FIRST AMENDMENT TO SECURED PROMISSORY NOTE
Exhibit 10.6
Execution Version
FIRST AMENDMENT TO SECURED PROMISSORY NOTE
This FIRST AMENDMENT TO SECURED PROMISSORY NOTE (this “Agreement”), dated as of August 15, 2023, is made by and among Wheels Up Experience Inc., a Delaware corporation (the “Borrower”), each Guarantor and Delta Air Lines, Inc. (the “Payee”).
PRELIMINARY STATEMENTS:
(1) The Borrower and the Payee are party to that certain Secured Promissory Note, dated as of August 8. 2023 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Note”). Capitalized terms not otherwise defined in this Agreement have the same meanings as specified in the Note;
(2) The Borrower has requested amendments to the Note and the Payee has agreed to such amendments; and
(3) In consideration of the premises made hereunder, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
section 1. Amendments to Note.
(a) The total quantum of the Note as set forth in the opening paragraph thereof (and in the line above such paragraph) shall be amended from “FIFTEEN MILLION DOLLARS ($15,000,000)” to “TWENTY FIVE MILLION DOLLARS ($25,000,000)”.
(b) Section 1(a) of the Note is hereby amended and restated in its entirety as set forth below:
“The Borrower hereby covenants and promises to pay to the Payee the aggregate unpaid principal amount of the loan advances made to the Borrower under this Note, together with interest thereon calculated in accordance with the provisions of this Note. Subject to the terms and conditions of this Note and upon satisfaction of the conditions set forth in the closing checklist attached hereto as Exhibit B, the Payee agrees to advance the Borrower a loan or loans in the aggregate original principal amount of $25,000,000.
Subject to the satisfaction of the conditions set forth in the closing checklist attached hereto as Exhibit B, on August 9, 2023 the Payee will advance to the Borrower a loan in the aggregate original principal amount of $10,000,000 and, thereafter, until August 11, 2023 (inclusive), the Borrower may request, and the Payee agrees to make, an additional loan advance on any day; provided that, (i) the aggregate principal amount of such additional loan may not exceed the amount by which “Ending WUP Cash” is less than “Accrued Liabilities” (in each case, as set forth in and in accordance with the cash flow forecast delivered to the Payee on the immediately preceding Business Day (which such forecast shall be in form and substance substantially consistent with the cash flow forecast previously circulated between Borrower and Payee on or prior to the date hereof)) as of 5:00 p.m. New York time on the immediately preceding Business Day, (ii) there shall be no more than 3 advances in total and (iii) the aggregate original principal amount of all such advances shall not exceed $15,000,000.
On the First Amendment Effective Date (as defined in that certain First Amendment to Secured Promissory Note, dated as of August 15, 2023, made by and among the Borrower, each Guarantor, and the Payee (the “First Amendment”)) and subject to the conditions to effectiveness thereunder or the Business Day immediately following the First Amendment Effective Date, (i) upon request by the Borrower to the Payee, the Payee will advance in a single draw to the Borrower a loan in the aggregate original principal amount of $10,000,000 (such funding date, the “First Amendment Funding Date”) and (ii) as of the First Amendment Funding Date, the aggregate outstanding original principal amount of all advances under this Note shall be $25,000,000.
The loan advances made by the Payee pursuant to this Section 1(a) shall be sent by wire transfer of immediately available funds directly from the Payee to an account designated by the Borrower.”
(c) Schedule 1 to the Note is hereby amended and restated in its entirety as set forth in Annex A attached hereto.
