Document:

hgv-ex44_1545.htm

Exhibit 4.4

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2019, Hilton Grand Vacations Inc. had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): its common stock, par value 0.01 per share. References herein to “we,” “us,” “our,” “the company,” and “our company” refer to Hilton Grand Vacations Inc. and not to any of its subsidiaries.

The following description of our common stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Amended and Restated Certificate of Incorporation, as amended (the “Charter”), and our Amended and Restated By-Laws (the “By-Laws”), each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part. We encourage you to read the Charter, By-Laws and the applicable provisions of the Delaware General Corporation Law (the “DGCL”) for additional information. 

Authorized Capital 

Our authorized capital stock consists of 3,000,000,000 shares of common stock, par value $0.01 per share, and 300,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2019, we had not issued any preferred stock. All of the shares of our common stock are in uncertificated form. Unless our board of directors determines otherwise, all of the shares of our common stock will continue to be, and any future shares of our preferred stock will be, in uncertificated form. Our common stock is listed on the NYSE under the ticker symbol “HGV.”

Voting 

Holders of shares of our common stock are entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally, including the election or removal of directors elected by our stockholders generally. The holders of our common stock do not have cumulative voting rights in the election of directors. 

Liquidation Rights of our Common Stock

Upon our liquidation, dissolution or winding up and after payment in full of all amounts required to be paid to creditors and to the holders of our preferred stock having liquidation preferences, if any, the holders of our common stock will be entitled to receive pro rata our remaining assets available for distribution. The common stock will not be subject to further calls or assessment by us. Holders of our common stock do not have preemptive, subscription, redemption or conversion rights. There will be no redemption or sinking fund provisions applicable to the common stock. The rights, powers, preferences and privileges of holders of our common stock will be subject to those of the holders of any shares of our preferred stock we may authorize and issue in the future. 

 Dividends 

The DGCL permits a corporation to declare and pay dividends out of “surplus” or, if there is no “surplus,” out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. “Surplus” is defined as the excess of the net assets of the corporation over the amount determined to be the capital of the corporation by its board of directors. The capital of the corporation is 

typically calculated to be (and cannot be less than) the aggregate par value of all issued shares of capital stock. Net assets equals the fair value of the total assets minus total liabilities. The DGCL also provides that dividends may not be paid out of net profits if, after the payment of the dividend, remaining capital would be less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. Declaration and payment of any dividend is subject to the discretion of our board of directors. 

Dissenters’ Rights of Appraisal and Payment 

Under the DGCL, with certain exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation of our company. Pursuant to the DGCL, stockholders who properly request and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery. 

Stockholders’ Derivative Actions 

Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of law. 

Stockholder Meetings 

Our Charter and our Bylaws provide that annual stockholder meetings will be held at a date, time and place, if any, as exclusively selected by our board of directors. Our Bylaws provide that special meetings of the stockholders may be called only by or at the direction of the board of directors, the chairman of our board or our chief executive officer, or upon the request of holders of not less than a majority of the total voting power of all the then outstanding shares of our capital stock. For a description of the procedures related to a stockholder action by written consent, see “Anti-Takeover Effects of Our Charter and Our Bylaws and Certain Provisions of Delaware Law—Stockholder Action by Written Consent” below.  To the extent permitted under applicable law, we may conduct meetings by remote communications, including by webcast. 

Anti-Takeover Effects of Our Charter and Our Bylaws and Certain Provisions of Delaware Law 

Undesignated Preferred Stock 

The ability to authorize undesignated preferred stock will make it possible for our board of directors to issue preferred stock with super-majority voting, special approval, dividend or other rights or preferences that could impede the success of any attempt to acquire us or otherwise effect a change in control of us. These and other provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our company. 

Requirements for Advance Notification of Stockholder Meetings, Nominations and Proposals 

Our Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. For any matter to be “properly brought” before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information specified by our Bylaws about the stockholder, its affiliates and any proposed 

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business or nominee for election as a director, including information about the economic interest of the stockholder, its affiliates and any proposed nominee in us. Additionally, vacancies and newly created directorships may be filled only by a vote of a majority of the directors then in office, even though less than a quorum, and not by the stockholders. Our Bylaws provide for certain procedures with respect to the resignation of any director who does not receive a majority of the votes cast in an uncontested election. Our Bylaws allow the presiding officer at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of our company. 

