10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_________ to ________

Commission file number 001-37794

Hilton Grand Vacations Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	81-2545345
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

6355 MetroWest Boulevard, Suite 180,
Orlando, Florida	32835
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code (407) 613-3100

(Former Name, Former Address, and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	HGV	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, as of July 26, 2019 was 85,911,860.

HILTON GRAND VACATIONS INC.

FORM 10-Q TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1.		Financial Statements	2
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.		Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.		Controls and Procedures	45
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings		46
Item 1A.	Risk Factors		46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		46
Item 3.	Defaults Upon Senior Securities		46
Item 4.	Mine Safety Disclosures		46
Item 5.	Other Information		46
Item 6.	Exhibits		47
	Signatures		48

1

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

HILTON GRAND VACATIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

	June 30,		December 31,
	2019		2018
	(unaudited)
ASSETS
Cash and cash equivalents	$	120	$	108
Restricted cash		67		72
Accounts receivable, net of allowance for doubtful accounts of $17 and $14		156		153
Timeshare financing receivables, net		1,125		1,120
Inventory		536		527
Property and equipment, net		673		559
Operating lease right-of-use assets, net		63		—
Investments in unconsolidated affiliates		43		38
Intangible assets, net		84		81
Other assets		122		95
TOTAL ASSETS (variable interest entities - $571 and $647)	$	2,989	$	2,753
LIABILITIES AND EQUITY
Liabilities:
Accounts payable, accrued expenses and other	$	312	$	324
Advanced deposits		108		101
Debt, net		937		604
Non-recourse debt, net		696		759
Operating lease liabilities		76		—
Deferred revenues		163		95
Deferred income tax liabilities		247		254
Total liabilities (variable interest entities - $562 and $640)		2,539		2,137
Commitments and contingencies - see Note 19
Equity:
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none    issued or outstanding as of June 30, 2019 and December 31, 2018		—		—
Common stock, $0.01 par value; 3,000,000,000 authorized shares,    85,910,022 issued and outstanding as of June 30, 2019 and    94,558,086 issued and outstanding as of December 31, 2018		1		1
Additional paid-in capital		169		174
Accumulated retained earnings		280		441
Total equity		450		616
TOTAL LIABILITIES AND EQUITY	$	2,989	$	2,753

See notes to unaudited condensed consolidated financial statements.

2

HILTON GRAND VACATIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in millions, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues
Sales of VOIs, net	$	120		$	250		$	245		$	328
Sales, marketing, brand and other fees		145			146			286			271
Financing		43			39			84			77
Resort and club management		43			37			85			76
Rental and ancillary services		60			53			119			104
Cost reimbursements		43			38			85			74
Total revenues		454			563			904			930
Expenses
Cost of VOI sales		32			61			68			80
Sales and marketing		186			193			356			354
Financing		12			12			25			23
Resort and club management		12			11			23			22
Rental and ancillary services		37			30			72			58
General and administrative		29			30			54			53
Depreciation and amortization		13			8			23			16
License fee expense		26			25			49			48
Cost reimbursements		43			38			85			74
Total operating expenses		390			408			755			728
Interest expense		(11	)		(8	)		(21	)		(15	)
Equity in earnings (losses) from unconsolidated affiliates		2			(2	)		3			(1	)
Other (loss) gain, net		(1	)		1			(2	)		—
Income before income taxes		54			146			129			186
Income tax expense		(15	)		(39	)		(35	)		(49	)
Net income	$	39		$	107		$	94		$	137
Earnings per share:
Basic	$	0.43		$	1.10		$	1.02		$	1.40
Diluted	$	0.43		$	1.10		$	1.01		$	1.39

See notes to unaudited condensed consolidated financial statements.

3

HILTON GRAND VACATIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in millions)

	Six Months Ended June 30,
	2019			2018
Operating Activities
Net income	$	94		$	137
Adjustments to reconcile net income to net cash provided by (used in)    operating activities:
Depreciation and amortization		23			16
Amortization of deferred financing costs and other		5			3
Provision for financing receivables losses		38			30
Other loss, net		2			—
Share-based compensation		12			8
Deferred income tax benefit		(9	)		(6	)
Equity in (earnings) losses from unconsolidated affiliates		(3	)		1
Distributions received from unconsolidated affiliates		—			2
Net changes in assets and liabilities:
Accounts receivable, net		(3	)		(26	)
Timeshare financing receivables, net		(42	)		(48	)
Inventory		(11	)		11
Purchases and development of real estate for future conversion to inventory		(80	)		(176	)
Other assets		(26	)		(58	)
Accounts payable, accrued expenses and other		(3	)		(42	)
Advanced deposits		7			8
Deferred revenues		68			4
Other		—			2
Net cash provided by (used in) operating activities		72			(134	)
Investing Activities
Capital expenditures for property and equipment		(17	)		(20	)
Software capitalization costs		(11	)		(9	)
Return of investment from unconsolidated affiliates		—			11
Investments in unconsolidated affiliates		(2	)		(5	)
Net cash used in investing activities		(30	)		(23	)
Financing Activities
Issuance of debt		410			160
Issuance of non-recourse debt		15			100
Repayment of debt		(105	)		(5	)
Repayment of non-recourse debt		(79	)		(80	)
Debt issuance costs		(2	)		(2	)
Repurchase and retirement of common stock		(271	)		(112	)
Payment of withholding taxes on vesting of restricted stock units		(3	)		(1	)
Proceeds from employee stock plan purchases		2			—
Capital contribution		—			3
Other financing activity		(2	)		—
Net cash (used in) provided by financing activities		(35	)		63
Net increase (decrease) in cash, cash equivalents and restricted cash		7			(94	)
Cash, cash equivalents and restricted cash, beginning of period		180			297
Cash, cash equivalents and restricted cash, end of period	$	187		$	203
Supplemental disclosure of non-cash operating activities:
Cumulative effect of adoption of new accounting standard	$	—		$	38
Supplemental disclosure of non-cash financing activities:
Issuance of other debt	$	23		$	—

See notes to unaudited condensed consolidated financial statements.

4

HILTON GRAND VACATIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(in millions)

						Additional			Accumulated
	Common Stock					Paid-in			Retained			Total
	Shares			Amount		Capital			Earnings			Equity
Balance as of December 31, 2018		94		$	1	$	174		$	441		$	616
Net income		—			—		—			55			55
Activity related to share-based compensation		—			—		1			—			1
Repurchase and retirement of common stock		(3	)		—		(5	)		(92	)		(97	)
Balance as of March 31, 2019		91			1		170			404			575
Net income		—			—		—			39			39
Activity related to share-based compensation		—			—		10			—			10
Repurchase and retirement of common stock		(5	)		—		(11	)		(163	)		(174	)
Balance as of June 30, 2019		86		$	1	$	169		$	280		$	450
						Additional			Accumulated
	Common Stock					Paid-in			Retained			Total
	Shares			Amount		Capital			Earnings			Equity
Balance as of December 31, 2017		99		$	1	$	162		$	355		$	518
Net income		—			—		—			30			30
Activity related to share-based compensation		—			—		(1	)		—			(1	)
Repurchase and retirement of common stock		(2	)		—		(3	)		(109	)		(112	)
Revenue recognition cumulative-effect adjustment		—			—		—			(38	)		(38	)
Capital contribution		—			—		3			—			3
Balance as of March 31, 2018		97			1		161			238			400
Net income		—			—		—			107			107
Activity related to share-based compensation		—			—		6			—			6
Other		—			—		3			1			4
Balance as of June 30, 2018		97		$	1	$	170		$	346		$	517

See notes to unaudited condensed consolidated financial statements.

5

HILTON GRAND VACATIONS INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1: Organization

Our Business

Hilton Grand Vacations Inc. (“Hilton Grand Vacations,” “we,” “us,” “our,” “HGV” or the “Company”) is a global timeshare company engaged in developing, marketing, selling and managing timeshare resorts primarily under the Hilton Grand Vacations brand. Our operations primarily consist of: selling vacation ownership intervals (“VOIs”) for us and third parties; financing and servicing loans provided to consumers for their timeshare purchases; operating resorts; and managing our points-based Hilton Grand Vacations Club exchange program (the “Club”). As of June 30, 2019, we had 57 properties, comprised of 9,177 units, located in the United States (“U.S.”), Japan and Europe.

In connection with the completion of the spin-off in January 2017, we entered into agreements with Hilton Worldwide (“Hilton”) (who at the time was a related party) and other third parties, including licenses to use the Hilton Grand Vacations brand. The unaudited condensed consolidated financial statements reflect the effect of these agreements. For the three months ended June 30, 2019 and 2018, we incurred $36 million and $38 million, respectively, and for each of the six months ended June 30, 2019 and 2018, we incurred $92 million and $97 million, respectively, in costs relating to the agreements entered with Hilton. See Key Agreements Related to the Spin-Off section in Part I - Item 1. Business of our Annual Report on Form 10-K for the year ended December 31, 2018 for further information.

Note 2: Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest.  In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods.  All material intercompany transactions and balances have been eliminated in consolidation.

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2019.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

Summary of Significant Accounting Policies

Leases

We lease sales centers, office space and equipment under operating leases. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net and Operating lease liabilities in our condensed consolidated balance sheets. Operating lease ROU assets are adjusted for lease incentives received.

ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit or implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms.

6

We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the condensed consolidated balance sheets and lease expense is recognized on a straight-line basis over the lease term.

We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating and financing leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

Recently Issued Accounting Pronouncements

Adopted Accounting Standards

On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) as amended, using the modified retrospective approach permitted under ASU No. 2018-11, Targeted Improvements, collectively Accounting Standards Codification Topic 842 (“ASC 842”). Accordingly, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. As permitted under the transition guidance in ASC 842, we have made an accounting policy election to adopt the following package of practical expedients:  

i. to not reassess whether expired or existing contracts are or contain leases;

ii. to not reassess lease classification for expired or existing leases;

iii. to not reassess any initial direct costs for any existing leases;  

iv. to not reassess the existence of a lease for existing or expired land easements that were not previously accounted for as leases;

v. to record short-term lease payments (less than 12 months) in profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred; and

vi. to not prospectively, and upon adoption, separate lease and non-lease components.

ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ASC 842 had no impact on our condensed consolidated statements of operations or on our condensed consolidated statements of cash flows. Upon adoption, we recognized ROU assets of $68 million and operating lease liabilities of $80 million for our real estate and equipment operating leases on the condensed consolidated balance sheets.

Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. Subsequent to ASU 2016-13, the FASB has issued several related ASUs amending the original ASU. The updates are intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update is effective for annual periods beginning after December 15, 2019. We are currently evaluating the effect of this ASU but we do not expect it to have a material impact on our unaudited condensed consolidated financial statements.

7

Note 3: Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management. Please refer to Note 18: Business Segments below for more details related to our segments.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Real Estate and Financing Segment
Sales of VOIs, net	$	120	$	250	$	245	$	328
Sales, marketing, brand and other fees		145		146		286		271
Interest income		36		34		72		68
Other financing revenue		7		5		12		9
Real estate and financing segment revenues	$	308	$	435	$	615	$	676

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Resort Operations and Club Management    Segment
Club management	$	26	$	23	$	52	$	46
Resort management		17		14		33		30
Rental (1)		53		46		105		91
Ancillary services		7		7		14		13
Resort operations and club management    segment revenues	$	103	$	90	$	204	$	180

⁽¹⁾ Includes intersegment eliminations. See Note 18:  Business Segments for additional information.

Contract Balances

The following table provides information on our accounts receivable and contract asset from contracts with customers which are included in Accounts receivable, net on our condensed consolidated balance sheets:

($ in millions)	June 30, 2019		December 31, 2018
Receivables	$	128	$	122
Contract asset		3		—

The following table presents the composition of our contract liabilities for the six months ended June 30, 2019.

($ in millions)	June 30, 2019		December 31, 2018
Contract liabilities:
Advanced deposits	$	108	$	101
Deferred revenues(1)		145		72
Club Bonus Point incentive liability(2)		61		56

⁽¹⁾ The deferred revenues balance is primarily comprised of (i) sales of VOIs under construction and not yet acquired under a just-in-time arrangement, (ii) club activation fees that are paid at the closing of a VOI purchase, which grants access to our points-based Club and (iii) annual dues for Club membership renewals.

⁽²⁾ Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements.

8

Revenue earned during the three and six months ended June 30, 2019 that was included in the contract liabilities balance at December 31, 2018 was approximately $39 million and $78 million, respectively.

Our accounts receivables that relate to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations related primarily to our fee-for-service arrangements and homeowners’ associations (“HOA”) management agreements and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Refer to Note 5: Timeshare Financing Receivables for information on balances and changes in balances during the period related to our timeshare financing receivables.

Contract assets relate to incentive fees that can be earned for meeting certain target on sales of VOIs at properties under our fee-for-service arrangements; however, our right to consideration is conditional upon completing the requirements of the annual incentive fee period.  

Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advance deposits received on prepaid vacation packages for future stays at our resorts, deferred revenues and the liability for Club Bonus Points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future.

Transaction Price Allocated to Remaining Performance Obligations

Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) Club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on prepaid vacation packages and (iv) Club Bonus Points that may be redeemed in the future. As of June 30, 2019, we deferred $34 million of revenue and $5 million of direct selling costs from sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete.  We expect to recognize the revenue and direct selling costs during the second quarter of 2020.  Upon acquisition, we expect to recognize $11 million in costs of VOI sales related to these sales.  As of December 31, 2018, we had no remaining performance obligations on sales of VOIs under construction.

The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of June 30, 2019:

($ in millions)	Remaining Transaction Price		Recognition Period	Recognition Method
Advanced deposits	$	108	18 months	Upon customer stays
Club activation fees		67	7 years	Straight-line basis over average inventory holding    period
Club Bonus Points		61	24 months	Upon redemption

Note 4: Restricted Cash

Restricted cash was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Escrow deposits on VOI sales	$	41	$	45
Reserves related to non-recourse debt(1)		26		27
	$	67	$	72

⁽¹⁾ See Note 11: Debt & Non-recourse Debt for further discussion.

9

Note 5: Timeshare Financing Receivables

Timeshare financing receivables were as follows:

	June 30, 2019
($ in millions)	Securitized and Pledged			Unsecuritized(1)			Total
Timeshare financing receivables	$	579		$	720		$	1,299
Less: allowance for financing receivables losses		(35	)		(139	)		(174	)
	$	544		$	581		$	1,125

	December 31, 2018
($ in millions)	Securitized and Pledged			Unsecuritized(1)			Total
Timeshare financing receivables	$	660		$	632		$	1,292
Less: allowance for financing receivables losses		(43	)		(129	)		(172	)
	$	617		$	503		$	1,120

⁽¹⁾ Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities.

As of June 30, 2019 and December 31, 2018, we had $279 million and $190 million, respectively, of gross timeshare financing receivables securing the outstanding debt balance of our Timeshare Facility. We record an estimate of variable consideration for estimated defaults as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale.

Our timeshare financing receivables as of June 30, 2019 mature as follows:

($ in millions)	Securitized and Pledged			Unsecuritized			Total
Year
2019 (remaining)	$	40		$	39		$	79
2020		81			58			139
2021		80			64			144
2022		77			70			147
2023		75			75			150
Thereafter		226			414			640
		579			720			1,299
Less: allowance for financing receivables losses		(35	)		(139	)		(174	)
	$	544		$	581		$	1,125

We evaluate this portfolio collectively for purposes of estimating variable consideration, since we hold a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the credit quality of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for determining our allowance for financing receivables losses on our timeshare financing receivables. For static pool analysis, we use certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio.

10

We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of June 30, 2019, our timeshare financing receivables had interest rates ranging from 5.25 percent to 20.50 percent, a weighted-average interest rate of 12.36 percent, a weighted-average remaining term of 7.7 years and maturities through 2031.

Our gross timeshare financing receivables balances by FICO score were as follows:

	June 30,		December 31,
($ in millions)	2019		2018
FICO score
700+	$	853	$	843
600-699		234		237
<600		27		27
No score(1)		185		185
	$	1,299	$	1,292

⁽¹⁾ Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

We apply payments we receive for timeshare financing receivables, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a receivable is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for receivables for which we had previously ceased accruing interest once the receivable is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the receivable is 121 days past due and, subsequently, we write off the uncollectible balance against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit.

As of June 30, 2019 and December 31, 2018, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $70 million and $69 million, respectively. The following tables detail an aged analysis of our gross timeshare financing receivables balance:

	June 30, 2019
($ in millions)	Securitized and Pledged		Unsecuritized		Total
Current	$	566	$	644	$	1,210
31 - 90 days past due		8		11		19
91 - 120 days past due		2		4		6
121 days and greater past due		3		61		64
	$	579	$	720	$	1,299

	December 31, 2018
($ in millions)	Securitized and Pledged		Unsecuritized		Total
Current	$	648	$	556	$	1,204
31 - 90 days past due		8		11		19
91 - 120 days past due		3		3		6
121 days and greater past due		1		62		63
	$	660	$	632	$	1,292

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The changes in our allowance for financing receivables losses were as follows:

	June 30, 2019
($ in millions)	Securitized and Pledged			Unsecuritized			Total
Balance as of December 31, 2018	$	43		$	129		$	172
Write-offs		—			(36	)		(36	)
Provision for financing receivables losses(1)		(8	)		46			38
Balance as of June 30, 2019	$	35		$	139		$	174

	June 30, 2018
($ in millions)	Securitized and Pledged			Unsecuritized			Total
Balance as of December 31, 2017	$	27		$	114		$	141
Write-offs		—			(14	)		(14	)
Provision for financing receivables losses(1)		(7	)		37			30
Balance as of June 30, 2018	$	20		$	137		$	157

⁽¹⁾ Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables.

Note 6: Inventory

Inventory was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Completed unsold VOIs	$	249	$	243
Construction in process		11		9
Land, infrastructure and other		276		275
	$	536	$	527

We benefited from $5 million in costs of sales true-ups relating to VOI products for the six months ended June 30, 2019, which resulted in a $5 million increase to the carrying value of inventory as of June 30, 2019. We benefited from $10 million in costs of sales true-ups relating to VOI products for the year ended December 31, 2018, which resulted in a $10 million increase to the carrying value of inventory as of December 31, 2018. Shown below are expenses incurred, recorded in Cost of VOI sales, related to granting credit to customers for their existing ownership when upgrading into fee-for-service projects.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Cost of VOI sales related to fee-for-service upgrades	$	7	$	9	$	16	$	15

Note 7: Property and Equipment

Property and equipment was as follows:

	June 30,			December 31,
($ in millions)	2019			2018
Land	$	335		$	268
Building and leasehold improvements		300			295
Furniture and equipment		68			54
Construction in progress		66			25
		769			642
Accumulated depreciation		(96	)		(83	)
	$	673		$	559

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Note 8: Consolidated Variable Interest Entities

As of June 30, 2019 and December 31, 2018, we consolidated four variable interest entities (“VIEs”) that issued non-recourse debt backed by pledged assets consisting primarily of a pool of timeshare financing receivables which is without recourse to us. We are the primary beneficiaries of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. We are also the servicer of these timeshare financing receivables and we are required to replace or repurchase timeshare financing receivables that are in default at their outstanding principal amounts. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. Only the assets of our VIEs are available to settle the obligations of the respective entities.

Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following:

	June 30,		December 31,
($ in millions)	2019		2018
Restricted cash	$	20	$	23
Timeshare financing receivables, net		544		617
Non-recourse debt(1)		561		639

⁽¹⁾ Net of deferred financing costs.

During the six months ended June 30, 2019 and 2018, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future.

Note 9: Investments in Unconsolidated Affiliates

As of June 30, 2019, we have 25 percent and 50 percent ownership interests in BRE Ace LLC and 1776 Holdings LLC, respectively, that are deemed as VIEs. We do not consolidate BRE Ace LLC and 1776 Holdings LLC because we are not the primary beneficiary. Our investment interests in and equity earned from both VIEs are included in the consolidated balance sheets as Investments in unconsolidated affiliates and in the consolidated statements of operations as Equity in earnings (losses) from unconsolidated affiliates, respectively.

We held investments in our two unconsolidated affiliates with aggregated debt balances of $478 million and $490 million as of June 30, 2019 and December 31, 2018, respectively. The debt is secured by their assets and is without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments which totals $43 million and $38 million as of June 30, 2019 and December 31, 2018, respectively and (ii) receivables for commission and other fees earned under a fee-for-service arrangement.  See Note 17:  Related Party Transactions for additional information.  

Note 10: Other Assets

Other assets were as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Inventory deposits	$	44	$	46
Prepaid expenses		34		18
Other		44		31
	$	122	$	95

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Note 11: Debt & Non-recourse Debt

Debt

The following table details our outstanding debt balance and its associated interest rates:

	June 30,			December 31,
($ in millions)	2019			2018
Debt(1)
Senior secured credit facilities:
Term loan with an average rate of 3.898%, due 2023	$	192		$	197
Revolver with an average rate of 3.898%, due 2023		425			115
Senior notes with a rate of 6.125%, due 2024		300			300
Other debt		27			—
		944			612
Less: unamortized deferred financing costs and discount(2)(3)		(7	)		(8	)
	$	937		$	604

⁽¹⁾ For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.699 percent and 5.170 percent, respectively.

⁽²⁾ Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $5 million both as of June 30, 2019 and $2 million and $6 million as of December 31, 2018.

⁽³⁾ Amount does not include deferred financing costs of $6 million as of June 30, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets in our condensed consolidated balance sheets.

During the six months ended June 30, 2019, we borrowed $410 million and repaid $105 million (including recurring payments) under the senior secured credit facilities with an interest rate based on one month LIBOR plus 1.5 percent.  

As of June 30, 2019 and December 31, 2018, we had $1 million of outstanding letter of credit under the revolving credit facility.  We were in compliance with all applicable financial covenants as of June 30, 2019.

Non-recourse Debt

The following table details our outstanding non-recourse debt balance and its associated interest rates:

	June 30,			December 31,
($ in millions)	2019			2018
Non-recourse debt(1)
Timeshare Facility with an average rate of 3.337%, due 2021	$	135		$	120
Securitized Debt with a rate of 2.280%, due 2026		25			33
Securitized Debt with an average rate of 1.810%, due 2026		59			74
Securitized Debt with an average rate of 2.711%, due 2028		176			206
Securitized Debt with an average rate of 3.602%, due 2032		307			333
		702			766
Less: unamortized deferred financing costs(2)		(6	)		(7	)
	$	696		$	759

⁽¹⁾ For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.130 percent and 3.126 percent, respectively.

⁽²⁾ Amount relates to securitized debt only and does not include deferred financing costs of $4 million and $3 million as of June 30, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets in our condensed consolidated balance sheets.

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The Timeshare Facility is a non-recourse obligation with a borrowing capacity of $450 million and is payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. In April 2019, we amended the Timeshare Facility, excluding the end of the commitment period, from March 2020 to April 2021. All other terms and borrowing capacity remained the same. 

We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $26 million and $27 million as of June 30, 2019 and December 31, 2018, respectively, and were included in Restricted cash in our condensed consolidated balance sheets.

Debt Maturities

The contractual maturities of our debt and non-recourse debt as of June 30, 2019 were as follows:

($ in millions)	Debt		Non-recourse Debt		Total
Year
2019 (remaining)	$	6	$	110	$	116
2020		12		167		179
2021		11		88		99
2022		10		200		210
2023		582		76		658
Thereafter		323		61		384
	$	944	$	702	$	1,646

Note 12: Fair Value Measurements

The carrying amounts and estimated fair values of our financial assets and liabilities were as follows:

	June 30, 2019
			Hierarchy Level
($ in millions)	Carrying Amount		Level 1		Level 3
Assets:
Timeshare financing receivables, net(1)	$	1,125	$	—	$	1,387
Liabilities:
Debt, net(2)		937		320		649
Non-recourse debt, net(2)		696		—		707

⁽¹⁾ Carrying amount net of allowance for financing receivables losses.

⁽²⁾ Carrying amount net of unamortized deferred financing costs and discount.

	December 31, 2018
			Hierarchy Level
($ in millions)	Carrying Amount		Level 1		Level 3
Assets:
Timeshare financing receivables, net(1)	$	1,120	$	—	$	1,339
Liabilities:
Debt, net(2)		604		302		309
Non-recourse debt, net(2)		759		—		753

⁽¹⁾ Carrying amount net of allowance for financing receivables losses.

⁽²⁾ Carrying amount net of unamortized deferred financing costs and discount.

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Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advance deposits and accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.

The estimated fair values of our timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and borrowing terms respective to the portfolio based on current market assumptions for similar types of arrangements.

The estimated fair values of our Level 1 debt was based on prices in active debt markets. The estimated fair value of our Level 3 debt and non-recourse debt were as follows:

• Debt - based on indicative quotes obtained for similar issuances and projected future cash flows discounted at risk-adjusted rates.

• Non-recourse debt - based on projected future cash flows discounted at risk-adjusted rates.

We do not have any assets or liabilities measured at fair value on a recurring basis as of June 30, 2019.

Note 13: Leases

We lease sales centers, office space and equipment under operating leases. Our leases expire at various dates from 2019 through 2030, with varying renewal and termination options. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

Rent expense for lease payments is recognized on a straight-line basis over the lease term. Rental expense for all operating leases was $4 million and $10 million for the three and six months ended June 30, 2019 respectively. This amount includes immaterial short-term leases and variable lease costs. Rent expense for all operating leases for the year ended December 31, 2018 was as follows:

($ in millions)
Minimum rentals	$	21
Contingent rentals		3
	$	24

Supplemental information related to operating leases for the six months ending June 30, 2019:

($ in millions)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	8
Right-of-use assets obtained in exchange for new operating lease liabilities		1
Weighted-average remaining lease term of operating leases	6.6 years
Weighted-average discount rate of operating leases		5.33	%

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Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of June 30, 2019, are as follows:

($ in millions)	Operating Leases (1)
Year
2019 (remaining)	$	8
2020		16
2021		15
2022		10
2023		10
Thereafter		32
Total future minimum lease payments	$	91
Less: interest		(15	)
Present value of lease liabilities	$	76

⁽¹⁾ Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of December 31, 2018, are as follows:

($ in millions)	Operating Leases
Year
2019	$	16
2020		15
2021		14
2022		10
2023		10
Thereafter		29
Total future minimum lease payments	$	94

Note 14: Income Taxes

At the end of each quarter, we estimate the effective tax rate expected to be applied for the full year. The effective tax rate is determined by the level and composition of pre-tax income or loss, which is subject to federal, foreign and state and local income taxes. The effective tax rate for the six months ended June 30, 2019 and 2018 was approximately 27 percent and 26 percent, respectively, which increased primarily due to a reduction in the tax benefit related to share-based compensation awards exercised or vested during the six months ended June 30, 2019.

Note 15: Share-Based Compensation

Stock Plan

We issue service-based restricted stock units (“Service RSUs”), service and performance-based restricted stock units (“Performance RSUs”) and nonqualified stock options (“Options”) to certain employees and directors. We recognized share-based compensation expense of $7 million and $5 million during the three months ended June 30, 2019 and 2018, respectively, and $12 million and $8 million for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019, unrecognized compensation costs for unvested awards were approximately $34 million, which is expected to be recognized over a weighted average period of 1.9 years. As of June 30, 2019, there were 6,386,657 shares of common stock available for future issuance.

Service RSUs

During the six months ended June 30, 2019, we issued 500,925 Service RSUs with a weighted-average grant date fair value of $33.07, which generally vest in equal annual installments over three years from the date of grant.

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Options

During the six months ended June 30, 2019, we issued 544,209 Options with a weighted-average exercise price of $33.32, which vest over three years from the date of the grant.

The weighted-average grant date fair value of these options was $12.29, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility	33.1	%
Dividend yield	—	%
Risk-free rate	2.6	%
Expected term (in years)	6.0

As of June 30, 2019, we had 648,617 Options outstanding that were exercisable.

Performance Shares

During the six months ended June 30, 2019, we issued 133,660 Performance RSUs with a weighted-average grant date fair value of $33.32. The Performance RSUs are settled at the end of a three-year performance period, with 70 percent of the Performance RSUs subject to achievement based on the Company’s adjusted earnings before interest expense, taxes and depreciation and amortization further adjusted for net impacts and recognitions of revenues and expenses related to sales of VOIs of projects under construction. The remaining 30 percent of the Performance RSUs are subject to the achievement of certain contract sales targets.  We determined that the performance conditions for these awards are probable of achievement and, as of June 30, 2019, we recognized compensation expense based on the number of Performance RSUs we expect to vest.

Note 16: Earnings Per Share

The following table presents the calculation of our basic and diluted earnings per share (“EPS”).  The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended June 30, 2019 is 89,849,803 and 90,271,976, respectively, and for the six months ended June 30, 2019 is 91,959,041 and 92,421,752, respectively.  The weighted-average shares outstanding used to compute basic EPS and diluted EPS for the three months ended June 30, 2018 was 96,774,130 and 97,463,820, respectively, and six months ended June 30, 2018 was 97,692,558 and 98,474,971, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
($ and shares outstanding in millions, except per share amounts)	2019		2018		2019		2018
Basic EPS:
Numerator:
Net Income(1)	$	39	$	107	$	94	$	137
Denominator:
Weighted average shares outstanding		90		97		92		98
Basic EPS	$	0.43	$	1.10	$	1.02	$	1.40
Diluted EPS:
Numerator:
Net Income(1)	$	39	$	107	$	94	$	137
Denominator:
Weighted average shares outstanding		90		97		92		98
Diluted EPS	$	0.43	$	1.10	$	1.01	$	1.39

⁽¹⁾ Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019 and 2018 was $93,692,657 and $137,031,259, respectively.

The dilutive effect of outstanding share-based compensation awards is reflected in diluted earnings per common share by application of the treasury stock method using average market prices during the period.

18

For the three and six months ended June 30, 2019, we excluded 1,433,833 and 1,168,159, respectively, and for the three and six months ended June 30, 2018, we excluded 533,609 and 341,246 share-based compensation awards, respectively, because their effect would have been anti-dilutive under the treasury stock method.

Note 17: Related Party Transactions

BRE Ace LLC

In July 2017, we acquired a 25 percent ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as “Elara, by Hilton Grand Vacations.” During the three and six months ended June 30, 2019, we recorded $2 million and $3 million, respectively, of Equity in earnings from unconsolidated affiliates in our condensed consolidated statements of operations. During the three and six months ended June 30, 2018, we recorded $2 million and $1 million, respectively, of Equity in losses from unconsolidated affiliates in our condensed consolidated statements of operations. Additionally, we earn commissions and other fees related to a fee-for-service agreement with the investee to sell VOIs at Elara, by Hilton Grand Vacations.  These amounts are summarized in the following table and are included in our condensed consolidated statements of operations as of the date they became a related party.  

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Commission and other fees	$	32	$	32	$	68	$	64

We also have $27 million of outstanding receivables related to the fee-for-service agreement as of June 30, 2019.   

1776 Holding, LLC

In March 2018, we entered into an agreement with SCG 1776, LLC to form 1776 Holding, LLC.  In conjunction with this agreement, we contributed $5 million in cash for a 50 percent ownership interest in 1776 Holding, LLC.  In May 2019, the agreement was amended to assign the interest of SCG 1776, LLC in 1776 Holding, LLC to 1776 Investment Group, LLC. In May 2019, we also contributed an additional $2 million in cash to 1776 Holding, LLC. During each of the three and six months ended June 30, 2019 and 2018, we recorded less than $1 million, respectively, of Equity in earnings (losses) from unconsolidated affiliates included in our condensed consolidated statements of operations. See Note 9: Investments in Unconsolidated Affiliates for additional information.

HNA Tourism Group Co., Ltd (“HNA”)

On March 13, 2018, HNA entered into an underwriting agreement with several underwriters to sell 22,250,000 shares of our common stock. In connection with the underwriting offer, we elected to purchase 2,500,000 shares at a price of approximately $44.75 per share. The transactions were completed on March 19, 2018 and HNA ceased to be a related party.

Note 18: Business Segments

We operate our business through the following two segments:

• Real estate sales and financing – We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer receivables to customers to finance their purchase of VOIs and revenue from servicing the timeshare financing receivables. We also generate fee revenue from servicing the timeshare financing receivables provided by third-party developers to purchasers of their VOIs.

• Resort operations and club management – We manage the Club, earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our Club program. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties.

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The performance of our operating segments is evaluated primarily based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA which has been further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) reorganization costs, including severance and relocation costs; (vi) share-based and other compensation expenses; (vii) costs related to the spin-off; and (viii) other items.

We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues. The following table presents revenues for our reportable segments reconciled to consolidated amounts:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2019			2018			2019			2018
Revenues:
Real estate sales and financing	$	308		$	435		$	615		$	676
Resort operations and club management(1)(2)		114			98			224			196
Total segment revenues		422			533			839			872
Cost reimbursements		43			38			85			74
Intersegment eliminations(1)(2)		(11	)		(8	)		(20	)		(16	)
Total revenues	$	454		$	563		$	904		$	930

⁽¹⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $11 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $20 million and $16 million for the six months ended June 30, 2019 and 2018, respectively

⁽²⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three and six months ended June 30, 2019 and 2018.

The following table presents Adjusted EBITDA for our reportable segments reconciled to net income:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2019			2018			2019			2018
Adjusted EBITDA:
Real estate sales and financing(1)	$	69		$	163		$	149		$	207
Resort operations and club management(1)		66			58			131			117
Segment Adjusted EBITDA		135			221			280			324
General and administrative		(29	)		(30	)		(54	)		(53	)
Depreciation and amortization		(13	)		(8	)		(23	)		(16	)
License fee expense		(26	)		(25	)		(49	)		(48	)
Other (loss) gain, net		(1	)		1			(2	)		—
Interest expense		(11	)		(8	)		(21	)		(15	)
Income tax expense		(15	)		(39	)		(35	)		(49	)
Equity in earnings (losses) from unconsolidated affiliates		2			(2	)		3			(1	)
Other adjustment items		(3	)		(3	)		(5	)		(5	)
Net income	$	39		$	107		$	94		$	137

⁽¹⁾ Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion.

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Note 19: Commitments and Contingencies

We have entered into certain arrangements with developers to commit to purchase vacation ownership units at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of June 30, 2019, we were committed to purchase approximately $511 million of inventory and land over a period of 12 years. The actual amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the six months ended June 30, 2019 and 2018, we purchased $28 million and $4 million, respectively, of VOI inventory as required under our commitments. As of June 30, 2019, our remaining obligation pursuant to these arrangements were expected to be incurred as follows:

($ in millions)	Purchase Obligations
Year
2019 (remaining)	$	38
2020		220
2021		87
2022		57
2023		54
Thereafter		55
Total	$	511

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. Management has evaluated these legal matters and we believe that possible losses derived from an unfavorable outcome that is reasonably possible or remote is not reasonably estimable. While the actual results of claims and litigation cannot be predicted with certainty, we expect that the resolution of all pending or threatened claims and litigation as of June 30, 2019, will not materially affect our unaudited condensed consolidated financial statements.

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Note 20: Condensed Consolidating Guarantor Financial Information

The following schedules present the unaudited condensed consolidating financial information as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors.

	June 30, 2019
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	7	$	—	$	93	$	20	$	—		$	120
Restricted cash		—		—		41		26		—			67
Accounts receivable, net		—		—		156		20		(20	)		156
Timeshare financing receivables, net		—		—		332		793		—			1,125
Inventory		—		—		496		40		—			536
Property and equipment, net		—		—		666		7		—			673
Operating lease right-of-use assets, net						63		—		—			63
Investments in unconsolidated affiliates		—		—		43		—		—			43
Intangible assets, net		—		—		84		—		—			84
Other assets		—		6		67		49		—			122
Investments in subsidiaries		443		1,347		243		—		(2,033	)		—
TOTAL ASSETS	$	450	$	1,353	$	2,284	$	955	$	(2,053	)	$	2,989
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	317	$	15	$	(20	)	$	312
Advanced deposits		—		—		108		—		—			108
Debt, net		—		910		27		—		—			937
Non-recourse debt, net		—		—		—		696		—			696
Operating lease liabilities		—		—		76		—		—			76
Deferred revenues		—		—		163		—		—			163
Deferred income tax liabilities		—		—		246		1		—			247
Total equity		450		443		1,347		243		(2,033	)		450
TOTAL LIABILITIES AND EQUITY	$	450	$	1,353	$	2,284	$	955	$	(2,053	)	$	2,989

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	December 31, 2018
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	4	$	—	$	89	$	15	$	—		$	108
Restricted cash		—		—		45		27		—			72
Accounts receivable, net		—		—		157		17		(21	)		153
Timeshare financing receivables, net		—		—		209		911		—			1,120
Inventory		—		—		502		25		—			527
Property and equipment, net		—		—		553		6		—			559
Investments in unconsolidated affiliate		—		—		38		—		—			38
Intangible assets, net		—		—		81		—		—			81
Other assets		—		6		41		48		—			95
Investments in subsidiaries		612		1,210		277		—		(2,099	)		—
TOTAL ASSETS	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	332	$	13	$	(21	)	$	324
Advanced deposits		—		—		101		—		—			101
Debt, net		—		604		—		—		—			604
Non-recourse debt, net		—		—		—		759		—			759
Deferred revenues		—		—		95		—		—			95
Deferred income tax liabilities		—		—		254		—		—			254
Total equity		616		612		1,210		277		(2,099	)		616
TOTAL LIABILITIES AND EQUITY	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753

23

	For the Three Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	103		$	17		$	—		$	120
Sales, marketing, license and other fees		—			—			154			3			(12	)		145
Financing		—			—			20			25			(2	)		43
Resort and club management		—			—			43			—			—			43
Rental and ancillary services		—			—			60			—			—			60
Cost reimbursements		—			—			42			1			—			43
Total revenues		—			—			422			46			(14	)		454
Expenses
Cost of VOI sales		—			—			28			4			—			32
Sales and marketing		—			—			187			11			(12	)		186
Financing		—			—			4			10			(2	)		12
Resort and club management		—			—			12			—			—			12
Rental and ancillary services		—			—			36			1			—			37
General and administrative		—			—			29			—			—			29
Depreciation and amortization		—			—			13			—			—			13
License fee expense		—			—			25			1			—			26
Cost reimbursements		—			—			42			1			—			43
Total operating expenses		—			—			376			28			(14	)		390
Interest expense		—			(11	)		—			—			—			(11	)
Dividends from subsidiary		150			150			—			—			(300	)		—
Equity in earnings from unconsolidated    affiliates		—			—			2			—			—			2
Other loss, net		—			—			(1	)		—			—			(1	)
Income before income taxes		150			139			47			18			(300	)		54
Income tax expense		—			—			(14	)		(1	)		—			(15	)
Income before equity in earnings    from subsidiaries		150			139			33			17			(300	)		39
Equity in (losses) earnings from subsidiaries		(111	)		50			17			—			44			—
Net income	$	39		$	189		$	50		$	17		$	(256	)	$	39

24

	For the Three Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	248		$	2	$	—		$	250
Sales, marketing, license and other fees		—		—			147			1		(2	)		146
Financing		—		—			17			23		(1	)		39
Resort and club management		—		—			37			—		—			37
Rental and ancillary services		—		—			53			—		—			53
Cost reimbursements		—		—			37			1		—			38
Total revenues		—		—			539			27		(3	)		563
Expenses
Cost of VOI sales		—		—			61			—		—			61
Sales and marketing		—		—			193			2		(2	)		193
Financing		—		—			5			8		(1	)		12
Resort and club management		—		—			11			—		—			11
Rental and ancillary services		—		—			30			—		—			30
General and administrative		—		—			30			—		—			30
Depreciation and amortization		—		—			8			—		—			8
License fee expense		—		—			25			—		—			25
Cost reimbursements		—		—			37			1		—			38
Total operating expenses		—		—			400			11		(3	)		408
Interest expense		—		(8	)		—			—		—			(8	)
Equity in losses from unconsolidated    affiliates		—		—			(2	)		—		—			(2	)
Other gain, net		—		—			1			—		—			1
Income (loss) before income taxes		—		(8	)		138			16		—			146
Income tax expense		—		—			(39	)		—		—			(39	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(8	)		99			16		—			107
Equity in earnings from subsidiaries		107		115			16			—		(238	)		—
Net income	$	107	$	107		$	115		$	16	$	(238	)	$	107

25

	For the Six Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	210		$	35		$	—		$	245
Sales, marketing, license and other fees		—			—			305			4			(23	)		286
Financing		—			—			38			50			(4	)		84
Resort and club management		—			—			85			—			—			85
Rental and ancillary services		—			—			118			1			—			119
Cost reimbursements		—			—			83			2			—			85
Total revenues		—			—			839			92			(27	)		904
Expenses
Cost of VOI sales		—			—			61			7			—			68
Sales and marketing		—			—			357			22			(23	)		356
Financing		—			—			8			21			(4	)		25
Resort and club management		—			—			23			—			—			23
Rental and ancillary services		—			—			70			2			—			72
General and administrative		—			—			54			—			—			54
Depreciation and amortization		—			—			23			—			—			23
License fee expense		—			—			47			2			—			49
Cost reimbursements		—			—			83			2			—			85
Total operating expenses		—			—			726			56			(27	)		755
Interest expense		—			(21	)		—			—			—			(21	)
Dividends from subsidiary		275			275			—			—			(550	)		—
Equity in earnings from unconsolidated    affiliates		—			—			3			—			—			3
Other loss, net		—			—			(2	)		—			—			(2	)
Income before income taxes		275			254			114			36			(550	)		129
Income tax expense		—			—			(34	)		(1	)		—			(35	)
Income before equity in earnings    from subsidiaries		275			254			80			35			(550	)		94
Equity in (losses) earnings from subsidiaries		(181	)		115			35			—			31			—
Net income	$	94		$	369		$	115		$	35		$	(519	)	$	94

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	For the Six Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	325		$	3	$	—		$	328
Sales, marketing, license and other fees		—		—			273			2		(4	)		271
Financing		—		—			37			42		(2	)		77
Resort and club management		—		—			76			—		—			76
Rental and ancillary services		—		—			103			1		—			104
Cost reimbursements		—		—			72			2		—			74
Total revenues		—		—			886			50		(6	)		930
Expenses
Cost of VOI sales		—		—			80			—		—			80
Sales and marketing		—		—			354			4		(4	)		354
Financing		—		—			10			15		(2	)		23
Resort and club management		—		—			22			—		—			22
Rental and ancillary services		—		—			57			1		—			58
General and administrative		—		—			53			—		—			53
Depreciation and amortization		—		—			16			—		—			16
License fee expense		—		—			48			—		—			48
Cost reimbursements		—		—			72			2		—			74
Total operating expenses		—		—			712			22		(6	)		728
Interest expense		—		(15	)		—			—		—			(15	)
Equity in losses from unconsolidated    affiliates		—		—			(1	)		—		—			(1	)
Income (loss) before income taxes		—		(15	)		173			28		—			186
Income tax expense		—		—			(49	)		—		—			(49	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(15	)		124			28		—			137
Equity in earnings from subsidiaries		137		152			28			—		(317	)		—
Net income	$	137	$	137		$	152		$	28	$	(317	)	$	137

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	For the Six Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash provided by (used in) operating    activities	$	—		$	254		$	(43	)	$	136		$	(275	)	$	72
Investing Activities
Capital expenditures for property and    equipment		—			—			(17	)		—			—			(17	)
Software capitalization costs		—			—			(11	)		—			—			(11	)
Investments in unconsolidated affiliates		—			—			(2	)		—			—			(2	)
Dividends from subsidiary		275			275			—			—			(550	)		—
Net cash used in (provided by) investing activities		275			275			(30	)		—			(550	)		(30	)
Financing Activities
Issuance of debt		—			410			—			—			—			410
Issuance of non-recourse debt		—			—			—			15			—			15
Repayment of debt		—			(100	)		(5	)		—			—			(105	)
Repayment of non-recourse debt		—			—			—			(79	)		—			(79	)
Debt issuance costs		—			—			—			(2	)		—			(2	)
Repurchase and retirement of common stock		(271	)		—			—			—			—			(271	)
Payment of withholding taxes on vesting of    restricted stock units		—						(3	)		—			—			(3	)
Proceeds from employee stock plan purchases		—			—			2			—			—			2
Other financing activity		—			—			(2	)		—			—			(2	)
Intercompany transfers		(1	)		(839	)		81			(66	)		825			—
Net cash used in (provided by) financing    activities		(272	)		(529	)		73			(132	)		825			(35	)
Net increase in cash, cash equivalents and    restricted cash		3			—			—			4			—			7
Cash, cash equivalents and restricted cash,    beginning of period		4			—			134			42			—			180
Cash, cash equivalents and restricted cash,    end of period	$	7		$	—		$	134		$	46		$	—		$	187

28

	For the Six Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash (used in) provided by operating    activities	$	—	$	(14	)	$	42		$	(205	)	$	43		$	(134	)
Investing Activities
Capital expenditures for property and    equipment		—		—			(18	)		(2	)		—			(20	)
Software capitalization costs		—		—			(9	)		—			—			(9	)
Return of investment from unconsolidated affiliates		—		—			11			—			—			11
Investment in unconsolidated affiliates		—		—			(5	)		—			—			(5	)
Net cash used in investing activities		—		—			(21	)		(2	)		—			(23	)
Financing Activities
Issuance of debt		—		160			—			—			—			160
Issuance of non-recourse debt		—		—			—			100			—			100
Repurchase and retirement of common stock		—		(112	)		—			—			—			(112	)
Repayment of non-recourse debt		—		—			—			(80	)		—			(80	)
Repayment of debt		—		(5	)		—			—			—			(5	)
Debt issuance costs		—		—			—			(2	)		—			(2	)
Payment of withholding taxes on vesting of restricted stock units		—		(1	)		—			—			—			(1	)
Capital contribution		—		3			—			—			—			3
Intercompany transfers		—		(31	)		(111	)		185			(43	)		—
Net cash provided by (used in) financing    activities		—		14			(111	)		203			(43	)		63
Net decrease in cash, cash equivalents and    restricted cash		—		—			(90	)		(4	)		—			(94	)
Cash, cash equivalents and restricted cash,    beginning of period		—		—			259			38			—			297
Cash, cash equivalents and restricted cash,    end of period	$	—	$	—		$	169		$	34		$	—		$	203

Note 21: Subsequent Events

In July 2019, we executed the following transactions:

• we completed the purchase of 87 hotel units for future conversion to 74 timeshare units located in Los Cabos, Mexico for $37 million;

• we borrowed $20 million and repaid $5 million, respectively, under our revolving credit facility; and

• we repaid $15 million under our Timeshare Facility.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2018.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to our future, and are based on management’s beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time we make such statements. Forward-looking statements include all statements that are not historical facts and may be identified by terminology such as the words “outlook,” “believe,” “expect,” “potential,” “goal,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” predicts,” “intends,” “plans,” “estimates,” “anticipates” “future,” “guidance,” “target,” or the negative version of these words or other comparable words. The forward-looking statements contained in this Report include statements related to our revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance, and other anticipated future events and expectations that are not historical facts.