section 2. Representations and Warranties. The Borrower and each Guarantor represent and warrant that as of the First Amendment Effective Date:
(a) the execution, delivery and performance of this Agreement by the Borrower and each Guarantor is within such Obligor’s power and have been duly authorized by all necessary action on the part of the Borrower and each Guarantor;
(b) this Agreement has been duly executed and delivered by the Borrower and each Guarantor and constitutes a legal, valid and binding obligation of such Obligor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(c) the execution, delivery and performance by the Borrower and each Guarantor of this Agreement (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (1) such as have been obtained or made and are in full force and effect, (2) filings necessary to perfect Liens created by the Loan Documents and (3) consents, approvals, registrations, filings, permits or actions the failure to obtain or perform which would not reasonably be expected to result in a Material Adverse Effect, (ii) will not violate or require consent not obtained under the organizational documents of any such Obligor and (iii) will not violate any Applicable Law except, individually or in the aggregate, where it would not reasonably be expected to result in a Material Adverse Effect;
(d) the representations and warranties made by the Borrower and each Guarantor set forth in Section 4 of the Note (it being understood that with respect to each Guarantor, each of the representations and warranties set forth in Section 4 of the Note are applicable to such Guarantor fully as though such Guarantor were a party thereto) are true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” is true and correct in all respects) on and as of the First Amendment Effective Date with the same effect as though made on and as of such date, except to the extent that such representation or warranty expressly relates to an earlier date in which case such representations and warranties are true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” is true and correct in all respects) as of such earlier date; and
| 2 |
(e) no Default or Event of Default has occurred and is continuing or would result after giving effect to this Agreement and the other transactions contemplated hereby.
section 3. Conditions to Effectiveness on First Amendment Effective Date. The effectiveness of this Amendment is subject solely to the satisfaction or waiver by the Payee of each of the following conditions (the date on which such conditions are satisfied or waived, the “First Amendment Effective Date”, which date is August 15, 2023)
(a) The Payee shall have received (i) from the Borrower, (ii) from each Guarantor, and (iii) from the Payee duly executed counterparts of this Agreement;
(b) The Payee shall have received a reasonably satisfactory legal opinion of Xxxxxxxx & Xxxxx LLP, as special New York, Delaware and California counsel to the Borrower and the Guarantors and a reasonably satisfactory legal opinion of Xxxxxx Xxxx Xxxxxx Xxxxxxxxxx, LLP, as special Wisconsin, Colorado and Kentucky counsel for the Borrower and the Guarantors. The Borrower and the Guarantors hereby instruct such counsels to deliver such legal opinions;
(c) The Payee (or its counsel) shall have received a secretary’s certificate of each of the Borrower and the Guarantors, dated the First Amendment Effective Date and attaching (i) a copy of the resolutions of the board of directors or other managers of the Borrower and the Guarantors (or a duly authorized committee thereof) authorizing (A) the execution, delivery, and performance of this Amendment (and any agreements relating hereto) and (B) in the case of the Borrower, the extensions of credit contemplated hereunder, (ii) the certificate of incorporation and by-laws, certificate of formation and operating agreement or other comparable organizational documents, as applicable, of the Borrower and the Guarantors and (iii) incumbency certificates of the authorized officers the Borrowers and the Guarantors; and
(d) Payee (or its counsel) shall have received a certificate of the Borrower and each of the Guarantors, dated as of the First Amendment Effective Date, certifying as to the accuracy of Sections 2(d) and (e) hereof.
section 4. Costs, Expenses. As provided in Section 17 of the Note, the Borrower agrees to reimburse the Payee for all reasonable and documented out-of-pocket expenses (including the reasonable and documented out of pocket fees, charges and disbursements of one (1) counsel to the Payee) in connection with the preparation, negotiation, execution, delivery, filing and administration of this Agreement.
| 3 |
section 5. Counterparts; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement shall become effective when it shall have been executed by the Payee and when the Payee shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission (PDF or TIFF format) shall be effective as delivery of a manually executed counterpart of this Agreement. The words “execution,” “signed,” “signature,” and words of like import in this Agreement or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
section 6. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
section 7. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
section 8. Entire Agreement. This Agreement, together with the Note and the other Loan Documents, integrates all the terms and conditions mentioned herein or incidental hereto and supersedes all oral representations and negotiations and prior writings with respect to the subject matter hereof.
section 9. Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of New York, without regard to conflicts of law principles that would require the application of the laws of another jurisdiction.