Our Charter provides that the board of directors is expressly authorized to make, alter or repeal our Bylaws and that our stockholders may only amend our Bylaws with the approval of 80% or more of all of the outstanding shares of our capital stock entitled to vote. 

No Cumulative Voting 

The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless our Charter provides otherwise. Our Charter does not provide for cumulative voting. 

Stockholder Action by Written Consent 

Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is or are signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of our stock entitled to vote thereon were present and voted, unless a company’s certificate of incorporation provides otherwise. Our Charter provides that any action required or permitted to be taken by our stockholders may not be effected by consent in writing by stockholders unless such action is recommended by all directors then in office. 

Delaware Anti-Takeover Statute 

We have opted out of Section 203 of the DGCL. Section 203 provides that, subject to certain exceptions specified in the law, a publicly held Delaware corporation shall not engage in certain “business combinations” with any “interested stockholder” for a three-year period after the date of the transaction in which the person became an interested stockholder. These provisions generally prohibit or delay the accomplishment of mergers, assets or stock sales or other takeover or change-in-control attempts that are not approved by a company’s board of directors. 

In general, Section 203 prohibits a publicly held Delaware corporation from engaging, under certain circumstances, in a business combination with an interested stockholder for a period of three years following the date the person became an interested stockholder unless: 

	
 
	
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prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

	
 
	
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upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the 

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number of shares outstanding (1) shares owned by persons who are directors and also officers and (2) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

	
 
	
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on or subsequent to the date of the transaction, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

Generally, a business combination includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s outstanding voting stock. 

 Under certain circumstances, Section 203 makes it more difficult for a person who would be an “interested stockholder” to effect various business combinations with a corporation for a three-year period. Accordingly, Section 203 could have an anti-takeover effect with respect to certain transactions our board of directors does not approve in advance. The provisions of Section 203 may encourage companies interested in acquiring our company to negotiate in advance with our board of directors because the stockholder approval requirement would be avoided if our board of directors approves either the business combination or the transaction that results in the stockholder becoming an interested stockholder. However, Section 203 also could discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders. These provisions also may make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests. 

Exclusive Forum 

Our Charter provides that unless we consent to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for any (i) derivative action or proceeding brought on behalf of our company, (ii) action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of our company to our company or our company’s stockholders, (iii) action asserting a claim against our company or any director or officer of our company arising pursuant to any provision of the DGCL, our Charter or our Bylaws or (iv) action asserting a claim against our company or any director or officer of our company governed by the internal affairs doctrine, in each such case subject to said Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of our company shall be deemed to have notice of and consented to the forum provisions in our Charter.

 

4hgv-ex108c_1713.htm

 

			
	

	
 

Mark Wang

President and CEO
	
Exhibit 10.8(c)

Hilton Grand Vacations

5323 Millenia Lakes Boulevard, Suite 120

Orlando, FL 32839

	
 
	
 
	
 

 

July 26, 2017

Ms. Sherri A. Silver

6770 Kreider Road

Fairview, PA  16415

Dear Sherri:

As the Chief Executive Officer of Hilton Grand Vacations Inc. (“HGV” or “Hilton Grand Vacations”), I am very pleased to offer you the position of Chief Marketing Officer of HGV, subject to the terms and conditions contained in this offer letter.  In this role, you will be reporting directly to me.  This is a full-time position and you will be expected to devote your full business time and attention to the performance of your duties in this role.

Employment Start Date. Your first day of work in the role of Chief Marketing Officer will be considered your "Employment Start Date" for purposes of determining future seniority and benefits eligibility. We have planned for your Employment Start Date to be on or about August 14, 2017. Your employment will be for no set duration. Your legal employer will be Hilton Resorts Corporation, HGV's employer entity ("HRC"), and based in Orlando, Florida. 

Base Salary. Your starting annual base salary in your role as Chief Marketing Officer will be $375,000, paid 

Biweekly ($14,423.08  for each pay period worked), less applicable taxes and withholdings. You will continue to be paid this annual base salary in your role as Chief Marketing Officer of HGV for periods after the effective date until changed pursuant to a review. Your salary will be subject to annual review.