We caution you that our forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the future results, business performance or achievements expressed in or implied by such statements. The forward-looking statements in this Report are not guarantees of our future performance, and you should not place undue reliance on such statements. Factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements include: risks associated with the inherent business, financial and operating risks of the timeshare industry, including limited underwriting standards due to the real-time nature of industry sales practices, and the intense competition associated with the industry; our ability successfully market and sell VOIs; our development and other activities to source inventory for VOI sales; significant increases in defaults on HGV’s vacation ownership mortgage receivables; the ability of managed homeowner associations to collect sufficient maintenance fees; general volatility in the economy and/or the financial and credit markets; adverse economic or market conditions and trends in the tourism and hospitality industry, which may impact the purchasing and vacationing decisions of consumers; our actions or the occurrence of other events that could cause a breach under or termination of our license agreement with Hilton that could affect or terminate our access to the Hilton brands and programs, or actions of Hilton that affect the reputation of the licensed marks or Hilton’s programs; economic and operational uncertainties related to our expanding global operations, including our ability to manage the outcome and timing of such operations and compliance with anti-corruption, data privacy and other applicable laws and regulations affecting our international operations; the effects of foreign currency exchange; changes in tax rates and exposure to additional tax liabilities; the impact of future changes in legislation, regulations or accounting pronouncements; HGV’s acquisitions, joint ventures, and strategic alliances that that may not result in expected benefits, including the termination of material fee-for-service agreements; our dependence on third-party development activities to secure just-in-time inventory; our use of social media platforms; cyber-attacks, security vulnerabilities, and information technology system failures resulting in disclosure of personal data, company data loss, system outages or disruptions of our online services, which could lead to reduced revenue, increased costs, liability claims, harm to user engagement, and harm to our reputation or competitive position; the impact of claims against us that may result in adverse outcomes, including regulatory proceedings or litigation; our credit facilities, indenture and other debt agreements and instruments, including variable interest rates, operating and financial restrictions, our ability to make scheduled payments, and our ability to refinance our debt on acceptable terms; the continued service and availability of key executives and employees; and catastrophic events or geo-political conditions including war, terrorist activity, political strife or natural disasters that may disrupt our operations in key vacation destinations. Any one or more of the foregoing factors could adversely impact our operations, revenue, operating margins, financial condition and/or credit rating.

For additional information regarding factors that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements in this Report, please see the risk factors discussed in “Part I—Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and those described from time to time other periodic reports that we file with the SEC. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business. Except for our ongoing obligations to disclose material information under the federal securities laws, we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in management’s expectations, or otherwise.

30

Terms Used in this Quarterly Report on Form 10-Q

Except where the context requires otherwise, references in this Quarterly Report on Form 10-Q to “Hilton Grand Vacations,” “HGV,” “the Company,” “we,” “us” and “our” refer to Hilton Grand Vacations Inc., together with its consolidated subsidiaries. Except where the context requires otherwise, references to our “properties” and “rooms” refer to the timeshare properties managed, franchised, owned or leased by us. Of these properties and rooms, a portion are directly owned or leased by us or joint ventures in which we have an interest and the remaining properties and rooms are owned by third-party owners.

“Developed” refers VOI inventory that is sourced from projects developed by HGV.

“Fee for service” refers to VOI inventory that we sell and manage on behalf of third-party developers.

“Just-in-time” refers to VOI inventory that is primarily sourced in transactions that are designed to closely correlate the timing of the acquisition by us with our sale of that inventory to purchasers.

“VOI” refers to vacation ownership intervals.

Non-GAAP Financial Measures

This Quarterly Report on Form 10-Q includes discussion of terms that are not recognized terms under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), and financial measures that are not calculated in accordance with U.S. GAAP, including contract sales, sales revenue, real estate margin, earnings before interest expense (excluding interest expense relating to our non-recourse debt), taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA and segment Adjusted EBITDA.

Operational Metrics

This Quarterly Report on Form 10-Q includes discussion of key business operational metrics including tour flow, volume per guest and transient rate.  

See “Key Business and Financial Metrics and Terms Used by Management” and “-Results of Operations” for a discussion of the meanings of these terms, the Company’s reasons for providing non-GAAP financial measures, and reconciliations of non-GAAP financial measures to measures calculated in accordance with U.S. GAAP.

Overview

Our Business

We are a growing timeshare company that markets and sells VOIs, manages resorts in top leisure and urban destinations, and operates a points-based vacation club. As of June 30, 2019, we have 57 properties, representing 9,177 units, which are located in iconic vacation destinations such as the Hawaiian Islands, New York City, Orlando and Las Vegas, and feature spacious, condominium-style accommodations with superior amenities and quality service. As of June 30, 2019, we have approximately 317,000 Hilton Grand Vacations Club (the “Club”) members. Club members have the flexibility to exchange their VOIs for stays at any Hilton Grand Vacations resort or any property in the Hilton system of 17 industry-leading brands across more than 5,700 properties, as well as numerous experiential vacation options, such as cruises and guided tours.

We operate our business across two segments: (1) real estate sales and financing; and (2) resort operations and club management.

Real Estate Sales and Financing

Our primary product is the marketing and selling of fee-simple VOIs deeded in perpetuity, developed either by us or by third parties. This ownership interest is an interest in real estate generally equivalent to one week annually at the timeshare resort where the VOI was purchased. Traditionally, timeshare operators have funded 100 percent of the investment necessary to acquire land and construct timeshare properties. In 2010, we began sourcing VOIs through fee-for-service and just-in-time agreements with third-party developers and have successfully transformed from a capital-intensive business to one that is highly capital-efficient. The fee-for-service agreements enable us to generate fees from the sales and marketing of the VOIs and Club memberships and from the management of the timeshare properties without requiring us to

31

fund acquisition and construction costs. The just-in-time agreements enable us to source VOI inventory in a manner that allows us to correlate the timing of acquisition of the inventory with the sale to purchasers. Sales of owned, including just-in-time inventory, generally result in greater Adjusted EBITDA contributions, while fee-for-service sales require less initial investment and allow us to accelerate our sales growth. Both sales of owned inventory and fee-for-service sales generate long-term, predictable fee streams, by adding to the Club membership base and properties under management, that generate strong returns on invested capital.

For the six months ended June 30, 2019, sales from fee-for-service, just-in-time and developed inventory sources were 55 percent, 17 percent and 28 percent, respectively, of contract sales. See “Key Business and Financial Metrics and Terms Used by Management——Real Estate Sales Metrics” for additional discussion of contract sales. Based on our trailing twelve months sales pace, we have access to approximately seven years of future inventory, with capital efficient arrangements representing approximately 56 percent of that supply. We believe that the visibility into our long-term supply allows us to efficiently manage inventory to meet predicted sales, reduce capital investments, minimize our exposure to the cyclicality of the real estate market and mitigate the risks of entering into new markets.

We provide financing for members purchasing our developed and acquired inventory and generate interest income. Our timeshare financing receivables are collateralized by the underlying VOIs and are generally structured as 10-year, fully-amortizing receivables that bear a fixed interest rate typically ranging from nine percent to 18 percent per annum.

The interest rate on our timeshare financing receivables is determined by, among other factors, the amount of the down payment, the borrower’s credit profile and the receivable term. The weighted average FICO score for new timeshare financing receivables to U.S. and Canadian borrowers at the time of origination were as follows:  

	Six Months Ended June 30,
	2019		2018
Weighted-average FICO score		750		749

Prepayment is permitted without penalty. When a member defaults, we ultimately return their VOI to inventory for resale and that member no longer participates in our Club.

Some of our timeshare financing receivables have been pledged as collateral in our securitization transactions, which have in the past and may in the future provide funding for our business activities. In these securitization transactions, special purpose entities are established to issue various classes of debt securities which are generally collateralized by a single pool of assets, consisting of timeshare financing receivables that we service and related cash deposits. For additional information see Note 5: Timeshare Financing Receivables in our unaudited condensed consolidated financial statements.

In addition, we earn fees from servicing our securitized timeshare financing receivables and the timeshare financing receivables provided by third-party developers of our fee-for-service projects to purchasers of their VOIs.

Resort Operations and Club Management

We enter into management agreements with the HOA of the VOI owners for timeshare resorts developed by us or a third party. Each of the HOAs is governed by a board of directors comprising owner and developer representatives that are charged with ensuring the resorts are well-maintained and financially stable. Our management services include day-to-day operations of the resorts, maintenance of the resorts, preparation of reports, budgets and projections and employee training and oversight. Our HOA management agreements provide for a cost-plus management fee, which means we generally earn a fee equal to 10 percent to 15 percent of the costs to operate the applicable resort. The fees we earn are highly predictable due to the relatively fixed nature of resort operating expenses and our management fees are unaffected by changes in rental rate or occupancy. We are reimbursed for the costs incurred to perform our services, principally related to personnel providing on-site services. The initial term of our management agreements typically ranges from three to five years and the agreements are subject to periodic renewal for one to three year periods. Many of these agreements renew automatically unless either party provides advance notice of termination before the expiration of the term.

We also manage and operate the points-based Hilton Grand Vacations Club and Hilton Club exchange programs, which provide exclusive exchange, leisure travel and reservation services to our Club members. When owners purchase a VOI, they are generally enrolled in the Club and given an annual allotment of points that allow the member to exchange their annual usage rights in the VOI that they own for a number of vacation and travel options. In addition to an annual membership fee, Club members pay incremental fees depending on exchanges they choose within the Club system.

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We rent unsold VOI inventory, third-party inventory and inventory made available due to ownership exchanges through our club programs. We earn a fee from rentals of third-party inventory. Additionally, we provide ancillary offerings including food and beverage, retail and spa offerings at these timeshare properties.

Key Business and Financial Metrics and Terms Used by Management

Real Estate Sales Metrics

The following are not recognized terms under U.S. GAAP:

• Contract sales represents the total amount of VOI products (fee-for-service and developed) under purchase agreements signed during the period where we have received a down payment of at least 10 percent of the contract price. Contract sales is not a recognized term under U.S. GAAP and should not be considered in isolation or as an alternative to Sales of VOIs, net or any other comparable operating measure derived in accordance with U.S. GAAP. Contract sales differ from revenues from the Sales of VOIs, net that we report in our condensed consolidated statements of operations due to the requirements for revenue recognition, as well as adjustments for incentives and other administrative fee revenues. We consider contract sales to be an important operating measure because it reflects the pace of sales in our business. See Note 2: Basis of Presentation and Summary of Significant Accounting Policies in our audited consolidated financial statements included in Item 8 in our Annual Report on form 10-K for the year ended December 31, 2018, for additional information on Sales of VOI, net.  

• Sales revenue represents Sale of VOIs, net and commissions and brand fees earned from the sale of fee-for-service intervals.

• Real estate margin represents sales revenue less the cost of VOI sales and sales and marketing costs, net of marketing revenue. Real estate margin percentage is calculated by dividing real estate margin by sales revenue. We consider this to be an important operating measure because it measures the efficiency of our sales and marketing spending and management of inventory costs.

• Tour flow represents the number of sales presentations given at our sales centers during the period.

• Volume per guest (“VPG”) represents the sales attributable to tours at our sales locations and is calculated by dividing Contract sales, excluding telesales, by tour flow. We consider VPG to be an important operating measure because it measures the effectiveness of our sales process, combining the average transaction price with the closing rate.

Resort and Club Management and Rental Metrics

• Transient rate represents the total rental room revenue for transient guests divided by total number of transient room nights sold in a given period and excludes room rentals associated with marketing programs, owner usage and the redemption of Club Bonus Points.

For further information see Item 8. Financial Statements and Supplementary Data - Note 2: Basis of Presentation and Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2018.

EBITDA and Adjusted EBITDA

EBITDA, presented herein, is a financial measure that is not recognized under U.S. GAAP that reflects net income (loss), before interest expense (excluding non-recourse debt), a provision for income taxes and depreciation and amortization.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) reorganization costs, including severance and relocation costs; (vi) share-based and certain other compensation expenses; (vii) costs related to the spin-off; and (viii) other items.

EBITDA and Adjusted EBITDA are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

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We believe that EBITDA and Adjusted EBITDA provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA and Adjusted EBITDA are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry.

EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing our results as reported under U.S. GAAP. Some of these limitations are:

• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;

• EBITDA and Adjusted EBITDA do not reflect our interest expense (excluding interest expense on non-recourse debt), or the cash requirements necessary to service interest or principal payments on our indebtedness;

• EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes;

• EBITDA and Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;

• EBITDA and Adjusted EBITDA do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations;

• EBITDA and Adjusted EBITDA do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized; and

• EBITDA and Adjusted EBITDA may be calculated differently from other companies in our industry limiting their usefulness as comparative measures.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.

Results of Operations

Three and Six Months Ended June 30, 2019 Compared with the Three and Six Months Ended June 30, 2018  

Segment Results

We evaluate our business segment operating performance using segment Adjusted EBITDA, as described in Note 18: Business Segments in our unaudited condensed consolidated financial statements. We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues. For a discussion of our definition of EBITDA and Adjusted EBITDA, how management uses them to manage our business and material limitations on their usefulness, refer to “—Key Business and Financial Metrics and Terms Used by Management—EBITDA and Adjusted EBITDA.” The following tables set forth revenues and Adjusted EBITDA by segment:

	Three Months Ended June 30,						Variance						Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%			2019			2018			$			%
Revenues:
Real estate sales and financing	$	308		$	435		$	(127	)		(29.2	)%	$	615		$	676		$	(61	)		(9.0	)%
Resort operations and club    management		114			98			16			16.3			224			196			28			14.3
Segment revenues		422			533			(111	)		(20.8	)		839			872			(33	)		(3.8	)
Cost reimbursements		43			38			5			13.2			85			74			11			14.9
Intersegment eliminations(1)		(11	)		(8	)		(3	)		37.5			(20	)		(16	)		(4	)		25.0
Total revenues	$	454		$	563		$	(109	)		(19.4	)	$	904		$	930		$	(26	)		(2.8	)

⁽¹⁾ Refer to Note 18: Business Segments in our unaudited condensed consolidated financial statements for details on the intersegment eliminations.

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The following table reconciles net income, our most comparable U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA:

	Three Months Ended June 30,					Variance						Six Months Ended June 30,				Variance
($ in millions)	2019		2018			$			%			2019		2018		$			%
Net Income	$	39	$	107		$	(68	)		(63.6	)%	$	94	$	137	$	(43	)		(31.4	)%
Interest expense		11		8			3			37.5			21		15		6			40.0
Income tax expense		15		39			(24	)		(61.5	)		35		49		(14	)		(28.6	)
Depreciation and amortization		13		8			5			62.5			23		16		7			43.8
Interest expense, depreciation and    amortization included in equity in    earnings (losses) from    unconsolidated affiliates		1		1			—			—			2		2		—			—
EBITDA		79		163			(84	)		(51.5	)		175		219		(44	)		(20.1	)
Other loss (gain)		1		(1	)		2		NM(1)				2		—		2		NM(1)
Share-based compensation expense		7		5			2			40.0			12		8		4			50.0
Other adjustment items(2)		3		8			(5	)		(62.5	)		3		10		(7	)		(70.0	)
Adjusted EBITDA	$	90	$	175		$	(85	)		(48.6	)	$	192	$	237	$	(45	)		(19.0	)

⁽¹⁾ Fluctuation in terms of percentage change is not meaningful.

⁽²⁾ Includes costs associated with the spin-off transaction and severance costs of $2 million and $5 million for the three months ended June 30, 2019 and 2018, respectively, and $2 million and $7 million for the six months ended June 30, 2019 and 2018, respectively.  

The following table shows our segment Adjusted EBITDA to Adjusted EBITDA:

	Three Months Ended June 30,						Variance						Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%			2019			2018			$			%
Adjusted EBITDA:
Real estate sales and financing(2)	$	69		$	163		$	(94	)		(57.7	)%	$	149		$	207		$	(58	)		(28.0	)%
Resort operations and club    management(2)		66			58			8			13.8			131			117			14			12.0
Segment Adjusted EBITDA		135			221			(86	)		(38.9	)		280			324			(44	)		(13.6	)
Adjustments:
Adjusted EBITDA from    unconsolidated affiliates		3			(1	)		4		NM(1)				5			1			4		NM(1)
License fee expense		(26	)		(25	)		(1	)		4.0			(49	)		(48	)		(1	)		2.1
General and administrative(3)		(22	)		(20	)		(2	)		10.0			(44	)		(40	)		(4	)		10.0
Adjusted EBITDA	$	90		$	175		$	(85	)		(48.6	)	$	192		$	237		$	(45	)		(19.0	)

⁽¹⁾ Fluctuation in terms of percentage change is not meaningful.

⁽²⁾ Includes intersegment eliminations, share-based compensation attributable to the segment and other adjustments.

⁽³⁾ Excludes segment related share-based compensation and other adjustment items.

Real Estate Sales and Financing

Real estate sales and financing segment revenues decreased by $127 million for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to a $136 million decrease in sales revenue, partially offset by a $5 million increase in marketing revenue and other fees mainly associated with higher vacation package sales and a $4 million increase in financing revenue related to an increase in interest income from higher outstanding timeshare receivables balance and an increase in servicing fees.  Sales revenue decreased for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to a $34 million decrease in revenue recognition from sales of VOIs on one property under construction compared to a $91 million net increase in revenue recognition from the completion of a timeshare resort under construction during the same period in 2018.  Real estate sales and financing segment Adjusted EBITDA decreased by $94 million for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to the decreases in revenue associated with the segment discussed above.

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Real estate sales and financing segment revenues decreased by $61 million for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to a $76 million decrease in sales revenue, partially offset by (i) an $8 million increase in marketing revenue and other fees mainly associated with higher vacation package sales, (ii) an increase in commission and brand fees due to higher fee-for-service sales at existing fee-for-service properties, and (iii) a $7 million increase in financing revenue related to an increase in interest income from higher outstanding timeshare receivables balance and an increase in servicing fees.  Sales revenue decreased for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to a $34 million decrease in revenue recognition from sales of VOIs on one property under construction compared to a $25 million net increase in revenue recognition from the completion of a timeshare resort under construction during the same period in 2018. Real estate sales and financing segment Adjusted EBITDA decreased by $58 million for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to the decreases in revenue associated with the segment discussed above.

Refer to “—Real Estate” and “—Financing” for further discussion on the revenues and expenses of the real estate sales and financing segment.

Resort Operations and Club Management

Resort operations and club management segment revenues increased by $16 million for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to (i) an increase of $6 million in resort and club management revenues due to an increase in Club members as well as higher resort management revenue from the launch of new properties subsequent to the second quarter of 2018 and (ii) an increase of $7 million in rental and ancillary services revenues.  Rental and ancillary services revenue increased due to higher transient rental room revenue, primarily due to the June 2018 acquisition of an operating hotel and higher club inventory rentals at our developed and fee-for-service properties.  Resort operations and club management segment Adjusted EBITDA increased by $8 million for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to the increases in revenues associated with the segment, partially offset by an increase of $8 million in segment expenses primarily due to the June 2018 acquisition of an operating hotel.

Resort operations and club management segment revenues increased by $28 million for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to (i) an increase of $9 million in resort and club management revenues primarily due to an increase in Club members and (ii) an increase of $15 million in rental and ancillary services revenues.  Rental and ancillary services revenue increased primarily due to higher transient rental room revenue, primarily due to the June 2018 acquisition of an operating hotel and higher club inventory rentals at our developed and fee-for-service properties.  Resort operations and club management segment Adjusted EBITDA increased by $14 million for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to the increases in revenues associated with the segment, partially offset by an increase of $15 million in segment expenses primarily due to the June 2018 acquisition of an operating hotel.

Refer to “— Resort and Club Management” and “—Rental and Ancillary Services” for further discussion on the revenues and expenses of the resort operations and club management segment.

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Real Estate Sales and Financing Segment

Real Estate

	Three Months Ended June 30,						Variance						Six Months Ended June 30,						Variance
($ in millions, except Tour flow and VPG)	2019			2018			$			%			2019			2018			$			%
Sales of VOIs, net	$	120		$	250		$	(130	)		(52.0	)%	$	245		$	328		$	(83	)		(25.3	)%
Adjustments:
Fee-for-service sales(2)		185			193			(8	)		(4.1	)		375			363			12			3.3
Provision for financing receivables    losses		24			18			6			33.3			38			30			8			26.7
Reportability and other:
Net deferral (recognition) of sales    of VOIs under construction(3)		34			(91	)		125		NM(1)				34			(25	)		59		NM(1)
Fee-for-service sales upgrades, net		(10	)		(11	)		1			(9.1	)		(24	)		(19	)		(5	)		26.3
Other(4)		10			(2	)		12		NM(1)				17			9			8			88.9
Contract sales	$	363		$	357		$	6			1.7		$	685		$	686		$	(1	)		(0.1	)
Tour flow		101,712			94,269			7,443			7.9			184,356			171,969			12,387			7.2
VPG	$	3,393		$	3,597		$	(204	)		(5.7	)	$	3,520		$	3,778		$	(258	)		(6.8	)

⁽¹⁾ Fluctuation in terms of percentage change is not meaningful.

⁽²⁾ Represents contract sales from fee-for-service properties on which we earn commissions and brand fees.

⁽³⁾ Represents the net impact of deferred revenues related to the Sales of VOIs under construction that are recognized when construction is complete.

⁽⁴⁾ Includes adjustments for revenue recognition, including amounts in rescission and sales incentives.

Contract sales increased for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to eight percent growth in tour flow, partially offset by lower VPG from both a 50-basis point decline in close rate and average transaction price reduction. Contract sales was relatively flat for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to lower VPG from both an 80-basis point decline in close rate and average transaction price reduction, offset by a seven percent improvement in tour flow.

	Three Months Ended June 30,						Variance						Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%			2019			2018			$			%
Sales of VOIs, net	$	120		$	250		$	(130	)		(52.0	)%	$	245		$	328		$	(83	)		(25.3	)%
Sales, marketing, brand and other fees		145			146			(1	)		(0.7	)		286			271			15			5.5
Less:
Marketing revenue and other fees		38			33			5			15.2			68			60			8			13.3
Sales revenue		227			363			(136	)		(37.5	)		463			539			(76	)		(14.1	)
Less:
Cost of VOI sales		32			61			(29	)		(47.5	)		68			80			(12	)		(15.0	)
Sales and marketing expense, net(1)		139			152			(13	)		(8.6	)		270			278			(8	)		(2.9	)
Real estate margin	$	56		$	150		$	(94	)		(62.7	)	$	125		$	181		$	(56	)		(30.9	)
Real estate margin percentage		24.7	%		41.3	%								27.0	%		33.6	%

⁽¹⁾ Includes revenue recognized through our marketing programs for existing owners and prospective first-time buyers and revenue associated with sales incentives, title service and document compliance.

Sales revenue decreased for the three months ended June 30, 2019, compared to the same period in 2018, primarily due to (i) a $34 million decrease in revenue recognition from sales of VOIs on one property under construction compared to a $91 million net increase in revenue recognition from the completion of a timeshare resort under construction during the same period in 2018 and (ii) a decrease in VPG driven by a decrease in the close rate and a reduction in the average transaction price, and (iii) a decrease of $5 million in commission and brand fees due to lower fee-for-service VOI sales driven by a shift in inventory mix.  The decrease in sales revenue was partially offset by a $5 million increase in marketing revenue and other fees mainly associated with higher vacation package sales. The decrease in real estate margin and margin percentage for the three months ended June 30, 2019, compared to 2018, was primarily due the reduction in sales revenue, partially offset by deferred expenses from the sales of one property under construction.

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Sales revenue decreased for the six months ended June 30, 2019, compared to the same period in 2018, primarily due to (i) a $34 million decrease in revenue recognition from sales of VOIs on one property under construction compared to a $25 million net increase in revenue recognition from the completion of a timeshare resort under construction during the same period in 2018.  The decrease in sales revenue was partially offset by (i) an increase of $8 million in commission and brand fees due to higher fee-for-service sales at our existing fee-for-service properties and (ii) an $8 million increase in marketing revenue and other fees mainly associated with higher vacation package sales.  The decrease in real estate margin and margin percentage for the six months ended June 30, 2019, compared to the same period in 2018, was primarily due to the reduction in sales revenue, partially offset by deferred expenses from the sales of one property under construction.

Financing

	Three Months Ended June 30,						Variance						Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%			2019			2018			$			%
Interest income	$	36		$	34		$	2			5.9	%	$	72		$	68		$	4			5.9	%
Other financing revenue		7			5			2			40.0			12			9			3			33.3
Financing revenue		43			39			4			10.3			84			77			7			9.1
Consumer financing interest expense		7			6			1			16.7			14			10			4			40.0
Other financing expense		5			6			(1	)		(16.7	)		11			13			(2	)		(15.4	)
Financing expense		12			12			—			—			25			23			2			8.7
Financing margin	$	31		$	27		$	4			14.8		$	59		$	54		$	5			9.3
Financing margin percentage		72.1	%		69.2	%								70.2	%		70.1	%

Financing revenue increased by $4 million and $7 million for the three and six months ended June 30, 2019, respectively, compared to the same periods in 2018, is due to higher interest income resulting from higher average outstanding timeshare financing receivables balance during those respective periods and loan servicing revenues. Financing margin and margin percentage increased for the three months ended June 30, 2019, compared to the same period in 2018, primarily due increases in financing revenue.  Financing margin increased for the three and six months ended June 30, 2019, compared to the same periods in 2018, due to an increase in interest income as well as loan servicing revenue. Financing margin percentage increased for the three months ended June 30, 2019, primarily due to the increases in the segment revenue.

Resort Operations and Club Management Segment

Resort and Club Management

	Three Months Ended June 30,						Variance					Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$		%			2019			2018			$		%
Club management revenue	$	26		$	23		$	3		13.0	%	$	52		$	46		$	6		13.0	%
Resort management revenue		17			14			3		21.4			33			30			3		10.0
Resort and club management revenues		43			37			6		16.2			85			76			9		11.8
Club management expense		7			7			—		—			14			13			1		7.7
Resort management expense		5			4			1		25.0			9			9			—		—
Resort and club management expenses		12			11			1		9.1			23			22			1		4.5
Resort and club management margin	$	31		$	26		$	5		19.2		$	62		$	54		$	8		14.8
Resort and club management    margin percentage		72.1	%		70.3	%							72.9	%		71.1	%

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Resort and club management revenues increased for the three and six months ended June 30, 2019, compared to the same periods in 2018, primarily due to (i) an increase of approximately 18,000 Club members and higher rates pertaining to annual dues and transaction fees and (ii) an increase in resort management revenue from the launch of new properties subsequent to second quarter of 2018.  Resort and club management margin and margin percentage increased for the three and six months ended June 30, 2019, compared to the same periods in 2018, primarily due to increases in segment revenues.

Rental and Ancillary Services

	Three Months Ended June 30,						Variance					Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$		%			2019			2018			$		%
Rental revenues	$	53		$	46		$	7		15.2	%	$	105		$	91		$	14		15.4	%
Ancillary services revenues		7			7			—		—			14			13			1		7.7
Rental and ancillary services revenues		60			53			7		13.2			119			104			15		14.4
Rental expenses		30			25			5		20.0			59			48			11		22.9
Ancillary services expense		7			5			2		40.0			13			10			3		30.0
Rental and ancillary services    expenses		37			30			7		23.3			72			58			14		24.1
Rental and ancillary services margin	$	23		$	23		$	—		—		$	47		$	46		$	1		2.2
Rental and ancillary services    margin percentage		38.3	%		43.4	%							39.5	%		44.2	%

Rental and ancillary services revenues and expenses each increased by $7 million for the three months ended June 30, 2019 and increased by $15 million and $14 million for the six months ended June 30, 2019, respectively, compared to the same periods in 2018.  The increase in revenues and expenses is primarily due to  the acquisition of an operating hotel in June 2018.  In addition, we had higher club inventory rentals at our developed and fee-for-service properties.  Rental and ancillary services margin percentage decreased for the three and six months ended June 30, 2019, compared to the same periods in 2018 primarily due to increases in segment revenues and expenses discussed above.

Other Operating Expenses

	Three Months Ended June 30,				Variance						Six Months Ended June 30,				Variance
($ in millions)	2019		2018		$			%			2019		2018		$		%
General and administrative	$	29	$	30	$	(1	)		(3.3	)%	$	54	$	53	$	1		1.9	%
Depreciation and amortization		13		8		5			62.5			23		16		7		43.8
License fee expense		26		25		1			4.0			49		48		1		2.1

The change in other operating expenses for the three and six months ended June 30, 2019, compared to the same periods in 2018, primarily due to higher depreciation and amortization expense as a result of additional software placed into service primarily related to the Oracle cloud-based information system implementation during the second half of 2018 as well as additional depreciation on building and building leasehold improvements.  

Non-Operating Expenses

	Three Months Ended June 30,						Variance						Six Months Ended June 30,					Variance
($ in millions)	2019			2018			$			%			2019			2018		$			%
Interest expense	$	11		$	8		$	3			37.5	%	$	21		$	15	$	6			40.0	%
Equity in (earnings) losses from    unconsolidated affiliates		(2	)		2			(4	)	NM(1)				(3	)		1		(4	)	NM(1)
Other loss (gain), net		1			(1	)		2		NM(1)				2			—		2		NM(1)
Income tax expense		15			39			(24	)		(61.5	)		35			49		(14	)		(28.6	)

⁽¹⁾ Fluctuation in terms of percentage change is not meaningful

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The change in non-operating expenses for the three and six months ended June 30, 2019, compared to the same periods in 2018, is primarily due to (i) an increase in interest expense due to higher average outstanding balance on our senior secured credit facilities and (ii) a decrease in income tax expense primarily due to lower pre-tax income.

Liquidity and Capital Resources

Overview

Our cash management objectives are to maintain the availability of liquidity, minimize operational costs, make debt payments and fund future acquisitions and development projects. Our known short-term liquidity requirements primarily consist of funds necessary to pay for operating expenses and other expenditures, including payroll and related benefits, legal costs, operating costs associated with the operation of our resorts and sales centers, interest and scheduled principal payments on our outstanding indebtedness, inventory-related purchase commitments, and capital expenditures for renovations and maintenance at our offices and sales centers. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities, inventory-related purchase commitments and costs associated with potential acquisitions and development projects.

We finance our short- and long-term liquidity needs primarily by cash and cash equivalents, cash generated from our operations, draws on our senior secured credit facility and our non-recourse revolving timeshare credit facility (“Timeshare Facility”), and through periodic securitizations of our timeshare financing receivables.  

• As of June 30, 2019, we had total cash and cash equivalents of $187 million, including $67 million of restricted cash. The restricted cash balance relates to escrowed cash from our sales of our VOIs and reserves related to our non-recourse debt.  

• As of June 30, 2019, we have $374 million remaining borrowing capacity under the revolver facility (“Revolver”) which includes $29 million of undrawn borrowing capacity available for letters of credit and $10 million available under short-term borrowings. In addition, we have $315 million remaining borrowing capacity under our Timeshare Facility.  See Note 11: Debt and Non-Recourse Debt for additional information.

We believe these sources of capital will be adequate to meet our short- and long-term liquidity requirements for operating expenses and other expenditures, including payroll and related benefits, legal costs, and to finance our long-term growth plan and capital expenditures for the foreseeable future.

We believe that our capital allocation strategy provides adequate funding for our operations, is flexible enough to fund our development pipeline, securitizes the optimal level of receivables at metrics setting the benchmark for the industry, and provides the ability to be strategically opportunistic in the marketplace, while providing returns to our shareholders.  We have made commitments with developers to purchase vacation ownership units at a future date to be marketed and sold under our Hilton Grand Vacations brand.  As of June 30, 2019, our inventory-related purchase commitment was $511 million over twelve years of which we expect to purchase $38 million for the remaining of 2019.  

Sources and Uses of Our Cash

The following table summarizes our net cash flows and key metrics related to our liquidity:

	Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%
Net cash provided by (used in):
Operating activities	$	72		$	(134	)	$	206		NM(1)
Investing activities		(30	)		(23	)		(7	)		30.4	%
Financing activities		(35	)		63			(98	)	NM(1)

⁽¹⁾ Fluctuation in terms of percentage change is not meaningful.

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Operating Activities

Cash flow provided by operating activities is primarily generated from (1) sales and financing of VOIs and (2) net cash generated from managing our resorts, Club operations and providing related ancillary services. Cash flows used in operating activities primarily include spending for the purchase and development of real estate for future conversion to inventory and funding our working capital needs. Our cash flows from operations generally vary due to the following factors related to the sale of our VOIs; the degree to which our owners finance their purchase and our owners’ repayment of timeshare financing receivables; the timing of management and sales and marketing services provided; and cash outlays for VOI inventory acquisition and development. Additionally, cash flow from operations will also vary depending upon our sales mix of VOIs; over time, we generally receive more cash from the sale of an owned VOI as compared to that from a fee-for-service sale.

The change in net cash flows provided by (used in) operating activities for the six months ended June 30, 2019, compared to the same period in 2018 was primarily due to (i) a reduction in the purchase and development of real estate for future conversion to inventory and (ii) a federal tax payment of $63 million made in January of 2018 which was deferred from 2017.

The following table exhibits our VOI inventory spending:

	Six Months Ended June 30,
($ in millions)	2019		2018
VOI spending - owned properties	$	54	$	49
VOI spending - fee-for-service upgrades(1)		24		13
Purchases and development of real estate for future conversion to inventory		80		176
Total VOI inventory spending	$	158	$	238

⁽¹⁾ Includes expense related to granting credit to customers for their existing ownership when upgrading into fee-for-service projects of $16 million and $15 million recorded in Costs of VOI sales for the six months ended June 30, 2019 and 2018, respectively.

Investing Activities

The following table summarizes our net cash used in investing activities:

	Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%
Capital expenditures for property and equipment	$	(17	)	$	(20	)	$	3			(15.0	)%
Software capitalization costs		(11	)		(9	)		(2	)		22.2
Return of investment from unconsolidated affiliates		—			11			(11	)		(100.0	)
Investments in unconsolidated affiliates		(2	)		(5	)		3			(60.0	)
Net cash used in investing activities	$	(30	)	$	(23	)	$	(7	)		30.4

The change in net cash used in investing activities for the six months ended June 30, 2019, compared to the same period in 2018, was primarily due to an $11 million return of investment from our 25 percent interest in BRE Ace LLC as a result of a distribution received in 2018.

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Our capital expenditures include spending related to technology, buildings and leasehold improvements used to support sales and marketing locations, resort operations and corporate activities. We believe the renovations of our existing assets are necessary to stay competitive in the markets in which we operate.

Financing Activities

The following table summarizes our net cash provided by financing activities:

	Six Months Ended June 30,						Variance
($ in millions)	2019			2018			$			%
Issuance of debt	$	410		$	160		$	250		NM(1)
Issuance of non-recourse debt		15			100			(85	)		(85.0	)%
Repayment of debt		(105	)		(5	)		(100	)	NM(1)
Repayment of non-recourse debt		(79	)		(80	)		1			(1.3	)
Debt issuance costs		(2	)		(2	)		—			—
Repurchase and retirement of common stock		(271	)		(112	)		(159	)	NM(1)
Payment of withholding taxes on vesting of restricted stock units		(3	)		(1	)		(2	)	NM(1)
Proceeds from employee stock plan purchases		2			—			2		NM(1)
Capital contribution		—			3			(3	)		(100.0	)
Other financing activity		(2	)		—			(2	)	NM(1)
Net cash (used in) provided by financing activities	$	(35	)	$	63		$	(98	)	NM(1)

⁽¹⁾ Fluctuation in terms of percentage change is not meaningful.

