan  without penalty or premium.

(iv)    Term Loan Request.  When Borrower desires to obtain a Term Loan B, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be received no later than 3:30 p.m. Eastern time on the day on which the Term Loan B is to be made.  Such notice shall be substantially in the form of Exhibit C. The notice shall be signed by an Authorized Officer.

		
	3)
	A new Section 2.1(c) is hereby added to the Agreement as follows:

(c)    Usage of Credit Card Services Under the Credit Card Line.

(i)    Usage Period.  Subject to and upon the terms and conditions of this Agreement, at any time from the Fifth Amendment Date through the Credit Card Maturity Date, Borrower may use the Credit Card Services in amounts and upon terms as provided in Section 2.1(c)(ii) below.
(ii)    Credit Card Services.  Subject to and upon the terms and conditions of this Agreement, Borrower may request corporate credit cards and standard and e-commerce merchant account services from Bank (collectively, the “Credit Card Services”). The aggregate limit of the corporate credit cards and merchant credit card processing reserves shall not exceed the Credit Card Line.  The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of Bank’s standard forms of application and agreement for the Credit Card Services, which Borrower hereby agrees to execute.
(iii)    Collateralization of Obligations Extending Beyond Maturity.  If Borrower has not cash secured the obligations with respect to any Credit Card Services by the Credit Card Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates or accounts), shall automatically secure such obligations to the extent of the then continuing or outstanding Credit Card Services.  Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances up to an amount equal to the greater of the Credit Card Line or the outstanding principal amount of all Credit Card Services for so long as the applicable Credit Card Services are outstanding or continue.
		
	4)
	Section 6.6 of the Agreement is hereby amended and restated, as follows:

6.6    Accounts.  Borrower shall (a) deposit in accounts at Bank all of the Cash from all advances of Term Loans B and (b) commencing on a date no later than 15 days after the Fifth Amendment Date, and at all times thereafter, maintain Cash in accounts at Bank in an aggregate amount of not less than the aggregate amount of all Indebtedness of Borrower to Bank then outstanding, but such Cash shall not be restricted in terms of withdrawal or use, except to the 

        

extent of any restriction by Bank pursuant to the exercise of its rights under Section 9 of this Agreement.  In addition, (i) Borrower shall deposit net proceeds from the next equity offering at the Bank in an amount not less than one hundred fifty percent (150%) of the aggregate amount of all Indebtedness outstanding at the time of such offering (or, if the amount of net proceeds from such equity offering is less than such amount, the Borrower shall be required to deposit the full amount of such net proceeds), and (ii) Borrower shall move funds at Bank’s affiliates to Bank as current securities mature, with all such funds moved over to Bank by August 23, 2018.

		
	5)
	Clause (c) of the definition of “Permitted Indebtedness” in Exhibit A to the Agreement is hereby amended by deleting the reference to “$250,000” and substituting in lieu thereof “$1,000,000”.

		
	6)
	Clause (g) of the definition of “Permitted Investments” in Exhibit A to the Agreement is hereby amended and restated as follows:

(g)    Investments in unfinanced capital expenditures not to exceed $1,500,000 in any fiscal year, commencing with fiscal year 2013 and each fiscal year thereafter; 

		
	7)
	Clause (c) of the definition of “Permitted Liens” in Exhibit A to the Agreement is hereby amended by deleting the reference to “$250,000” and substituting in lieu thereof “$1,000,000”.

		
	8)
	The following defined terms in Exhibit A to the Agreement are hereby added or amended and restated, as applicable, as follows:

“Availability End Date” means July 9, 2019. 

“Credit Card Line” means a Credit Extension of up to $200,000, to be used exclusively for the provision of Credit Card Services.

“Credit Card Maturity Date” means July 8, 2019.

“Credit Card Services” has the meaning assigned in Section 2.1(c)(ii).
 
“Credit Extension” means each Term Loan, extensions of credit under the Credit Card Line or any other extension of credit by Bank, to or for the benefit of Borrower hereunder.

“Fifth Amendment Date” means July 9, 2018.

“Interest-Only End Date” means July 9, 2019.

“Term Loan” and “Term Loans” have the meaning assigned in Section 2.1(b)(ii).

“Term Loan A” has the meaning assigned in Section 2.1(b)(i).

“Term Loan B” and “Term Loans B” have the meaning assigned in Section 2.1(b)(ii).

        

“Term Loan Maturity Date” means July 9, 2022.

		
	9)
	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.  Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement.

		
	10)
	Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment. 

		
	11)
	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

		
	12)
	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

		
	a)
	this Amendment, duly executed by Borrower;

		
	b)
	a Certificate of the Secretary of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Amendment;

		
	c)
	payment of a $30,000 facility fee, which may be debited from any of Borrower’s accounts;

		
	d)
	payment of all Bank Expenses, including Bank’s expenses for the documentation of this amendment and any related documents, and any UCC, good standing or intellectual property search or filing fees, which may be debited from any of Borrower’s accounts; and

		
	e)
	such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

[Signature Page Follows]

        

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.
	
		
	OBALON THERAPEUTICS, INC.
	PACIFIC WESTERN BANK

	By:  /s/William Plovanic                 
Name:  William J. Plovanic                 
Title:  Chief Financial Officer                 
	By:  /s/Danielle Marriott              
Name:  Danielle Marriott              
Title:  Vice President                     

 [Signature Page to Fifth Amendment to Loan and Security Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00285-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00285-of-00352.parquet"}]]