Annual Cash Incentive Plan. Subject to the terms of the current Hilton Grand Vacations Annual Incentive Plan (the "HGV Plan"), for 2017 you will be entitled to receive a performance incentive bonus (the "2017 Incentive Bonus") equal to 200% of your annual base salary, less applicable withholding, provided you remain employed with HGV through December 31, 2017. This represents the target bonus amount for someone in your role under the terms of the current HGV Plan, with proration for the partial year of service. This 2017 Incentive Bonus payment will be paid to you no later than March 15, 2018, provided you remain employed through and including the payment date (except as expressly provided for below).

For 2018 and subsequent years, you will be eligible to participate in HGV's Incentive plan(s) (each, an "HGV Bonus Plan") at a level commensurate with your position as an executive with HGV. Your participation in the HGV Bonus Plan does not constitute a promise of payment. Your actual incentive payout will depend on HGV's financial performance, management’s assessment of your individual performance, and will be subject to the terms and conditions of the HGV Bonus Plan(s). Eligibility for participation in the HGV Bonus Plan(s) will be subject to annual review.

Sign-On LTI Award.   In addition, as an initial sign-on incentive, HGV’s management team will grant you a Long-Term Incentive award with an aggregate grant date value equal to $175,000, which will be based on the closing price of 

HGV’s common stock as of the grant date (determined in accordance with HGV's Stock Granting Policy then in effect). The aggregate grant date value will be awarded in the form of restricted stock units ("RSUs"). The RSUs will be subject to the terms and conditions of the HGV Omnibus Stock Incentive Plan ("LTI Pla n”) and the applicable RSU award agreement. One-third of the RSUs will vest and become non-forfeitable on each of the first three anniversaries of your Employment Start Date, provided in each case that you remain continuously employed by HGV through each applicable vesting date. Following the vesting of the RSUs, you will receive one share of HGV common stock for each vested RSU (subject to tax withholding).

Long-Term Incentive Program. Subject to approval by the Compensation Committee of the Board of Directors of HGV, you will eligible to participate in an executive Long-Term Incentive (LTI) Program in accordance with terms and conditions established by HGV's Board of Directors, including any applicable vesting period. HGV's management team will recommend that, for 2018, the Compensation Committee of the Board of Directors of HGV grant you a Long-Term Incentive award with an aggregate grant date value equal to $700,000 which will be based on the closing price of HGV's common stock as of the grant date (determined in accordance with the HGV Stock Granting Policy then in effect). 

All annual grants will be subject to any applicable taxes and withholding.

Severance Benefits. Beginning on your Employment Start Date, you will be eligible for severance benefits under the Hilton Grand Vacations Executive Severance Plan (the "Severance Plan") at the level applicable to current Executive Vice Presidents of HGV, upon an eligible termination of employment in accordance with the terms of the Severance Plan.

 

 

Health & Welfare Benefits.  Hilton Grand Vacations provides a comprehensive package of benefits, including medical and prescription drug coverage, dental coverage, vision coverage, life insurance, short and long term disability insurance and other offerings.  If you are a full-time team member as defined by HGV’s health and welfare benefits plan, you will be eligible to participate in the plans once you have completed 90 days of employment with HGV. Enrollment must take place within the first 90 days of your employment with HGV for you to be eligible. Late enrollment (outside the initial 90-day period of your employment) will not be accepted. If you have questions related to your enrollment, please contact HGV’s HR @ Your Service Center at 1-888-234-6872.

Hilton Grand Vacations 40l (k) Savings Plan. You may participate in a Hilton Grand Vacations-sponsored 401(k) savings plan, normally after your first 90 days of employment. HGV may match a portion of your contributions in accordance with the applicable plan provisions. Eligibility requirements and conditions of enrollment and coverage are subject to change and are set forth in the applicable plan documents. You may contact a Total Rewards Representative or HR @ Your Service for more information.

Deferred Compensation. You will be eligible to participate in an executive deferred compensation plan sponsored by HGV, subject to the applicable plan's terms and conditions.

Executive Benefits and Perquisites.  

Executive Vacations.  HGV provides Executives on personal travel with complimentary rooms, food and beverage and other on-site services available at all HGV-branded Clubs and Resorts.  This travel benefit encourages Executives to visit and evaluate our properties.  The Executive Vacation benefit also covers the Executive’s family members and friends traveling with the Executive.

Automobile Allowance.  An Automobile Allowance of $10,000 is provided each year.  An Executive may use this benefit toward the automobile of his or her choice.  The allowance will be provided to the Executive in twelve equal monthly payments.