The change in net cash flows (used in) provided by financing activities for the six months ended June 30, 2019 was primarily due to additional borrowings and repayments of debt and non-recourse debt, partially offset by an additional repurchases and retirements of common stock compared to the same period in 2018.

Contractual Obligations

The following table summarizes our significant contractual obligations as of June 30, 2019:

	Payments Due by Period
($ in millions)	Total		Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years
Debt(1)	$	1,173	$	56	$	110	$	661	$	346
Non-recourse debt(1)		755		205		375		124		51
Purchase commitments		485		120		275		90		—
Total contractual obligations	$	2,413	$	381	$	760	$	875	$	397

₍₁₎ Includes principal, as well as estimated interest payments. For our variable-rate debt, we have assumed a constant 30-day LIBOR rate of 2.398 percent as of June 30, 2019.

See Note 13: Leases in our unaudited condensed consolidated financial statements for information on our contractual obligations relating to our operating leases as of June 30, 2019.

Off-Balance Sheet Arrangements

Our off-balance sheet arrangements as of June 30, 2019 consisted of $511 million of certain commitments with developers whereby we have committed to purchase vacation ownership units at a future date to be marketed and sold under the Hilton Grand Vacations brand. The ultimate amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. See Note 19: Commitments and Contingencies in our unaudited condensed consolidated financial statements for a discussion of our off-balance sheet arrangements.

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Subsequent Events

In July 2019, we executed the following transactions:

• we completed the purchase of 87 hotel units for future conversion to 74 timeshare units located in Los Cabos, Mexico for $37 million;

• we borrowed $20 million and repaid $5 million, respectively, under our revolving credit facility; and

• we repaid $15 million under our Timeshare Facility.

Critical Accounting Policies and Estimates

The preparation of our unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. We have discussed those policies and estimates that we believe are critical and require the use of complex judgment in their application in our Annual Report on Form 10-K for the year ended December 31, 2018.  

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ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risk from changes in interest rates and currency exchange rates. We manage our exposure to these risks by monitoring available financing alternatives and through pricing policies that may take into account currency exchange rates. Our exposure to market risk has not materially changed from what we previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018.

Interest Rate Risk

We are exposed to interest rate risk on our variable-rate debt, comprised of the term loans, revolver and our Timeshare Facility, of which the Timeshare Facility is without recourse to us. The interest rates are based on one-month LIBOR and we are most vulnerable to changes in this rate.

We intend to securitize timeshare financing receivables in the asset-backed financing market periodically. We expect to secure fixed-rate funding to match our fixed-rate timeshare financing receivables. However, if we have variable-rate debt in the future, we will monitor the interest rate risk and evaluate opportunities to mitigate such risk through the use of derivative instruments.

To the extent we utilize variable-rate indebtedness in the future, any increase in interest rates beyond amounts covered under any corresponding derivative financial instruments, particularly if sustained, could have an adverse effect on our net income, cash flows and financial position. Hedging transactions we may enter into may not adequately mitigate the adverse effects of interest rate increases or that counterparties in those transactions will honor their obligations.

The following table sets forth the contractual maturities, weighted-average interest rates and the total fair values as of June 30, 2019, for our financial instruments that are materially affected by interest rate risk:

				Maturities by Period
($ in millions)	Weighted Average Interest Rate(1)			2019		2020		2021		2022		2023		There- after		Total(2)		Fair Value
Assets:
Fixed-rate securitized timeshare    financing receivables		11.950	%	$	40	$	81	$	80	$	77	$	75	$	226	$	579	$	614
Fixed-rate unsecuritized    timeshare financing    receivables		12.685	%		39		58		64		70		75		414		720		773
Liabilities:(3)
Fixed-rate debt		4.226	%		111		169		89		65		76		384		894		918
Variable-rate debt(4)		3.797	%		5		10		10		145		582		—		752		758

⁽¹⁾ Weighted-average interest rate as of June 30, 2019.

⁽²⁾ Amount excludes unamortized deferred financing costs.

⁽³⁾ Includes debt and non-recourse debt.

⁽⁴⁾ Variable-rate debt includes principal outstanding debt of $617 million and non-recourse debt of $135 million as of June 30, 2019. See Note 11: Debt & Non-recourse Debt in our unaudited condensed consolidated financial statements for additional information.

Foreign Currency Exchange Rate Risk

Though the majority of our operations are conducted in United States dollar (“U.S. dollar”), we are exposed to earnings and cash flow volatility associated with changes in foreign currency exchange rates. Our principal exposure results from our timeshare financing receivables denominated in Japanese yen, the value of which could change materially in reference to our reporting currency, the U.S. dollar. A 10 percent increase in the foreign exchange rate of Japanese yen to U.S. dollar would increase our gross timeshare financing receivables by less than $1 million.

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ITEM 4. Controls and Procedures

Disclosure Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act) or our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act) will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of the controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error and mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of effectiveness of controls and procedures to future periods are subject to the risk that the controls and procedures may become inadequate because of changes in conditions, or that the degree of compliance with the controls and procedures may have deteriorated. 

In accordance with Rule 13a-15(b) of the Exchange Act, as of the end of the period covered by this quarterly report, an evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our  Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures, as of the end of the period covered by this quarterly report, were effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.  

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. Management has evaluated these legal matters and we believe an unfavorable outcome is either reasonably possible or remote and/or for which are not reasonably estimable. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of June 30, 2019 will not have a material effect on our unaudited condensed consolidated financial statements.  

Item 1A. Risk Factors

As of June 30, 2019, there have been no material changes from the risk factors previously disclosed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2018. These risk factors may be important to understanding statements in this Form 10-Q and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes in Part I, Item 1, “Financial Statements” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q.

The risks described in our Annual Report on Form 10-K for the year ended December 31, 2018 contain forward-looking statements, and they may not be the only risks facing the Company. The business, financial condition and operating results of the Company can be affected by the risk factors described in the foregoing reports and by other factors currently unknown or that management presently believes not to be material.  Any one or more of such factors could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and the trading price of our common stock.  Because of these factors affecting the Company’s financial condition and operating results, past financial performance should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None.

(b) Not applicable.

(c) Issuer Repurchases. In April 2019, our board of directors authorized an additional $200 million of shares repurchases under conditions substantially similar to the November 2018 authorization. During the three months ended June 30, 2019, we repurchased the following shares:

	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Appropriate Dollar Value of Shares that May Yet Be Purchased Under Plan
April 1 - April 30, 2019		925,199	$	32.55		925,199	$	201,475,009
May 1 - May 31, 2019		941,000		28.52		941,000		174,633,868
June 1 - June 30, 2019		4,001,216		29.37		4,001,216		57,121,193
Total		5,867,415	$	29.74		5,867,415	$	57,121,193

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6.Exhibits

Exhibit No.	Description
3.1	Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 001-37794) filed on March 17, 2017).
3.2	Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (File No. 001-37794) filed on March 17, 2017).
3.3	Second Supplemental Indenture, dated as of May 29, 2019, by and among the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee, to the Indenture, dated as of October 24, 2016, by and among Hilton Grand Vacations Borrower LLC, as the issuer, Hilton Grand Vacations Borrower Inc., as the co-issuer, the guarantors party thereto from time to time, and Wilmington Trust, National Association, as trustee. *
10.1	Joinder Agreement, dated as of April 9, 2019, by and among subsidiary guarantors party thereto and Bank of America N.A., as administrative agent and collateral agent, related to the Credit Agreement, dated as of December 28, 2016, as amended by Amendment No. 1 to the Credit Agreement, dated as of November 28, 2018, by and among Hilton Grand Vacations Borrower LLC, Hilton Grand Vacations Parent LLC, the other guarantors party thereto from time to time, the other lender parties thereto, and Bank of America, N.A., as successor administrative agent, collateral agent, L/C issuer and swing line lender. *
10.2	Omnibus Amendment No. 11 to Receivables Loan Agreement and Amendment No. 5 to Sale and Contribution Agreement, effective as of April 25, 2019, by and among Hilton Grand Vacations Trust I LLC, as borrower, the financial institutions signatory thereto as managing agents, the financial institutions signatory thereto as conduit lenders, the financial institutions signatory thereto as committed lenders, and Bank of America, N.A., as administrative agent and structuring agent. *
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Label Linkbase Document.
101.PRE	XBRL Taxonomy Presentation Linkbase Document.

*   Filed herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 1^st day of August 2019.

HILTON GRAND VACATIONS INC.
By:	/s/ Mark D. Wang
Name:	Mark D. Wang
Title:	President and Chief Executive Officer
By:	/s/ Daniel J. Mathewes
Name:	Daniel J. Mathewes
Title:	Executive Vice President and Chief Financial Officer

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EX-3.3

Exhibit 3.3

SECOND SUPPLEMENTAL INDENTURE

THIS SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) is dated as of May 29, 2019 by and among 2400 PRINCE EDWARD, LLC, CUSTOMER JOURNEY, LLC and KUPONO PARTNERS LLC (the “Guaranteeing Subsidiaries” and each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of HILTON GRAND VACATIONS BORROWER LLC, a Delaware limited liability company (“Issuer”) and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as trustee (“Trustee”).  

W I T N E S S E T H

WHEREAS, Issuer and Hilton Grand Vacations Borrower Inc., a Delaware corporation, as co-issuer (collectively with Issuer, the “Issuers”) have heretofore executed and delivered to Trustee an Indenture, dated as of October 21, 2016 (as amended, supplemented or otherwise modified, the “Indenture”) providing for the issuance of an unlimited aggregate principal amount of 6.500% Senior Notes due 2024 (the “Notes”); and

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which each Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth under the Indenture and in this Supplemental Indenture (the “Guarantee”); and

WHEREAS, pursuant to Section 9.01 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 and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, 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)        Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)        Notices.  All notices or other communications to the Guaranteeing Subsidiaries shall be given as provided in Section 12.02 of the Indenture.

(4)        Execution and Delivery.  Each Guaranteeing Subsidiary agrees that the Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(5)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 any Parent Company of the Issuer or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors, including the Guaranteeing Subsidiaries (other than in their capacity as Issuer or Guarantor), 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.

(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 hereto 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 by electronic transmission of a file in PDF format 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 by electronic transmission in PDF format 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, all of which recitals are made solely by each applicable Guaranteeing Subsidiary.

(11)      Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to this Guarantee are knowingly made in contemplation of such benefits.

(12)      Successors.  All agreements of each Guaranteeing Subsidiary 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.

[Signature page follows.]

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

2400 PRINCE EDWARD, LLC a Delaware limited liability company
By:	/s/ Charles R. Corbin
	Charles R. Corbin
	Executive Vice President and Secretary

CUSTOMER JOURNEY, LLC a Delaware limited liability company
By:	/s/ Charles R. Corbin
	Charles R. Corbin
	Executive Vice President and Secretary

KUPONO PARTNERS LLC a Hawaii limited liability company
By:	HILTON RESORTS CORPORATION
	Its Sole Member
By:	/s/ Charles R. Corbin
	Charles R. Corbin
	Its Executive Vice President and Secretary

WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
By:	/s/ W. Thomas Morris, II
	W. Thomas Morris, II
	Vice President

EX-10.1

Exhibit 10.1

JOINDER AGREEMENT

April 9, 2019

Reference is made to the Credit Agreement, dated as of December 28, 2016 (as amended, modified, refinanced and/or restated from time to time, the “Credit Agreement”) among HILTON GRAND VACATIONS PARENT LLC (“Parent”), HILTON GRAND VACATIONS BORROWER LLC (the “Borrower”), the Guarantors party thereto from time to time, BANK OF AMERICA, N.A., as Administrative Agent, Collateral Agent, Swing Line Lender and L/C Issuer, and each lender from time to time party thereto.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.  

W I T N E S S E T H:

WHEREAS, the Credit Agreement requires that the Borrower cause each of its Restricted Subsidiaries that is not an Excluded Subsidiary (individually, a “Guarantor”, and collectively, the “Guarantors”) to execute the Credit Agreement whereby the Guarantors guarantee the performance of the Borrower’s Obligations to the Lenders; and  

WHEREAS, each of the undersigned Subsidiaries (each a “New Guarantor”) is a Restricted Subsidiary of the Borrower that is not an Excluded Subsidiary and pursuant to the terms and conditions of the Credit Agreement is required to execute this joinder agreement (“Joinder Agreement”) to the Credit Agreement.

NOW, THEREFORE, for good and valuable consideration, the Administrative Agent, the Collateral Agent and each New Guarantor hereby agree as follows:

1.Guarantee.  In accordance with Section 6.11(i)(A) of the Credit Agreement, each New Guarantor by its signature below becomes a Guarantor under the Credit Agreement with the same force and effect as if originally named therein as a Guarantor.  

2.Representations and Warranties.  Each New Guarantor hereby (a) agrees to all the terms and provisions of the Credit Agreement applicable to it as a Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case they were true and correct in all material respects as of such earlier date.  Each reference to a Guarantor in the Credit Agreement shall be deemed to include each New Guarantor.  Each New Guarantor hereby attaches supplements (as necessary) to each of the schedules to the Credit Agreement applicable to such New Guarantor.

3.Severability.  Any provision of this Joinder Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

4.Counterparts.  This Joinder Agreement may be executed in counterparts, each of which shall constitute an original.  Delivery of an executed signature page to this Joinder Agreement by facsimile transmission or other electronic communication shall be as effective as delivery of a manually executed counterpart of this Joinder Agreement.  

5.No Waiver.  Except as expressly supplemented hereby, the Credit Agreement shall remain in full force and effect.

6.Notices.  All notices, requests and demands to or upon each New Guarantor, any Agent or any Lender shall be governed by the terms of Section 10.02 of the Credit Agreement.

7.Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

[Signature Pages Follow]

IN WITNESS WHEREOF, the undersigned have caused this Joinder Agreement to be duly executed and delivered by their duly authorized officers as of the day and year first above written.

2400 PRINCE EDWARD, LLC
By:		/s/ Mark D. Wang
		Name:	Mark D. Wang
		Title:	President
Address for Notices:
6355 Metro West Blvd., Suite 180
Orlando, FL 32835
CUSTOMER JOURNEY, LLC
By:		/s/ Mark D. Wang
		Name:	Mark D. Wang
		Title:	President
Address for Notices:
6355 Metro West Blvd., Suite 180
Orlando, FL 32835
KUPONO PARTNERS LLC
By:	Hilton Resorts Corporation, its Sole Member
By:		/s/ Mark D. Wang
		Name:	Mark D. Wang
		Title:	President
Address for Notices:
6355 Metro West Blvd., Suite 180
Orlando, FL 32835
BANK OF AMERICA, N.A., as Administrative Agent and Collateral Agent
By:	/s/ Anthony W. Kell
	Name:		Anthony W. Kell
	Title:		Vice President

[Signature Page to Joinder]

EX-10.2

Exhibit 10.2

Execution Version

OMNIBUS AMENDMENT NO. 11TO

RECEIVABLES LOAN AGREEMENT

AMENDMENT NO. 5TO

SALE AND CONTRIBUTION AGREEMENT

ThisOMNIBUSAMENDMENTNO.11TORECEIVABLESLOANAGREEMENT AND AMENDMENT NO. 5 TO SALE AND CONTRIBUTION AGREEMENT  (this “Amendment”),effectiveasofApril25,2019(the“EffectiveDate”),isexecutedbyandamong HILTONGRANDVACATIONSTRUSTILLC,aDelawarelimitedliabilitycompany(together with its successorsandassigns,the“Borrower”),HILTONRESORTSCORPORATION,a Delawarecorporation(the“Seller”),thefinancialinstitutionssignatoryhereto asManaging Agents,thefinancialinstitutionssignatoryheretoasConduitLenders,thefinancialinstitutions signatoryheretoasCommittedLenders,DEUTSCHEBANKSECURITIES,INC.,aspredecessor administrativeagent(insuchcapacity,the“PredecessorAdministrativeAgent”),BANKOF AMERICA,N.A.,asAdministrativeAgent(the“AdministrativeAgent”),andWELLSFARGO BANK,NATIONALASSOCIATION, asSecurities IntermediaryandPayingAgent.Capitalized termsused,butnototherwisedefinedherein,shallhavethemeaningsascribedtheretointhe “ReceivablesLoan Agreement”(defined below).

WITNESSETH:

WHEREAS, the Borrower, theManagingAgentspartythereto, theAdministrativeAgent, WellsFargoBank,NationalAssociation,asSecuritiesIntermediaryandPayingAgent,theConduit Lenderspartythereto,andtheCommittedLenderspartytheretoarepartiestothatcertain ReceivablesLoanAgreementdatedasofMay9,2013(asamended,restated,supplementedor otherwisemodified fromtime to time, the“Receivables Loan Agreement”);

WHEREAS,theBorrowerandtheSellerarepartytothatcertainSaleandContribution Agreement,datedasofMay9,2013(asamended,restated,supplementedorotherwisemodified from timeto time, the “Sale and Contribution Agreement”); and

WHEREAS,asprovidedherein,thepartiesheretohaveagreedtoamendcertainprovisions oftheReceivablesLoanAgreementandtheSaleandContributionAgreement,eachasfurther described below;

NOW,THEREFORE,inconsiderationofthepremisesandthemutualagreements hereinaftersetforth,andfor other goodandvaluableconsideration,thereceiptandsufficiencyof which areherebyacknowledged, the parties hereto herebyagreeas follows:

SECTION1. Amendment to the Receivables Loan Agreement.Effectiveasofthe EffectiveDate,andsubjecttothesatisfactionoftheconditionsprecedentsetforthinSection3 hereof,theReceivablesLoanAgreementisherebyamendedassetforthinExhibitAtothis Amendment, with text marked in underline indicating additions to the Receivables Loan

DB1/102789914.6

AgreementandwithtextmarkedinstrikethroughindicatingdeletionstotheReceivablesLoan Agreement.

SECTION2.AmendmenttotheSaleandContributionAgreement.Effectiveasofthe EffectiveDate,andsubjecttothesatisfactionoftheconditionsprecedentsetforthinSection3 hereof, theSale and Contribution Agreement is herebyamended as follows:

2.1 Allreferencesto“TimeshareProperty”and“TimeshareProperties”shallbe deleted and replaced with “TimeshareInterest” or“TimeshareInterests”, respectively.

SECTION3. ConditionsPrecedent. ThisAmendmentshallbecomeeffectiveonthe EffectiveDateuponthesatisfactionoftheAdministrativeAgenthavingreceived:(a)counterparts ofthisAmendmentexecuted byeachofthepartieshereto,(b)counterpartsofthatcertainFourth AmendedandRestatedFeeLetterofevendateherewithexecutedbyeachofthepartiesthereto, (c)executedcounterpartsofthatcertainAmendmentNo.1toDepositAccountControlAgreement (ClearingAccount)ofevendateherewithamongthePredecessorAdministrativeAgent,the AdministrativeAgent,andtheClearingAccountBankrelatingtotheClearingAccountControl Agreement,(d)executedcounterpartsofeachGlobalAssignmentmadebytheBorrowerorthe Seller,asapplicable,infavoroftheAdministrativeAgent,(e)opinionoflocalcounselwithrespect totheinclusionoftheBarbadosVacationSuitesResortinformandsubstancesatisfactorytothe AdministrativeAgentand(f)copiesofUCC-3assignmentstobefiledwiththeDelawareSecretary ofState,reflectingtheresignationofthePredecessorAdministrativeAgentandtheappointment of theAdministrativeAgent as thesecured party.

SECTION4. Representations, Warranties and Confirmations.TheBorrowerhereby represents and warrants that:

4.1Ithasthepowerandisdulyauthorized,includingbyalllimitedliability companyaction on its part, to execute and deliverthis Amendment.

4.2This Amendment has been dulyand validlyexecuted and delivered byit.

4.3ThisAmendment,theSaleandContributionAgreementandReceivables LoanAgreementasamendedhereby,constitutelegal,validandbindingobligations ofthe Borrowerand are enforceable against the Borrower in accordancewith their terms.

4.4Immediatelyprior,andaftergivingalleffect,tothisAmendment,the covenants,representationsandwarrantiesoftheBorrowersetforthintheReceivablesLoan Agreementaretrueandcorrectinallmaterialrespectsasofthedatehereof(excepttotheextent such representations or warrantiesrelatesolelytoan earlier dateand then as of such date).

4.5Immediatelyprior,andaftergivingalleffect,tothisAmendment,noevent, conditionorcircumstancehasoccurredandiscontinuingwhichconstitutesaServicerTermination Event, Unmatured Servicer Termination Event, Default or Event of Default.

SECTION5.DeliveryofExecutedAmendment.TheBorrowercovenantsandagreesthat itwilldeliveran executedcopyofthisAmendmenttotheServicer,thePayingAgent,theBackup Servicerand the Custodian promptlyfollowingthe effectiveness hereof.

DB1/102789914.6 2

SECTION6.EntireAgreement.ThepartiesheretoherebyagreethatthisAmendment constitutestheentireagreementconcerningthesubjectmatterhereofandsupersedesanyandall writtenand/ororalprioragreements,negotiations,correspondence,understandingsand communications.

SECTION7.EffectivenessofAmendment.Exceptasexpresslyamendedbythetermsof thisAmendment,alltermsandconditionsoftheSaleandContributionAgreement,theReceivables LoanAgreementandtheotherFacilityDocuments,asapplicable,shallremaininfullforceand effectandareherebyratifiedandconfirmed.ThisAmendmentshallnotoperateasaconsent, waiver,amendmentorothermodificationofanyothertermorconditionsetforthintheSaleand ContributionAgreement,theReceivablesLoanAgreementandtheotherFacilityDocumentsor anyright,powerorremedyoftheAdministrativeAgentoranyManagingAgentorLenderunder theSaleandContributionAgreement,theReceivablesLoanAgreementandtheotherFacility Documents,exceptasexpresslymodifiedhereby.UpontheeffectivenessofthisAmendment,each referenceintheSaleandContributionAgreementortheReceivablesLoanAgreementto“this Agreement”,“thisSaleandContributionAgreement”or“thisReceivablesLoanAgreement”or wordsoflikeimportshallmeanand be referencestotheSaleandContributionAgreementorthe ReceivablesLoanAgreement,asapplicable,asamendedhereby,andeachreferenceinanyother FacilityDocument to theSale and Contribution Agreement or ReceivablesLoanAgreement or to anytermsdefinedintheSaleandContributionAgreementorReceivablesLoanAgreementwhich aremodifiedherebyshallmeanandbereferencestotheSaleandContributionAgreementor ReceivablesLoan Agreement, as applicable, or to such terms as modifiedhereby.

SECTION8.GOVERNINGLAW.THISAMENDMENTSHALLBEGOVERNED BY,ANDCONSTRUEDANDINTERPRETEDINACCORDANCEWITH,THELAWS OFTHE STATE OFNEW YORK.

SECTION9. BindingEffect. This Amendmentshall bebindinguponandshall be enforceable byparties hereto and their respectivesuccessorsand permittedassigns.

SECTION10.Headings.TheSectionheadingshereinareforconvenienceonlyandwill not affect the construction hereof.

SECTION11.Novation.ThisAmendmentdoesnotconstituteanovationortermination oftheReceivablesLoanAgreement,theSaleandContributionAgreementoranyFacility Documentandallobligationsthereunderareinall respectscontinuingwithonlythetermsthereof beingmodifiedas provided herein.

SECTION12. Counterparts. ThisAmendmentmaybeexecutedinanynumberof counterparts,eachofwhichsoexecutedwillbedeemedtobeanoriginal,butallsuchcounterparts willtogetherconstitutebutoneandthesameinstrument.Deliveryofanexecutedcounterpartof asignaturepagetothisAmendmentbyfacsimileorbyelectronicmailina“.pdf”fileshallbe effective as deliveryof a manuallyexecuted counterpart ofthis Amendment.

SECTION13.Fees,CostsandExpenses.TheBorroweragreestopayondemandall reasonablefeesandout-of-pocketexpensesofMorgan,Lewis&BockiusLLP,counselforthe AdministrativeAgent,incurredinconnectionwiththepreparation,executionanddeliveryofthis Amendment and the other instruments and documents to bedelivered inconnection herewith.

SECTION14.ResignationandAppointmentofAdministrativeAgent.OntheEffective Date,thePredecessorAdministrativeAgentherebyresignsasAdministrativeAgentunderthe ReceivablesLoanAgreementandeachoftheotherFacilityDocuments,and,pursuanttoSection 9.07oftheReceivablesLoanAgreement,eachoftheMajorityCommittedLendersandthe BorrowerherebyappointsBankofAmerica,N.A.(“BANA”)asAdministrativeAgentunderthe ReceivablesLoanAgreementandtheotherFacility

DB1/102789914.6 3

Documentstotakesuchactionsasagenton itsbehalfandtoexercisesuchpowersasaredelegatedtotheAdministrativeAgentbytheterms oftheReceivablesLoanAgreementtogetherwithsuchpowersasarereasonablyincidentalthereto. EachoftheBorrower,theLenders,andeachoftheotherpartiespartyheretoherebywaivesany noticerequirementsinconnectionwiththeresignationofthePredecessorAdministrativeAgentas AdministrativeAgentandtheappointmentofBANAassuccessorAdministrativeAgentunderthe ReceivablesLoanAgreement.BANAherebyacceptsitsappointmentasAdministrativeAgent undertheReceivablesLoanAgreementandtheotherFacilityDocumentsandshallherebysucceed toand,fromandafterthedatehereof,bevested withalltherights,powers,privileges,dutiesand protectionsoftheAdministrativeAgentundertheReceivablesLoanAgreementandeachofthe otherFacilityDocuments,ineachcasewithlikeeffectasifBANAwereoriginallynamedas AdministrativeAgentundertheReceivablesLoanAgreementandeachoftheotherFacility Documents.ThePredecessorAdministrativeAgentshallexecuteanddeliversuchinstrumentsas maybepreparedbyBANAandareinformandsubstancereasonably satisfactorytothe PredecessorAdministrativeAgent,anddosuchotherthingsas BANAmayreasonablyrequest,so astomorefullyandcertainlyvestandconfirmuponBANAtherights,powers,privileges, obligations,dutiesandprotectionsoftheAdministrativeAgent.UpontheEffectiveDate,the PredecessorAdministrativeAgentshallbedischargedfromitsdutiesandobligationsas AdministrativeAgentundertheReceivablesLoanAgreementandundertheotherFacility Documents;provided,that,notwithstandingtheforegoingandanyotherprovisionsinthe ReceivablesLoanAgreement,theindemnityandotherrightsandprotectionsinfavorofthe PredecessorAdministrativeAgent asresigningAdministrativeAgentundertheReceivables Loan Agreement(priortotheEffectiveDate,the“ExistingAgreement”)andtheotherFacility DocumentsshallcontinueandtheprovisionsofArticlesVIIIandIXoftheReceivablesLoan AgreementshallcontinueineffectforthebenefitofthePredecessorAdministrativeAgentinits capacityasAdministrativeAgentastoanyactionstakenoromittedtobetakenbyitwhilethe PredecessorAdministrativeAgentwasactingasAdministrativeAgentundertheExisting AgreementandtheotherFacilityDocuments.WithoutlimitingthegeneralityofArticleVIIIand IXofthisAgreement,(i)BANAshallhavenoliabilitytoanyPersonwithrespecttoactionstaken oromittedtobetakenbythePredecessorAdministrativeAgentasAdministrativeAgentorits sub-agentsoccurringpriortotheEffectiveDateand(ii)thePredecessorAdministrativeAgent shallhavenoliabilitytoanyPersonwithrespecttoactionstakenoromittedtobetakenbyBANA asAdministrativeAgentoccurringfromandaftertheEffectiveDate.Theindemnificationand reimbursementprovisionsoftheFacilityDocuments,including,withoutlimitationArticlesVIII andIXoftheReceivablesLoanAgreement,shallcontinuetobeeffectiveforthebenefitof,and enforceableby,thePredecessorAdministrativeAgentanditssub-agentswithrespecttoactions takenoromittedtobetakenbyanyofthemandothereventsandconditions occurringpriortothe effectivenessof,orinaccordancewith,thisAmendment(suchprovision,collectively,the “ContinuingIndemnities”). AsoftheEffectiveDate,thePredecessorAdministrativeAgentasresigningAdministrativeAgenthereby confirmsthatithasnotreceivednoticeofanypendingor overtlythreatenedclaimsagainstitinsuchcapacityoranyofitssub-agents,orincurredanylosses, obligations,fees, expensesor chargesin connectiontherewith,andwithrespecttowhichitwould be entitled to reimbursement orindemnityunderthe ContinuingIndemnities.

[Signature Pages Follow]

DB1/102789914.6 4

INWITNESSWHEREOF,thepartiesheretohavecausedthisAmendmenttobeduly executed and delivered bytheirrespective authorized officersas of thedatefirst above written.

HILTON GRAND VACATIONS TRUST I LLC,
as Borrower
By:	/s/ Charles R. Corbin
Name:	Charles R. Corbin
Title:	Executive Vice President, Chief Legal Officer, Chief Development Officer and Secretary

HILTON RESORTS CORPORATION,
as Seller
By:	/s/ Kelly Lodde
Name:	Kelly Lodde
Title:	Senior Vice President, Assistant Secretary

[SignaturePagetoOmnibusAmendmentNo.11toReceivablesLoanAgreement andAmendmentNo.5toSaleand ContributionAgreement]

DB1/102789914.6

BANKOFAMERICA,N.A.
as Administrative Agent
By:	/s/ Carl W. Anderson
Name:	Carl W. Anderson
Title:	ManagingDirector

BANKOF AMERICA,N.A.
as a CommittedLender and a ManagingAgent
By:	/s/ Carl W. Anderson
Name:	Carl W. Anderson
Title:	ManagingDirector

DEUTSCHEBANK AG, NEW YORK BRANCH
as a CommittedLender and a ManagingAgent
By:	/s/ Kevin Tanzer
Name:	Kevin Tanzer
Title:	ManagingDirector
By:	/s/MaureenFarley
Name:	Marleen Farley
Title:	Director

DEUTSCHEBANK SECURITIES,INC.
as Predecessor Administrative Agent
By:	/s/ Kevin Tanzer
Name:	Kevin Tanzer
Title:	ManagingDirector
By:	/s/MaureenFarley
Name:	Marleen Farley
Title:	Director

BARCLAYS BANKPLC.
as a CommittedLender and a ManagingAgent
By:	/s/ Chin-YongChoe
Name:	Chin-YongChoe
Title:	Director

[Signature Page to Omnibus Amendment No. 11 to Receivables Loan Agreement and Amendment No. 5 to Sale and Contribution Agreement]

SHEFFIELD RECEIVABLES COMPANYLLC,
as a ConduitLender
By:	BarclaysBank PLC,
	as attorney-in-fact
By:	/s/ Chin-YongChoe
Name:	Chin-YongChoe
Title:	Director

WELLSFARGO BANK, NATIONALASSOCIATION,
as a CommittedLender and a ManagingAgent
By:	/s/Leigh Poltrack
Name:	Leigh Poltrack
Title:	VicePresident

SUNTRUST BANK,
as a CommittedLender and a ManagingAgent
By:	/s/ EmilyShields
Name:	EmilyShields
Title:	First Vice President

[Signature Page to Omnibus Amendment No. 11 to Receivables Loan Agreement and Amendment No. 5 to Sale and Contribution Agreement]

Acknowledgedand agreed:

GRAND VACATIONS SERVICESLLC,
as Servicer
By:	/s/ Charles R. Corbin
Name:	Charles R. Corbin
Title:	ExecutiveVicePresident, Chief Legal Officer, ChiefDevelopment Officer and Secretary

WELLSFARGO BANK, NATIONALASSOCIATION
as PayingAgent and SecuritiesIntermediary
By:	/s/ Jennifer C. Westberg
Name:	Jennifer C. Westberg
Title:	VicePresident

Acknowledgedand Agreed:
WELLSFARGO BANK, NATIONALASSOCIATION
as Backup Servicer andCustodian
By:	/s/ Jennifer C. Westberg
Name:	Jennifer C. Westberg
Title:	VicePresident

[Signature Page to Omnibus Amendment No. 11 to Receivables Loan Agreement and Amendment No. 5 to Sale and Contribution Agreement]

CONFORMEDCOPY

Amendment No.1datedasof July25,2013

OmnibusAmendmentNo.2datedas ofOctober25, 2013

Amendment No.3datedasof December 5, 2014

OmnibusAmendmentNo.4datedas ofAugust18,2016

Amendment No.5datedasof October 4, 2016

Amendment No.6datedasof December 14,2016

Amendment No.7datedasof April 19,2017

Amendment No.8datedasof March 9,2018

Amendment No.9datedasofMay14,2018

Amendment No.10dated asofFebruary14, 2019

Amendment No.11dated asofApril25, 2019

RECEIVABLES LOANAGREEMENT

Datedas of May9, 2013 among

HILTONGRANDVACATIONS TRUSTILLC,

as Borrower

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as PayingAgentand Securities Intermediary

THE PERSONS FROMTIMETOTIME PARTYHERETOAS CONDUITLENDERS,

THE FINANCIALINSTITUTIONS FROM TIME TOTIME PARTYHERETOAS COMMITTEDLENDERS,

THE FINANCIALINSTITUTIONS FROM TIME TOTIME PARTYHERETOAS MANAGINGAGENTS,

and

DEUTSCHE BANKSECURITIES,INCOF AMERICA, N.A.,

as Administrative Agentand as StructuringAgent

DBA1C/TI1V0E27216874320700.01v2.6ACTIVE218420700

TABLE OF CONTENTS

ARTICLEI DEFINITIONS			1
	SECTION1.01.	Certain Defined Terms	1
	SECTION1.02.	OtherTermsandConstructions	3538
	SECTION1.03.	ComputationofTimePeriods	3538
	SECTION1.04.	AcknowledgementandConsenttoBail-InofEEAFinancialInstitutions	3538
ARTICLEIIAMOUNTSANDTERMSOFTHELOANS			3639
	SECTION2.01.	TheLoans	3639
	SECTION2.02.	BorrowingProcedures	3740
	SECTION2.03.	ReductionsandIncreasestotheFacilityLimit	3943
	SECTION2.04.	InterestandUnusedFees	4043
	SECTION2.05.	PrincipalPayments–Generally	4044
	SECTION2.06.	ApplicationofCollections	4144
	SECTION2.07.	ExtensionofCommitmentTerminationDate	4346
	SECTION2.08.	PaymentsandComputations,Etc	4346
	SECTION2.09.	InterestProtection	4347
	SECTION2.10.	IncreasedCapital	4448
	SECTION2.11.	FundingLosses	4549
	SECTION2.12.	Taxes	4549
	SECTION2.13.	SecurityInterest	4852
	SECTION2.14.	Refinancings	4953
	SECTION2.15.	ReleaseofLien	5054
	SECTION2.16.	TheCollectionAccount50andHedgeReserveAccount	54
	SECTION2.17.	ThePayingAgent	5357
	SECTION2.18.	DefaultingCommittedLenders	5761
	SECTION2.19.	ReplacementofLenderGroup	5762
	SECTION2.20.	LIBORReplacement	62
ARTICLEIIICONDITIONSPRECEDENT			5863
	SECTION3.01.	ConditionsPrecedenttoEffectiveness	5863
	SECTION3.02.	ConditionsPrecedenttoAllBorrowings	5863
	.ConditionsPrecedenttoAllBorrowings...................................................................		58
	SECTION3.03.	ConditionstoFundingaDelayedFundingAmount	5965
ARTICLEIVREPRESENTATIONSANDWARRANTIES			6065
	SECTION4.01.	RepresentationsandWarrantiesoftheBorrower	6065
ARTICLEVCOVENANTS			6469
	SECTION5.01.	AffirmativeCovenantsoftheBorrower	6469
	SECTION5.02.	ReportingRequirementsoftheBorrower	6873
	SECTION5.03.	CovenantsoftheBorrowerRelatingtoHedging	6975
	SECTION5.04.	NegativeCovenantsoftheBorrower	7177
	SECTION5.05.	SpecialCovenantsRegardingRetention	7379
ARTICLE VI SERVICING			7480
	SECTION6.01.	Servicing Agreement	7480
ARTICLEVIIEVENTSOFDEFAULT			7480

DB1/ 102767300.12 ACTIVE218420700 i

	SECTION7.01.	EventsofDefault	7480
	SECTION7.02.	RighttoCure	7683
	SECTION7.03.	Remedies	7783
	SECTION7.04.	AppointmentasAttorneyinFact	7884
	SECTION7.05.	PerformanceofBorrower’sObligations	7985
	SECTION7.06.	PowersCoupledwithanInterest	7985
ARTICLE VIII INDEMNIFICATION			7986
	SECTION8.01.	IndemnitiesbytheBorrower	7986
	SECTION8.02.	LimitedLiabilityofParties	8187
ARTICLEIXTHEAGENTS			8187
	SECTION9.01.	AuthorizationandAction	8187
	SECTION9.02.	Agents’Reliance,Etc	8188
	SECTION9.03.	AgentsandAffiliates	8288
	SECTION9.04.	Lender’sLoanDecision	8288
	SECTION9.05.	DelegationofDuties	8288
	SECTION 9.06.	Indemnification	8288
	SECTION9.07.	SuccessorAgents	8389
ARTICLEXMISCELLANEOUS			8389
	SECTION10.01.	Amendments,Etc	8389
	SECTION10.02.	Notices,Etc	8490
	SECTION 10.03.	Assignability	8490
	SECTION10.04.	AdditionalLenderGroups	8692
	SECTION10.05.	ConsenttoJurisdiction	8793
	SECTION10.06.	WAIVEROFJURYTRIAL	8793
	SECTION10.07.	RightofSetoff	8793
	SECTION10.08.	RatablePayments	8793
	SECTION10.09.	LimitationofLiability	8793
	SECTION10.10.	Costs,ExpensesandTaxes	8894
	SECTION10.11.	NoProceedings	8995
	SECTION 10.12.	Confidentiality	8995
	SECTION10.13.	NoWaiver;Remedies	9096
	SECTION10.14.	GOVERNINGLAW	9096
	SECTION10.15.	ExecutioninCounterparts	9096
	SECTION10.16.	Integration;BindingEffect;SurvivalofTermination	9096

DB1/ 102767300.12 ACTIVE218420700 ii

EXHIBITS ANDSCHEDULES

EXHIBITA-1	Formof CreditPolicy
EXHIBITA-2	Formof Collection Policy
EXHIBITB	Formof BorrowingRequest
EXHIBITC	Formof MonthlyReport
EXHIBITD	Listof Officesof Borrower where Records areKept
EXHIBITE	Listof Accounts and AccountBanks
EXHIBITF	Formof Assignmentand Acceptance
EXHIBITG	Formof JoinderAgreement
EXHIBITH	Formof PrepaymentNotice
EXHIBITI	Formof RefinancingRelease
EXHIBITJ	Formof GlobalAssignmentofMortgages andTimeshare Loan Files
	and Powerof Attorney(Seller)
EXHIBITK	Formof GlobalAssignmentofMortgages andTimeshare Loan Files
	and Powerof Attorney(Borrower)
EXHIBITL	Formof Notice ofExclusive Control
SCHEDULEI	RepresentationsandWarranties with respecttotheTimeshare Loans
SCHEDULEII	Lender Groups
SCHEDULEIII	Notice Addresses and WiringInstructions
SCHEDULEIV	Listof ClosingDocumentsand Deliveries
SCHEDULEV	Resorts and Resort Associations
SCHEDULEVI	Hilton Mezzanine Loan Agreements

DB1/ 102767300.12 ACTIVE218420700 iii

RECEIVABLES LOANAGREEMENT

ThisRECEIVABLESLOANAGREEMENTdatedasofMay9,2013,isbyandamong HILTONGRANDVACATIONSTRUSTILLC,aDelawarelimitedliabilitycompany,asBorrower, WELLSFARGOBANK,NATIONALASSOCIATION,anationalbankingassociation,asPayingAgent andSecurities Intermediary,THECOMMERCIALPAPERCONDUITSFROMTIMETOTIMEPARTY HERETO,asConduitLenders,THEFINANCIALINSTITUTIONSFROMTIMETOTIMEPARTY HERETO,asCommittedLenders,THEFINANCIALINSTITUTIONSFROMTIMETO TIMEPARTY HERETO,asManagingAgents,andDEUTSCHEBANKSECURITIES,INCOFAMERICA,N.A.,as Administrative Agentfor the ConduitLendersand theCommitted Lenders.  Capitalizedterms used herein shallhave the meanings specifiedin Section 1.01.

PRELIMINARYSTATEMENTS

WHEREAS,theBorrowermayfromtimetotimepurchaseTimeshareLoansandrelated assetsfromthe Sellerpursuantto the Saleand Contribution Agreement;

WHEREAS,tofunditspurchasesundertheSaleandContributionAgreement,the BorrowermayfromtimetotimerequestLoansfromtheLendersonthetermsandconditionsofthis Agreement;

WHEREAS,theConduitLendersmay,intheirsolediscretion,makeLoanssorequested fromtimetotime,andifaConduitLenderinanyLenderGroupelectsnottomakeanysuchLoanorif thereisnotaConduitLenderinanyLenderGroup,theCommittedLendersinsuchLenderGrouphave agreed thattheyshallmake such Loan,ineachcase subjectto theterms andconditions of this Agreement;

NOWTHEREFORE,inconsiderationofthepremises,themutualcovenantsand agreementshereincontainedandothergoodandvaluableconsideration,thereceiptandsufficiencyof which are herebyacknowledged, each partyagrees as follows:

ARTICLEI

DEFINITIONS

SECTION1.01. Certain Defined Terms.AsusedinthisAgreement,thefollowingtermsshall havethefollowingmeanings(andcapitalizedtermsusedbutnotdefinedhereinwhicharedefinedinany otherFacilityDocumentshallhavetherespectivemeaningsgiventosuchtermsinsuchotherFacility Document):

“Absence of Recorded Mortgage”means,withrespecttoaTimeshareLoan,thattherelated TimeshareLoanFilecontainsevidenceofthetypespecifiedinclause(b)(ii),butnotclause(b)(i),ofthe definition ofTimeshareLoan File.