section 10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
| 4 |
section 11. Reaffirmation. Each Obligor, as debtor, grantor, pledgor, guarantor, assignor, or in any other similar capacity in which such Obligor grants liens or security interests in its property or otherwise acts as a guarantor, as the case may be, hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under the Note and each other Loan Document to which it is a party (after giving effect hereto) and (ii) to the extent such Person granted liens on or security interests in any of its property pursuant to any Security Document as security for or otherwise guaranteed the Obligations, ratifies and reaffirms such guarantee and grant of security interests and liens and confirms and agrees that such security interests and liens hereafter secure all of the Obligations as amended hereby. Each Obligor hereby consents to this Amendment and acknowledges that the Note, as amended hereby, and each other Loan Document remains in full force and effect and is hereby ratified and reaffirmed. The execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Payee, constitute a waiver of any provision of the Note or any other Loan Document or serve to effect a novation of the Obligations.
section 12. No Novation. By its execution of this Agreement, each of the parties hereto acknowledges and agrees that the terms of this Agreement do not constitute a novation, but, rather, a supplement of a pre-existing indebtedness and related agreement, as evidenced by the Note.
section 13. References. Reference in any of this Amendment, the Note or any other Loan Document to the Note shall be a reference to the Note as amended hereby and as further amended, modified, restated, supplemented or extended from time to time.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
| 5 |
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.
| BORROWER | ||
| WHEELS UP EXPERIENCE INC. | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Interim Chief Executive Officer and Chief Financial Officer | |
[Signature Page to First Amendment]
| Guarantors: | ||
| WHEELS UP PARTNERS HOLDINGS LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| WHEELS UP PARTNERS LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| CIRCADIAN AVIATION LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| MOUNTAIN AVIATION, LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| STERLING AVIATION, LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| TRAVEL MANAGEMENT COMPANY, LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| WHEELS UP PRIVATE JETS LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| AIR PARTNER LLC | ||
| By: | /s/ XXXX XXXXXX | |
| Name: | Xxxx Xxxxxx | |
| Title: | President | |
[Signature Page to First Amendment]
| XXXXXX INTERNATIONAL EMERGENCY SERVICES LLC | ||
| By: | /s/ XXXX XXXXXX | |
| Name: | Xxxx Xxxxxx | |
| Title: | President | |
[Signature Page to First Amendment]
| APEX AP MIDCO INC. | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Director and Authorized Signatory | |
[Signature Page to First Amendment]
| APEX KENYON MIDCO INC. | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Director and Authorized Signatory | |
[Signature Page to First Amendment]
| AVIANIS SYSTEMS LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| CINCINNATI AVIATION SERVICES LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| HIRE UP TALENT SERVICES LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| TWC AVIATION SERVICES, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
| TMC UP HOLDINGS LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
TRAVEL MANAGEMENT COMPANY INTERMEDIATE HOLDINGS, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
TRAVEL MANAGEMENT COMPANY INTERMEDIATE HOLDINGS ii, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
TRAVEL MANAGEMENT COMPANY HOLDINGS, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
| AIRCRAFT HOLDING COMPANY ONE, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
| AIRCRAFT charter COMPANY two, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
| AIRCRAFT CHARTER COMPANY THREE, LLC | ||
| By: | /s/ XXXXXX XXXXXX | |
| Name: | Xxxxxx Xxxxxx | |
| Title: | SVP, Senior Aviation Counsel and Secretary | |
[Signature Page to First Amendment]
| WHEELS UP BLOCKER SUB LLC | ||
| By: | /s/ XXXXX XXXXXXXXX | |
| Name: | Xxxxx Xxxxxxxxx | |
| Title: | Chief Legal Officer and Secretary | |
[Signature Page to First Amendment]
| WHEELS UP MIP LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| WHEELS UP MIP RI LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| WHEELS UP TOA HOLDINGS LLC | ||
| By: | /s/ XXXX X. XXXXX | |
| Name: | Xxxx X. Xxxxx | |
| Title: | Chief Financial Officer | |
[Signature Page to First Amendment]
| PAYEE: | DELTA AIR LINES, INC. | |
| By: | /s/ XXXXXXX X. XXXXX XX | |
| Name: | Xxxxxxx X. Xxxxx XX | |
| Title: | Senior Vice President – Finance & Treasurer | |
[Signature Page to First Amendment]
Annex A
[See attached]