Executive Physical Examination.  Executives are encouraged to participate in our Executive Physical Examination program.  The Executive Physical Examination is offered annually through our health care partner, TBD.  The health care partner provides a suite of preventive care and screening examinations geared toward the executive population.  The health care partner bills HGV directly for any of the services provided to the Executive as part of this benefit.

Relocation.  Relocation benefits to your permanent location will be offered in accordance with the Plan A of the Hilton Grand Vacations Relocation Plan, which includes home sale and marketing assistance, home finding assistance, temporary living, home purchase assistance, reimbursement of relocation expenses, and moving of your household goods, provided that, notwithstanding the terms of Plan A of the HGV Relocation Plan, HGV has agreed to reimburse you for eligible home sale expenses for a home valued at up to $1,000,000. You will also receive Weichert Mobility's VIP services, which will provide you and your family with heightened personal assistance during the process of relocating and adjusting to the new location. The amounts reimbursed are not subject to a right to liquidation or exchange for another benefit.  All reimbursements will be paid by HGV, as applicable no later than December 31st of the year following the year the expense was incurred.

Paid Time Off. HGV provides a generous program of paid time away from work, including paid time off (PTO) and paid holidays. You will accrue up to twenty (20) days of PTO in your first year of employment, increasing to up to twenty-five (25) PTO days after completing one full year of employment, and higher PTO accrual levels with extended periods of service. HGV also offers ten (10) paid holidays.

Business Travel and Employee Travel Program.  You will travel in connect ion with your employment.  HGV will reimburse you for reasonable business expenses incurred in connection with your employment, upon presentation of documentation in accordance with HGV’s   applicable expense reimbursement policies for senior management.

While employed, you will be eligible for complimentary and discounted room rates while traveling on personal travel, based on availability and in accordance with the Go Hilton discount travel program terms.

Contingent Offer. Your employment offer is contingent on presenting appropriate documentation verifying authorization to work in the United States.

HGV's benefit offerings and other terms and conditions of employment are subject to change or termination, with or without notice. In the event of differences between any documents relating to compensation and benefits, the terms of the applicable plan document will control.

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This offer letter supersedes any previous verbal or written offer that you may have received. This offer letter does not constitute an employment contract. If you accept this offer and join the HGV team, you will be an at-will employee, which means that either HGV or you may terminate the employment relationship at any time, for any reason, with or without cause. As a condition of your employment, you will be required to sign a Mutual Agreement to Arbitrate Claims as well as an Indemnification Agreement.

We ask that, as you consider this offer, you take special note that HGV expects its employees to hold themselves to the highest ethical standards. This expectation is exemplified by our corporate value of Integrity and our corporate Code of Conduct, to which you will be introduced in orientation and onboarding. In that context, please observe that HGV does not hire people for the purpose of acquiring their former employer's trade secrets, confidential or proprietary information. By accepting this offer, you acknowledge that you have returned or will return all property, including documents, memoranda, software or other material, containing information belonging to your current or former employer before starting your employment with HGV. You further agree you will not bring such materials to our premises or otherwise use any such material in performing work for HGV. In addition, you must advise us about any restrictive covenants that might apply to you during your agreement(s) to which you are or may be bound.  

Please call Barbara Hollkamp, Chief Human Resources Officer, at 407-613-3248 with any questions you might have upon reviewing the terms of our offer. You may keep a copy of this document for your records.

We have confidence that you can make a great contribution for our team during these exciting times at Hilton Grand Vacations.

Sincerely,

Mark Wang,

President and CEO, Hilton Grand Vacations

****************************************************************************************************************************************

I acknowledge receipt and acceptance of the offer of employment in this letter. By my signature below, I accept all terms and conditions set forth above. In addition, I acknowledge and agree that, subject to the successful outcome of HGV's background investigation process and confirmation of my eligibility to work in the United States, I will be employed on an at-will basis and that any change to that status may only be made through an agreement in writing signed by HGV. In addition, my employment is contingent on the condition that I execute a Mutual Agreement to Arbitrate Claims and Indemnification Agreement, which should be executed in conjunction with acceptance of this employment offer.

 

	
Accepted:
	
 
	
/s/ Sherri Silver

	
 
	
 
	
Sherri A. Silver

	
 
	
 
	
 

	
 
	
 
	
 

	
Date:
	
 
	
07/27/2017

 

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