“AccountBanks”means,collectively,theClearingAccountBankand,theCollection

AccountBankand the Hedge ReserveAccountBank.

“Account Collateral”meanstheCollectionAccount, theHedgeReserveAccountand the ClearingAccount,including,(i)allcertificatesandinstruments,ifany,fromtimetotimerepresentingor evidencinganyofsuchaccountsoranyfundsheldtherein,(ii)allinvestmentpropertyandotherfinancial assetsorproceedsthereofheldin,oracquiredwithfundsfrom,suchaccountsandallcertificatesand instrumentsfromtimetotimerepresentingorevidencingsuchinvestmentpropertyandfinancialassets, (iii)allnotes,certificatesofdepositandotherinstrumentsfromtimetotimehereafterdeliveredor transferredto,orotherwisepossessedby,theAdministrativeAgentinsubstitutionforanyofthethen existingaccountsand(iv)allinterest,dividends,cash,instruments,financialassets,investmentproperty andotherpropertyfromtimetotimereceived,receivableorotherwisedistributedinrespectoforin exchange for anyor allof the foregoing.

“Account Number”means,withrespecttoaTimeshareLoan,analphanumericdesignation ofsuchTimeshareLoanthat,amongalltimeshareloansservicedbytheServicer,isuniquetosuch Timeshare Loan.

“Accounts”means,collectively, the ClearingAccount,theCollectionAccount,the HedgeReserve Accountandthe Unidentified Receipts Account.

“Additional  Timeshare  Loan” means any Eligible Timeshare Loan (including any Qualified SubstituteTimeshare Loan)Transferred by the Seller tothe Borroweron aTransferDate.

“Adjusted LIBO Rate”means,onanyday,(a)foranyLenderintheLenderGroupfor whichBANAistheManagingAgent,theapplicableLIBORateineffectonsuchdayforsuchLenderor

(b)foranyotherLender,aninterestrateperannumobtainedbydividing(i)theapplicableLIBORatein

effectonsuchdayforsuchLenderby(ii)apercentageequalto100%minustheLIBORateReserve Percentage for such day.

“Administrative Agent”meansDBSIBANA,initscapacityasagentfortheLenders, together with itssuccessorsand permitted assigns.

“Adverse Claim” means aLien other than anyPermitted Lien.

“Affected Party”meansanyLender,DBSIBANA,individuallyandinitscapacityas AdministrativeAgent,anyManagingAgent,anyLiquidityProviderand,withrespecttoeachofthe foregoing, the parentcompanyor holdingcompanythatcontrols such Person.

“Affiliate”means,withrespecttoanyPerson,anyotherPersonwhich,directlyor indirectly,controls,iscontrolledby,orisundercommoncontrolwith,suchPerson.Forpurposesofthis definition,“control”(togetherwiththecorrelativemeaningsof“controlledby”and“undercommoncontrol with”)meanspossession,directlyorindirectly,ofthepower(a)tovote10%ormoreofthesecurities(on afullydiluted basis) havingordinaryvotingpowerfor the directors or managinggeneralpartners (or their equivalent)ofsuchPerson,or(b)todirectorcausethedirectionofthemanagementorpoliciesofsuch Person, whetherthrough the ownershipof votingsecurities,bycontract, orotherwise.

“Aggregate Commitment”means,onanydateofdetermination,thesumofthe Commitments then in effect.

“Aggregate Loan Principal Balance”means,atanytime,theaggregateoutstanding PrincipalAmountofallLoans.

“Agreement” means this Receivables Loan Agreement.

“Alternative Rate”means,withrespecttoaLoanonanyday,aninterestrateperannum equaltothesumof(a)theUsedFeeRate,plus(b)theAdjustedLIBORateforsuchday;provided,however, thatifaLIBORDisruptionEventiscontinuingonsuchday,theAlternativeRateshallbeaninterestrate perannumequalto the Prime Rate in effecton such day.

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“Amendment No. 4 Effective Date” means August18,2016.

“Amortization Date”meansthe earliestto occurof(i) theCommitmentTerminationDate, (ii)thedeclaration or automaticoccurrenceofthe AmortizationDatepursuanttoSection7.03and(iii)that BusinessDaywhichtheBorrowerdesignatesastheAmortizationDatebynoticetotheAdministrative Agentatleastfive (5) Business Days prior tosuchBusiness Day.

“Applicable Cross Default Amount”means,onanydateofdetermination,$50,000,000; provided, however, thatiftheSellerenters intotheSellerCreditAgreement,onandaftertheSellerCredit AgreementEffectiveDate,theApplicableCrossDefaultAmountshallbethedollarthresholdsetforthin theSellerCreditAgreementabovewhichafailureonthepartoftheSellertopayIndebtednessorthe acceleration of Indebtedness ofthe Sellerwouldconstitute an eventofdefaultthereunder.

“Applicable   Judgment   Default   Amount”  means,  on  any  date  of  determination, $25,000,000;provided, however,thatiftheSeller entersinto the Seller Credit Agreement, on andafterthe SellerCreditAgreementEffectiveDate,theApplicableJudgmentDefaultAmountshallbethedollar thresholdsetforthintheSellerCreditAgreementabovewhichafailuretopay,dischargeorstayajudgment againsttheSeller would constitute an eventof defaultthereunder.

“Applicable Measurement Date”means,withrespecttoadateofdeterminationduringan InterestPeriod,thecloseofbusinessonthelastdayoftheCollectionPeriodimmediatelyprecedingthe firstdayof such InterestPeriod.

“Assignment”means,withrespecttoanyAdditionalTimeshareLoans,anAssignment, substantiallyintheformof ExhibitAto the Sale and Contribution Agreement.

“Assignment and Acceptance”meansanagreementsubstantiallyintheformsetforthas ExhibitFheretopursuanttowhichanewConduitLenderorCommittedLenderbecomespartytothis Agreement.

“Authorized Representatives”hasthemeaningascribedtosuchterminSection19ofthe CustodyAgreement.

“Authorized Signatory”means,astoanyPersonandanyagreementorotherdocumentto beexecutedbysuchPerson,aResponsibleOfficerofsuchPersonoranyotherindividualwhohasbeen authorizedbysuchPerson by apowerorattorney orothereffectivemeanstoexecuteany suchagreement or documenton behalf of such Person.

“Available Funds” means, for any Distribution Date and the related Collection Period, (x) the sum of (i) all Collections received during such Collection Period, (ii) the amount deposited in the Collection Account in respect of cash proceeds of Timeshare Loans, if any, whether released from the Lien of this Agreement in connection with a Refinancing or otherwise pursuant to Section 2.15, (iii) any Repurchase Price or Substitution Shortfall Amount paid by the Seller to the Borrower in connection with repurchases or substitutions of Pledged Timeshare Loans with respect to such Collection Period on or before such Distribution Date pursuant to the terms of the Sale and Contribution Agreement, and (iv) all Hedge Receipts with respect to such Distribution Date and (v) the amount deposited in the Collection Account from the Hedge Reserve Account, if any, pursuant to Section 2.16(k), minus (y) all amounts in respect of such Collection Period withdrawn from the Collection Account and applied to the prepayment of the Loans pursuant to Section 2.05.

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“Average Default Ratio”means,foranyDistributionDate,theaverageoftheDefault Ratios determined for eachof the three Collection Periods immediatelyprecedingsuch Distribution Date.

“Average Delinquency Ratio”means,forany DistributionDate,theaverageofthe DelinquencyRatiosdeterminedforeachofthethreeCollectionPeriodsimmediatelyprecedingsuch Distribution Date.

“Average Managed Portfolio Default Ratio”means,foranyDistributionDate,theaverage oftheManagedPortfolioDefaultRatiosforeachofthethreeCollectionPeriodsimmediatelypreceding such Distribution Date.

“Average Managed Portfolio Delinquency Ratio”means,foranyDistributionDate,the averageoftheManagedPortfolioDelinquencyRatiosforeachofthethreeCollectionPeriodsimmediately precedingsuch DistributionDate.

“Backup Servicer”meansWellsFargo,initscapacityasBackupServicerpursuanthereto, orsuchotherPersonas maybeproposedbytheBorrowerandapprovedbytheMajorityManagingAgents.

“Backup Servicing Fee”means,foranyCollectionPeriod,thebackupservicingfeesset forth in the Wells Fargo Fee Letter for such CollectionPeriod.

“Bail-In Action”meanstheexerciseofanyWrite-DownandConversionPowersbythe applicable EEAResolutionAuthorityinrespectof anyliabilityof an EEAFinancialInstitution.

“Bail-In Legislation”means,withrespecttoanyEEAMemberCountryimplementing Article55 of Directive2014/59/EUoftheEuropean Parliament andoftheCounciloftheEuropeanUnion, theimplementinglawforsuchEEAMemberCountryfromtimetotimewhichisdescribedintheEUBail- In Legislation Schedule.

“BANA”meansBankofAmerica, N.A., its successorsand permitted assigns.

“Bankruptcy Code”meansTitle11oftheUnitedStatesCode,11U.S.C.Section101et seq. or anysuccessorthereto.

“BarbadosActivationDate”shallmeanthedate uponwhich,(i)theAdministrativeAgentshallhavereceivedwrittennoticefromtheBorrowerofitsintenttoincludeTimeshareLoansoriginatedwithrespecttothe“HiltonGrandVacationsattheCrane”ResortintheCollateral,(ii)theBorrowershallhavedeliveredtotheAdministrativeAgentanopinionoflocalcounselinformandsubstanceacceptabletotheAdministrativeAgentwithrespecttotheinclusionofTimeshareLoansoriginatedwithrespecttothe“HiltonGrandVacationsattheCrane”Resort,(iii)theBorrowershallhavedeliveredtotheAdministrativeAgentanopinionofcounselinformandsubstanceacceptabletotheAdministrativeAgentwithrespecttheInvestmentCompanyActand(iv)theAdministrativeAgentshallhavereceivedanyadditionalinformation,documents,recordsorreportswithrespecttotheinclusionofTimeshareLoansoriginatedwithrespecttothe“HiltonGrandVacations attheCrane”Resort asthe AdministrativeAgent mayreasonablyrequest.

“Basel II”meansthe“InternationalConvergenceofCapitalMeasurementandCapital Standards:aRevisedFramework”developedbytheBaselCommitteeonBankingSupervision,initially published inJune2004.

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“Basel III Regulations”means(a)anyofthefollowingdocumentspreparedbytheBasel CommitteeonBankingSupervisionoftheBankofInternationalSettlements:(i)BaselIII:InternationalFrameworkforLiquidityRiskMeasurement,StandardsandMonitoring(December2010),(ii)Basel III:A GlobalRegulatoryFrameworkfor More ResilientBanks and BankingSystems (June 2011)and (iii) Basel III:TheLiquidityCoverageRatioandLiquidityRiskMonitoringTools(January2013).Withoutlimiting thegeneralityoftheforegoing,“BaselIIIRegulations”shallincludePart6oftheEuropeanUnion regulationonprudentialrequirementsforcreditinstitutionsandinvestmentfirms(the“CRR“Part6”)and anylaw,regulation,standard,guideline,directiveorotherpublicationsupplementingorotherwise modifyingthe CRRPart 6.

“BeneficialOwnershipCertification”meansacertificationregardingbeneficialownershipasrequiredbytheBeneficialOwnershipRegulation,whichcertificationshallbesubstantiallysimilarinformandsubstancetotheformofCertificationRegardingBeneficialOwnersofLegalEntityCustomerspublishedjointly,inMay 2018, bythe Loan Syndications andTradingAssociation andSecuritiesIndustryand Financial Markets Association.

“Beneficial OwnershipRegulation”means 31C.F.R.§1010.230.

“Borrower”meansHiltonGrandVacationsTrustILLC,aDelawarelimitedliability company, in itscapacityasBorrower hereunder,togetherwith itssuccessorsand permitted assigns.

“Borrower Information” has the meaningspecifiedinSection 10.12(b) hereof.

“Borrower Obligations”meansallpresentandfutureIndebtednessandotherliabilitiesand obligations(howsoevercreatedorevidenced,whetherdirectorindirect,absoluteorcontingent,ordueor tobecomedue)oftheBorrowertotheSecuredPartiesarisingunderthisAgreementoranyotherFacility Document,includingtherepaymentof theAggregateLoanPrincipalBalance and the paymentofInterest, UnusedFeesandallother amountsdueortobecomeduefromtheBorrowerunderthis Agreementandthe otherFacilityDocuments(whetherinrespectoffees,expenses,indemnifications,breakagecosts,increased costsorotherwise),interest,feesandotherobligationsthataccrueafterthecommencementofany bankruptcy,insolvencyorsimilarproceedingwithrespecttoanyTransactionParty(ineachcasewhether or notallowedasa claiminsuch proceeding).

“Borrower Redesignation”meansarequest,appropriatelycompleted,substantiallyinthe formof ExhibitHtothe CustodyAgreement.

“Borrower Representatives” hasthe meaningspecifiedin Section 10.12(a) hereof.

“Borrowing” means a borrowingof Loansunder this Agreement.

“Borrowing Base” means,on anydate ofdetermination, (a)thelesser of (i) the productof 90.0%andtheaggregateTimeshareLoanBalancesofallEligibleTimeshareLoansonsuchdateand(ii) thesumoftheCollateralValuesofallEligibleTimeshareLoansonsuchdate,minus(b)theExcess ConcentrationAmountonsuchdate.ForpurposesofcalculatingtheBorrowingBaseonanydateof determination,theTimeshareLoanBalanceonsuchdateofanyEligibleTimeshareLoanthatwasanOver Sixty-DayDelinquentTimeshareLoanoraDefaultedTimeshareLoanontheApplicableMeasurement Date willbe zero.

“Borrowing Base Deficiency”means,asofanydateofdetermination,includingbutnot limitedtoeachDistributionDate,eachBorrowingDate,andeachRefinancingDate,theexcess,ifany,of (i) the Aggregate LoanPrincipalBalanceon suchdate(after givingeffect to anypayments or distributions tobemadeonsuchdateinreductionoftheAggregateLoanPrincipalBalance)over(ii)theBorrowing Base onsuch date.

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“Borrowing Date”hasthemeaningspecified in Section 2.02(a)(i).

“Borrowing Request” has the meaningspecifiedin Section 2.02(a)(i).

“Business Day”meansanydayotherthanaSaturday,Sundayorpublicholidayorthe equivalentforbanksinNewYorkCity,NewYorkorMinneapolis,Minnesota,and,iftheterm“Business Day”isusedinconnectionwiththeLIBORate,anydayonwhichdealingsarecarriedonintheLondon interbankmarket.

“Capital Lease Obligations”means,foranyPerson,allobligationsofsuchPersontopay rentorotheramountsunderaleaseof(orotheragreementconveyingtherighttouse)propertytotheextent suchobligationsarerequiredtobeclassifiedandaccountedforasacapitalleaseonabalancesheetofsuch PersonunderGAAP,and,forpurposesofthisAgreement,theamountofsuchobligationsshallbethe capitalized amountthereof,determined inaccordance with GAAP.

“Change of Control” means:

(a)onanydatepriortotheSpin-OffEffectiveDate,(i)Holdings,Inc.shallceaseto own,directlyorindirectly,atleast662/3%oftheissuedandoutstandingEquityInterestsoftheSellerorthe Servicer,(ii)theSellershallceasetoowndirectly100%oftheissuedandoutstandingEquityInterestsof theBorrower,(iii)anysale,transfer,conveyanceorassignment(inoneoraseriesofrelatedtransactions) ofallorsubstantiallyalloftheHiltonHotelBusiness,otherthantoHoldingsoroneormoreofits Subsidiaries,or(iv)theoccurrenceofanymerger,reorganization,consolidationorothertransactionafter which Holdings nolongerpossesses,directlyorindirectly, thepowerto director causethe directionofthe managementandorpolicies,orthedismissalorappointmentofthemanagement,ofsubstantiallyallofthe Persons engaged inthe Hilton HotelBusiness;or

(b)ontheSpin-OffEffectiveDateoranydatethereafter,(i)anyPersonor“group” (withinthemeaningofRules13d-3and13d-5undertheSecuritiesExchangeActof1934asamended, otherthananycombinationoftheInvestorsand/orany“group”includinganyPermittedHolders,shallhave acquiredbeneficialownershipof morethan35%onafullydilutedbasisofthevotingrightsrepresentedby theEquityInterestsofHGVIandthePermittedHoldersshallown,directlyorindirectly,lessthansuch Personor“group”onafullydilutedbasisofthevotingrightsrepresentedbytheEquityInterestsof HGVI, (ii) HGVIshallceasetoown, directlyorindirectly, 100% oftheissuedandoutstandingEquityInterestsof the Seller, or (c)the Seller shallcease to own directly100% ofthe issued and outstandingEquityInterests of the Borrower.

“ChicagoActivationDate”shallmeanthedateuponwhich,(i)theAdministrativeAgentshallhavereceivedwrittennoticefromtheBorrowerofitsintenttoincludeTimeshareLoansoriginatedwithrespecttothe“HiltonGrandVacationsChicagoDowntown/MagnificentMile”ResortintheCollateral,(ii)HiltonResortsCorporationhasacquiredfulllegalandequitabletitletothe“HiltonGrandVacationsChicagoDowntown/MagnificentMile”Resort,(iii)theBorrowershallhavedeliveredtotheAdministrativeAgentanopinionoflocalcounselinformandsubstanceacceptabletotheAdministrativeAgentwithrespecttotheinclusionofTimeshareLoansoriginatedwithrespecttothe“HiltonGrandVacationsChicagoDowntown/MagnificentMile”Resortand(iv)theAdministrativeAgentshallhavereceived anyadditionalinformation,documents, records orreportswithrespecttotheinclusionofTimeshareLoansoriginatedwithrespecttothe“HiltonGrandVacationsChicagoDowntown/MagnificentMile” Resort asthe AdministrativeAgent mayreasonablyrequest.

“Clearing Account”meansthedepositaryaccountidentifiedassuchonExhibitEinto which Collectionsare collectedor deposited.

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“Clearing Account Bank”meansthefinancialinstitutionatwhicheachoftheClearing Account,theLockboxandtheUnidentifiedReceiptsAccountismaintained.OntheClosingDate,the ClearingAccountBankisBankof America, N.A.

“Clearing Account Control Agreement”meanstheClearingAccountControlAgreement, datedasoftheClosingDate,amongtheBorrower,theClearingAccountBankandtheAdministrative Agent.

“Closing Date” meansMay9, 2013.

“Code” meansthe InternalRevenue Code of 1986.

“Collateral” hasthe meaningsetforthin Section 2.13.

“Collateral Value”means,foranyEligibleTimeshareLoan,onanydateofdetermination, theproductof(i)theTimeshareLoanBalanceofsuchEligibleTimeshareLoanonsuchdateand(ii)the “AdvanceRate”setforthinthetablebelowapplicabletothe“Type”ofsuchEligibleTimeshareLoanset forthinthetablebelow(itbeingunderstood thattheapplicableFICO®score shallbethehighestFICO® score obtained bytheSellerin conjunction withthe origination oftheTimeshare Loan):

Type	Advance Rate
FICO® score of 700or higher:	97.5%
FICO® score of 675-699:	83.0%
FICO® score of 650-674:	59.0%
FICO® score of 625-649:	52.0%
FICO® score of 600-624:	30.0%
Domestic Obligor-no FICO® score:	83.0%
Eligible Foreign Obligor (Japan):	97.5%
Eligible Foreign Obligor (Non-Japan):	97.5%

ForpurposesofcalculatingtheCollateralValueonanydateofdetermination,theTimeshareLoan BalanceonsuchdateofanyEligibleTimeshareLoanthatwasanOverSixty-DayDelinquentTimeshare Loan ora DefaultedTimeshare Loan onthe Applicable MeasurementDate willbe zero.

“Collection Account” has the meaningsetforthin Section2.16(a).

“Collection Account Bank”meansthefinancialinstitutionatwhichtheCollectionAccount is maintained.

“Collection Period”meanseachcalendarmonth,andtheCollectionPeriod forany Distribution Date means the priorcalendar month.

“Collection Policy”means(i)thecollectionpoliciesandpracticesoftheServicerasin effectontheAmendmentNo.4EffectiveDate,acopyofwhichisattachedasExhibitA-2hereto,as modifiedfromtimetotimeinaccordancewiththetermsoftheServicingAgreementor(ii)ifGVSisnot the Servicer, the collectionpolicies and practices of thesuccessor Servicer.

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“Collections” means anyand allcash collections and othercash proceeds ofeach Pledged TimeshareLoanreceivedaftertheCutoffDateforsuchPledgedTimeshareLoan,allpaymentsor distributionsofprincipal,interest,financecharges,fees,latecharges,LiquidationProceeds,Processing FeesorotheramountscollectedinrespectofeachPledgedTimeshareLoans aftertheCutoff Date forsuch PledgedTimeshareLoanandanyotheramountsreceivedbyoronbehalfoftheBorrower(or,asusedin thedefinitionofTransferredProperty,theSeller)ortheServicerinrespectofthePledgedTimeshareLoans; provided,thatMiscellaneous Payments shallnotconstitute Collections.

“Commercial Paper”meanstheshorttermpromissorynotesissuedbyaConduitLenderin the commercialpaper market.

“Commitment”ofany CommittedLendermeansthe Dollaramountsetforthon Schedule IIheretoor,inthecaseofaCommittedLenderthatbecomesapartytothisAgreementpursuanttoan AssignmentandAcceptanceoraJoinderAgreementtheamountsetforththereinassuchCommitted Lender’s“Commitment”, in eachcase as suchamountmaybe (i) reduced or increased byany Assignment andAcceptanceenteredintobysuchCommittedLenderandtheotherpartiestheretoinaccordancewith theterms hereofand(ii)reduced or increased pursuantto Section2.03.

“Commitment Termination Date”meansMarch9,2020,April23,2021,assuchdatemay be extended fromtime to time pursuantto Section 2.07.

“Committed Lender”means,astoanyLenderGroup,eachofthefinancialinstitutions listedonScheduleIIasa“CommittedLender”forsuchLenderGroup,togetherwithitsrespective successors and permitted assigns.

“Conduit Lender”means,collectively,thePersonsidentifiedas“ConduitLenders”on Schedule IIand their respective successors andpermitted assigns.

“Conduit Lending Limit” means, for anyConduitLender,the maximumprincipalamount oftheLoanswhichmaybeadvancedbysuchConduitLenderassetforthonScheduleII(oronthesignature pagestotheAssignmentandAcceptanceorJoinderAgreementpursuanttowhichsuchConduitLender becameapartyhereto),subjecttoassignmentpursuanttoSection10.03,as suchamountmaybemodified fromtimetotimebynoticefromtherelatedManagingAgenttotheBorrowerandtheAdministrativeAgent.

“Connection Taxes” means,withrespecttoany AffectedParty, Taxes imposedas a result ofapresentorformerconnectionbetweensuchAffectedPartyandthejurisdictionimposingsuchTax (otherthanconnectionsarisingfromsuchAffectedPartyhavingexecuted,delivered,becomeapartyto, performeditsobligationsunder,receivedpaymentsunder,receivedorperfectedasecurityinterestunder, engagedinanyothertransactionpursuantto,orenforced,anyFacilityDocument,orsoldorassignedan interestin anyFacilityDocument).

“Consolidated EBITDA”means,foranyPersonandwithreferencetoanyperiod, ConsolidatedNetIncomeplus,totheextentdeductedindeterminingConsolidatedNetIncome,thesumof, withoutduplication,(i)ConsolidatedInterestExpense,(ii)expenseforincometaxespaidoraccrued,(iii) depreciation,(iv)amortization,(v)feesandexpensesincurredinconnectionwiththeTransaction,(vi) extraordinaryornon-recurringexpensesorlosses,and(vii)non-cashexpensesorlossesminus,totheextent includedinConsolidatedNetIncome,(1)interestincome,(2)incometaxcredits andrefunds(totheextent notnettedfromtaxexpense),(3) anycashpayments madeduringsuch periodinrespectof itemsdescribed inclause(vii)abovesubsequenttothefiscalquarterinwhichtherelevantnon-cashexpensesorlosseswere incurredand(4)extraordinary,unusualornon-recurringincomeorgains,allcalculatedforsuchPersonand its Subsidiariesin accordance with GAAP on a consolidatedbasis.

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“ConsolidatedInterestExpense”means,foranyPersonandwithreferencetoanyperiod, theinterestexpense(includinginterestexpenseunderCapitalLeaseObligationsthatistreatedasinterest inaccordancewithGAAP)ofsuchPersonanditsSubsidiariesforsuchperioddeterminedinaccordance withGAAPonaconsolidatedbasis(includingallcommissions,discountsandotherfeesandchargesowed with respectto letters of creditand bankers acceptancefinancingand netcosts underinterestrate Hedging AgreementstotheextentsuchnetcostsareallocabletosuchperiodinaccordancewithGAAP);provided thatthereshallbeexcludedfromConsolidatedInterestExpense(i)anyfeespaidtotheAdministrative Agentandanyonetimefinancingfees(totheextentincludedinsuchPerson’sConsolidatedInterest Expenseforsuchperiod)and(ii)anyone-timeupfrontpayments madetoobtainanyHedgingAgreements.

“Consolidated Net Income”means,foranyPersonandwithreferencetoanyperiod,the netincome(orloss)ofsuchPersonanditsSubsidiariescalculatedinaccordancewithGAAPona consolidated basis (withoutduplication) for such period;provided thatthere shallbe excluded anyincome (orloss)ofanyPersonotherthansuchPersonoraSubsidiary,butanysuchincomesoexcludedmaybe includedinsuchperiodoranylaterperiodtotheextentofanycashdividendsordistributionsactuallypaid in the relevantperiod tosuch Person orany wholly-owned Subsidiaryofsuch Person.

“Consolidated Tangible Net Worth”means,foranyPersonasofanydateofdetermination, theexcessoftotalassets(netofgoodwillandintangibleassets)overtotalliabilitiesonsuchdate,asthe samewouldappearonaconsolidatedbalancesheetofsuchPersonanditsSubsidiariesatthedateofsaid calculation preparedin accordance with GAAP.

“Contract Rate”means, withrespecttoaTimeshareLoan,theannualrateatwhichinterest accrues under the related Obligor Note.

“CP Rate”means,withrespecttoanyConduitLenderonanyday,theperannumrate equivalenttothesumof(a)theUsedFeeRateplus(b)theweightedaveragecost(asreasonablydetermined bytherelatedManagingAgent,andwhichshallinclude(withoutduplication),thefeesandcommissions ofplacementagentsanddealers,incrementalcarryingcostsincurredwithrespecttoCommercialPaper maturingondatesotherthanthoseonwhichcorrespondingfundsarereceivedbysuchConduitLender, otherborrowingsbysuch ConduitLender and anyothercosts associatedwiththe issuance of Commercial Paper)totheextentrelatedtotheissuanceofCommercialPaperthatisallocated,inwholeorinpart,by suchConduitLenderoritsrelatedManagingAgenttofundor maintainaLoan(orportionthereof)onsuch day;provided,however,thatifanycomponentofanysuchrateisadiscountrate,incalculatingthe“CP Rate”forsuchday,therelatedManagingAgentshallforsuchcomponentusetherateresultingfrom convertingsuch discountrate to aninterestbearingequivalentrate perannum.

“CRR”meansRegulationNo575/2013oftheEuropeanParliamentandoftheCouncilas publishedintheOfficialJournaloftheEuropeanUnionon27June2013asamendedfromtimetotimeand asimplementedbytheMemberStatesoftheEuropeanUnion,togetherwiththeCorrigendumtoRegulation 575/2013.

“Credit Policy”meansthecreditpoliciesandpracticesoftheSellerasineffectonthe AmendmentNo.4EffectiveDate,acopyofwhichisattachedasExhibitA-2hereto,asmodifiedfromtime to time in accordance with the terms ofthe Sale and Contribution Agreement.

“Credit Card Account”meansanarrangement wherebyan Obligormakespaymentsunder a PledgedTimeshare Loanvia pre-authorized debittoa Major CreditCard.

“Cure Amount” hasthe meaningsetforthin Section7.02(a).

“Cure Right” has the meaningsetforthin Section7.02(a).

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“Custody Agreement”meanstheCustodyAgreement,datedasoftheClosingDate,among the Borrower, the Servicer,the Custodianandthe Administrative Agent.

“Custodial Fees”means,foranyCollectionPeriod,thecustodialfeesandexpensesset forthintheWellsFargoFeeLetterandtheexpensesforwhichitisentitledtoreceive,buthasnotreceived, reimbursementunderthe CustodyAgreement.

“Custodial Receipt”hasthemeaningascribedtosuchterminSection4oftheCustody Agreement.

“Custodian”meansWellsFargo,anditssuccessorsandpermittedassignsunderthe CustodyAgreement.

“Cutoff Date”means,foranyTimeshareLoan,theApplicableMeasurementDaterelated to theTransferDatefor such Timeshare Loan.

“Cutoff Date Loan Balance”means,withrespecttoanyTransferredTimeshareLoan,the Timeshare Loan Balance ofsuchTimeshare Loan onthe Cutoff DateforsuchTimeshare Loan

“DBSI”meansDeutscheBankSecurities,Inc.,its successorsandpermittedassigns.

“Default”meansanyeventwhich,withthegivingofnoticeorlapseoftimeorboth,would constitute an Eventof Default.

“Default Ratio”means,foranyCollectionPeriod,theratio,expressedasapercentage, computedbydividing(i)theaggregateTimeshareLoanBalancesofallPledgedTimeshareLoansthat becameDefaulted TimeshareLoansduring suchCollectionPeriodandwere notsubstitutedforor repurchasedpriortotherelatedDistributionDate(withtheoutstandingprincipalbalanceofeachsuch PledgedTimeshareLoandeterminedasofthelastdayoftheCollectionPeriodonwhichsuchPledged TimeshareLoanbecameaDefaultedTimeshareLoan)by(ii)theaggregateTimeshareLoanBalancesof allPledgedTimeshare Loans onthelastday ofsuch Collection Period.

“Defaulted Timeshare Loan”meansaTimeshareLoan:(i)forwhich,onthelastdayofany CollectionPeriod,anypaymentthendueand payableinrespectthereofhasremainedunpaidfor more than one-hundredtwenty(120)daysfromtheoriginalduedateforsuchpayment,(ii)whichtheServicerhas deemed uncollectible, (iii) which has been written offin the normalcourseoftheServicer’sbusinessprior to becomingthe numberof days pastdue underclause(i)hereof, or which otherwise should be written off pursuanttotherequirementsoftheCollectionPolicy,(iv)astowhichforeclosureorsimilarproceedings withrespecttotherelatedTimesharePropertyInteresthavebeeninitiatedbytheServicerorastowhichthe Servicerhasreceivedadeed-in-lieuofforeclosureor(v)astowhichtheServicerhasreceivednoticethat the Obligorthereofissubjectto an Eventof Bankruptcy.

“Defaulting Committed Lender”means any CommittedLenderthat, asdeterminedbythe Administrative Agent:(a)hasfailedtofundanyofitsobligations to make Loans withinthree(3) Business Daysofthedaterequiredtobefundedbyithereunder,(b)hasnotifiedtheAdministrativeAgentorthe Borrowerthatitdoesnotintendtocomplywithsuchfundingobligationsorhasmadeapublic statementto thateffectwithrespecttosuchfundingobligationshereunderorunderotheragreementsinwhichitcommits toextendcreditor(c)has, orhasadirectorindirectparentcompany thathas,becomesubjecttoanEvent ofBankruptcy;provided,thataCommittedLendershallnotbedeemedtobeaDefaultingCommitted Lenderhereundersolelybyvirtueofanycontroloforownershipinterestin,ortheacquisitionofany ownership

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interestin,suchCommittedLender(oritsdirectorindirectparentcompany)ortheexerciseof controloversuchCommittedLender(oritsdirectorindirectparentcompany)byaGovernmentalAuthority thereofifandforsolongassuchownershipinterestdoesnotresultinorprovidesuchCommittedLender (oritsdirectorindirectparentcompany)withimmunityfromthejurisdictionofcourtswithintheUnited Statesor fromtheenforcementofjudgmentsor writsofattachmentonits assetsorpermitsuchCommitted Lender(oritsdirectorindirectparentcompany)orsuchGovernmentalAuthoritytoreject,repudiate, disavowor disaffirmobligations such asthose underthis Agreement.

“Deficiency”means,withrespecttoanyTimeshareLoanFile,(i)thefailureofoneormore Specified Documentscontained thereintobefullyexecuted, (ii)thefailureoftheinformationcontainedin oneormoreoftheSpecifiedDocumentstomatchtheinformationontherelatedTimeshareLoanSchedule, (iii)oneormoreSpecifiedDocumentscontainedthereinaremutilated,damaged,tornorotherwise physicallyaltered, (iv) theabsence froma Timeshare LoanFile of any Specified Documentrequired tobe containedinsuchTimeshareLoanFileor(v)anydiscrepanciesdescribedinSection4(a)oftheCustody Agreement. An AbsenceofRecorded Mortgage shallnotconstitutea Deficiency. “Delayed FundingAmount” hasthe meaningspecifiedin Section 2.02(e).

“Delayed Funding Date” has the meaningspecifiedinSection 2.02(e).

“Delayed Funding Representation” has the meaningspecified in Section 2.02(e).

“Delinquency Ratio”means,foranyCollectionPeriod,theratio,expressedasapercentage, computedbydividing(i)theaggregateTimeshareLoanBalancesofallPledgedTimeshareLoansthatwere OverSixty-DayDelinquentTimeshareLoansasofthelastdayofsuchCollectionPeriodby(ii)the aggregateTimeshareLoanBalancesofallPledgedTimeshareLoansasofthelastdayofsuchCollection Period.

“Delinquent Timeshare Loan”meansaTimeshareLoanwhichisnotaDefaulted TimeshareLoanand(x)astowhich,onthelastdayofanyCollectionPeriod,anypaymentthendueand payablehas remainedunpaidformorethanthirty(30)daysfromtheoriginalduedate forsuchpaymentor (y) which,consistentwith the Collection Policy, hasbeen or should be classifiedas delinquent. “Designated Delayed FundingAmount” hasthe meaningsetforthin Section2.02(e).

“Designated Delay Funding Lender” has the meaningspecified in Section 2.02(e).

“Determination Date” means the third (3rd) Business Daypriorto eachDistribution Date.

“Distribution Date”means,withrespecttoaCollectionPeriod,the25thdayofthecalendar monthimmediatelyfollowingsuchCollectionPeriod(or,ifsuchdayisnotaBusinessDay,thenext succeedingBusinessDay).

“Dodd-Frank Act”meanstheDodd-FrankWallStreetReformandConsumerProtection Actandanysuccessor statute.

“Dollars” and“$”each mean thelawfulcurrencyofthe United States ofAmerica.

“Domestic Obligor”meansanindividualObligorwhoseprimaryresidenceisin,oran Obligor(otherthananindividual)formedunderthelawsoforhavingitschiefexecutiveofficeorprincipal placeofbusinesslocatedin,theUnitedStates(includingeachState,PuertoRicoandtheUnitedStates Virgin Islands)or Canada.

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“EEA Financial Institution”means(a)anycreditinstitutionorinvestmentfirmestablished in any EEAMemberCountrywhich is subjecttothe supervision of an EEAResolutionAuthority,(b) any entityestablished in an EEAMemberCountrywhich is a parentof an institutiondescribed in clause (a)of thisdefinition,or(c)anyfinancialinstitutionestablishedinanEEAMemberCountrywhichisasubsidiary ofaninstitutiondescribedinclauses(a)or(b)ofthisdefinitionandissubjecttoconsolidatedsupervision withitsparent.

“EEA Member Country” means anyofthememberstatesoftheEuropean Union,Iceland, Liechtenstein,and Norway.

“EEA Resolution Authority”meansanypublicadministrativeauthorityoranyPerson entrustedwithpublicadministrativeauthorityofanyEEAMemberCountry(includinganydelegee)having responsibilityfortheresolutionof anyEEAFinancialInstitution.

“Eligible Foreign Obligor”meansaForeignObligorinrespectofanEligibleTimeshare Loan.

“Eligible Hedge Counterparty”meansanyentitythat(a)onthedateofenteringintoany HedgeTransaction(i)is aninterestrateswapproviderthatiseitheraLenderoranAffiliateofaLender,or hasbeenapprovedinwritingbytheAdministrativeAgent(whichapprovalshallnotbeunreasonably withheld),or(ii)hasashort-termdebtratingof“A-1”fromS&Por“P-1”fromMoody’sandalong-term debtratingof“A”orhigherfromS&Por“A2”orhigherfromMoody’sorwhoseobligationsare unconditionallyguaranteedbyanAffiliatewhichhastheforegoingdebtratingsinamannerreasonably acceptabletotheAdministrativeAgent,(b)atalltimesafterthedateoftheHedgingAgreement,solongas itisapartythereto,hasalong-termdebtratingof“BBB+”orhigherfromS&Por“Baa1”orhigherfrom Moody’sorwhoseobligations areunconditionallyguaranteedbyanAffiliatewhichhastheforegoingdebt ratingsinamannerreasonablyacceptabletotheAdministrativeAgent,and(c)intheapplicableHedging AgreementconsentstotheassignmentoftheBorrower’srightsundersuchHedgingAgreementtothe Administrative Agentpursuantto Section5.03.5.03(b).

“Eligible Timeshare Loan”meansaPledgedTimeshareLoanastowhicheachofthe representationsand warrantiessetforth onSchedule Ihereto was trueandcorrectas ofthe Cutoff Datefor such PledgedTimeshare Loan.

“Eligible Servicer”means(i)GVS,(ii)theBackupServiceror (iii)anentitywhich,atthe timeofitsappointmentasServicer,(a)islegallyqualifiedandhasthecapacitytoservicethePledged TimeshareLoans,(b)hasanetworthofnotlessthan$50,000,000andwhoseregularbusinessincludes servicingportfoliosofsimilartimeshareloansinaccordancewithhighstandardsofskillandcareand(c) has softwarethatis adequate to performitsdutiesunder the ServicingAgreement.

“Enforceability Exceptions”meansexceptionstotheenforceabilityofanobligationarising under(i)bankruptcy,insolvency,reorganization,moratoriumorsimilarlawsrelatingtooraffecting creditors’rightsgenerally,and(ii)generalprinciplesofequity,includingconceptsofmateriality, reasonableness, goodfaithand fair dealingand thepossible unavailabilityof specific performance, regardlessof whether consideredina proceedingatequityor atlaw.

“Entitlement Order” hasthe meaningsetforth in Section 2.16(f).

“Environmental Laws”meansallfederal,stateorlocallaws,rules,regulationsororders governing, imposingstandards of conductwith respectto, or regulatingin anywaythe discharge, generation,removal,transportation,storageorhandlingoftoxicorhazardoussubstances,materialsor waste.

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“Equity Interests”meanssharesofcapitalstock,partnershipinterests,membership interests ina limitedliabilitycompany,beneficialinterests ina trustorotherequityownership interestsin aPerson,andanywarrants,optionsorotherrightsentitlingtheholderthereoftopurchaseoracquireany such equityinterest.

“ERISA” means the Employee RetirementIncome SecurityActof 1974,oranysuccessor statute.

“ERISA Affiliate”meansanycorporationortradeorbusinessthatisamemberofany groupoforganizations(i)describedinSection414(b)or(c)oftheCodeofwhichBorrowerisamember and(ii)solelyforpurposesofpotentialliabilityunderSection302(c)(11)ofERISAandSection412(c)(11) of the Code andthe liencreatedunder Section 302(f)of ERISAand Section 412(n) ofthe Code,described in Section 414(m) or (o) ofthe Code, ofwhichBorroweris a member.

“Errors” hasthemeaning given such termin Section 5.1(g) ofthe ServicingAgreement.

“EU Bail-In Legislation Schedule”meanstheERBail-InLegislationSchedulepublished bythe LoanMarketAssociation (or anysuccessorPerson), as ineffectfromtime to time.

“EU Securitization Regulation” means Regulation (EU) 2017/2402 of the EuropeanParliamentand ofthe Councilof 12December2017.

“EUSecuritizationRules”means(i)theEUSecuritizationRegulationassupplementedbyanyapplicableregulatorytechnicalstandardsorimplementingtechnicalstandardsfromtimetotimeand(ii)to the extent informingtheinterpretationthereof, anyofficial guidance published inrelationthereto bytheEuropeanBankingAuthority,theEuropeanCentralBank,theEuropeanSecuritiesandMarketsAuthority, the European Commission orthe EuropeanCouncil, the German FederalFinancial SupervisoryAuthority(BaFin)oranyotherrelevantcompetentauthorityintheEuropeanUnion(or,ineachcase,anypredecessororsuccessorentitythereof)and(iii)inrelationtotheforegoing,(x)anyimplementingorequivalentlawsorregulationsinforceinanymemberstate(orformermemberstate)oftheEuropeanUnionortheEuropeanEconomicArea,and(y)anysuccessororreplacementsprovisionsforArticle6includedin anyEuropean Union directive or regulation.

