SEC Contract Filing

Filing Date: 2025-01-23

Document Content:
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<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>luxurban_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
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<P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Exhibit 10.4</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0"><B><U>SECOND MODIFICATION</U></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin: 0"><B>SECOND MODIFICATION</B>, dated as of January&nbsp;16, 2025, by and among LuxUrban Hotels Inc. (the &ldquo;Company&rdquo;) and each of the undersigned holders of August&nbsp;2024 Notes, representing in the aggregate a majority of the principal amount of the outstanding August&nbsp;2024 Notes. Capitalized terms used herein shall have the meanings ascribed to them in the Securities Purchase Agreement, dated as of August&nbsp;13, 2024 (&ldquo;August&nbsp;2024 SPA&rdquo;) and the August&nbsp;2024 Notes (as defined below), as modified by that certain Modification<B>, </B>dated as of October&nbsp;18, 2024, by and among the Company and a majority of the principal amount of the outstanding August&nbsp;2024 Notes.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin: 0"><B>WHEREAS, </B>the Company sold convertible notes (the &ldquo;August&nbsp;2024 Notes&rdquo;) and common stock purchase warrants in August&nbsp;2024 under the terms of the August&nbsp;2024 SPA;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin: 0"><B>WHEREAS</B>, the investors under the August&nbsp;2024 SPA have been and remain desirous of assisting the Company in its efforts improve its capital position as the Company implements its LuxUrban 2.0 strategies;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin: 0"><B>WHEREAS</B>, in connection therewith, the Company proposes to raise additional funds through the issuance and sale of up to $10,000,000 aggregate principal amount (before giving effect to any original issue discount) of Senior Secured OID Notes (the &ldquo;January&nbsp;2025 Notes&rdquo;) and common stock purchase warrants under the terms of a Securities Purchase Agreement dated on or about the date hereof (the &ldquo;January 2025 SPA&rdquo;) between the Company and each purchaser identified therein (including any successor holder(s) of January&nbsp;2025 Notes, the &ldquo;January&nbsp;2025 Noteholders&rdquo;), and the undersigned holders of August&nbsp;2024 Notes wish to enable the Company to do so;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin: 0"><B>WHEREAS,</B> the August&nbsp;2024 Notes are secured under that certain Amended and Restated Guaranty and Security Agreement made as of November&nbsp;6, 2024(the &ldquo;Security Agreement&rdquo;), which amended and restated the Guaranty and Security Agreement, dated as of August&nbsp;13, 2024, by and among the Company, the subsidiaries of the Company named on the signature pages thereto (the &ldquo;Guarantors&rdquo; and individually a &ldquo;Guarantor&rdquo;), and Greenle Partners LLC Series Alpha P.S., as the collateral agent (the &ldquo;Collateral Agent&rdquo;) on behalf of the purchasers of the August&nbsp;2024 Notes;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0 0 0 0in; text-align: justify"><B>WHEREAS,</B> as a condition to the issuance and sale of the January&nbsp;2025 Notes under the January 2025 SPA, the January&nbsp;2025 Noteholders require that the August&nbsp;2024 Notes be modified or amended in order to consent to and permit thereunder: (i) the issuance of January&nbsp;2025 Notes under the January&nbsp;2025 SPA as senior secured obligations of the Company, <I>pari passu</I> in all respects with respect to ranking and security to the August&nbsp;2024 Notes, (ii) the sharing by the holders of August&nbsp;2024 Notes in the collateral and security provided under the Security Agreement on a <I>pari passu</I> basis, and (iii) the transactions completed by the Transaction Documents (as defined in the January&nbsp;2025 SPA) generally as provide herein;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><B>NOW, THEREFORE</B>, it is hereby agreed as follows:</P>

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 <TD STYLE="vertical-align: top; text-align: justify; text-indent: 0in"><U>Consent</U>. Each undersigned holder of August&nbsp;2024 Notes and Collateral Agent hereby acknowledge and agree that, notwithstanding anything set forth in the August&nbsp;2024 SPA, August&nbsp;2024 Notes, Security Agreement or any other Transaction Document (as defined in the August&nbsp;2024 SPA) to the contrary:</TD> </TR>
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