“Eurocurrency Liabilities”hasthemeaningassignedtothatterminRegulationDofthe Board of Governors of theFederalReserve System, asin effectfromtime totime.

“Event of Bankruptcy” means, with respectto anyPerson:

(i)suchPerson shallfailgenerallytopay itsdebtsasthey comedue,orshallmakea generalassignmentforthebenefitofcreditors;oranycaseorotherproceedingshallbeinstituted bysuchPersonseekingtoadjudicateitasbankruptorinsolvent,orseekingliquidation, reorganization,debtarrangement,dissolution,windingup,orcompositionorreadjustmentofdebts ofitoritsdebtsundertheBankruptcyCodeoranyotherlawrelatingtobankruptcy, insolvency, reorganization, windingupor composition oradjustmentof debts,orseekingthe entryofan order forreliefortheappointmentofatrustee,receiver,custodian,liquidator,assignee,sequestratoror thelikeforsuchPersonorallorsubstantiallyallofitsassets;orsuchPersonshalltakeany corporate or limitedliabilitycompanyactionto authorize anyof such actions;or

(ii)acaseorotherproceedingshallbecommenced,withouttheapplicationorconsent ofsuchPerson inany courtseekingthe liquidation,reorganization,debtarrangement,dissolution, windingup,orcompositionorreadjustmentofdebtsof suchPerson,theappointmentofa trustee, receiver,custodian,liquidator,assignee,sequestratororthelikeforsuchPersonorallor substantiallyallofitsassets,oranysimilaractionwithrespecttosuchPersonundertheBankruptcy Codeoranyotherlawrelatingtobankruptcy,insolvency,reorganization,windingupor compositionoradjustmentofdebts,and(A)suchcaseorproceedingshall

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continueundismissed, orunstayedandineffect,foraperiodofsixty(60)consecutivedaysor(B)anorderforreliefin respectofsuchPersonshallbeenteredinsuchcaseorproceedingoradecreeorordergranting such other requestedreliefshallbeentered.

“Event of Default” has themeaningassigned tothattermin Section 7.01.

“Excess Concentration Amount”means,onanydateofdetermination,thesum(without duplication) of the followingamounts:

(a)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoansowingfromObligorsthathadtheirprimaryresidenceaddressesat originationinanysinglestate(otherthanCalifornia)orcountryontheApplicableMeasurement Dateexceeds12.50%oftheaggregateTimeshareLoanBalancesonsuchdateofallEligible Timeshare Loans on the Applicable MeasurementDate;

(b)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoansowingfromObligorsthathadtheirprimaryresidenceaddressesat originationinCaliforniaontheApplicableMeasurementDateexceeds25.00%oftheaggregate TimeshareLoanBalances onsuchdateofallEligible TimeshareLoanson the Applicable MeasurementDate;

(c)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoansowingfromObligorsthathadtheirprimaryresidenceaddressesat originationincountriesotherthantheUnitedStates(includingPuertoRicoandtheUnitedStates VirginIslands),CanadaorJapanontheApplicableMeasurementDateexceeds5.0%ofthe aggregateTimeshareLoanBalancesonsuchdateofallEligibleTimeshareLoansontheApplicable MeasurementDate;

(d)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoansowingfromEligibleForeignObligorsontheApplicableMeasurement Dateexceeds25.035.0%oftheaggregateTimeshareLoanBalancesonsuchdateofallEligible Timeshare Loans on the Applicable MeasurementDate;

(e)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoansowingfromObligorsthathadtheirprimaryresidenceaddressesat originationinthestateshavingthefive(5)largestObligorconcentrations(basedonTimeshare LoanBalances)ontheApplicableMeasurementDateexceeds50.060.0%oftheaggregate TimeshareLoanBalances onsuchdateofallEligible TimeshareLoanson the Applicable MeasurementDate;

(f)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoansowingfromObligors(excludingForeignObligors)withnoFICO® scoresatthetimeoforiginationontheApplicableMeasurementDateexceeds7.50%ofthe aggregateTimeshareLoanBalancesonsuchdateofallEligibleTimeshareLoansontheApplicable MeasurementDate;

(g)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoanshavingoriginaltermsgreaterthan120monthsontheApplicable MeasurementDate exceeds12.50% of theaggregate Timeshare Loan Balances onsuch date ofall EligibleTimeshare Loans on the ApplicableMeasurementDate;and

(h)       theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofall EligibleTimeshareLoanshavingTimeshareLoanBalancesgreaterthanorequalto$125,000on theApplicableMeasurementDateexceeds7.5012.50%oftheaggregateTimeshareLoanBalances on suchdate ofallEligibleTimeshare Loans on the Applicable MeasurementDate; and

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(i)theamountbywhichtheaggregateTimeshareLoanBalancesonsuchdateofallEligibleTimeshareLoanswhichareRight-to-UseLoansexceeds20.00%oftheaggregateTimeshareLoanBalances onsuchdateofallEligible TimeshareLoans onthe ApplicableMeasurementDate.

“Excess Spread Percentage“means,onanyDistributionDate,apercentage(whichmay beanegativepercentage)computedasfollows:(a)theweightedaverageContractRatesofallEligible TimeshareLoansontheApplicableMeasurementDate(weightedbasedonTimeshareLoanBalanceson suchdate),minus(b)thethenapplicableServicingFeeRate,minus(c)theUsedFeeRate,minus(d)(i) prior toaHedgingPeriod,theLIBORate for theInterestPeriodfor suchDistributionDate or(ii)duringa HedgingPeriod,the weighted average Hedge Rate forsuch InterestPeriod.

“Excluded Taxes”means(a)Taxesimposedonormeasuredbynetincome(however denominated),franchise orgrossrevenueTaxes inlieuof netincome Taxes,imposed bythe United States (oranypoliticalsubdivisionthereof),oranyotherjurisdiction(oranypoliticalsubdivisionthereof),asa resultoftherecipientbeingorganizedinorhavingits principalofficeorapplicablelendingofficelocated insuchjurisdictionorthatareConnectionTaxes;(b)anybranchprofitsTaxesimposedbytheUnitedStates oranysimilarTaxesimposedbyanyotherjurisdictiondescribedinclause(a)aboveorinwhichthe Borrowerislocated;(c)inthecaseofaLender,UnitedStateswithholdingTaxesimposedonamounts payabletoorfortheaccountofsuchLenderwithrespecttoanapplicableinterestinaLoanorCommitment pursuanttoalawineffectonthedateonwhich(i)suchLenderacquiressuchinterestintheLoanor Commitment(otherthanpursuanttoanassignmentrequestbytheBorrowerunderSection2.19)or(ii)such Lenderchanges itslendingoffice,exceptineach case to theextentthat,pursuant to Section2.12,amounts withrespecttosuchTaxes werepayableeithertosuchLender'sassignorimmediatelybeforesuchLender becameapartyheretoortosuchLenderimmediatelybeforeitchangeditslendingoffice;(d)Taxes attributabletosuchAffectedParty’sfailuretocomplywithSection2.12(c);and(e)anyTaxesimposed pursuantto or asaresultofFATCA.

“Extending Lenders” has the meaningspecifiedin Section 2.07.

“Face Amount”meansinrelationtoanyCommercialPaper(a)ifissuedonadiscount basis,thefaceamountstatedthereinand(b)ifissuedonaninterest-bearingbasis,theprincipalamount statedthereinplustheamountofallinterestaccruedortoaccruethereononorpriortoitsstatedmaturity date.

“Facility Documents”meanscollectively,thisAgreement,theSaleandContribution Agreement,theServicingAgreement,thePerformanceGuaranty,theFeeLetter,theCustodyAgreement, theGlobalAssignment(Seller),theGlobalAssignment(Borrower),theClearingAccountControl Agreement,eachAssignmentdeliveredbySellertoBorrowerundertheSale and ContributionAgreement andallotheragreements,documentsandinstrumentsdeliveredpursuanttheretoorinconnectiontherewith.

“Facility Limit”meansatanytime,theAggregateCommitment,adjustedasnecessaryto giveeffect tothe addition ofanyLender Groupthatbecomespartytothis AgreementpursuanttoaJoinder AgreementunderSection10.04,anyincreaseorreductionbytheBorrowerpursuanttoSection2.03orany assignmentpursuantto Section10.03.

“FAS 166/167 Capital Guidelines”meansthefinalrule,titled“Risk-BasedCapital Guidelines;CapitalAdequacy Guidelines;CapitalMaintenance:Regulatory Capital;Impactof ModificationstoGenerallyAcceptedAccountingPrinciples;ConsolidationofAsset-BackedCommercial PaperPrograms;andOtherRelatedIssues”,adoptedDecember15,2009,bytheUnitedStatesbank regulatoryagencies.

“FATCA”meansSections1471through1474oftheCode,asofthedateofthisAgreement (or any amendedor successorversionthatis substantivelycomparable and notmateriallymoreonerous to comply

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with),anycurrentorfutureregulationsorofficialinterpretationsthereof,anyagreementsentered intopursuanttoSection1471(b)(1)oftheCodeandanyfiscalorregulatorylegislationorrulesadopted pursuanttoanyintergovernmentalagreemententeredintoinconnectionwiththeimplementationofsuch Sectionsofthe Code.

“Federal Funds Rate”means,withrespecttoanyLenderforanyperiod,afluctuating interestrateperannumequal(foreachdayduringsuchperiod)totheweightedaverageoftherateson overnightfederalfundstransactionswithmembersoftheFederalReserveSystemarrangedbyfederalfunds brokers,aspublishedforsuchday(or,ifsuchdayisnotaBusinessDay,fortheimmediatelypreceding BusinessDay)bytheFederalReserveBankofNewYork;orifsuchrateisnotsopublishedforanyday whichisaBusinessDay,theaverageofthequotationsforsuchdayonsuchtransactionsreceivedbythe applicableManagingAgentfromthree federalfunds brokers ofrecognizedstandingselected by it.

“Fee Letter”meanstheSecondFourthAmendedandRestatedFeeLetterdatedasof December14,2016,April25,2019,byandamongtheAdministrativeAgent,theManagingAgents,the Committed LendersandtheBorrower.

“Final Collection Date”meansthedateonorfollowingtheAmortizationDateonwhich theAggregateLoanPrincipalBalancehasbeenreducedtozeroandallotherBorrowerObligationshave been paidinfull.

“Fiscal Quarter” means afiscalquarterof anyFiscalYear.

“Fiscal Year”means the fiscalyearoftheSellerand itsSubsidiaries endingonDecember 31 of eachcalendar year.

“Foreign Obligor” means an Obligorthatis nota Domestic Obligor.

“Funding Delay Notice” has the meaningspecifiedinSection 2.02(e).

“GAAP”meansgenerallyacceptedaccountingprinciplesasineffectintheUnitedStates of Americafromtime totime, consistentlyapplied.

“Global Assignment” means each oftheGlobalAssignment(Borrower) andGlobal Assignment(Seller).

“Global Assignment (Borrower)”meansaGlobalAssignmentofMortgagesand TimeshareLoanFilesandPowerofAttorney,intheformattachedheretoasExhibitK,madebythe Borrower infavor of the Administrative Agent.

“Global Assignment (Seller)”meansaGlobalAssignmentofMortgagesandTimeshare LoanFilesandPowerofAttorney,intheformattachedheretoasExhibitJ,madebytheSellerin favorof the Administrative Agent.

“Governmental Authority”means,withrespecttoanyPerson,anynationorgovernment, anystateorotherpoliticalsubdivisionthereof,anyentityexercisingexecutive,legislative,judicial, regulatoryoradministrativefunctionsoforpertainingtogovernmentandanycourtorarbitratorhaving jurisdictionoversuch Person, anyof its Subsidiariesoranyof its properties.

“Governmental Rule”meansanylaw,rule,regulation,ordinance,order,code interpretation,treaty,judgment,decree,directive,guidelines,policyorsimilarformofdecisionofany Governmental

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Authority.

“Guarantee”means,astoanyPerson,anyobligationofsuchpersondirectlyorindirectly guaranteeinganyIndebtednessofanyotherPersoninanymannerprovidingforthepaymentofany IndebtednessofanyotherPersonorotherwiseprotectingtheholderofsuchIndebtednessagainstloss (whetherbyvirtueofpartnershiparrangements,byagreementtokeepwell,topurchaseassets,goods, securitiesorservices,ortakeorpayorotherwise).TheamountofanyGuaranteeofaPersonshallbe deemedtobeanamountequaltothestatedordeterminableaboutoftheprimaryobligationinrespectof whichsuchGuaranteeismadeor,ifnotstatedordeterminable,themaximumreasonablyanticipated liabilityinrespectthereofasdeterminedbysuchPersoningoodfaith.Theterms“Guarantee”and “Guaranteed” usedas verbsshallhave correlative meanings.

“GVS”meansGrandVacationsServicesLLC,aDelawarelimitedliabilitycompanyand itssuccessorsand permitted assigns.

“Hedge Amortization Schedule”meanstheamortizationschedulepreparedfromtimeto timebytheAdministrativeAgentinaccordancewithSection5.03(b)basedon(i)thetimeshareloandata filepreparedbytheServicerforthe Administrative Agentpursuantto Section5.03(b)and (ii) assumptions regardingthepayments,prepaymentsanddefaultsonthePledgedTimeshareLoansdeterminedbythe Administrative Agentin a commerciallyreasonable and industryaccepted manner.

“Hedge Breakage Costs”means,withrespecttoanyHedgeTransaction,anyamount payablebytheBorrowertotherelatedHedgeCounterpartywithrespecttoanyearlyterminationofsuch Hedge Transaction or anyportionthereof.

“Hedge Collateral”meansalloftherightsoftheBorrower,whethernowexistingand hereafteracquired,inandtoallHedgingAgreements,HedgeTransactionsandallpresentandfuture amountspayablebyallHedgeCounterpartiestotheBorrowerunderorinconnectionwithsuchHedging Agreements and HedgeTransactions with such HedgeCounterparties.

“Hedge Counterparty” means anyPerson thathasentered into a Hedge Transaction.

“Hedge Rate”means,onanydateofdetermination,theweightedaveragefixedrateor strikerateundertheHedgingAgreementsonsuchdate,basedonthenotionalamountsofsuchHedging Agreements.

“HedgePurchase Event”has themeaning given tosuchterminSection5.03(a).

“Hedge Receipts”meansallamountsreceivedbytheBorrowerpursuanttoaHedging Agreement.

“Hedge Reserve Account” has the meaning given to such term in Section 2.16(k).

“Hedge  Reserve  AccountBank” means  thefinancialinstitutionat  whichtheHedgeReserve Accountis maintained.

“HedgeReserveAccountRequiredBalance”means,(i)foranyDeterminationDateorBorrowingDate,whentheHedgeReserveOptionhasbeenexercisedandnotrevoked,andaslongasaHedgeTransactionhasnotyetbeenpurchased,thehigheroftwobidsobtainedbytheBorrower(ortheServiceronitsbehalf)frombroker/dealersapprovedbytheAdministrativeAgent(atleastoneofwhichshallbeaLenderoranAffiliatethereof)regardingthepurchasepriceofaHedgeTransactionintheformofaninterestratecapthatsatisfies theHedging Requirementsforanotionalamountequalto100%oftheofthe

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UnhedgedAggregateLoanPrincipalBalanceandbasedontheHedgeAmortizationScheduleand(ii)forall otherdates, $0.

“HedgeReserveAmounts”shallmeantheamountsdepositedintheHedgeReserve Account.

“HedgeReserveOption”shallmeantheBorrower’srevocableelectiontodepositHedgeReserveAmountstofundtheHedgeReserveAccountinlieuofprovidingHedgingAgreementspursuantto Section 5.03(c) hereof.

“HedgeTransaction”meanseachtransactionbetweentheBorrowerandaPersonentered intopursuantto Section 5.03(b)and governed bya HedgingAgreement.

“Hedging Agreement”meanseachagreementbetweentheBorrowerandHedge CounterpartywhichgovernsoneormoreHedgeTransactionsenteredintopursuanttoSection5.03,5.03(b),whichagreementshallbeaninterestratecaporinterestrateswapandshallconsistofa“MasterAgreement” inaformpublishedbytheInternationalSwapsandDerivativesAssociation,Inc.,togetherwitha “Schedule” thereto andeach “Confirmation” thereunderconfirmingthe specific terms ofeach such Hedge Transaction.

“Hedging Period”meanseachperiod(i)commencingonaDistributionDateon which(i) theExcessSpreadPercentageonsuchDistributionDateislessthan6.75%or(ii)theLIBORRateforthe InterestPeriodcommencingonsuchDistributionDateisgreaterthan3.00%,andendingonthenext DistributionDateonwhichtheconditiondescribedinclause(i)or(ii)hereofthatcausedsuchperiodto commencenolongerexists.ExcessSpreadPercentageisgreaterthanorequalto6.75%,(ii)duringtheoccurrenceandcontinuanceofanEventofDefaultand(iii)commencingupontheoccurrenceoftheCommitmentTerminationDate.

“HedgingRequirements” has the meaningsetforthinSection5.03.

“HGVClub”means HiltonGrand VacationsClub,theservicenamegiventothevarietyof exchangeandreservationservicesandvacationandtravelbenefitsofferedbyHiltonGrandVacationsClub, Inc. fromtime to time.

“HGVI”means Hilton Grand Vacations Inc., a Delaware corporation.

“Hilton Entity” hasthe meaningsetforthin Section 5.01(g).

“Holdings” means HiltonWorldwide Holdings Inc., a Delaware corporation.

“Indebtedness”means,foranyPerson:(a)obligationscreated,issuedorincurredbysuch Personforborrowedmoney(whetherbyloan,theissuanceandsaleofdebtsecuritiesorthesaleofproperty toanotherPersonsubjecttoanunderstandingoragreement,contingentorotherwise,torepurchasesuch propertyfromsuchPerson);(b)obligationsofsuchPersontopaythedeferredpurchaseoracquisitionprice ofpropertyorservices,otherthantradeaccountspayable(otherthanforborrowedmoney)arising,and accruedexpensesincurred,intheordinarycourseofbusinesssolongassuchtradeaccountspayableare payablewithin90daysofthedatetherespectivegoodsaredeliveredortherespectiveservicesarerendered; (c)Indebtednessof others securedbyaLienon thePropertyof suchPerson,whetherornottherespective IndebtednesssosecuredhasbeenassumedbysuchPerson;(d)accruedobligationsofsuchPersoninrespect oflettersofcreditorsimilarinstrumentsissuedoracceptedbybanksandotherfinancialinstitutionsfor accountof such Person;(e)CapitalLease Obligations of such Person;(f) obligations ofsuch Person under repurchaseagreementsorlikearrangements;(g)IndebtednessofothersGuaranteedbysuchPerson;and (h)anyotherobligationofsuchPersonevidencedbyanote,bond,debentureorsimilarinstrumentthat would beclassified

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asindebtednesson a balancesheetpreparedinaccordance with GAAP. “Indemnified Amount” hasthe meaningsetforth in Section 8.01.

“Indemnified Party” hasthe meaningsetforth in Section 8.01.

“Indemnified Taxes” means anyand allTaxesimposed on or withrespecttoanypayment made bythe Borrower under anyFacilityDocumentotherthan ExcludedTaxes.

“Independent Director” means, withrespecttoasubjectPerson, anaturalpersonwho has beenapprovedandisservingasamemberoftheboardofdirectorsorothergoverningbodyofsuchPerson and(a)forthefive-yearperiodpriortohisorherappointmentasIndependentDirectorhasnotbeen,and duringthecontinuationofhisorherserviceasIndependentDirectorisnot:(i)adirect,indirectorbeneficial stockholder,employee,director,member,manager,partner,officerorassociateoftheSeller,theBorrower, theServiceroranyoftheirrespectiveAffiliates(otherthanhisorherserviceasanIndependentDirector ofsuchsubjectPerson);(ii)acustomer,supplierorcreditoroftheSeller,theBorrower,theServicerorany oftheirrespectiveAffiliates(otherthanhisorherserviceasanIndependentDirectorofsuchsubject Person);or(iii)anymemberoftheimmediatefamilyofapersondescribedin(i)or(ii),(b)hasprior experienceasanindependentdirectorforacorporation orlimitedliabilitycompanywhose charter documents required the unanimousconsentofallindependentdirectors thereofbefore such corporationor limited liabilitycompanycouldconsenttotheinstitutionofbankruptcy orinsolvency proceedingsagainst itorcould filea petition seekingreliefunderanyapplicable federalor statelawrelatingtobankruptcyand (c)hasatleastthreeyearsofemploymentexperiencewithoneor moreentitiesthatprovide,intheordinary course of their respective businesses, advisory, management or placement services to issuers of securitization or structuredfinanceinstruments, agreements orsecurities.

“Individual Domestic Obligor” means a Domestic Obligor thatisanindividual.

“Initial Borrowing” meansthefirstBorrowingmade pursuanttothis Agreement.

“Initial Cutoff Date”means April30, 2013.

“Initial Transfer Date” means the date on whichthe InitialTransfer occurs.

“Initial Transfer”meansthefirstTransfermadepursuanttotheSaleandContribution Agreement.

“Insurance Proceeds”means(i)proceedsofanyinsurancepolicy,includingproperty insurancepolicies,casualtyinsurancepoliciesandtitleinsurancepoliciesand(ii)anycondemnation proceeds,ineach case whichrelatetotheTimeshareLoansor the Unitsand arepaidorrequiredtobepaid to, andmaybe retained by,the Borrower, anyofits Affiliates or to anyholderof record of anyMortgage.

“Interest”means,foranyLoanandanyInterestPeriod,thesumforeachdayduringsuch InterestPeriod of the following:

IRx PA/CB

where:

IR= the InterestRateforsuch Loan for such day.

PA= the PrincipalAmountofsuch Loan on such day.

CB= (i)inthecase of a Loan,the InterestRate for whichisbasedon the Prime Rate, 365 and(ii)inthecase ofanyotherLoan,360.

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“Interest Coverage Ratio”means,withrespecttoaPerson,theratioasofthelastdayof anyFiscalQuarterof(i)ConsolidatedEBITDAofsuchPersonfortheperiodoffour(4)consecutiveFiscal Quartersendingonorimmediatelypriortosuchdateto(ii)ConsolidatedInterestExpenseofsuchPerson forthe period of four(4)consecutive FiscalQuarters endingon orimmediatelypriorto such date.

“Interest Period”means,foranyDistributionDate,theperiodfromandincludingthe DistributionDateprecedingsuchDistributionDateto,butexcluding,suchDistributionDate(orinthecase oftheinitialInterestPeriod,theperiodfromandincludingtheClosingDateto,butexcluding,the Distribution DateinJune 2013).

“Interest Rate”means,withrespecttoanyLoanonanyday(i)totheextentsuchLoanis fundedor maintained onsuch daybya ConduitLenderthrough theissuance ofCommercialPaper,the CP Rateand(ii)otherwise,theAlternativeRate;provided,thatforbothclause(i)and(ii),thatatalltimes followingtheoccurrenceandduringthecontinuationofanEventofDefault,theInterestRateforeachLoan oneachdayshallbeaninterestrateperannumequalto2.00%plustheInterestRatethenineffectfrom time to time.

“Invested Percentage”means,foraLenderonanyday,thepercentageequivalentof(i)the sumof (a)the portion of the Aggregate Loan PrincipalBalance (if any) funded bysuch Lenderonor prior tosuchday,plus(b)anyportionoftheAggregateLoanPrincipalBalanceacquiredbysuchLenderonor prior to such dayas anassignee fromanotherLender(whether pursuantto an Assignmentand Acceptance orotherwise),minus(c)anyportionoftheAggregateLoanPrincipalBalanceassignedbysuchLenderto anassigneeonorpriortosuchday(whetherpursuanttoanAssignmentandAcceptanceorotherwise), dividedby(ii)theAggregateLoanPrincipalBalanceonsuchday.WithrespecttoaLenderGroup, “InvestedPercentage”shallmeantheforegoingamountcomputedwithrespecttotheportionofthe Aggregate Loan PrincipalBalance fundedand acquired byallthe Lendersin suchLender Group.

“Investment Company Act”means the InvestmentCompany Actof 1940, as amended.

“Investors”meansoneormoreinvestmentfunds,investmentpartnershipsormanaged accountscontrolledormanagedbyTheBlackstoneGroupL.P.oroneofitsAffiliates(otherthanany portfolio operatingcompanies).

“IRS”means the InternalRevenue Service oftheUnited Statesof America.

“Joinder Agreement”meansajoinderagreementsubstantiallyintheformsetforthas ExhibitGhereto pursuant to whicha newLenderGroup becomes partytothis Agreement.

“Law”meansanylaw(includingcommonlaw),constitution,statute,treaty,regulation, rule, ordinance,order,injunction, writ,decree or awardof any GovernmentalAuthority.

“Lender”meansanyConduitLenderorCommittedLender,asapplicable,and“Lenders” means, collectively, the ConduitLendersandthe Committed Lenders.

“Lender Group”meansanyManagingAgentanditsrelatedConduitLenders,ifany,and Committed Lenders.

“Lender Group Limit”means,foranyLenderGroup,theamountsetforthonScheduleII (orintheJoinderAgreementpursuanttowhichsuchLenderGroupbecamepartyhereto)subjectto assignmentpursuanttoSection 10.03, assuchamountmaybereducedin accordancewithSection2.03(a) orincreasedinaccordancewithSection2.03(b),exceptthat,foraNon-ExtendingLenderGroup,theLender Group Limitshallbe reduced to zero onthe CommitmentTermination Date of such LenderGroup.

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“Lender Group Percentage”means,foranyLenderGroup,thepercentageequivalentofa fraction(expressedouttofivedecimalplaces),thenumeratorofwhichistheaggregateoftheCommitments ofallCommittedLendersinsuchLenderGroupandthedenominatorofwhichistheAggregate Commitment.

“Lender Representatives” has the meaningspecifiedinSection 10.12(b).

“Leverage Ratio” means, withrespecttoaPerson,the ratio as ofthe lastdayof anyFiscal Quarterof (i)Indebtedness ofsuchPersonas of suchday to(ii)Consolidated TangibleNetWorthof such Personas of such day.

“LIBO Rate” means (a)with respectto anyLoan funded or maintained bya Lender inthe LenderGroup for which BANAis the ManagingAgent, for anyday, the one-month “Eurodollar Rate” for depositsinDollarsasreportedonReutersScreenLIBOR01Pageorany otherpagethatmayreplacesuch pagefromtimetotimeforthepurposeofdisplayingofferedratesofleadingbanksforLondoninterbank depositsinUnitedStatesdollarstheLIBORScreenRate,asof11:00a.m.(Londontime)onsuchdate,orif suchdayisnotaBusinessDay,thentheimmediatelyprecedingBusinessDay(orifnotsoreported,then asdeterminedbyBANAfromanotherrecognizedsourceforinterbankquotation),ineachcase,changing whenandassuchratechangesor(b)withrespecttoanyLoanfundedormaintainedbyaLenderinany otherLenderGroupforanyInterestPeriod,therateperannumshownonReutersScreenLIBOR01(orany successorpageasthecompositeofferedrateforLondoninterbankdepositsforaone-monthperiod)the LIBORScreenRate,asshownundertheheading“USD”atapproximately11:00a.m.,Londontime,onthe secondBusiness DaybeforethefirstdayofsuchInterestPeriod;provided,that(x)iftheratereferredtoin thisclause(b)isnotavailableatsuchtimeforanyreason,thenthe“LIBORate”shallbedeterminedby referencetosuchothercomparableavailableservicefordisplayingEurodollarratesasmaybereasonably selectedbytheAdministrativeAgent,(y)ifnosuchserviceisavailable,theLIBORateshallbetherateper annumequaltotheaverage(roundedupwardtothenearest1/16thof1%)oftherespectiveratesnotifiedto theAdministrativeAgentbyDeutscheBankAGastherateatwhichDeutscheBankAGBANAoffers depositsinDollarsatorabout10:00a.m.,NewYorkCitytime,twoBusinessDayspriorto thebeginning oftherelatedInterestPeriod,intheinterbankeurocurrencymarketwheretheeurocurrencyandforeign currencyandexchangeoperationsinrespectofitsEurodollarloansarethenbeingconductedfordelivery onthefirstdayofsuchInterestPeriodforthenumberofdayscomprisedthereinandinanamount comparabletotheapplicableamountofAggregateLoanPrincipalBalancetobeaccruinginterestatthe LIBORateduringsuchInterestPeriodand(z)intheeventthattherateappearingonsuchpageorasso determinedbytheAdministrativeAgentshallbelessthanzero,suchrateshallbedeemedtobezeroforthe purposes of this Agreement.

“LIBO Rate Reserve Percentage”means,foranydayonwhichInterestiscomputedby referencetotheLIBORate,thereservepercentageapplicableonsuchdayunderregulationsissuedfrom timeto timebytheBoardofGovernorsof theFederalReserveSystem(or any successor) (orifmorethan onesuchpercentageshallbeapplicable,theaverageofsuchpercentages)fordeterminingthemaximum reserverequirement(includingany emergency,supplementalorothermarginalreserverequirement)with respecttoliabilitiesorassetsconsistingoforincludingEurocurrencyLiabilities(orwithrespecttoany othercategoryofliabilitiesthatincludesdepositsbyreferencetowhichtheinterestrateonEurocurrency Liabilities is determined).The LIBO Rate Reserve Percentageshallbeadjustedautomaticallyonandas of the effective date of anychange in anyreserve percentage..

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“LIBOR Disruption Event”means,withrespecttoanyInterestPeriod,anyofthe following:(a)adeterminationbyany Lenderor any LiquidityProvider thatitwouldbe contraryto lawor tothedirectiveofanycentralbankorothergovernmentalauthority(whetherornothavingtheforceoflaw) toobtaindollarsintheLondoninterbankmarkettomake,fundormaintainLoansduringsuchInterest Period,(b)thefailureofthesourcelistedinthedefinitionof“LIBORate”topublishaLondoninterbank offeredrateasof11:00a.m.onthesecondBusinessDaypriortothefirstdayofsuchInterestPeriod, togetherwiththefailureoftheAdministrativeAgenttofindanothercomparableavailableservice andofDeutscheBankAGtoprovidenoticeofanalternaterate(eachascontemplatedinsuchdefinition),(c)a determinationbyanyLenderorLiquidityProviderthattherateatwhichdepositsofUnitedStatesdollars arebeingofferedintheLondoninterbankmarketdoesnotaccuratelyreflectthecosttosuchPersonof making,fundingormaintainingitsLoansforsuchInterestPeriodor(d)theinabilityofsuchLenderor LiquidityProvider, because ofmarketevents notunder the controlof suchPerson, toobtainUnited States dollarsinthe Londoninterbank marketto make, fund or maintain its Loansforsuch InterestPeriod.

“LIBORScreenRate”meanstheLIBORatequoteontheapplicablescreenpagetheAdministrativeAgentdesignatestodeterminetheLIBORate(orsuchothercommerciallyavailablesourceprovidingsuch quotations as maybe designated bythe Administrative Agentfromtime to time).

“LIBORSuccessor Rate” hasthemeaningspecifiedinSection2.20.

“LIBORSuccessorRateConformingChanges”means,withrespecttoanyproposedLIBORSuccessorRate,anyconformingchangestothedefinitionofInterestRate,InterestPeriod,timingandfrequencyofdeterminingratesandmakingpaymentsofinterestandotheradministrativemattersasmaybeappropriate,inthediscretionoftheAdministrativeAgent,toreflecttheadoptionofsuchLIBORSuccessor Rateandto permit theadministration thereof bythe Administrative Agent in a manner substantiallyconsistentwithmarketpractice(or,iftheAdministrativeAgentdeterminesthatadoptionofanyportionofsuchmarketpracticeisnotadministrativelyfeasibleorthatnomarketpracticefortheadministrationofsuchLIBORSuccessorRateexists,insuchothermannerofadministrationastheAdministrative Agentdetermines in consultation with the Borrower).

“Lien”meansanymortgage,pledge,hypothecation,assignment,depositarrangement, encumbrance,lien(statutoryorotherwise),orpreference,priority,chargeorothersecurityagreementor preferentialarrangementofanykind or nature whatsoeverthatisintended as security.

“Liquidation”means,withrespecttoaPledgedTimeshareLoanthatisaDefaulted TimeshareLoan,theforeclosure,otherenforcementactionorthetakingofadeed-in-lieuofforeclosure and  the recordingofa deedof conveyance withrespectthereto.

“Liquidation Expenses”means,withrespecttoaDefaultedTimeshareLoan,theout-of- pocketexpenses(exclusiveofoverheadexpenses)incurredbytheServicerinconnectionwiththe LiquidationofsuchDefaultedTimeshareLoan,includingtheremarketingfeeandexpensesoftheSeller, any Affiliate of theSellerorof any otherPersonengagedbythe ServicerpursuanttoSection2.2(c)of the ServicingAgreementtoremarketanddisposeoftherelatedTimeshare PropertyInterest,reasonableout-of- pocketfeesofexternallegalcounselandanyforeclosureandotherrepossessionexpensesincurredbythe ServicerwithrespecttosuchDefaultedTimeshareLoanandanyotherfeesandexpensesreasonablyapplied or allocatedintheordinarycourseofbusinesswithrespecttotheLiquidationofsuch DefaultedTimeshare Loan(includinganyassessedtimeshareassociationfees);provided,however,thatineachcase,anyfees andexpensesincludedinthe“LiquidationExpenses”mustbecommerciallyreasonableandincurredin accordance withthe ServicingStandard.

“Liquidation Fee”means,intheeventofanyprepaymentofaLoanowingtoaLender whichdidnotcomplywiththeadvancenoticerequirementssetforthinSection2.05(a),andfortheInterest

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Periodduringwhich suchLoanwasprepaid,theamount, if any,bywhich (i) theadditionalInterestwhich wouldhaveaccruedduringsuchInterestPeriodonthereductionofthePrincipalAmountofsuchLoan duringsuchInterestPeriodhadsuchreductionnotoccurred,exceeds(ii)theincome,ifany,receivedby suchLenderfromtheinvestmentoftheproceedsofsuchreduction.Acertificateastotheamountofany LiquidationFee(includingthecomputationofsuchamount)shallbesubmittedbytheaffectedLenderto the Borrower and shallbe conclusive andbindingfor allpurposes,absentmanifesterror.

“Liquidation Proceeds”meanswithrespecttotheLiquidationofanyDefaultedTimeshare Loan, the amountsactuallyreceived bythe Servicer, ifany, in connection withsuch Liquidation.

“Liquidity Agreement”meansaliquidityloanagreement,assetpurchaseagreementor similaragreemententeredintobyaConduitLenderwithagroupoffinancialinstitutionsinconnectionwith this Agreement.

“Liquidity Provider”meansanyofthefinancialinstitutions fromtimetotimepartytoany LiquidityAgreementwith aConduitLender.

“Loan” meansa loan made to the Borrower pursuanttoArticle II.

“Lockbox”meansanypostofficeboxmaintainedbytheClearingAccountBankforthe purpose ofreceivingpayments onTimeshare Loans, includingCollections.

“Major Credit Card”meansacreditcardissuedbyanyofVISAUSA,Inc.,MasterCard InternationalIncorporated,AmericanExpressCompany,DiscoverBank,JCBInternationalCreditCard Co.,Ltd.orDinersClubInternationalLtd.oranycreditcardaffiliateormemberentityoranyother comparableissuer ofcreditcards.

“Majority Managing Agents”means(i)atanytimepriortotheAmortizationDate, ManagingAgentswhoseLenderGroupLimitstogetherequalorexceed662/3percent(662/3%)ofthe FacilityLimitatsuchtimeor(ii)atanyothertime,ManagingAgentsforLenderGroupswhoseInvested Percentagestogether equalor exceed66 2/3%ofthe Aggregate Loan PrincipalBalance atsuch time.

“Managed Portfolio Default Ratio”means,foranyCollectionPeriod,theratio,expressed asapercentage,computedbydividing(i)theaggregateTimeshareLoanBalancesofallManagedPortfolio TimeshareLoansthatbecameDefaultedTimeshareLoansduringsuchCollectionPeriodby(ii)the aggregateTimeshareLoanBalancesofallManagedPortfolioTimeshareLoansonthelastdayofsuch Collection Period.

“Managed Portfolio Delinquency Ratio”means,foranyCollectionPeriod,theratio, expressedasapercentage,computedbydividing(i)theaggregateTimeshareLoanBalancesofallManaged PortfolioTimeshareLoansthatareOverSixty-DayDelinquentTimeshareLoansonthelastdayofsuch CollectionPeriodby(ii)theaggregateTimeshareLoanBalancesofallManagedPortfolioTimeshareLoans on thelastdayof such Collection Period.

“Managed Portfolio Timeshare Loan”meanseachTimeshareLoanpayableinDollars originated bythe Seller or anySubsidiaryof the Sellerand serviced bythe Servicer on behalf ofthe Seller anditsSubsidiaries.“ManagementStockholders”meansthemembersofmanagementofHGVIoranyof its Subsidiaries who are investorsin HGVI.

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“Managing Agent”means,astoanyConduitLenderorCommittedLender,thePerson listedonScheduleIIasthe“ManagingAgent”forsuchLenders,togetherwithitsrespectivesuccessorsand permitted assigns.

“Material Adverse Effect”means, withrespecttoa Personandanyeventorcircumstance, amaterialadverseeffecton(a)theproperty,businessorfinancialconditionof suchPerson,(b) theability ofsuchPersontoperforminallmaterialrespectsitsobligationsunderanyoftheFacilityDocumentsto whichitisaparty,(c)thevalidityorenforceabilityinallmaterialrespectsofanyoftheFacilityDocuments towhichitisaparty,(d)thematerialrightsandremediesoftheLendersunderanyoftheFacility Documents,(e)theexistenceorperfectionorpriorityofanyLiengrantedbysuchPersonunderanyFacility Documenttowhich it isapartyor(f)thecollectibilityofthePledgedTimeshareLoansgenerallyorofany materialportion of the Pledged Timeshare Loans.

“Maturity Date”meanstheearlierof(a)theDistributionDateoccurringinthetwelfth(12th) monthaftertheoccurrenceoftheAmortizationDateunderclause(i)or(iii)ofthedefinitionthereofand (b) the dateofthedeclaration or automatic occurrenceof the Amortization Date pursuantto Section 7.03.

“Miscellaneous Payments”means,withrespecttothePledgedTimeshareLoans,any amounts received fromor on behalf of therelated Obligors representingassessments, payments relatingto realpropertytaxes,insurancepremiums,maintenance fees andchargesandassociationfeesandany other payments notowed underthe related Obligor Notes.

“Monthly Loan Tape”meansadatatapewhichshallincludesuchinformationwithrespect to the PledgedTimeshare Loans as the Administrative Agentmayreasonablyrequestfromtime totime.

“Monthly Principal Payment Amount”meansonanyDistributionDate(i)priortothe AmortizationDate,theamount,ifany,necessarytoreducetheAggregateLoanPrincipal Balancesuchthat noBorrowingBaseDeficiencyexistsaftergivingeffecttosuchpaymentor(ii)fromandafterthe Amortization Date,the Aggregate Loan PrincipalBalance.

“Monthly Report”meansareport,insubstantiallythe formofExhibitC, furnished bythe Servicer totheBorrower,the Administrative Agent(who shallmake such MonthlyReportavailable tothe Lenders),the PayingAgentand the Backup Servicer pursuantto Section 3.3ofthe ServicingAgreement.

“Moody’s” means Moody’s Investors Service, Inc., and its successors.

“Mortgage”meansthemortgage,deedoftrustorotheractorinstrumentcreatingafirst prioritylienontheTimesharePropertysecuringaTimeshareMortgageLoan,oracopythereofcertifiedby the applicablerecordingoffice.

“MortgageLoan”meansaloanfinancingthepurchaseofaTimesharePropertysecuredbya Mortgage on suchTimeshare Property.

“Multiemployer Plan”meansamultiemployerplandefinedassuchinSection3(37)of ERISAtowhichcontributionshavebeenorarerequiredtobemadebyBorrowerortowhichtheBorrower has any liability(includingon behalfof an ERISA Affiliate) andthatis covered byTitle IVof ERISA.

“Non-Extending Lender” meanseach Lender thatisnotan ExtendingLender.

“Non-Extending Lender Group”meanseachLenderGroupastowhichatleastonemember is a Non-ExtendingLender.

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“Notice of Exclusive Control” has the meaningspecified in Section2.16.

“Notice of Purchase”meansafullyexecutedNoticeofPurchaseintheformofExhibitF to the CustodyAgreement.

“Obligor”meansaPersonobligatedtomakepaymentsunderaTimeshareLoan,including anyguarantorthereof.

“Obligor Information” has the meaningspecifiedin Section 10.12(c).

“Obligor Note”meansanexecutedpromissorynoteorotherinstrumentofindebtedness evidencingtheindebtednessofanObligorundera TimeshareLoan,togetherwithanyrider,addendumor amendmentthereto.

“OFAC” means the U.S. DepartmentoftheTreasury’s Office of Foreign AssetsControl.

“Officer’s Certificate”meansacertificateexecutedbyaServicingOfficer,certifyingthe accuracyoftheinformationspecifiedtherein.

“Official Body”meansany GovernmentalAuthorityorany accountingboard or authority (whetherornotpartofagovernment)whichisresponsiblefortheestablishmentorinterpretationofnational or internationalaccountingprinciples, ineach case whether foreign or domestic.

“Opinion of Counsel”meansawrittenopinionofexternalcounsel,ineachcase,reasonably acceptabletotheaddressees thereof.

“Original Borrowing Date”has the meaningspecified in Section2.02(e).

“Other Fees”meansamountsowedbytheBorrowerhereunderpursuanttoSections2.09, 2.10, 2.11,2.12, 8.01 and10.10.

“Over Sixty-Day Delinquent Timeshare Loan”meansaTimeshareLoanwhichisnota DefaultedTimeshareLoanandastowhich,onthelastdayofanyCollectionPeriod,anypaymentthendue andpayablehasremainedunpaidformorethansixty(60)daysfromtheoriginalduedateforsuchpayment.

“PAC”meansanarrangementwherebyanObligormakespaymentsunderaPledged Timeshare Loan via pre-authorized debit.

“Parent”means,(a)priortotheSpin-OffEffectiveDate,Holdingsand(b)onorafterthe Spin-Off Effective Date, HGVI.

“Participant”hasthemeaningspecified in Section10.03(f).

“Participant Register” has the meaningspecifiedin Section 10.03(f).

“Paying Agent”meansWellsFargooranyotherPersonacceptabletotheMajority ManagingAgents.

“Paying Agent Fee”means,foranyCollection Period,thepayingagentfeesassetforthin theWells Fargo Fee Letter.

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“PBGC”meansthePensionBenefitGuarantyCorporation or anyentitysucceedingtoany or allof itsfunctions underERISA.

“Performance Guaranty”meansthatcertainPerformanceGuarantydatedasoftheClosing Date, bythe Performance Guarantorinfavor of the Administrative Agent.

“Performance Guarantor”means the Seller.

“Permitted Holders”meanseachof(x)theInvestorsand(y)theManagementStockholders.

“Permitted Investments” means:

(a)       directobligationsof,orguaranteedastothefullandtimelypaymentofprincipal andinterestby,theUnitedStatesorobligationsofanyagencyorinstrumentalitythereof,ifsuch obligations are backed bythe fullfaithand creditofthe United States;

(b)       federalfunds,certificatesofdeposit,timedeposits,bankers’acceptances(which shalleach havean originalmaturityof notmorethan ninety(90) daysand, in the case of bankers’ acceptances,shallinnoeventhaveanoriginalmaturityofmorethan365days)ordemanddeposits ofanyUnitedStatesdepositoryinstitutionortrustcompanyorganizedunderthelawsoftheUnited Statesoranystateandsubjecttosupervisionandexaminationbyfederalandorstatebanking authorities;provided,thattheshort-termobligationsofsuchdepositoryinstitutionortrustcompany areratedinoneofthetwohighestavailableratingcategoriesbytheRatingAgenciesonthedate of acquisitionthereof;

(c)       commercialpaper(havingoriginalmaturitiesofnotmorethanthirty(30)days)of anycorporationincorporatedunderthelawsoftheUnitedStatesoranystatethereofwhichisrated A-1 or better byS&P and P-1 byMoody’s on the dateof acquisitionthereof;

(d)       securitiesofmoneymarketfundsratedAAorbetterbyS&PandAaorbetterby Moody’s onthedate of acquisitionthereof;or

(e)       repurchaseobligationssecuredbyaninvestmentdescribedinclause(a)abovewith amarketvaluegreaterthantherepurchaseobligation,providedthatsuchsecurityisheldbyathird partycustodianwhichhasaratingforitsshort-term,unsecureddebtorcommercialpaper(other thansuchobligationstheratingofwhichisbasedonthecreditofaPersonotherthansuch custodian) of P-1 byMoody’s and atleastA-1 byS&P on the date of acquisitionthereof.

EachofthePermittedInvestmentsmaybepurchased bythePayingAgentorthroughanAffiliate of the PayingAgent.

“Permitted Liens”meansanyofthefollowing:(a)Liensfortaxesandassessments(i) whicharenotyetdueandpayableor(ii)thevalidityofwhicharebeingcontestedingoodfaithby appropriateproceedingsandwithrespecttowhichtheSellerismaintainingadequatereservesinaccordance withGAAP;(b)Liens infavoroftheAdministrativeAgentorany SecuredParty, includingany Liquidity Providers(butonlyinconnectionwiththisAgreement);(c)anyotherLienscreatedpursuanttoanyFacility Document;and(d)inrespectofanyTimeshare Property, (i)the LienofaMortgage, (ii)the lienofcurrent realpropertytaxes,maintenancefees,groundrents,watercharges,sewerrentsandassessmentsnotyetdue andpayable,(iiiii)covenants,conditionsandrestrictions,rightsofway,easementsandothermattersof public record, none ofwhich,individuallyor intheaggregate,materiallyinterferes withthecurrentuse of suchTimesharePropertyorthesecurityintendedtobeprovidedbytherelatedMortgageorwiththerelated Obligor’sabilitytopayhisorherobligationswhentheybecomedueormateriallyandadverselyaffects thevalueofsuchTimesharePropertyand(iiiiv)theexceptions(generalandspecific)setforthintherelated titleinsurancepolicy,

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noneofwhich,individuallyorintheaggregate,materiallyinterfereswiththesecurity intendedtobeprovidedbysuchMortgageorwithsuchObligor’sabilitytopayhisorherobligationswhen theybecome due or materiallyand adverselyaffects the value of suchTimeshareProperty.

“Permitted Release”means,withrespecttoaPledgedTimeshareLoan,areleaseofsuch PledgedTimeshare Loan fromthe Lien of this Agreementas contemplated bySection 2.15.

“Person”meansanindividual,partnership,corporation(includingabusinesstrust),joint stockcompany,limitedliabilitycompany,trust,unincorporatedassociation,jointventure,Governmental Authorityor other entity.

“Plan”meansanemployeebenefitorotherplanestablishedormaintainedbytheBorrower towhichBorrowerhasanyliability(includingonbehalfofanERISAAffiliate)andthatiscoveredbyTitle IVof ERISA, otherthanaMultiemployerPlan.

“Pledged Timeshare Loan”means,onanydate,eachTimeshareLoanownedbythe Borroweronsuchdate, whetherornotsuchTimeshareLoanisanEligibleTimeshareLoan,andexcluding anyTimeshare Loan released fromthe Lien ofthis Agreementpursuanttotheterms hereof.

“Points”meanspointsorasimilarformofcurrency,theredemptionofwhichentitlestheholder thereoftoreserve the useand occupancy of aresidentialaccommodation ata Resort.

“Points Based Timeshare Interest” means a Right-to-Use Interest (including a clubmembership)thatis denominatedin Points.

“Predecessor Servicer Work Product”hasthemeaninggivensuchterminSection5.1(g) of the ServicingAgreement.

“Prime Rate”means,foranyday,afluctuatingrateofinterestperannumequaltothe higherof:(i)afluctuatingrateof interestperannumequaltothe“PrimeRate”mostrecentlypublishedin theWallStreetJournalanddescribedas“thebaserateoncorporateloanspostedbyatleast75%ofthe nation’s30largestbanks”,and(ii)0.50%abovetherateperannumatwhichDeutscheBankAG,New YorkBranch,asabranchofaforeignbankBANA,initsreasonablediscretion,canacquirefederalfunds intheinterbankovernightfederalfundsmarket,throughbrokersofrecognizedstandingorotherwise,as mostrecentlydeterminedbyDeutsche BankAG, New YorkBranchBANA.

“Principal Amount”means,withrespecttoanyLoan,theoriginalprincipalamountofsuch Loan,assuchprincipalamountmaybereducedfromtimetotimeby(i)paymentsmadeinaccordancewith Section2.05and(ii)CollectionsreceivedbytheapplicableLenderholdingsuchLoanfromdistributions madepursuanttoSection2.06thathavebeenappliedtoreducethePrincipalAmountofsuchLoan; provided, thatifsuchPrincipalAmountshallhavebeenreduced byany distributionand thereafterallora portionofsuchdistributionisrescindedormustotherwisebereturnedforanyreason,suchPrincipal Amountshallbeincreasedbytheamountofsuchrescindedorreturneddistribution,asthoughithadnot beenreceived bysuch Lender.

“Pro Rata Share”means,atany timeforany CommittedLenderinany LenderGroup,(a) theCommitmentofsuchCommittedLenderatsuchtime,dividedbythesumoftheCommitmentsofall CommittedLendersinsuchLenderGroupatsuchtimeand(b)aftertheCommitmentsofalltheCommitted LendersinsuchLenderGrouphavebeenterminated,thePrincipalAmountoftheLoansfundedor maintained bysuchCommitted Lenderatsuchtime, divided bythe PrincipalAmountofthe Loansfunded or maintainedbyallthe Committed Lendersin such Lender Groupatsuchtime.

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“Processing Fees”means anyamountsdueunderanObligor Note inrespectofprocessing fees,servicefees orlatefees.

“Product Information” has the meaningspecifiedin Section 10.12(a).

“Purchase Contract” meansthepurchase contractpursuantto whichan Obligor purchased a Timeshare PropertyInterest.

“Purchase Price” has the meaningsetforth inSection2.2(a)of theSaleandContribution Agreement.

“Qualified Institution”means any depositoryinstitution or trustcompanyorganized under thelaws ofthe United States oranyState (oranydomestic branchofa foreign bank), (i)(a)thathas orthe parentofwhichhas,either(1)along-termunsecureddebtratingof“A”orhigherbyS&Pand“A2”or higherbyMoody’s,or(2)ashort-termunsecureddebtratingofnotlessthan“A-1”byS&Pandnotless than“P-1”byMoody’sor(b)isotherwiseacceptabletotheAdministrativeAgentand(ii)whosedeposits areinsuredbythe Federal DepositInsurance Corporation.

“Qualified Substitute Timeshare Loan”means,withrespecttoanyTimeshareLoantobe includedasaTransferredTimeshareLoaninconnectionwithasubstitutionpursuanttoSection2.7(b)or (c)oftheSaleandContributionAgreement,aTimeshareLoanthatwasanEligibleTimeshareLoanasof thelastdayofthe Collection PeriodimmediatelyprecedingtherelatedTransferDate.

“Rating Agency”meansanynationallyrecognizedstatisticalratingorganizationandany successor thereto.

“Rating Request”means a writtenrequestbyan Affected Partyor Lendertothe Borrower andtheServicer,statingthatsuchAffectedPartyorLenderintendstorequestthataRatingAgencyissuea public ratingto thetransactionscontemplatedbythisAgreement.

“Reasonably Request”meansa requestforinformationoractions thatis reasonablymade bytherequestingpartyandthatcanreasonablybeprovidedorperformedbythefurnishingpartywithout significanteffortorexpense;provided,thatintheeventthatthefurnishingpartybelievesthattherequested informationoractionscannotbeprovidedorperformedwithoutsignificanteffortorexpense,thefurnishing partyandtherequestingpartyshallconferingoodfaithtoagreeuponappropriateconsiderationforthe furnishingpartyto providesuchinformation or performsuch actions.

“Records”means,withrespecttoaTimeshareLoan,allagreements,documents, instruments,books,recordsandotherinformation, other thantheTimeshareLoanFilewithrespecttosuch TimeshareLoan,includingallaccountingrecords,creditfiles,electronicdataandothercomputermaterials, tapes,discsandpunchcardswithrespecttosuchTimeshareLoan,therelatedObligorortheRelated Securitywith respectthereto.

“Refinancing”meansanySecuritizationorotherfinancingbytheBorroweroranyAffiliate oftheBorrowerthatissecured,directlyorindirectly,by,orinvolving,alloraportionoftheCollateral transferred bytheBorrowerin connection with such financingtransaction.

“Refinancing Date” meansthe dateupon whicha Refinancingis consummated.

“Refinancing Date Certificate”meanseitheracertificate,substantiallyintheformattached asAnnex1-AtoExhibitIhereto,deliveredbyaResponsibleOfficeroftheBorroweronaRefinancing DateindicatingthattherequirementssetforthinthisAgreementforaRefinancinghavebeensatisfiedora

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certificate,substantiallyin theformattached asAnnex 1-BtoExhibitIhereto,deliveredbyaResponsible OfficeroftheServiceronaRefinancingDateindicatingthattherequirementssetforthinthisAgreement for aRefinancinghave been satisfied.

“Refinancing Release” means arelease executedpursuantto Section2.14,substantiallyin theformof ExhibitIhereto.

“Register” hasthe meaningspecifiedin Section 10.03(d).

“Related Security”means,withrespecttoaTimeshareLoan,(i)allpropertyandassets (whetherrealorpersonalandwhethertangibleorintangible)fromtimetotimesecuringorpurportingto securesuchTimeshareLoan,whetherpursuanttotherelatedPurchaseContract,therelatedMortgageorRight-to-UseAgreementorotherwise,(ii)Liensonanypropertydescribedintheprecedingclause(i), togetherwithallUCCfinancingstatements,Mortgagesandanyotherfilingscoveringanycollateral securingpaymentofsuchTimeshareLoan,(iii)allguaranties,prepaymentpenalties,indemnities, warranties,lettersofcredit,insuranceproceedsandpremiumrefundsthereofandotheragreementsor arrangementsofwhatevercharacterfromtimetotimesupportingorsecuringpaymentofsuchTimeshare Loan,(iv)thePurchaseContract,theTimeshareLoanFileandanyotheragreements,documentsand instrumentsrelatingtosuchTimeshareLoan,(v)anyTimesharePropertyInterestrepossessedbythe ServiceronbehalfoftheBorrowerpursuanttotheServicingAgreement,(vi)allRecordsand(vii)all proceeds oftheforegoing.

“Remaining Percentage”means,withrespecttoanyRefinancingDate,thepercentage equivalentofafraction,the numeratorofwhichis the AggregateTimeshareLoan BalancesofallEligible TimeshareLoansonsuchRefinancingDate,aftergivingeffecttothereleaseofallPledgedTimeshare LoansinconnectionwiththeRefinancingonsuchRefinancingDate,andthedenominatorofwhichisthe AggregateTimeshareLoanBalanceofallEligibleTimeshareLoansonsuchRefinancingDate,before givingeffecttothereleaseof Pledged Timeshare Loans in connection with such Refinancing.

“Reportable Event” has themeaningsetforthin Section 4043 of ERISA.

“Repurchase Price”means,withrespecttoaTransferredTimeshareLoantobe repurchased bythe Seller on anydate pursuantto Section 2.7 of the Sale and Contribution Agreement, the Timeshare Loan Balance ofsuchTransferredTimeshare Loan as ofthe ApplicableMeasurementDate.

“Request for Release of Documents (Administrative Agent)”meansarequestforrelease, appropriatelycompleted, substantiallyin the formof ExhibitBto the CustodyAgreement.

“Request for Release of Documents (Servicer)”meansarequestfor release, appropriately completed,substantiallyintheformof ExhibitAtotheCustodyAgreement.

“Required Data”meansongoinginformationregardingthecharacteristicsandperformance oftheTimeshareLoansandpoolandvintageoriginationdata withrespecttotimeshare loansoriginatedor servicedbytheSelleranditsAffiliatesrequiredtobeprovidedbytheBorrowerortheServicertothe AdministrativeAgentattherequestoftheAdministrativeAgentoranyManagingAgentinconnectionwith anyLender’s or Affected Party’sregulatorycapitalrequirements.

“Required Non-Delayed Funding Amount”means,withrespecttoaDesignatedDelay FundingLenderandanOriginalBorrowingDate,anamountequaltotheexcess,ifany,of(a)anamount equalto20%ofsuchDesignatedDelayFundingLender’sCommitmentasofsuchOriginalBorrowing Dateover(b)thesum,withrespecttosuchDesignatedDelayFundingLender,ofallDesignatedDelayed Funding Amounts funded bysuch Designated DelayFundingLender on the OriginalBorrowingDatesfor suchDesignatedDelayedFundingAmountsduringthe35daysprecedingsuchOriginalBorrowingDate andwithrespecttowhichtherelatedDelayedFundingDatesshallnothaveoccurredonorpriortosuch Original

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BorrowingDate.

“Required Rate”means,onanydateofdetermination,theHedgeRatethatwouldcause the Excess Spread Percentage to be equalto 6.50%onsuch date.

“Requisite Office” means, for anyTimeshare Loan, theoffice wheretherelated Mortgage would berequiredto berecorded.

“Resort” meansanyof theresortslisted on ScheduleVto this Agreement.

“Resort Association”meansanyoftheresortassociationslistedonScheduleVtothis Agreement.

“ResortAssociationInstruments”means,withrespecttoanyResortAssociation,the“Declaration”,“ArticlesofIncorporation”,“By-Laws”,“TrustAgreements”,“Regulations”,“RegisterofMembers” andanyotherdocument or instrumentwhichdefinesorgovernstheResort Association.

“Responsible Officer”means, as to anyPerson, thechiefexecutive officerorpresidentor, withrespecttofinancialmatters,thechieffinancialofficer,thechiefaccountingofficer,thetreasurerorthe controllerofsuchPerson,oranyvicepresident,assistantvicepresident,secretary,assistantsecretary,or anyotherofficerthereofcustomarilyperformingfunctionssimilartothoseperformedbytheindividuals whoatthetimeshallbesuchofficerswhoisineachcaseauthorizedorresponsiblefortakingactionon behalfofsuchPersoninconnectionwiththetransactionscontemplatedbytheFacilityDocuments; provided,thatintheeventanysuchofficerisunavailableatanytimeheorsheisrequiredtotakeanyaction hereunder,ResponsibleOfficermeansanyofficerauthorizedtoactonsuchofficer’sbehalfasdemonstrated bya certifiedresolution.

“Restricted Junior Payment”means,withrespecttoanyPerson,(i)anydividendorother distributionofanynature(cash,securities,assets,Indebtednessorotherwise)andanypayment,byvirtue of redemption,retirementorotherwise,onanyclassofEquityInterestsor subordinateIndebtedness issued bysuchPerson,whethersuchEquityInterestsarenowormayhereafterbeauthorizedoroutstandingand anydistributioninrespectofanyoftheforegoing,whetherdirectlyorindirectly,(ii)anyredemption, retirement,sinkingfundorsimilarpayment,purchaseorotheracquisitionforvalue,directorindirect,of anyEquitySecuritiesorsubordinateIndebtednessof suchPersonnoworhereafteroutstanding,or (iii)any paymentof managementor similarfees bysuchPerson.

“Retained Interest” means amaterialneteconomic interestof notlessthan the percentage thereofrequiredundertheRetentionRequirementsEUSecuritizationRulesasmeasuredattherelevanttime againsttheaggregate Timeshare Loan BalancesofallPledgedTimeshare Loans.

“Retention Requirements”meanseachof:(a)Article405oftheCRR,togetherwith(i)the CommissionDelegatedRegulation(EU)625/2014of13March2014andanyregulatorytechnical standards,implementingtechnicalstandardsorrelateddocumentspublishedbytheEuropeanBanking Authority,EuropeanCentralBank(oranyothersuccessororreplacementagencyorauthority)andany delegatedregulationsoftheEuropeanCommission;and(ii)totheextentinformingtheinterpretationof Article405oftheCRR,theguidelinesandrelateddocumentspreviouslypublishedinrelationtothe precedingEuropeanUnionriskretentionlegislationbytheEuropeanBankingAuthority(and/orits predecessor,theCommitteeofEuropeanBankingSupervisors);and(b)inrelationtotheforegoing,any implementinglawsorregulationsinforceinanyMemberStateoftheEuropeanUnion.Right-to-UseAgreement”shallmeanwithrespecttoaRight-to-UseLoan,collectively(A)thevariousinstruments,includingaResort’sarticles ofassociation,aResort’stimeshareplan,aResort’s disclosurestatementusedinsellingUnits,anysharepurchaseagreementwithanObligorassociatedwithsuchRight-to-UseLoan,thatamongotherthings:(i)inconsiderationofthepaymentofapurchaseprice,includingpaymentoftherelatedObligorNote,grants

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andconveystotheObligorshares intherelatedResortAssociation,whichinturngrantstheObligorthelicenseorright-to-useandoccupyoneormoreUnitsinaResort,(ii)imposescertainobligationsontheObligorregardingpaymentoftherelatedObligorNote,theObligor’suseoroccupancyofoneormoreUnitsandthepaymentofamaintenancefeetothemanagementcompany,and(iii)grantstheholderthereofcertainrights,includingtherightstopaymentoftherelatedObligorNote,and,inthecircumstancesprovidedtherein,toforecloseontherelatedRight-to-UseInterest,toreacquireanysharesoftheResort’sassociation,andthereaftertoreselltheRight-to-UseInteresttoanotherPerson,(B) the related Vacation Interest, and (C) the relatedPurchase Contract.

“Right-to-UseInterest”meansatimeshareinterest,otherthanatimesharefeesimpleinterestinrealestate,regardingoneormoreUnitsinoneormoreResorts,howeverdenominatedordefinedintheapplicableRight-to-UseAgreementorotherrelevantdocumentorinstrumentpursuanttowhichsuchtimeshareinterest iscreated,togetherwithallrights,benefits,privilegesandinterestsappurtenantthereto,includingtheright touseandoccupyoneormore Unitswithin oneormoreResortsandthecommonareasandcommonfurnishingsappurtenanttosuchUnitorUnitsforaspecifiedperiodoftime,onanannualor abiennialbasis,asmorespecificallydescribedintherelatedRight-to-UseAgreement.ARight-to-UseInterestshallincludeanyPoints BasedTimeshare Interest.

“Right-to-UseLoan”shallmeanaTimeshareLoanthatissecuredbyaRight-to-Use Interest.

“S&P”meansS&PGlobalRatings,aStandard&Poor’sFinancialServicesLLCbusiness, and itssuccessors.

“Sale and Contribution Agreement”meansthatcertainSaleandContributionAgreement datedas ofthe ClosingDate, byand betweenthe Seller andthe Borrower.

“Sanctioned Country”meansacountrysubjecttoasanctionsprogramidentifiedonthelist maintained byOFACandavailable athttp://www.treas.gov/offices/enforcement/ofac/programs, oras otherwise publishedfromtime to time.

“Sanctioned Person”means(i) aPerson namedonthe listofSpecially Designated NationalsorBlockedPersonsmaintainedbyOFACavailableat http://www.treas.gov/offices/enforcement/ofac/sdn,orasotherwisepublishedfromtimetotime,or(ii)(a) anagencyofthegovernmentofaSanctionedCountry,(b)anorganizationcontrolledbyaSanctioned Countryor(c)aPersonresidentinaSanctionedCountry,totheextentsubjecttoasanctionsprogram administered byOFAC.

“Secured Parties”means,collectively,theLenders,eachManagingAgent,the AdministrativeAgent,theCustodian,theBackupServicer,eachHedgeCounterparty,thePayingAgent and each other IndemnifiedParty.

“Securities Intermediary” has the meaningsetforthinSection 2.16(b).

“Securitization”meansanyassetsecuritization,securedloanorsimilarfinancing transactionundertakenbytheBorroweroraSpecialPurposeAffiliatethatissecured,directlyorindirectly, by,orinvolving,alloraportionoftheCollateraltransferredbyBorrowerinconnectionwithsuchfinancing transaction.

“SecuritizedPortfolio”shall mean, as ofanydate,all timeshare loans(i) originatedbytheServiceroranAffiliatethereof,(ii)financedbyanyspecialpurposeentityand(iii)whichareservicedbytheServicer(includingthetimeshareloansinalltermissuances,allwarehousefacilitiesandothertermsecuritizationfacilities thatare outstandingas of such date).

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“SecuritizedPortfolioDefaultLevel”shallmean,foranyCollectionPeriod,thequotient(expressedasapercentage)of(i)(A)thesumoftheTimeshareLoanBalancesofallTimeshareLoansintheSecuritizedPortfoliothatbecameDefaultedTimeshareLoansduringsuchCollectionPeriod(otherthanDefaultedTimeshareLoansforwhichtherelatedsellerhasexerciseditsoption,ifany,torepurchaseorsubstitutepursuanttotherelatedtransactiondocuments)minus(B)anyremarketingproceedsreceivedduringsuchCollectionPeriodinrespectof anyDefaultedTimeshareLoansfor whichtherelatedsellerdidnot exercise itsoptiontorepurchaseorsubstitute,dividedby(ii)theaggregateTimeshareLoanBalanceofallTimeshare Loans intheSecuritized Portfolio onthelast dayofsuch CollectionPeriod.

“SecuritizedPortfolioDelinquencyLevel”shallmean,foranyCollectionPeriod,thequotient(expressedasapercentage)ofthesumofallTimeshareLoanBalancesofallTimeshareLoans(exclusiveofTimeshareLoansthatbecameDefaultedTimeshareLoansonorbeforethelastdayofsuch Collection Period)includedinthe Securitized Portfoliothat are 61 days or more delinquent onthelastdayof such Collection Period dividedbytheaggregate Timeshare Loan Balance of allTimeshare Loans intheSecuritized Portfolio onthelast dayofsuch CollectionPeriod.

“SecuritizedPortfolioThreeMonthRollingAverageDefaultPercentage”shallmeanforanyDistributionDate,theaverageoftheSecuritizedPortfolioDefaultLevelsfortheimmediatelyprecedingthree Collection Periods.

“Securitized PortfolioThreeMonthRollingAverageDelinquencyPercentage”shallmeanfor anyDistributionDate,theaverageoftheSecuritizedPortfolioDelinquencyLevelsfortheimmediatelyprecedingthreeCollectionPeriods.

“Seller”means HiltonResortsCorporation,a Delawarecorporationand its successorsand permitted assigns.

“Seller Affiliated Manager”meansanywholly-ownedSubsidiaryoftheSellerthat manages a Resortor Resort Association.

“Seller Credit Agreement”meanstherevolvingcreditagreemententeredintobya SubsidiaryofHGVIandasyndicateoflenders,includingoneor moreCommittedLenders,andguaranteed byHGVIand/ortheSeller,inconnectionwiththeSpin-OffTransaction,pursuanttowhichthelenders partytheretocommittomakerevolvingloanstosuchSubsidiary,asineffectonthedateonwhichsuch revolvingcreditagreementfirstbecomeseffectiveandwithoutgivingeffecttoanyamendment, restatement, supplementorother modificationtheretoor anyreplacementthereofaftersuch date.

“Seller Credit Agreement Effective Date”meansthedateonwhichtheSellerCredit Agreementbecomes effective in accordance withits terms.

“Seller Financial Covenants”meansthe requirement thattheSellermaintain,asofthelast dayof each FiscalQuarter:

(a)       prior to the Spin-Off Effective Date, at any time that the Seller is not providing a Guarantee of all or any portion of the Indebtedness of Holdings or its Subsidiaries, a Leverage Ratio not to exceed 5.0 to 1.00;

(b)       an Interest Coverage Ratio of at least 3.0 to 1.00; and

(c)       ConsolidatedTangible NetWorth of atleast$400,000,000;

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provided,howeverthat,onandaftertheSellerCreditAgreementEffectiveDate,theSellerFinancial Covenantsshall meantherequirementthattheSellercomply,asofthelastdayofeachFiscalQuarter,with eachfinancial maintenancecovenantcontainedintheSellerCreditAgreementthatisexpressedintermsof(i)aminimumormaximumamountinorderivedfromHGVI’sortheSeller’sfinancialstatements,(ii)a minimumormaximumratiobetweenanysuchamountsdescribedinclause(i)aboveor(iii)anyother financialorfinancerelatedtestasthesamemayrelatetotheassets,liabilities,revenueorexpensesofHGVI and/or the Seller.

“Servicer”means,atanytime,thePersonthenauthorizedpursuanttotheServicing Agreementin such capacity.  As ofthe date hereof, GVS isthe Servicer.

“Servicer Termination Event”hasthemeaningsetforthinSection6.1oftheServicing Agreement.

“Servicing Agreement”meansthatcertainServicingAgreement,datedasoftheClosing Date, amongthe Borrower,the Servicer, the Backup Servicerandthe Administrative Agent.

“Servicing Fee”meansafeewithrespecttoeachCollectionPeriod,payableinarrearson theDistributionDateimmediatelyfollowingtheendofsuchCollectionPeriodfortheaccountofthe Servicer,inanamountequaltotheproductof(i)theaggregateTimeshareLoanBalanceofthePledged TimeshareLoansasofthelastdayofsuchCollectionPeriod,(ii)one-twelfthand(iii)theapplicable ServicingFee Rate.

“Servicing Fee Rate”means(i)atalltimesthatGVSistheServicer,1.00%or(ii)atany othertime,thepercentageagreedtobytheapplicablesuccessorServicer,theBorrowerandthe Administrative Agent.

“Servicing Officer”meansthoseofficersoftheServicerinvolvedin,orresponsiblefor,the administration and servicingof the Pledged TimeshareLoans, as identified on thelistof servicingofficers furnished bytheServicer tothe Administrative Agent,theBackup Servicerandthe Borrowerfromtime to time.

“Servicing Standard”hasthemeaningset forthin Section2.1ofthe ServicingAgreement.

“Servicing Transfer”hasthemeaningspecifiedinSection6.1oftheServicingAgreement.

“Servicing Transfer Date”thedateservicingwilltransfertotheBackupServicer,which shallbeadatenomorethanforty-five(45)calendardaysafterthedateaTerminationNoticeisdelivered in accordance with the terms ofthe ServicingAgreement.

“Special Purpose Affiliate”meansanyentitythatisaSubsidiaryoftheSeller,thatwas createdforthepurposeofoneor moreSecuritizations,thepurposesofwhicharelimitedtoacquisitionand ownershipoftimeshareloansandrelatedactivitiesandthatisintendedtobetreatedasaseparateand distinctentityfromthe Seller.

“Specified Documents”means,withrespecttoanyTimeshareLoanFile,eachdocument listedinthe definition of “Timeshare Loan File”.

“Spin-Off  Effective  Date” means the date on which the Spin-Off Transaction is consummated.

“Spin-Off Transaction”means,collectively,thetransactionswhichuponconsummation thereof willresultin(a)HGVIholding,directlyorindirectly,allorsubstantiallyallofHoldings’timeshare

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business,(b)theSellerbeingawholly-ownedSubsidiaryofHGVIand(c)thestockholdersofHoldings holdingalloftheshares ofcommon stockof HGVI.

“Subsidiary”means,withrespecttoanyPerson,anycorporation,partnershiporotherentity ofwhichatleastamajorityofthesecuritiesorotherownershipinterestshavingbythetermsthereof ordinaryvotingpowertoelectamajorityoftheboardofdirectorsorotherpersonsperformingsimilar functionsofsuchcorporation,partnershiporotherentity(irrespectiveofwhetherornotatthetime securitiesorotherownershipinterestsofanyotherclassorclassesofsuchcorporation,partnershiporother entityshallhave ormighthave votingpowerbyreasonofthe happeningofanycontingency)is atthe time directlyorindirectlyownedorcontrolled bysuch Person oroneormore Subsidiaries of such Person or by such Personand one or more Subsidiaries of such Person.

“Substitution Shortfall Amount”means,foranyPledgedTimeshareLoanbeingsubstituted forbyaQualifiedSubstituteTimeshareLoanbeingtransferredtotheBorrowerbytheSellerinaccordance withSection2.7(b)orSection2.7(c)oftheSaleandContributionAgreement,anamountequaltotheexcess of(i) the Timeshare Loan BalanceofsuchPledgedTimeshareLoan over(ii)the TimeshareLoanBalance ofsuchQualifiedSubstituteTimeshareLoan,ineachcase,ontherelatedTransferDate;provided,however, that,ifoneormorePledgedTimeshareLoansarebeingsubstitutedforoneormoreQualifiedSubstitute TimeshareLoansbeingtransferredtotheBorrowerbytheSellerpursuanttoSection2.7oftheSaleand ContributionAgreementonaSubstitutionDate,theSubstitutionShortfallAmountforsuchTimeshare Loansshallbetheamount,ifany,bywhich(i)theaggregateTimeshareLoanBalancesofsuchPledged Timeshare Loans exceeds(ii) the aggregateTimeshare Loan Balances of such Qualified Substitute TimeshareLoans,ineachcase,asofthelastdayoftheCollectionPeriodimmediatelyprecedingsuch Substitution Date.

“Successor  Servicer” has the meaning set forth in Section 5.1(e) of the Servicing Agreement.

“Taxes”meansallpresentorfuturetaxes,levies,imposts,duties,deductions,withholdings (includingbackupwithholding),assessments,feesorotherchargesimposedbyanyGovernmental Authority, includinganyinterest, additions totaxor penalties applicablethereto.

“Termination Notice”hasthemeaningsetforthinSection6.1oftheServicingAgreement.

“Timeshare Loan”meansaloanfinancingthepurchaseofaTimesharePropertysecured byaMortgageonsuchTimeshareProperty.Interest”meansaTimesharePropertyoraRight-to-UseInterest,andTimeshareInterestor “TimeshareInterests,”whenusedin theFacilityDocuments,means, asapplicable,anyTimeshareInterestthatissubjecttoaTimeshareLoan,orallTimesharePropertiesandRight-to-UseIntereststhataresubjecttotheTimeshareLoans,listedonTimeshareLoanSchedule,asthesamemaybe amended fromtime to time.

“TimeshareLoan”meansaMortgageLoanoraRight-to-UseLoanfinancingthepurchaseof aTimeshare Interest.

“Timeshare Loan Assets”means,collectively,(i)thePledgedTimeshareLoans,(ii)all Related Securitywith respectto the PledgedTimeshare Loans, (iii) allCollections and (iv) allproceeds of theforegoing.

“Timeshare Loan Balance”means,withrespecttoaTimeshareLoanasofanydateof determination,theoutstandingprincipalbalanceofsuchTimeshareLoanontheApplicableMeasurement Date.

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“Timeshare Loan File” means with respectto eachTimeshare Loan andeach Obligor:

(a)       anoriginalObligorNoteexecutedbysuchObligor(oranoriginallostnote affidavitandindemnityfromtheSeller),endorsedintheform“Paytotheorderof, withoutrecourse”(eitherdirectlyontheObligorNote oronan allongethereto),byanAuthorized Officerofthe Seller;

(b)        if such Timeshare Loan is a Mortgage Loan,(i) an original Mortgage (or a copy thereof) with evidence that such Mortgage has been recorded in the appropriate recording office or (ii) until the original Mortgage has been returned by such recording office, a photocopy of an unrecorded Mortgage that has been delivered to such recording office, and the delivery of such photocopy of an unrecorded Mortgage to the Custodian by the Seller shall be deemed to be a certification by the Seller that such photocopy is a true and correct copy of the original Mortgage;

(c)       ifsuchTimeshareLoanisaMortgageLoan,anoriginallender’stitleinsurance policy ormasterpolicy (or acopy thereof)referencingsuch TimeshareLoan,whenavailable, and ifacopy,thedeliverythereofto theCustodianbytheSellershallbedeemedtobeacertification bytheSellerthatsuchcopyisatrueandcorrectcopyofsuchlender’stitleinsurancepolicyor masterpolicy;and

(d)       anoriginaloracopyofeachmodificationagreement,ifany,whichrelatestothe Obligor Noteor,theMortgage,ortheRight-to-Use Agreement,as applicable, withrespecttosuch TimeshareLoan,and ifa copy, thedeliverythereoftothe Custodian bytheSellershallbe deemed tobeacertificationbytheSellerthatsuchcopyisatrueandcorrectcopyofsuchmodification agreement;

(e)       ifsuchTimeshareLoanisaRight-toUseLoan,theoriginalrelatedRight-to-UseAgreementandanyrelatedpledgeandsecurityagreements(orcopiesthereof),andifcopies,thedeliverythereoftotheCustodianbytheSellershallbedeemedtobeacertificationbytheSellerthatsuchcopiesaretrueandcorrectcopiesofsuchRight-to-UseAgreementandrelatedpledgeandsecurityagreements,provided,however,thateachTimeshareLoanFileshallnotincludeanydocumentsattachedtoordeliveredtoanObligorwithaRight-to-UseAgreementthatarenotsignedbythe partiesto the Right-to-Use Agreement(such asarticles of association, a timeshare plan andapublicdisclosurestatement)ifcopiesofsuchdocumentshavebeendeliveredtotheCustodianbytheSeller,andsuchdeliverytotheCustodianshallbedeemedtobeacertificationbytheSellerthat such copiesare trueand completecopies of such documents;and

(f)       ifsuchTimeshareLoanisaRight-to-UseLoan,acopyoftherelatedVacationInterestrepresentingthe membership in the related timeshare association oftherelated Resort.

“Timeshare Loan Servicing Files”means,withrespecttoeachTimeshareLoanandeach ObligoracopyoftheTimeshareLoanFilesandallotherpapersandcomputerizedrecordscustomarily maintainedbytheServicerinservicingtimeshareloanscomparabletotheTimeshareLoans.“TimeshareProperty”means(i)inthecaseofaResortlocatedintheStateofNewYork,arealpropertyinterestina UnitatsuchResortor(ii)inthecaseofanyotherResort,afeesimpleinterestinrealestateregardinga Unit,ineachcase,howeverdenominatedordefinedintheapplicablecondominiumortimesharedeclaration pursuanttowhichsuchinterestiscreated,togetherwithallrights,benefits,privilegesandinterests appurtenantthereto,includingthecommonareasandcommonfurnishingsappurtenanttosuchUnitandthe rights grantedtothe Borrower(as assignee)which securetherelatedTimeshare Loan.

“Timeshare Loan Schedule”meansScheduleItotheSaleandContributionAgreementand anylistofTimeshareLoansattachedtoan Assignmentin electronicformat, as amendedfromtime totime to

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reflectrepurchasesandsubstitutionspursuanttothetermsoftheSaleandContributionAgreementand theServicingAgreement,whichlistshallsetforththefollowinginformationwithrespecttoeachTimeshare Loan asoftherelated Cutoff Date,in numberedcolumns:

• Loan/ContractNumber

• Name ofObligor

• InterestRate PerAnnum

• ContractDate

• OriginalLoan Balance

• OriginalTerm(in months)

• MortgageLoanorRight-to-UseLoan

“Timeshare Loan Upgrade”hasthemeaningspecifiedinSection2.7(c)(i)oftheSaleand ContributionAgreement.

“TimeshareProperty”means(i)inthecaseofaResortlocatedintheStateofNewYork,arealpropertyinterestina UnitatsuchResortor(ii)inthecaseofanyotherResort,afeesimpleinterestinrealestateregardingaUnit,ineachcase,howeverdenominatedordefinedintheapplicablecondominiumortimesharedeclarationpursuanttowhichsuchinterestiscreated,togetherwithallrights,benefits,privilegesandinterestsappurtenantthereto,includingthecommonareasandcommonfurnishingsappurtenanttosuchUnitandtherightsgrantedtotheBorrower(asassignee)whichsecuretherelatedTimeshare Loan.

“Transaction” has the meaningspecifiedin Section 10.12.

“Transaction Parties” means, collectively, the Borrower, the Seller,the Performance Guarantor,and,so longas itis GVS oran Affiliate of GVS, the Servicer.

“Transfer”meansapurchaseofEligibleTimeshareLoansbytheBorrowerfromtheSeller pursuanttoSection2.1oftheSale andContributionAgreement,includinga transferofEligibleTimeshare LoansbytheSellertotheBorrowerasacapitalcontributionoratransferofQualifiedSubstituteTimeshare Loan.

“Transfer Date”means,fortheInitialTransfer,theInitialTransferDate,andforany additionalTransfer,the Business Dayon whichsuchTransferoccurs.

“Transferred Property” means, collectively,theTransferredTimeshareLoans,theRelated Securityand Collections with respectthereto andallproceeds oftheforegoing.

“Transferred Timeshare Loan”meansanyTimeshareLoantransferredorpurportedtobe transferred bytheSeller tothe Borrower pursuanttothe Sale and Contribution Agreement.

“Transition Expenses”meansanydocumentedexpensesandallocatedcostofpersonnel reasonablyincurred bytheBackup Servicer inconnection with a ServicingTransfer.

“UCC”meanstheUniformCommercialCodeasfromtimetotimeineffectinthe applicablejurisdiction.

“UnhedgedAggregateLoanPrincipalBalance”means,foranydateofdetermination,anamountequaltothegreaterof(a)$0and(b)(i)theAggregateLoanPrincipalBalanceminus(ii)thenotionalamount of the HedgingAgreements divided by100%.

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“Unidentified Receipts Account”meanstheaccountmaintainedbyServicerforthe purposeofcollectinganddepositingallpaymentsreceivedfromObligorstherelatedTimeshareLoanfor which cannotbe determined bythe ClearingAccountBankupon receipt.

“Unit” means a residentialunitor dwellingata Resort.

“Unmatured Servicer Termination Event”meansanyeventwhich,withthegivingofnotice or lapseoftime orboth,would constitutea ServicerTermination Event.

“USAP” hasthe meaningsetforth inSection 3.5 of the ServicingAgreement.

“Unused Fees” hasthe meaningsetforthinthe Fee Letter.

“Used Fee Rate” hasthe meaningsetforth in the FeeLetter.

“VacationInterest”shallmeanthevacationcertificateorstockcertificateissuedbyandevidencingmembershipina homeowner’sassociationofaResortpursuanttowhichtheownerthereof hasa license or right-to-use oneor more Unitsat a Resort.

“Volcker Rule”meansSection13oftheU.S.BankHoldingCompanyActof1956,as amended,andtheregulationsthereunder(12C.F.R.Part248),asissuedbytheBoardofGovernorsofthe FederalReserve System.

“Voting Interests” means, withrespecttoanyPerson,outstandingEquityInterests in such Personwhichentitletheholderthereoftovoteintheelectionofmembersoftheboardofdirectors,board of managers orother similar governingbodyof such Person.

“Wells Fargo”meansWellsFargoBank,NationalAssociation,anationalbanking association, and its successors and assigns.

“Wells Fargo Fee Letter”meansthatcertainscheduleoffeesdatedApril16,2013, executedbythe Borrower in favor of Wells Fargo.

“Write-Down and Conversion Powers”means,withrespecttoany EEAResolution Authority,thewrite-downandconversionpowersofsuchEEAResolutionAuthorityfromtimetotime undertheBail-InLegislationfortheapplicableEEAMemberCountry,whichwrite-downandconversion powersaredescribedintheEUBail-In Legislation Schedule.

SECTION1.02. Other Terms and Constructions.Underthis Agreement, allaccountingterms not specificallydefinedhereinshallbeconstruedinaccordancewithGAAP,andallaccountingdeterminations madeandallfinancialstatementspreparedhereundershallbemadeandpreparedinaccordancewith GAAP.AlltermsusedinArticle9oftheUCCintheStateofNewYork,andnotspecificallydefined herein,areusedhereinasdefinedinsuchArticle9.Thewords“herein,”“hereof,”and“hereunder”and otherwordsofsimilarimportrefertothisAgreementasawhole,includingtheexhibitsandschedules hereto,asthesamemayfromtimetotimebeamendedorsupplementedandnottoanyparticularsection, subsection,orclausecontainedinthisAgreement,andallreferencestoSections,ExhibitsandSchedules shallmean,unlessthecontextclearlyindicatesotherwise,theSectionshereofandtheExhibitsand Schedulesattachedhereto,thetermsofwhichExhibitsandSchedulesareherebyincorporatedintothis Agreement.ThecaptionsandsectionnumbersappearinginthisAgreementareinsertedonlyasamatter ofconvenienceanddonotdefine,limit,construeordescribethescopeorintentoftheprovisionsofthis Agreement.Eachof thedefinitions setforth inSection1.01hereofshallbeequallyapplicabletoboththe singularandpluralformsofthedefinedterms.Unlessspecificallystatedotherwise,allreferencesherein toanystatute,rule,regulationoranyagreement,documentorinstrumentshall,ineachcase, beareference tothesameasamended,restated,supplementedorotherwisemodifiedfromtimetotime.Theterm “including” means “includingwithoutlimitation.”

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SECTION1.03. Computation of Time Periods. Unless otherwise statedin thisAgreement, inthe computationofaperiodoftimefromaspecifieddatetoalaterspecifieddate,theword“from”means“from and including” andthe words “to” and “until”each means “to butexcluding.”

SECTION1.04. Acknowledgement and Consent to Bail-In of EEA Financial Institutions. NotwithstandinganythingtothecontraryinanyFacilityDocumentorinanyotheragreement,arrangement orunderstandingamonganysuchparties,eachpartyheretoacknowledgesthatanyliabilityofanyEEA FinancialInstitution arisingunderanyFacilityDocument,to the extentsuchliabilityis unsecured, maybe subjecttothe write-downandconversionpowersof anEEAResolutionAuthorityandagrees andconsents to, andacknowledgesand agrees tobe bound by:

(a)       theapplicationofanyWrite-DownandConversionPowersbyanEEAResolution Authoritytoanysuchliabilitiesarisinghereunder whichmaybepayable toitbyanypartyheretothatisan EEAFinancialInstitution;and

(b)       the effects of anyBail-in Action on anysuch liability, including, if applicable;

(i)a reductioninfullorin partor cancellation of anysuchliability;

(ii)aconversionofall,oraportionof,suchliabilityintosharesorother instrumentsofownershipinsuchEEAFinancialInstitution,itsparentundertaking,orabridge institutionthatmaybeissuedtoitorotherwiseconferredonit,andthatsuchsharesorother instrumentsofownershipwillbeacceptedbyitinlieuofanyrightswithrespecttoanysuchliability underthis AgreementoranyotherFacilityDocument;or

(iii)thevariationofthetermsofsuchliabilityinconnectionwiththeexercise of the write-down and conversion powersof anyEEA Resolution Authority.

ARTICLEII

AMOUNTS ANDTERMS OF THE LOANS

SECTION2.01.The Loans.

(a)       Onthetermsandsubjecttotheconditionshereof,fromtimetotimeduringthe periodcommencingontheClosingDateandendingatthecloseofbusinessontheBusinessDay immediatelyprecedingtheAmortizationDate,eachConduitLendermayinitssolediscretion,andeach CommittedLendershall,iftheConduitLenderinitsrelatedLenderGroupelectsnotto(orifthereisno ConduitLenderinitsrelatedLenderGroup),makeLoanstotheBorrowerinanamount,foreachLender Group,equaltoitsLenderGroup Percentage ofthe amountrequestedbytheBorrowerpursuanttoSection 2.02;provided,thatnoLendershallmakeanysuchLoanorportionthereoftothe extentthat,aftergiving effecttosuch Loan:

(i)theaggregateoutstandingPrincipalAmountoftheLoansfundedbysuch LenderhereundershallexceeditsConduitLendingLimit(inthecaseofaConduitLender)or Commitment(inthecase ofa Committed Lender);

(ii)theAggregate Loan PrincipalBalanceshallexceedthelesserofthe FacilityLimitandthe BorrowingBase;or

(iii)thesumof(A)theaggregateFaceAmountofCommercialPaperissued bytheConduitLender(s)insuchLenderGrouptofundormaintaintheLoanshereunderand(B) theaggregateoutstandingPrincipalAmountoftheLoans fundedhereunderbytheLendersinsuch LenderGroupotherthanthroughtheissuanceofCommercialPaper,shallexceedtheLenderGroup Limitforsuch LenderGroup.

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IfthereismorethanoneCommittedLenderinaLenderGroup,eachsuchCommittedLendershalllendits ProRataShareofsuchLenderGroup’sLenderGroupPercentageofeachrequestedLoan,totheextent suchLoanisnotmadebytherelatedConduitLender.EachBorrowingshallbeinaminimumprincipal amountequalto$1,000,000andinintegralmultiplesof$100,000inexcessthereof.Subjecttothe foregoingandtothelimitationssetforthinSection2.05,theBorrowermayborrow,prepayandreborrow the Loans hereunder.

(b)       EachBorrowingshallconsistofLoansmadeonthesamedaybyeachoftheLender GroupsratablyaccordingtotheirrespectiveLenderGroupPercentages.NoLendershallfundany portion ofanyLoanwiththe“planassets”ofany“benefitplaninvestor”withinthemeaningofSection3(42)of ERISA.

(c)       EachLender(oritsrelatedManagingAgent)shallmaintainanaccountoraccounts evidencingtheindebtednessoftheBorrowertosuchLenderresultingfromeachLoanmadebysuchLender fromtimetotime,includingtheoutstandingprincipalbalanceofsuchLoansandtheamountofInterest payableandpaidtosuchLenderfromtimetotimehereunder.Theentriesmadeinsuchaccountsofthe Lendersshallbeprimafacieevidenceoftheexistenceandamountsoftheobligationsrecordedtherein; provided,however,thatthefailureofanyLendertomaintainsuchaccountsoranyerrorthereinshallnot inanymanner affecttheobligationoftheBorrowertorepaytheLoansinaccordancewiththetermsofthis Agreement.

(d)       OntheAmortizationDate,theCommitmentsoftheCommittedLenderswill terminateautomaticallywithoutanyactionrequiredonthepartofanyPerson.TheAggregateLoan PrincipalBalance,togetherwithallotherBorrowerObligations,shallmatureandbedueandpayablein fullincash ontheMaturityDate.

SECTION2.02.  Borrowing Procedures.

(a)       Borrowing Requests.

(i)TheBorrowermayrequestaBorrowinghereunderbysubmittingtothe Administrative Agent(witha copyto each of the PayingAgent, the Servicer,the Backup Servicer andtheCustodian)awrittennotice,substantiallyintheformofExhibitB(each,a“BorrowingRequest”)notlaterthan10:00a.m.(NewYorkCitytime)onthesecond(2nd)BusinessDayprior tothedateoftheproposedBorrowing(each,a“BorrowingDate”);provided,thatthereshallnot bemorethanone(1)BorrowingDateduringanycalendarweek(exceptassetforthinSection 2.02(e)followingdeliveryofaFundingDelayNotice).Promptlyafteritsreceiptthereof,the AdministrativeAgentshallsubmitacopyofeachBorrowingRequesttoeachManagingAgent who shallpromptlyforward a copythereofto the Lendersinits LenderGroup.

(ii)EachBorrowingRequestshall:(A)specify(1)theamountoftherequested BorrowingwhichamountshallbeallocatedamongtheLenderGroupsbasedontherespective ConduitLendingLimitsoftheConduitLenders(orCommitments,iftherearenoConduitLenders inaLenderGroup)ineachLenderGroup,(2)theAggregateLoanPrincipalBalanceaftergiving effecttosuchBorrowing,(3)thedesiredBorrowingDate,and(4)theaccountoftheBorrowerto whichtheproceedsofsuchBorrowingare to be remitted, (B) certify that,aftergivingeffecttothe proposedBorrowing,noBorrowingBaseDeficiencywouldexistand(C)ifanyEligibleTimeshare LoansarebeingaddedtotheCollateralinconnectionwithsuchBorrowing,beaccompaniedbya dulycompletedScheduleItosuchBorrowingRequestwhichsetsforththerequiredinformation regardingsuch EligibleTimeshare Loans.

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(b)Conduit Lender Acceptance or Rejection.IfaConduitLendershallreceivea BorrowingRequest,suchConduitLendershallinstructtherelatedManagingAgenttoacceptorrejectsuch requestbynolaterthanthecloseofbusinessontheBusiness DayoftheapplicableBorrowingRequest.If aConduitLenderrejectsaBorrowingRequest,therelatedManagingAgentshallpromptlynotifythe BorrowerandtherelatedCommittedLendersofsuchrejection.IfaConduitLenderdeclinestofundany portionofaBorrowingRequest,theBorrowermaycancelandrescindsuchBorrowingRequestinits entiretyuponnoticethereofreceivedbytheAdministrativeAgentandeachManagingAgentpriortothe close of business ontheBusinessDayimmediatelypriortotheproposed BorrowingDate.Atnotime will aConduitLenderbeobligatedtomakeLoanshereunderregardlessofanynoticegivenornotgivenpursuant to this Section.

(c)       Committed Lender’s Commitment.

(i)IfaConduitLenderrejectsaBorrowingRequestandtheBorrowerhasnot cancelledsuchBorrowingRequestinaccordancewithclause(b)above,orifthereisnoConduit LenderinaLenderGroup,anyLoanrequestedbytheBorrowerinsuchBorrowingRequest(except assetforthinSection2.02(e)followingdeliveryof aFundingDelay Notice) shallbemadebythe relatedCommittedLendersinsuchLenderGrouponaproratabasisinaccordancewiththeir respective Pro Rata Sharesof such Loan.

(ii)TheobligationsofanyCommittedLendertomakeLoanshereunderare severalfromtheobligationsofanyotherCommittedLenders(whetherornotinthesameLender Group).ThefailureofanyCommittedLendertomakeLoanshereundershallnotreleasethe obligationsofanyotherCommittedLender(whetherornotinthesameLenderGroup)tomake Loanshereunder,butnoCommittedLendershallberesponsibleforthefailureofanyother Committed Lenderto makeanyLoan hereunder.

(iii)Notwithstandinganythinghereintothecontrary,aCommittedLender shallnotbeobligatedtofundanyLoanatanytimeonoraftertheAmortizationDate(exceptasset forthinSection2.02(e)followingdeliveryofaFundingDelayNotice)orif,aftergivingeffectto suchLoan,theaggregateoutstandingLoansfundedbysuchCommittedLenderhereunderwould exceed an amountequalto(i)suchCommitted Lender’s Commitment, minus (ii)such Committed Lender’sratableshareoftheaggregateoutstandingprincipalbalanceoftheLoansheldbythe ConduitLender(s)insuchCommitted Lender’s Lender Group.

(d)       Disbursement of Funds.OneachBorrowingDate,subjecttothesatisfactionof theconditionsprecedentspecifiedinthisAgreement(exceptassetforthinSection2.02(e)following deliveryofaFunding Delay Notice),eachapplicableLendershallremititsshare oftheaggregateamount oftheLoansrequestedbytheBorrowerto theaccountofits relatedManagingAgentspecifiedtherefor to such Lender by1:30p.m. (New YorkCitytime)bywiretransferof same dayfunds. Uponreceiptof such funds,eachManagingAgentshallremitsuchfundsbywiretransferofsamedayfundstotheaccountof theBorrowerspecified intherelatedBorrowing Requestby3:00p.m.(NewYork Citytime)totheextent ithasreceivedsuchfundsfromtheLendersinitsLenderGroupnolaterthan1:30p.m.(NewYorkCity time).

(e)       Funding Delay Option.

(i)AnyCommittedLendershallhavetherighttodelivertotheBorrowera writtenrepresentationandwarranty(a“DelayedFundingRepresentation”)totheeffectthat(x)it hasincurredandisincurringchargesrelatingtothe“liquiditycoverageratio”underBaselIII RegulationsonsuchCommittedLender’sLoansorCommitmentand(y)itisseekingorhas obtained adelayedfundingoptionin transactions similarto the transactionscontemplatedhereby. AfterdeliveryofaDelayedFundingRepresentationtotheBorrower,aCommittedLendershallbe a “Designated DelayFundingLender.”

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(ii)ADesignatedDelayFundingLendermay,aftertheBorrowerdeliversa Borrowing Requestrequestingaproposed BorrowingpursuanttoSection 2.02(a)(i),prior to (x) if suchBorrowingRequestisdeliveredmorethantwoBusinessDayspriortotheproposedBorrowing Date,5:00p.m.(NewYorkCitytime)onthesecondBusinessDaypriortotheproposedBorrowing Date,or(y)ifsuchBorrowingRequestisdeliveredonthesecondBusinessDaypriortothe proposedBorrowingDate,(A)5:00p.m.(NewYorkCitytime)onthe samedayastheBorrower’s deliveryofsuchBorrowingRequest,ifsuchBorrowingRequestisdeliveredbytheAdministrative AgenttotheManagingAgentspriorto2:00p.m.(NewYorkCitytime)onsuchdayor(B) otherwise10:00a.m.(NewYorkCitytime)ontheBusinessDayfollowingtheBorrower’sdelivery ofsuchBorrowingRequest,delivertotheBorrowerandtheAdministrativeAgentanotice(a “FundingDelayNotice”)designatingalloraportionofitsProRataShareoftheLoanrequestedin suchBorrowingRequestasbeingsubjecttodelayedfunding(suchamount,the“DesignatedDelayedFundingAmount”)and,ifsuchDesignatedDelayedFundingAmountisgreaterthanthe RequiredNon-DelayedFundingAmountwithrespecttosuchDesignatedDelayFundingLender andtheproposedBorrowingDate,specifyingtheportionthereof,whichmaynotbegreaterthan theamountbywhichsuchDesignatedDelayedFundingAmountexceedssuchRequiredNon- DelayedFundingAmount(the“DelayedFundingAmount”),thatitiselectingtofundonadate (thedateofsuchfunding,the“DelayedFundingDate”)thatisonorbeforethethirty-fifth(35th) dayfollowingtheproposedBorrowingDate(the“OriginalBorrowingDate”)(orifsuchdayisnot a Business Day, then onthenextsucceedingBusiness Day) ratherthanon the OriginalBorrowing Date.BydeliveryofaFundingDelayNotice,aDesignatedDelayFundingLendershallbedeemed torepresentandwarrantthatthecertificationspreviouslyprovidedtotheBorrowerbysuch DesignatedDelayFundingLenderaretrueasofthedateofthedeliveryofsuchFundingDelay Notice.

(iii)IfaDesignatedDelayFundingLendertimelydeliversaFundingDelay Notice withrespectto a Delayed FundingAmount, theCommitted Lendershallnotbe required to fund,ontheOriginalBorrowingDatetherefor,suchDelayedFundingAmount,butshallbe requiredtoadvancetotheBorrowertheDelayedFundingAmountonorbeforetheDelayed FundingDateinaccordancewithSection2.02(e)(iv).SuchDesignatedDelayFundingLendershall providetheBorrowerwithatleastthreeBusinessDays’priorwrittennoticeoftheBusinessDay onwhichitwillfundsuchDelayedFundingAmount.TheBorrowermay(x)cancelandrescind theBorrowingRequestinitsentiretyupondeliveryofsuchFundingDelayNoticebydelivering noticethereoftotheAdministrativeAgentpriortothecloseofbusinessontheBusinessDay immediatelypriortotheOriginalBorrowingDateor(y)reducetheamountofadditionalLoans and/oradditional TimeshareLoanstobeaddedtotheBorrowingBaseontheOriginalBorrowing DatebydeliveringtotheAdministrativeAgentonorpriortotheOriginalBorrowingDatean updatedBorrowingRequest,andtheactualfundingoftheNon-DelayedFundingAmountshall take place onthe Business Dayfollowingthe deliveryof such updated BorrowingRequest.

(iv)EachDesignatedDelayFundingLenderagreesbydeliveringaFunding DelayNoticespecifyingaDelayedFundingAmountthat,notwithstandinganystatementtothe contraryinSection2.01,if theconditions to any BorrowingdescribedinSections 3.02(a) through 3.02(d)aresatisfiedontheOriginalBorrowingDateinrespectofsuchDelayedFundingAmount andtheconditionsdescribedinSection3.03inrespectofsuchDelayedFundingAmountare satisfied ontherelatedDelayedFundingDate, there shallbe no otherconditions whatsoeverto its obligationtofundsuchDelayedFundingAmountontherelatedDelayedFundingDateirrespective ofwhethertheAmortizationDateshallhaveoccurredpriortosuchDelayedFundingDate.Ifthe BorrowerisrequiredtoaddadditionalTimeshareLoanstotheBorrowingBaseontherelated DelayedFundingDateinordertosatisfysuchconditions,itshalldelivertotheAdministrative AgentanupdatedBorrowingRequestatleastoneBusinessDaypriortosuchDelayedFunding

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Date.ADesignated DelayFunding Lender(or theConduitLenderinitsLender Group) fundinga DelayedFundingAmountonaDelayedFundingDateshallremitsuchDelayedFundingAmount totheaccountofitsManagingAgentspecifiedtherefortosuchLenderby1:30p.m.(NewYork Citytime)bywire transferofsameday funds.Upon receiptof suchfunds, suchManagingAgent shallremitsuch fundsbywire transfer ofsame dayfunds tothe accountof the Borrowerspecified intherelatedBorrowingRequestby3:00p.m.(NewYorkCitytime)totheextentithasreceived suchfundsfromsuchDesignatedDelayFundingLender(ortheConduitLenderinitsLender Group) no later than 1:30 p.m. (New YorkCitytime).

(v)Fortheavoidanceofdoubt,aDelayedFundingAmountwhenextended shallbeaLoanforallpurposesofthisAgreement.AsbetweentheConduitLenderandthe CommittedLender,theConduitLenderreservestherightinitssolediscretiontofundanyLoanon any OriginalBorrowingDate or any Delayed FundingDate.

SECTION2.03. Reductions and Increases to the Facility Limit.Reductions of the Facility Limit. TheBorrowermay,fromtimetotimeuponatleastten(10)days’priorwrittennoticetoeachManaging Agent(withacopytothePayingAgent),electtoreducetheFacilityLimitinwholeorinpart,provided thataftergivingeffecttoanysuchreductionandanyprincipalpaymentsonsuchdate,theAggregateLoan PrincipalBalanceshallnotexceedtheFacilityLimit.Anysuchreductionshallbe inaminimumamount of$5,000,000and inintegralmultiplesof$1,000,000inexcessthereof;andprovidedfurtherthatanysuch reductionshalleffectaratablereductionoftheCommitmentsofeachCommittedLenderandofeachLender Group’sLenderGroupLimit.OncetheFacilityLimitisreducedpursuanttothisSection2.03(a)itmay notsubsequentlybe reinstated withoutthe consentof each Committed Lender.

(b)       IncreasestotheFacilityLimit.TheBorrowermay,fromtimetotimeuponatleast thirty(30)days(orsuchlessernumberofdaysagreedtobytheManagingAgents)priorwrittennotice requestanincreasetotheFacilityLimit.Eachsuchnoticeshallspecify(i)theproposeddate suchincrease shallbecomeeffectiveand(ii)theproposedamountofsuchincrease(whichamountshallbeatleast $25,000,000oranintegralmultipleof$5,000,000inexcessthereof),andshallotherwisebeinformand substancesatisfactorytotheManagingAgents.SuchincreasetotheFacilityLimitshallbecomeeffective, if,andonlyif,(x)the Administrative AgentandtheManagingAgent(onbehalfoftheCommittedLenders intherelatedLenderGroup)ofeachLenderGroupwhoseLenderGroupLimitisbeingincreasedhas approvedsuchincrease,bydeliveringawrittenconfirmationofsuchapprovaltotheAdministrativeAgents, theManagingAgentsandtheBorrower(withacopytothePayingAgent)or(y)totheextentthatthe CommittedLendersinoneormoreLenderGroupshave,intheirsolediscretion,agreedtoincreasethe FacilityLimitinanamountwhichislessthantheBorrower’srequestedincreasetotheFacilityLimit,the BorrowershallreduceitsrequestedincreasetotheFacilityLimittoanamountequaltosuchloweramount. NothingcontainedhereinshallconstituteacommitmentonthepartofanyCommittedLenderhereunderto agree toanysuchincrease.

SECTION2.04.Interest and Unused Fees.

(a)       The Borrower shallpay Intereston the unpaid PrincipalAmountof each Loan for eachInterestPeriodduringtheperiodfromtherelatedBorrowingDateuntilthedatethatsuchLoanshall bepaidinfull.InterestshallaccrueontheLoansfundedormaintainedbyeachLenderattheapplicable InterestRate oneach day duringeachInterestPeriodandshallbedueandpayable ontheAggregateLoan PrincipalBalancefortheprecedingInterestPeriodoneachDistributionDateandontheFinalCollection DateinaccordancewithSection2.06,unlessearlierpaidpursuanttoSection2.05orSection2.14.If applicable,eachManagingAgentshalldelivertotheBorrower,two(2)BusinessDayspriortoeach DeterminationDateaninvoice,settingforth(i)anestimateoftheInterestpayabletotherelatedConduit LendersbasedontheCPRateforeachdayduringtheInterestPeriodtowhichsuchDeterminationDate relatesand(ii)theamountofanyvariationbetweenInterestpayabletosuchConduitLendersforthe precedingInterestPeriodbasedonsuchnoticesandestimatesandaccruedbutunpaidInterestpayableto such ConduitLendersfor such

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InterestPeriod based on its finaldetermination ofthe CP Rateforeachday duringsuchInterestPeriod.TheamountofanyshortfallinInterestbasedonsuchvariationshallbe includedintheportionoftheInterestpayabletosuchConduitLenderson thenextsucceedingDistribution Date,andtheamountofanyoverpaymentofinteresttosuchConduitLendersbasedonsuchvariationshall becreditedagainsttheportionoftheInterestotherwisepayabletosuchConduitLendersonthenext succeedingDistribution Date.

(b)       TheBorrowershallpaytoeachManagingAgenttheUnusedFeeintheamounts setforthin the Fee Letter on the dates setforththerein.

(c)       AllpaymentsofInterestforeachInterestPeriodshallbemadeoutofAvailable Collectionsinaccordance with Section 2.06(b).

SECTION2.05. Principal Payments.(a)-Generally.TheAggregateLoanPrincipalBalanceshall bepayableininstallmentsequaltotheMonthlyPrincipalPaymentAmountoneachDistributionDate,to theextentofavailablefundstherefor,inaccordancewithSection2.06.Notwithstandingtheforegoing,the Aggregate Loan PrincipalBalance shallbedue and payable on theMaturityDate.

(a)       Optional Prepayments.TheBorrowermay,atitsoption,prepayonanyBusiness DayalloranyportionofanyLoanuponpriorwrittennoticedeliveredtoeachManagingAgent(witha copytothePayingAgent)notlaterthan12:00p.m.(NewYorkCitytime)three (3)Business Daysprior to the dateof such payment. Each such notice shallbeintheformattachedas ExhibitHand shallspecify(i) theaggregateamountoftheprepaymenttobemadeontheLoansand(ii)theBusinessDayonwhichthe Borrowerwillmakesuchprepayment.Eachsuchprepaymentshallbeinaminimumprincipalamount equalto$1,000,000andinintegralmultiplesof$100,000inexcessthereofandshallbemaderatablyamong theLendersbasedontheaggregatePrincipalAmountoftheLoansheldbyeach.Eachsuchprepaymentof theLoanstotheLendersinsuchManagingAgent’sLenderGroupmustbeaccompaniedbyapaymentof allaccruedandunpaidInterestontheamountprepaid,allLiquidationFeeswithrespecttosuchprepayment andallHedgeBreakageCostsandanyotheramountspayablebytheBorrowerunderorwithrespecttoany HedgingAgreementarisingfromanyrelated releaseofPledgedTimeshareLoanspursuanttoSection2.15 inconnection with suchprepayment. Anynotice of a prepaymentshallbeirrevocable.Anysuch prepaymentshallbe madeoutof Collections bytransferbythe PayingAgentof funds fromthe Collection Accounttothe Lendersat the written direction of theBorrower oroutof other funds oftheBorrower.

(b)       Mandatory  Prepayments. IfaBorrowingBaseDeficiencyexistsonany DistributionDate,theBorrowershallnolaterthanthecloseofbusinessonthethirdBusinessDayfollowing suchDistributionDate,prepaytheAggregateLoanPrincipalBalanceinpartorinwhole,suchthatafter givingeffecttosuchprepaymenttheAggregateLoanPrincipalBalancedoesnotexceedtheBorrowing Base.

SECTION2.06.  Application of Collections.

(a)       SubjecttoSection2.16,fundsondepositintheCollectionAccountfromtimeto timemaybeinvestedinPermittedInvestmentsatthedirectionoftheBorrower.EachsuchPermitted InvestmentshallmaturenotlaterthantheBusinessDayprecedingthenextDistributionDateandshallbe held to maturity. Each investmentinstruction bythe Borrower, which maybe a standinginstruction, shall designatespecifictypesofPermittedInvestments(andthetermsthereof)andshallcertifythatsuch investmentsconstitutePermittedInvestmentsthatwillmatureatthetimespecifiedinthepreceding sentence.AbsentthewritteninstructionoftheBorrower,thefundsondepositintheCollectionAccount shallremainuninvested.NoneoftheAdministrativeAgent,thePayingAgentorSecuritiesIntermediary shallbe liableforanyloss incurredinconnectionwithaninvestmentintheCollectionAccount,exceptfor lossesduetosuchPerson’sfailuretomakepaymentsonsuchPermittedInvestmentsissuedbysuchPerson initscommercialcapacityasprincipalobligor(andnotasAdministrativeAgent,PayingAgentorSecurities Intermediary).

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(b)OneachDistributionDate,thePayingAgentshall,basedsolelyontheinformation setforthintherelatedMonthlyReport,applyallAvailableFundsforsuchDistributionDateinthefollowing order andpriority:

(i)       first,totheServicer,theServicingFeefortheimmediatelypreceding Collection Period,togetherwithanyaccruedandunpaidServicingFeesandreimbursementof any amountsowingunderSection2.3(c)oftheServicingAgreementand,iftheServicerisaSuccessor Servicer,totheextentnotpreviouslypaidbythepredecessorServicer,reasonableTransition Expenses(uptoamaximumof$100,000intheaggregateoverthetermofthisAgreement)incurred in becomingthe SuccessorServicer;

(ii)       second,prorata,(i)totheBackupServicer,anyaccruedandunpaid BackupServicingFees,out-of-pocketexpensesandindemnificationamountsthendueandpayable bytheBorrowertotheBackupServicer,providedthatsuchout-of-pocketexpensesand indemnification amountsshallnotexceed$10,000inthe aggregateinanycalendaryear, (ii)tothe Custodian,anyaccruedandunpaidCustodialFees,out-of-pocketexpensesandindemnification amounts thendueandpayablebytheBorrowertotheCustodian;providedthatsuch out-of-pocket expensesandindemnificationamountsshallnotexceed$10,000intheaggregateinanycalendar year,and(iii)tothePayingAgent,anyaccruedandunpaidPayingAgentFees,out-of-pocket expenses and indemnification amounts then due and payable bythe Borrowerto the PayingAgent pursuanttothisAgreement;providedthatsuchout-of-pocketexpensesandindemnification amounts shallnotexceed $20,000in the aggregate inanycalendaryear;

(iii)       third, pro rata (A) to the Lenders in accordance with Section 2.06(c), the Interest and Unused Fees due to the Lenders for the related Interest Period and any accrued Interest and Unused Fees with respect to any prior Interest Period to the extent not paid on a prior Distribution Date and (B) (1) to the Hedge Counterparties, pro rata, net payments, if any, (excluding Hedge Breakage Costs) then due and payable to them by the Borrower under the Hedging Agreements and (2) to the Hedge Reserve Account, the amount necessary, if any, to cause the Hedge Reserve Amounts to equal the Hedge Reserve Account Required Balance for such Distribution Date;

(iv)       fourth,prorata(A)tothe Lendersinaccordance withSection2.06(c),the MonthlyPrincipalPaymentAmountonsuchDistributionDateand(B)totheHedge Counterparties,prorata,HedgeBreakageCosts,ifany,thendueandpayabletothembythe Borrower underthe HedgingAgreements;

(v)       fifth,totheLendersinaccordancewithSection2.06(c),anyotherfees, costs,expensesorindemnitiesthendueorpayablebytheBorrowerunderthisAgreementorany other FacilityDocument;

(vi)        sixth,totheextentnotpreviouslypaidpursuanttoclause(ii)above,pro rata,totheBackupServicer,theCustodianandthePayingAgentanyfees,costs,expensesor indemnitiesduefromtheBorrowertosuchPersonunderthisAgreementoranyotherFacility Document;

(vii)       seventh,proratatoeachLenderinaccordancewithSection2.06(c),the amountofanyvoluntaryreductionofthe AggregateLoanPrincipalBalancethattheBorrowerhas electedtoeffectonsuch Distribution Date;and

(viii)       eighth, any remainingamountsto or atthe direction ofthe Borrower.

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(c)ThePayingAgentshallremiteachinstallmentofInterest,UnusedFeesorprincipal inrespectoftheLoanspursuant toSection2.06(b)totheLenders(ortherelatedManagingAgent)bywire transferinimmediatelyavailablefundstotheaccountdesignatedbysuchLenderoritsrelatedManaging AgentinwritingtothePayingAgent.EachManagingAgentshallallocateallpaymentsreceivedbythe PayingAgentunderthisSection2.06(c)totheLendersintherelatedLenderGroup.Amountsinrespect of(i) InterestandUnusedFees shallbe allocatedandpaid to the Lendersbasedonthe amounts accruedat theirapplicableratesontheirrespectiveInvestedPercentages,(ii)theprincipaloftheLoansshallbe allocatedandpaidbythePayingAgenttotheLendersbasedontheirrespectiveInvestedPercentagesand(iii) fees,costs,expensesor indemnitiesshallbeallocatedandpaidbythePayingAgenttotheLenders to whomsuch amounts aredue and payable.

SECTION2.07.Extension of Commitment Termination Date.TheBorrowermay,no morefrequentlythanonceeverysixmonthsbydeliveringwrittennoticetotheManagingAgents(witha copytotheAdministrativeAgentandtheConduitLenders),requesttheLenderstoextendtheCommitment TerminationDateforanadditionalnumberofdayspastthethenapplicableCommitmentTerminationDate, withsuchextensiontobecomeeffectivewithrespecttoanyLenderGroup,asofthedateoneormore CommittedLendershavingCommitmentsequalto100%ofsuchLenderGroup’sLenderGroupLimitshall intheirsolediscretionconsenttosuchextension(theLendersinsuchaLenderGroup,“ExtendingLenders”).Anysuchrequestshallbesubject tothefollowingconditions:(i)noneoftheLenderswillhave anyobligationtoextendanyCommitmentand(ii)anysuchextensionoftheCommitmentTermination DatewillbeeffectiveonlyuponthewrittenagreementofatleastoneCommittedLenderandtheBorrower. TheManagingAgentforeachapplicableCommittedLender will respondtoanysuchrequest withinthirty (30) days(withacopytothePayingAgent),provided,thatanyManagingAgent’sfailuretorespondwithin such period shallbedeemed to bea rejectionoftherequested extension.

SECTION2.08. Payments and Computations, Etc.AllamountstobepaidtotheAdministrative Agent,theManagingAgentsortheLendersbytheBorrowerhereundershallbepaidordepositedin accordancewiththetermshereofnolaterthan2:00p.m.(NewYorkCitytime)onthedaywhenduein lawfulmoneyofthe UnitedStatesof AmericainimmediatelyavailablefundstotheCollectionAccountor suchaccountastheAdministrativeAgentortherelevantManagingAgentsmaydesignatepriortosuch paymentfromtimetotimeinwriting.TheBorrowershall,totheextentpermittedbylaw,paytothe AffectedPartyinterestonanyamounts notpaid bytheBorrower when due hereunderat2.00% perannum abovethePrimeRatefromtimetotimeineffect,payableondemand.AllcomputationsofInterest,Unused FeesandServicingFeeshereundershallbemadeonthebasisofayearof360daysfortheactualnumber ofdays(includingthefirstbutexcludingthelastday)elapsed;provided,thatallcomputationsofInterest calculated atthe Prime Rate shallbemade on the basisofa yearof 365 days forthe actualnumberof days (includingthefirstbutexcludingthelastday)elapsed.InnoeventshallanyprovisionofthisAgreement require thepaymentorpermitthecollectionofInterestin excessof themaximumpermittedbyapplicable law. In the eventthatanypaymenthereunder(whetherconstitutinga repaymentof Loans ora paymentof Interestoranyotheramount)isrescindedor mustotherwisebereturnedforanyreason,theamountofsuch paymentshallbe restored andsuchpaymentshallbe considered nottohave beenmade.

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SECTION2.09.  Interest Protection.

(a)       Ifduetoeither:(i)theintroductionoforanychange(includinganychangebyway ofimpositionorincreaseofreserverequirements)inorintheinterpretationbyanyGovernmentalAuthority ofanylaworregulationafterthe Amendment No.4Effective Date,or (ii) thecompliancebyanyAffected PartywithanydirectiveorrequestfromanycentralbankorotherGovernmentalAuthority(whetherornot havingthe force oflaw) imposed afterthe AmendmentNo. 4 Effective Date,(1) there shallbe anincrease inthecost(otherthanTaxes)tosuchAffectedPartyoffundingormaintaininganyLoanwhichaccrues InterestattheAdjustedLIBORatehereunderorofextendingacommitmentinrespectthereof,(2)such AffectedPartyshallberequiredtomakeapaymentcalculatedbyreferencetoanyLoanwhichaccrues Interest atthe AdjustedLIBORatefundedbyitorInterest receivedbyitor (3)anyAffectedPartyshallbe subjectedtoanyTaxes(otherthanIndemnifiedTaxesorExcludedTaxes)onitsloans,loanprincipal,letters ofcredit,commitments,orotherobligations,oritsdeposits,reserves,otherliabilitiesorcapitalattributable thereto,thentheBorrowershall,fromtimetotime,withinthirty(30)daysafterdemandbytherelated ManagingAgent,paysuchManagingAgentfortheaccountofsuchAffectedParty(asathirdparty beneficiary,inthe caseofanyAffectedPartyotherthanoneof theLenders),thatportionofsuchincreased costsincurred,amountsnotreceivedorrequiredpaymentmadeortobemade,which,subjecttothe requirementsofSection2.09,suchManagingAgentreasonablydeterminesisattributabletofundingand maintaining,orextendingacommitmenttofund,anyLoanwhichaccruesInterestattheAdjustedLIBO Rate hereunder orpursuantto anyLiquidityAgreementor similarliquidityfacility.

(b)       EachManagingAgentwillpromptlynotifytheBorrowerandtheAdministrative Agentofanyeventofwhichit hasknowledge,occurringaftertheAmendmentNo.4EffectiveDate,which willentitleanyAffectedPartyinitsLenderGrouptocompensationpursuanttoSection2.09(a).Each AffectedPartywilldesignateadifferentlendingofficeifsuchdesignationwillavoidtheneedfor,orreduce theamountof,suchcompensationandwillnot,inthejudgmentofsuchAffectedParty,beotherwise disadvantageoustoitorinconsistentwithitsinternalpoliciesandprocedures.Indeterminingtheamount ofsuchcompensation,suchLendermayuseanyreasonableaveragingandattributionmethods.The applicableAffectedParty(orsuchparty’srelatedManagingAgent)shallsubmittotheBorrowera certificateinreasonabledetaildescribingsuchincreasedcostsincurred,amountsnotreceivedorreceivable orrequiredpaymentmadeortobemade,whichcertificateshallbeconclusiveintheabsenceofmanifest error.

(c)       FailureordelayonthepartofanyManagingAgenttodemandcompensation pursuanttoSection2.09(a)shallnotconstituteawaiverofsuchManagingAgent’srighttodemandsuch compensation;providedthattheBorrowershallnotberequiredtocompensateanyLenderorrelated LiquidityProviderpursuanttothisSectionforanyincreasedcapitalunlesssuchManagingAgentgives noticetotheBorrowerandtheAdministrativeAgenttocompensatesuchLenderorLiquidityProvider pursuanttothis Sectionwithin120days afterthedatesuch ManagingAgentknowsan eventhasoccurred pursuantto whichsuch Lenderor LiquidityProvider willseeksuch compensation.

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SECTION2.10.  Increased Capital.

(a)       Ifeither(i)theintroductionoforanychangeinorintheinterpretationbyany OfficialBodyofanylaw,ruleorregulation(includinganylaw,ruleorregulationregardingcapital adequacyorliquiditycoverage)or(ii)compliancebyanyAffectedPartywith(x)anydirectiveorrequest fromanycentralbankorotherOfficialBody(whetherornothavingtheforceoflaw)imposedafterthe AmendmentNo.4EffectiveDateor(y)therequirementsof,whethersuchcomplianceiscommencedprior to or after the AmendmentNo. 4 Effective Date, anyof (a)the FAS 166/167 CapitalGuidelines, (b) Basel IIorBaselIIIRegulationsor(c)theDodd-FrankAct,oranyexistingorfuturerules,regulations,guidance, interpretationsordirectivesfromtheU.S.bankregulatoryagenciesrelatingtotheFAS166/167Capital Guidelines, BaselII, BaselIIIRegulationsorthe Dodd-FrankAct(whetheror nothavingtheforceof law) affectsorwouldaffecttheamountofcapitalorassetsrequiredorexpectedtobemaintainedbysuch AffectedPartyorsuchAffectedPartyreasonablydeterminesthattheamountofsuchcapitalisincreased byor based upon theexistence ofanyLender’s agreementto make ormaintain Loans hereunderand other similaragreementsorfacilitiesandsucheventwouldhavetheeffectofreducingtherateofreturnonthe assetsorcapitalofsuchAffectedPartybyanamountdeemedbysuchAffectedPartytobematerial, then, withinthirty(30)daysafterdemandbysuchAffectedPartyortherelatedManagingAgent,theBorrower shallpaytosuchAffectedParty(asathirdpartybeneficiary,inthecaseofanyAffectedPartyotherthan oneoftheLenders)ortherelatedManagingAgentfortheaccountofsuchAffectedPartyfromtimeto time,asspecifiedbysuchAffectedPartyorsuchManagingAgent,additionalamountssufficientto compensatesuchAffectedPartyinlightofsuchcircumstances,totheextentthatsuchAffectedPartyor suchManagingAgentonbehalfofsuchAffectedPartyreasonablydeterminessuchincreaseincapitalto be attributableto the existence of the applicable Lender’sagreements hereunder.

(b)       EachManagingAgentwillpromptlynotifytheBorrowerandtheAdministrative Agentofanyeventofwhichithasknowledge,occurringaftertheAmendmentNo.4EffectiveDate,which willentitleanyLender or Affected Partyinits Lender Group to compensationpursuantto Section2.10(a). EachLenderorAffectedPartywilldesignateadifferentlendingofficeifsuchdesignationwillavoidthe needfor,orreducetheamountof,suchcompensationandwillnot,inthejudgmentofsuchLenderor AffectedParty,beotherwisedisadvantageoustoitorinconsistentwithitsinternalpolicies.Indetermining theamountofsuchcompensation,suchLenderorAffectedPartymayuseanyreasonableaveragingand attributionmethods.TheapplicableLenderorAffectedParty(orsuchparty’srelatedManagingAgent) shallsubmitto theBorrowera certificatedescribing such compensation, whichcertificate shallbe conclusivein the absence of manifesterror.

(c)       FailureordelayonthepartofanyManagingAgenttodemandcompensation pursuanttoSection2.10(a)shallnotconstituteawaiverofsuchManagingAgent’srighttodemandsuch compensation;providedthattheBorrowershallnotberequiredtocompensateanyLenderorAffectedParty initsLenderGrouppursuanttothisSectionforanyincreasedcapitalunlesssuchManagingAgentgives noticetotheBorrowerandtheAdministrativeAgenttocompensatesuchLenderorAffectedPartyinits LenderGrouppursuanttothisSectionwithin120daysafterthedatesuchManagingAgentknowsanevent hasoccurredpursuanttowhichsuchLenderorAffectedPartyinitsLenderGroupwillseeksuch compensation.

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(d)IfanyLenderorAffectedPartyhas,oranticipateshaving,anyclaimfor compensationunderSection2.10(a)againsttheBorrower,andsuch AffectedPartyorLenderbelievesthat havingthetransactionscontemplatedbythisAgreementpubliclyratedbyaRatingAgencyorqualifying underthe supervisoryformula approach underBaselII would reducethe amountof suchcompensation by anamountdeemedbysuchAffectedPartyorLendertobematerial,suchAffectedPartyorLendershall providearequestforRequiredDataoraRatingRequesttotheBorrowerandtheServicer.AnyAffected Party or Lendermayalsoprovidearequestfor Required Dataora RatingRequesttotheBorrowerand the Servicer atanyothertime prior to the CommitmentTermination Date.TheBorrowershallcooperate with suchAffectedPartyorLender’seffortstoobtainRequiredDataand/oracreditratingfromtheRating AgencyspecifiedintheRatingRequestatthe levelthatreasonablyreflectstheeconomicsandcreditofthe Loans atthetimeof such request,andshallprovide directlyor throughdistributiontosuchAffectedPartyorLenderanyinformationsuchRatingAgencymayrequireforpurposesofprovidingandmonitoringthe creditrating.TheAffectedPartyorLendermakingtheRatingRequestshallbearthecostsandexpenses ofprovidingtheRequiredDataandpaytheinitialandanysubsequentandongoingfeespayabletothe RatingAgencyin connection witha RatingRequestpursuanttothis Section 2.10(d).

SECTION2.11.Funding Losses.IntheeventthatanyLiquidityProvideroranyLendershall incur(i)anyLiquidationFeesasaresultofanyreductionofthePrincipal AmountofanyLoanat anytime otherthaninaccordancewiththisAgreementor(ii)anylossorexpense(includinganylossorexpense incurredbyreasonoftheliquidationorreemploymentofdepositsorotherfundsacquiredbysuchLiquidity ProviderorLenderinordertofund ormaintainanyLoanorinteresttherein)asaresultofthe failureofthe BorrowertoaccepttheproceedsofanyLoaninaccordancewitharequestthereforunderSection2.02,then, upondemandfromthe relatedManagingAgenttotheBorrower,theBorrower shallpaytosuchManaging AgentfortheaccountofsuchLiquidityProviderorLender,theamountofsuchloss,expenseorLiquidation Fees.Suchwrittennoticeshall,intheabsenceofmanifesterror,beconclusiveandbindinguponBorrower.

SECTION2.12.Taxes.

(a)       Excepttotheextentrequiredbyapplicablelaw,anyandallpaymentsanddeposits requiredtobemadehereunderorunderanyinstrumentdeliveredhereunderbytheBorrower(ortheServicer onitsbehalf)orthePayingAgentshallbemadefreeandclearofandwithoutdeductionforTaxes.Ifthe PayingAgent,theBorrowerortheServicershallberequiredbylawtomakeanydeductionforIndemnified Taxes,(i)theBorrowershallmakeanadditionalpaymenttosuchAffectedParty,inanamountsufficient sothat,aftermakingallrequireddeductions(includingdeductionsapplicabletoadditionalsumspayable underthisSection2.12),suchAffectedPartyreceivesanamountequaltothesumitwouldhavereceived hadnosuchdeductionsbeenmade,(ii)thePayingAgentortheBorrower(ortheServicer,onitsbehalf) shallmake suchdeductionsand (iii)the PayingAgentortheBorrower(ortheServicer,onits behalf)shall paythefullamountdeductedtotherelevanttaxingauthorityorotherauthorityinaccordancewith applicablelaw.IfthePayingAgent,theBorrowerortheServicerisrequiredbylawtodeductanyExcluded Taxes,then(A)thePayingAgent,theBorrowerortheServicer,asapplicable,shallmakesuchdeductions, (B) thePayingAgent,theBorrowerortheServicer,asapplicable,shallpaytheamountdeductedtothe relevanttaxingauthorityorotherauthorityinaccordancewithapplicablelaw,and(C)theamountsso deductedandpaidtotherelevanttaxingauthorityshallbetreatedunderthisAgreementasmadetothe Affected Party.

(b)       Inaddition,theBorroweragreestopayanypresentorfuturestamporother documentaryTaxesoranyothersimilarexciseorpropertytaxesorlevieswhicharisefromanypayment madehereunderorunderanyinstrumentdeliveredhereunderorfromtheexecution,deliveryorregistration of,orotherwisewithrespectto,thisAgreementoranyinstrumentdeliveredhereunder,otherthan ConnectionTaxes resultingfroman assignment.

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(c)Each Affected Party:

(i)thatisa“UnitedStatesperson”withinthemeaningofSection7701(a)(30) oftheCodeagreestocompleteandtodelivertotheBorrowerandthePayingAgentonorbefore theClosingDate(or,iflater,onorpriortothedateitbecomesapartytothisAgreement)aduly completedandexecutedcopyofIRSFormW-9orsuccessorformestablishingthattheAffected PartyisaUnited Statesperson thatis notsubjectto U.S. backup withholdingTax;

(ii)thatisnotorganizedunderthelawsoftheUnitedStatesoranyState thereofshalltimelydelivertotheBorrowerandthePayingAgentsuchproperlycompletedand executed documentation prescribed by applicable laws or by the taxing authorities of any jurisdictionandsuchotherreasonablyrequestedinformationaswillpermitthePayingAgent,the BorrowerortheServicer,asthecasemaybe,todetermine(A)whetherornotpaymentsmade hereunderaresubjecttoTaxes,(B)ifapplicable,therequiredrateofwithholdingordeduction,and (C) such Affected Party’s entitlementtoanyavailableexemptionfrom, orreduction of,applicable Taxes inrespectof allpaymentstobe madetosuchAffectedPartybytheBorroweror the Paying AgentpursuanttothisAgreementorotherwisetoestablishsuchAffectedParty’sstatusfor withholdingtaxpurposesintheapplicablejurisdiction.Withoutlimitingthegeneralityofthe foregoing,eachAffectedPartywhichisnotorganizedunderthelawsoftheUnitedStatesorany Statethereofshall,onorpriortothedatethatsuchAffectedPartybecomesapartytoorobtains rightsunderthisAgreement,delivertotheBorrowerandthePayingAgentasapplicable:(1)two dulycompletedandexecutedcopiesoftheIRSFormW-8BENorW-8ECI(oranysuccessorform) asapplicable;(2)inthecaseofanAffectedPartyclaimingthebenefitsoftheexemptionfor portfoliointerestunderSection881(c)oftheCode,twodulycompletedandexecutedcopiesof FormW-8BENalongwithacertificatetotheeffectthatsuchAffectedPartyisnota“bank”within themeaningofSection881(c)(3)(A)oftheCode,a“10percentshareholder”oftheBorrowerwithin themeaningofSection881(c)(3)(B)oftheCode,a“controlledforeigncorporation”describedin section881(c)(3)(C)oftheCode,andconductingatradeorbusinessintheUnitedStateswith whichtherelevantinterestpayments areeffectivelyconnected;(3)inthecaseofanAffectedParty thatisnotabeneficialownerofpayments madeunderanyFacilityDocument,twodulycompleted andexecutedcopiesoftheIRSFormW-8IMYonbehalfofitselfandtherelevantformsprescribed in this clause (ii) on behalfof each beneficialowner, provided, however,thatif the Affected Party isapartnershipandoneormorepartnersareclaimingtheexemptionforportfoliointerestunder Section881(c)oftheCode,suchAffectedPartymayprovidethecertificatedescribedin(2)above; and(4)totheextentitmaylawfullydoso,suchotherformsorcertificatesasmayberequiredunder thelawsofanyapplicablejurisdiction(onorbeforethedatethatanysuchformexpiresorbecomes obsolete),in orderto permitthe Borrowerandthe PayingAgentto make payments to,and deposit fundstoorfortheaccountof,suchAffectedPartyhereunderandundertheotherFacility Documents withoutanydeduction or withholdingfororonaccountofanyTaxortodeterminethe correctamountofTaxtodeductandwithholdfrompaymentstotheAffectedParty.Eachsuch AffectedParty,totheextentitmaylawfullydoso,shallsubmittotheBorrowerandthePaying Agent(withcopiestotheAdministrativeAgent)twoupdated,completed,anddulyexecuted versionsof:(x) allforms referredtointhe previoussentence upontheexpiryof,or the occurrence of anyeventrequiringachangein,themostrecentformpreviouslydeliveredbyittotheBorrower andthePayingAgentorthesubstitutionofsuchform;and(y)suchextensionsor renewalsthereof as mayreasonablybe requestedbythe Borrower orthePayingAgent;and

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(iii)shalldelivertotheBorrowerandthePayingAgentsuchothertaxforms orotherdocumentsasshallbeprescribedbyapplicablelaw,totheextentapplicable,(x)to demonstratethatpaymentstosuchAffectedPartyunderthis AgreementandtheLoans areexempt fromany United States withholdingtax imposed pursuantto FATCAor (y) to allowthe Borrower andthePayingAgenttodeterminetheamounttodeductorwithholdunderFATCAfromapayment hereunder,andfurtheragreestocompleteandtodelivertotheBorrowerandthePayingAgent fromtimetotime,solongasitiseligibletodoso,anysuccessororadditionalformrequiredbythe IRS or reasonablyrequested bythe Borrowerorthe PayingAgentin ordertosecure anexemption from,orreductionintherateof,UnitedStateswithholdingtaximposedpursuanttoFATCA.Solely forpurposesofthisclause(iii),“FATCA”shallincludeanyamendmentsmadetoFATCAafterthe dateofthis Agreement.

(d)       IftheBorrowerisrequiredtopayadditionalamountstoorforthebenefitofany AffectedPartypursuanttothisSectionasaresultofachangeoflawortreatyoccurringaftersuchAffected PartyfirstbecameapartytothisAgreement,suchAffectedPartywill,attheBorrower’srequest,change thejurisdiction of itsapplicablelendingofficeif,inthesolejudgmentofsuchAffectedParty,suchchange (i) willeliminateorreduceanysuchadditionalpaymentwhichmaythereafteraccrueand(ii)isnot otherwise disadvantageousto such Affected Party.

(e)       IftheIRSoranyotherGovernmentalAuthorityoftheUnitedStatesorother jurisdictionassertsaclaimthatthePayingAgent,theBorrowerortheServicerdidnotproperlywithhold TaxfromamountspaidtoorfortheaccountofanyAffectedPersonduetoafailureonthepartofthe AffectedPerson(becausetheappropriateformwasnotdelivered,wasnotproperlyexecuted,orbecause suchAffectedPersonfailedtonotifythePayingAgent,theBorrowerortheServicerofachangein circumstanceswhich rendered the exemption from,or reductionof,withholdingtax ineffective,or for any otherreason)suchAffectedPersonshallindemnifyandholdthePayingAgent,theBorrowerandthe Servicerharmlessforallamountspaid,directlyorindirectly,bythePayingAgent,theBorrowerorthe Servicer,asTaxorotherwise,includingpenaltiesandinterest,andincludinganyTaxesimposedbyany jurisdictionontheamountspayabletothePayingAgent,theBorrowerortheServicerunderthisSection 2.12,togetherwithallcostsandexpenses(includingattorneysfeesandexpenses).Theobligationofthe Affected Personsunder thissubsection shallsurvive thepaymentof allobligationsunderthis Agreement.

(f)       IfanyAffectedPartyreasonablydeterminesthatithasreceivedarefundofany TaxesastowhichithasbeenindemnifiedbytheBorrowerortheServicerorwithrespecttowhichthe BorrowerortheServicerhaspaidadditionalamountspursuanttothisSection2.12itshallpromptlypay oversuchrefund totheBorrowerortheServicer,asapplicable,(butonlytotheextentofpaymentsmade, oradditionalamountspaid,bytheBorrowerunderthisSection2.12withrespecttoTaxesgivingriseto sucharefund),netofallreasonableout-of-pocketexpensesofsuchAffectedPartyandwithoutinterest (otherthananyinterestpaid bythe relevantgovernmentalauthoritywith respect to sucha refund).

(g)       TheBorrowershallindemnifyeachAffectedParty,within10daysafterdemand therefor,forthefullamountofanyIndemnifiedTaxes(includingIndemnifiedTaxesimposedorasserted onorattributabletoamountspayableunderthisSection)payableorpaidbysuchAffectedPartyorrequired tobewithheldordeductedfromapaymenttosuchAffectedPartyandanyreasonableexpensesarising therefromorwithrespectthereto,whetherornotsuchIndemnifiedTaxeswerecorrectlyorlegallyimposed orassertedbytherelevantGovernmentalAuthority.Acertificateastotheamountofsuchpaymentor liabilitydelivered to the Borrower byan Affected Partyshallbe conclusive absentmanifesterror.

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SECTION2.13.Security Interest.

(a)       AssecurityfortheperformancebytheBorrowerofalltheterms,covenantsand agreementsonthepartoftheBorrowertobeperformedunderthisAgreementoranyotherFacility Document,includingthepaymentwhendueofallBorrowerObligations,theBorrowerherebygrantstothe AdministrativeAgent,forthebenefitoftheSecuredParties,asecurityinterestinalloftheBorrower’s right,titleandinterestin,toandunderthefollowing,whethernowownedorhereafteracquired,now existingor hereafter created, and whereverlocated(collectively, the “Collateral”):

(i)       thePledgedTimeshareLoans,togetherwithallCollectionsandallmonies due(includinganypayments madeunderanyguaranteeorsimilarcreditenhancementwithrespect toanysuchTimeshareLoans)tobecomedueorreceivedbyanyPersoninpaymentofanyofthe PledgedTimeshareLoansonoraftertherespectiveCutoffDatesforthePledgedTimeshareLoans;

(ii)       the Related Securitywith respecttothePledged Timeshare Loans;

(iii)       the AccountCollateral;

(iv)       allHedge Collateral;

(v)       theSaleandContributionAgreement,theServicingAgreement,the CustodyAgreementandanyotherFacilityDocumenttowhichtheBorrowerisapartyandall remedies thereunderand theassignmentto theAdministrativeAgentofallUCCfinancing statementsfiledbytheBorroweragainstSellerunderorinconnectionwiththeSaleand ContributionAgreement;

(vi)       allpresentandfutureclaims,demands,causesofactionandchosesin actioninrespectofanyoralloftheforegoingandallpaymentsonorunderofeverykindand naturewhatsoeverinrespectofanyoralloftheforegoing,includingallproceedsoftheconversion thereof,voluntaryorinvoluntary,intocashorotherliquidproperty,allcashproceeds,accounts, accountsreceivable,notes,drafts,acceptances,chattelpaper,checks,depositaccounts,insurance proceeds,condemnationawards,rightstopaymentofanyandeverykindandotherformsof obligationsandreceivables,instrumentsandotherpropertywhichat anytimeconstituteallorpart of orare includedin the proceedsoftheforegoing;

(vii)       allaccounts,generalintangibles,paymentintangibles,instruments, investmentproperty,documents,chattelpaper,goods,moneys,lettersofcredit,letterofcredit rights,certificatesofdeposit,depositaccountsandallotherpropertyandinterestsinpropertyof the Borrower, whether tangible orintangible;and

(viii)        allincome and proceeds oftheforegoing

(b)       TheBorrowerherebyauthorizesthefilingoffinancingstatements,and continuationstatementsandamendmentstheretoandassignmentsthereof,describingthecollateralcovered therebyas“allofdebtor’spersonalpropertyorassets”orwordstothateffect,notwithstandingthatsuch wordingmaybebroaderinscopethanthecollateraldescribedinthisSection2.13.TheBorrowerauthorizes the Administrative Agenttofilefinancingorcontinuationstatements, and amendments theretoand assignmentsthereof,relatingtothePledgedTimeshareLoansandtheotherCollateralwithoutthesignature oftheBorrower.AphotocopyorotherreproductionofthisAgreementshallbesufficientasafinancing statementwhere permittedbylaw. ThisAgreementshallconstitute a securityagreementunderapplicable law.

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(c)TheBorrowerrepresentsandwarrantsthat eachremittanceofCollectionsbyit to the Administrative Agent,theManagingAgentsor theLenders hereunder willhave been(i)inpaymentof a debtincurred bythe Borrowerinthe ordinarycourseof business or financialaffairs ofthe Borrowerand(ii) made intheordinarycourseof businessorfinancialaffairs.

SECTION2.14.  Refinancings.

(a)       Onany BusinessDay,theBorrowershallhavethe righttoprepayalloraportion oftheAggregateLoanPrincipalBalanceandrequesttheAdministrativeAgenttoreleaseitssecurityinterest andLienonsomeorallofthePledgedTimeshareLoansinconnectionwithaRefinancing,subjecttothe followingterms and conditions:

(i)       TheBorrowershallhavegiventheAdministrativeAgent,thePaying Agent,theCustodianandtheServiceratleastten(10)BusinessDays’priorwrittennoticeofits intenttoeffectaRefinancingand,atleastthree(3)BusinessDayspriortotheclosingofthe Refinancing,shallprovidetheAdministrativeAgent,theCustodianandtheServicerwiththe relatedRefinancingReleasetogetherwithafundsflowmemorandumindicatingsourcesanduses to the reasonable satisfaction of the Administrative Agent withrespecttosuchRefinancing;

(ii)       UnlesssuchRefinancingistobeeffectedonaDistributionDate(inwhich case the relevantcalculations with respectto such Refinancingshallbereflected on the applicable MonthlyReport),theServicershalldelivertotheAdministrativeAgentaRefinancingDate CertificateandanupdatedMonthlyLoanTapetogetherwithevidencereasonablysatisfactoryto theAdministrativeAgentthattheconditionsprecedentsetforthinclauses(iii)(D)and(E)below willbe satisfied.

(iii)       OntherelatedRefinancingDate,thefollowingshallbetrueandcorrect and the Borrower shallbedeemed to have certified that, after givingeffectto the Refinancing, the relatedprepaymentoftheAggregateLoanPrincipalBalancepursuanttoSection2.05(b)andthe release totheBorrowerof the related PledgedTimeshare Loans ontherelated RefinancingDate:

(A)       noadverseselectionprocedureshallhavebeenusedbythe BorrowerwithrespecttothePledgedTimeshareLoansthatwillremainsubjecttothis AgreementaftergivingeffecttotheRefinancing(exceptasisnecessarytocomplywith normalandcustomaryeligibilitycriteriaforasset-backedsecurities transactions involving timeshare loans);

(B)       therepresentationsandwarrantiescontainedinSection4.01are trueandcorrectin allmaterialrespects,excepttothe extentrelatingto anearlierdate;

(C)       noDefaultorEventofDefaulthasoccurredandiscontinuing;and

(D)       no BorrowingBase Deficiencyexists.

(iv)       OntherelatedRefinancingDate,thePayingAgentshallhavereceived, forthebenefitoftheSecuredParties,inimmediatelyavailablefunds,(A)theportionofthe AggregateLoanPrincipalBalanceto beprepaidpursuanttoSection2.05(b), (B) anamountequal toall accruedandunpaidInteresttotheextentreasonablydeterminedbytheAdministrative Agent tobeattributableto thatportionof the AggregateLoanPrincipalBalance tobepaid inconnection withtheRefinancingand(C)allLiquidationFeeswithrespecttosuchprepaymentandallHedge BreakageCostsandanyotheramountspayablebytheBorrowerunderorwithrespecttoany HedgingAgreementarisingfromthereleaseofPledgedTimeshareLoanspursuanttoSection2.15 inconnectionwithsuchRefinancingpayabletoanyIndemnifiedPartyunderthisAgreement

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throughthedateofsuchprepayment.Theamountpaidpursuantto(1)clause(A)shallbeapplied onsuchRefinancingDatetothepaymentofprincipalontheAggregateLoanPrincipalBalance,(2)clause(B)shallbedepositedintheCollectionAccounttobeincludedinAvailableFundsfor thenextDistributionDate(orforsuchDistributionDate,iftheRefinancingDateisalsoaDistributionDate)pursuanttoSection2.06and(3)clause(C)shallbepaidtothePersonstowhom suchamountsareowedonsuchRefinancingDate,ineachcaseinaccordancewiththewrittendirections fromthe Borrowerto the PayingAgent.

(b)       TheBorrowerherebyagreestopaythereasonablelegalfeesandexpensesofthe AdministrativeAgent,theManagingAgents,theCustodian,theBackupServicer,thePayingAgentandthe LendersinconnectionwithanyRefinancing(includingexpensesincurredinconnectionwith thereleaseof theLienoftheAdministrativeAgent,theLendersandanyotherpartyhavingsuchaninterestinthe Timeshare Loansin connection withsuch Refinancing).

SECTION2.15. Release of Lien.In connectionwithanyrepurchaseorsubstitution ofTimeshare LoansbytheSeller fromtheBorrower(a)pursuanttotheSaleandContributionAgreementor(b) effected pursuantto,andincompliancewith,Section2.14,andpromptlyfollowingtheFinalCollectionDate,the Administrative Agentagrees,attheBorrower’sexpense,and withoutrecourse,representationor warranty, and,inthecaseofaRefinancing,subjecttotheconditionsspecifiedinSection2.14,toexecute,deliver, fileandrecordanyrelease,documentorotherinstrumentandtakesuchactionthatmaybenecessaryor thattheBorrowermayreasonablyrequest,toevidencethereleasebytheAdministrativeAgentofits securityinterestin the applicable Pledged Timeshare Loans and related Collateral.

SECTION 2.16.  The Collection Account and Hedge Reserve Account..

(a)       OnorpriortotheClosingDate,theBorrowershallestablishandshallthereafter maintainasegregatedaccountinthenameoftheBorrowerforthepurposeofreceivingCollections(the “CollectionAccount”).ThetaxpayeridentificationnumberassociatedwiththeCollectionAccountshallbe thatoftheBorrowerandtheBorrowerwillreportforFederal,stateandlocalincometaxes,theincome,if any, representedbythe Collection Account.

(b)       TheCollectionAccountshallbeestablishedandatalltimesmaintainedwiththe PayingAgentwhichshallactasa“securitiesintermediary”(asdefinedinSection8-102oftheUCC)and a“bank”(asdefinedinSection9-102oftheUCC)hereunder(insuchcapacities,the“SecuritiesIntermediary”)withrespecttotheCollectionAccount.WellsFargo,asinitialPayingAgent,hereby confirmsthattheaccountnumberoftheCollectionAccountis46424100.IntheeventthatthePaying AgentceasestobeaQualifiedInstitution,theBorrowershall,withinthirty(30)daysthereof,appointa QualifiedInstitutiontobethesuccessorPayingAgentandestablishanewCollectionAccountatsuch Qualified Institution.

(c)       TheCollectionAccountshallbea“securitiesaccount”asdefinedinSection8-501 ofthe UCCandshallbemaintainedbytheSecurities Intermediaryasasecuritiesintermediaryinthename oftheBorrower,subjecttothelienoftheAdministrativeAgent,forthebenefitoftheSecuredParties.The SecuritiesIntermediaryshalltreattheAdministrativeAgentasthe“entitlementholder”(withinthemeaning ofSection8-102(a)(7)oftheUCC)inrespectofall“financialassets”(withinthemeaningofSection8- 102(a)(9) of the UCC) credited tothe Collection Account;

(d)       TheSecurities Intermediaryherebyconfirms and agrees that:

(i)       theSecuritiesIntermediaryshallnotchangethenameoraccountnumber of the Collection Account withoutthe prior writtenconsentofthe Administrative Agent;

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(ii)allsecuritiesorotherpropertyunderlyinganyfinancialassets(as hereinafterdefined)creditedtotheCollectionAccountshallberegisteredinthenameofthe SecuritiesIntermediary, indorsedtothe Securities Intermediaryor indorsed inblankor credited to anothersecuritiesaccountmaintainedinthenameoftheSecuritiesIntermediary,andinnocase willanyfinancialassetcreditedtotheCollectionAccountberegisteredinthenameoftheBorrower oranyotherPerson,payabletothe order of the Borrowerorspeciallyindorsed tothe Borroweror anyotherPerson,excepttotheextenttheforegoinghavebeenspeciallyindorsedtothe Administrative Agent, for the benefitof the Secured Parties, orin blank;

(iii)       allpropertytransferredordeliveredtotheSecuritiesIntermediary pursuanttothis Agreement willbe promptlycredited tothe Collection Account;

(iv)       theCollectionAccountisanaccounttowhich financialassetsareormay becredited,andtheSecuritiesIntermediaryshall,subjecttothetermsofthisAgreement,treateach ofthe BorrowerandtheServicer as entitledtoexercisetherights thatcomprise anyfinancialasset credited to such account;

(v)       theSecuritiesIntermediaryshallpromptlydelivercopiesofallstatements, confirmationsandothercorrespondenceconcerningtheCollectionAccountand/oranyfinancial assetscreditedtheretosimultaneouslytoeachoftheServicer(onbehalfoftheBorrower)andthe Administrative Agentattheaddressforeach setforth on Schedule IIIto this Agreement;and

(vi)       notwithstandingtheintentofthepartieshereto,totheextentthat CollectionAccountshallbedeterminedtoconstitutea“depositaccount”withinthemeaningof Section9-102(a)(29)oftheUCC,theCollectionAccountshallbesubjecttotheexclusivecontrol ofthe Administrative Agent,for thebenefitoftheSecuredParties,andtheSecuritiesIntermediary willcomplywithinstructionsoriginatedbytheAdministrativeAgentdirectingdispositionofthe fundsinthe Collection Accountwithoutfurther consentbythe Borrower or the Servicer.

(e)       TheSecuritiesIntermediaryherebyagreesthateachitemofproperty(including anyinvestmentproperty,financialasset,security,instrumentorcash)creditedtotheCollectionAccount shallbetreatedas a“financialasset” withinthemeaningof Section 8-102(a)(9) ofthe UCC.

(f)       ExceptasotherwisesetforthinSection2.16(g)and(h),theSecuritiesIntermediary willcomplywith“entitlementorders”(asdefinedinSection8-102(a)(8)oftheUCC)(“EntitlementOrders”)originatedbytheBorrowerorbytheServicer.TheBorrowershallnotdirectlymakeany withdrawals fromthe Collection Account.

(g)       IfatanytimetheSecuritiesIntermediaryshallreceiveanyEntitlementOrderfrom theAdministrativeAgent(i.e.,anorderdirectingatransferorredemptionofanyfinancialassetinthe CollectionAccount),orany“instruction”(withinthemeaningofSection9-104oftheUCC),originatedby the Administrative Agent,theSecuritiesIntermediaryshallcomplywith such EntitlementOrderor instructionwithoutfurtherconsentbytheBorrower,theServiceroranyotherPerson.Notwithstandingthe foregoing,thepartiesheretoagreethattheSecuritiesIntermediarywillcomplywiththefollowingwith respecttoanyEntitlementOrderorinstruction:(i)untilitsreceiptofaNoticeofExclusiveControl(as definedbelow)withrespecttothefinancialassetsintheCollectionAccount,anycashreceivedintothe CollectionAccountmaybeinvestedinPermittedInvestmentsselectedbytheBorrowerorbytheServicer; and(ii)fromandafteritsreceiptofaNoticeofExclusiveControl(asdefinedbelow),withrespecttothe financialassetsinthe Collection Accountand withoutfurther consentof the Borrower,theServiceror any otherPerson,anycashreceivedintotheCollectionAccount,maybeinvestedinPermittedInvestments selected bythe Administrative Agent, forthebenefitofthe Secured Parties.

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(h)UponreceiptbytheSecuritiesIntermediaryofawrittennoticesubstantiallyinthe formofExhibitMhereto(a“NoticeofExclusiveControl”),theSecuritiesIntermediarywilltakeall Entitlement Orders,instructionsorotherdirectionsit receives fromthe Administrative Agent,onbehalfof theSecuredParties,withrespecttotheCollectionAccountandthedispositionoffundsintheCollection Account,withoutfurtherconsentbytheBorrower,theServiceroranyotherPerson,andshallcease complyingwithEntitlementOrders,instructionsorotherdirectionsconcerningtheCollectionAccount originatedbytheBorrower,theServiceroranyotherPerson.Notwithstandingtheforegoing,promptly followingreceiptbytheAdministrativeAgentofawrittennoticefromtheServiceridentifyingamountson depositintheCollectionAccountasconstitutingMiscellaneousPayments,theAdministrativeAgentwill issueanEntitlementOrdertotheSecuritiesIntermediarytoreleasesuchMiscellaneousPaymentstothe Servicer.

(i)       IntheeventthattheSecuritiesIntermediaryhasorsubsequentlyobtainsby agreement,byoperationoflaworotherwiseasecurityinterestintheCollectionAccountoranyfinancial assets,funds,cashorotherpropertycreditedtheretooranysecurityentitlementwithrespectthereto,the SecuritiesIntermediaryherebyagreesthatsuchsecurityinterestshallbesubordinatetothesecurityinterest oftheAdministrativeAgent,forthebenefitoftheSecuredParties.Notwithstandingtheprecedingsentence, thefinancialassets,funds, cashorotherpropertycreditedtotheCollectionAccountwillnotbesubjectto deduction,set-off,banker’slien,oranyotherrightinfavorofanyPersonotherthantheAdministrative Agent,forthebenefitoftheSecuredParties(exceptthattheSecuritiesIntermediarymayset-off(i)all amountsduetotheSecuritiesIntermediaryinrespectofcustomaryfeesandexpensesfortheroutine maintenanceandoperationoftheCollectionAccount,and(ii)thefaceamountofanychecksthathavebeen creditedtothe CollectionAccountbutare subsequentlyreturned unpaid because of uncollected or insufficientfunds).

(j)       Regardlessofanyprovisioninanyotheragreement,forpurposesoftheUCC,New Yorkshallbedeemedtobethe“bank’sjurisdiction”(withinthemeaningofSection9-304oftheUCC) and the “securityintermediary’sjurisdiction” (within the meaningof Section 8-110 of the UCC).

(k)       WhenevertheBorrowerinitiallyelectstoexercisetheHedgeReserveOptioninaccordancewithSection5.03(c),theBorrowershallcausetobeestablishedandshallcausetobemaintainedanaccountinthenameofthe Administrative Agent(the"HedgeReserve Account"),bearingadesignationclearlyindicatingthatthefundsdepositedthereinareheldforthebenefitandsecurityoftheSecuredParties.TheHedgeReserveAccountshallbeasegregatedbankaccountinitiallyestablishedwiththeAdministrativeAgent.TheAdministrativeAgentforthebenefitoftheSecuredPartiesshallpossessallright,titleandinterestinallfundsondepositfromtimetotimeintheHedgeReserveAccountandinallproceedsthereof.TheHedgeReserveAccountshallbeunderthesoledominionandcontroloftheAdministrativeAgentforthebenefitoftheSecuredParties.SubjecttothisSection2.16,amountsondepositintheHedgeReserveAccountmaybeinvestedinPermittedInvestmentsselectedbytheBorrowerorbytheServicer.Funding,withdrawalsandpaymentsfromtheHedgeReserveAccountshallbemadeinthefollowingmanner:

(i)       Funding.OneachDeterminationDateorBorrowingDateoccurringinaHedgingPeriod,iftheBorrowerhasexercisedandnotrevokedtheHedgeReserveOption,theBorrowershalldepositorshallcausetobedeposited intotheHedgeReserveAccounttheamountnecessarytocausetheamountondepositintheHedgeReserveAccounttobeequaltotheHedgeReserveAccountRequiredBalance(aftergivingeffecttoaBorrowing(ifany)onsuchDeterminationDateorBorrowingDate,existingHedgingAgreementsandHedgingAgreementsenteredintoinrespectofsuchDeterminationDateorBorrowingDate)andthereafter,oneachDistributionDate,iftheamountondepositintheHedgeReserveAccount(aftergivingeffecttoanydepositoftheapplicableportionoftheproceedsonsuchDeterminationDate)islessthantheHedgeReserveAccountRequiredBalance,adepositshallbemadetotheHedgeReserveAccount,to the extent of Available Funds as provided in Section2.06 hereof.

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(ii)HedgingAgreementTriggerEvent.IftheBorrowerisrequiredtopurchaseHedgingAgreementsinaccordancewithSection5.03atanytimeaftertheBorrowerhasdepositedamountsintheHedgeReserveAccount,theAdministrativeAgentshall,asdirectedbytheBorrower orthe Servicer,to theextentof fundsavailablein the Hedge Reserve Account, either(i)paytheapplicableHedgingAgreementpremiumtotherelatedHedgeCounterparty,or(ii)intheeventtheBorrowerprovidestheAdministrativeAgentwithevidencethatithasalreadypaidsuchpremium,reimbursetheBorrower.TotheextenttherearefundsremainingintheHedgeReserveAccountfollowingthepaymentofsuchHedgingAgreementpremium,theAdministrativeAgentshallwithdrawsuchfundsfromtheHedgeReserveAccountanddepositsuchfundsintotheCollectionAccountasAvailableFundsfortheimmediatelyfollowingDistributionDate.TotheextentthattheIssuerfailstopurchaseorcausetobepurchasedHedgingAgreementsinthetimeframerequiredbytheHedgingRequirements,theAdministrativeAgentisauthorizedtoobtainsuchHedgingAgreementonbehalfoftheBorrowerandtowithdrawfromtheHedgeReserveAccount, tothe extent of funds availabletherein,the applicable HedgingAgreementpremiumandto paysuchamount tothe related Hedge Counterparty.

(iii)       PaymentinFull. Totheextentthaton theDistribution DateonwhichtheAggregateLoanPrincipalBalancewillbereducedtozero,thereareamountsondepositintheHedgeReserveAccount,theAdministrativeAgentshallwithdrawallamountsondepositintheHedgeReserveAccountandshalldepositsuchamountsintotheCollectionAccountasAvailableFunds.

(iv)       AmountsinExcessofHedgeReserveAccountRequiredBalance.If,onanyDistributionDate,amountsondepositintheHedgeReserveAccountaregreaterthantheHedgeReserveAccountRequiredBalance(aftergivingeffecttoallotherdistributionsanddisbursementsonsuchDistributionDate),theAdministrativeAgentshall,basedontheMonthlyReport,withdrawfundsinexcessoftheHedgeReserveAccountRequiredBalancefromtheHedgeReserveAccountanddepositsuchfundsintotheCollectionAccountasAvailableFundsonsuchDistributionDateforapplicationinaccordancewithSection2.06hereof.IfonanyDeterminationDate,BorrowingDateorDistributionDate,theBorrowerhasrevokeditselection,inwholeorinpart,tofundtheHedgeReserveAccount,providedthattheBorrowerhasotherwisecompliedwiththeHedgingRequirements,amountsondepositintheHedgeReserveAccountshallbedepositedintheCollection Account as Available Funds.

SECTION2.17.  The Paying Agent.

(a)       TheBorrowerherebyappointsWellsFargoastheinitialPayingAgent.All paymentsofamountsdueandpayableinrespectoftheBorrowerObligationsthataretobemadefrom amountswithdrawnfromtheCollectionAccountpursuanttoSection2.06shallbemadeonbehalfofthe BorrowerbythePayingAgent.OntheFinalCollectionDate,allfundsthenheldbyanyPayingAgent other than the Administrative Agentunderthis Agreementshall, upon demand ofthe Borrower, be paidto theAdministrativeAgenttobeheldandappliedaccordingtoSection2.06,andthereuponsuchPaying Agentshallbereleasedfromallfurther liabilitywith respectto such funds.

(b)       OneachDistributionDate,theBorrower shallpaytothePayingAgentthePaying AgentFee pursuantto Section 2.06(b)(ii).

(c)       ThePayingAgentherebyagreesthatsubjecttotheprovisionsofthisSection,it shall:

(i)       holdanysumsheldbyitforthepaymentofamountsduewithrespectto theBorrowerObligationsintrustforthebenefitofthePersonsentitledtheretountilsuchsumsshall bepaidtosuchPersonsorotherwisedisposedofashereinprovidedandpaysuchsumstosuch Persons asherein provided;

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(ii)givetheAdministrativeAgentnoticeofanydefaultbytheBorrowerof whichithasactualknowledgeinthemakingofanypaymentrequiredtobemadewithrespectto the Borrower Obligations;

(iii)       atanytimeduringthecontinuanceofanysuchdefault,uponthewritten requestoftheAdministrativeAgent(acopyofwhichshallbeprovidedbytheAdministrativeAgent totheBorrowerandtheServicer),forthwithpaytotheAdministrativeAgentanysumssoheldin trustbysuchPayingAgent;

(iv)       immediatelyresignasaPayingAgentandforthwithpaytothe AdministrativeAgentanysumsheldbyitintrustforthepaymentoftheBorrowerObligationsif atany time itceases to bea Qualified Institution;

(v)       complywithallrequirementsoftheCodeandanyapplicableStatelaw withrespecttothewithholdingfromanypaymentsmadebyitinrespectofanyBorrower Obligationsofanyapplicablewithholdingtaxesimposedthereonandwithrespecttoanyapplicable reportingrequirementsinconnectiontherewith;and

(vi)       providetotheManagingAgentssuchinformationasisrequiredtobe deliveredundertheCodeoranyStatelawapplicabletotheparticularPayingAgent,relatingto payments made bythe PayingAgentunder this Agreement.

(d)       Each PayingAgent(other than theinitialPayingAgent) shallbe appointed bythe BorrowerwiththepriorwrittenconsentoftheAdministrativeAgentandtheMajorityManagingAgents. TheBorrowershallnotappointanyPayingAgentwhichisnot,atthetimeofsuchappointment,aQualified Institution.

(e)       TheBorrowershallindemnifythePayingAgentanditsofficers,directors, employeesandagentsfor,andholdthemharmlessagainstanyloss,liabilityorexpenseincurred,otherthan inconnectionwiththewillfulmisconduct,grossnegligenceorbadfaithonthepartofthePayingAgent, arisingoutoforinconnectionwith(i)theperformanceofitsobligationsunderandinaccordance withthis Agreement,includingthecostsandexpensesofdefendingitselfagainstanyclaimorliabilityinconnection withtheexerciseorperformanceofanyofitspowersordutiesunderthisAgreementand(ii)thenegligence, willfulmisconductorbadfaithoftheBorrowerintheperformanceofitsdutieshereunder.Allsuch amounts shallbe payable inaccordance with Section 2.06.

(f)       ThePayingAgentshallbeliableinaccordanceherewithonlytotheextentofthe obligations specificallyundertaken bythe PayingAgentin such capacityherein. No implied covenants or obligationsshallbereadintothisAgreementagainstthePayingAgentand,intheabsenceofgross negligence,willfulmisconductorbadfaithonthepartofthePayingAgent,thePayingAgentmay conclusivelyrelyonthetruthofthestatementsandthecorrectnessoftheopinionsexpressedinany certificatesoropinionsfurnishedtothePayingAgentpursuanttoandconformingtotherequirementsof this Agreement.

(g)       ThePayingAgentshallnotbeliablefor(i)anerrorofjudgmentmadeingood faithbyoneofitsofficers;or(ii)anyactiontaken,sufferedoromittedtobetakeningoodfaithin accordancewithorbelievedbyittobeauthorizedor withinthediscretionorrightsorpowersconferred,by thisAgreementoratthedirectionofaLender,ManagingAgentortheAdministrativeAgentrelatingtothe exercise ofanypowerconferred uponthe PayingAgentunder this Agreement,ineach case, unlessitshall beprovedthatthePayingAgentshallhavebeengrosslynegligentoractedinbadfaithorwithwillful misconductinascertainingthe pertinentfacts.

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(h)ThePayingAgentshallnotbechargedwithknowledgeofanyDefaultorEventof DefaultunlessaResponsibleOfficerofthePayingAgentobtainsactualknowledgeofsucheventorthePayingAgentreceiveswrittennoticeofsucheventfromtheBorrower,theServicer,anySecuredPartyor the Administrative Agent, as thecase maybe.

(i)       WithoutlimitingthegeneralityofthisSection,thePayingAgentshallhavenoduty (i) toseetoanyrecording,filingordepositingofthisAgreementoranyagreementreferredtohereinorany financingstatementorcontinuationstatementevidencingasecurityinterestintheCollateral,ortoseeto themaintenanceofanysuchrecordingorfilingordepositingortoanyrecording,refilingorredepositing of anythereof,(ii)toseetothepaymentordischargeofanyTax,assessmentorothergovernmentalcharge oranyLienorencumbranceofanykindowingwithrespectto,assessedorleviedagainst,anypartofthe PledgedTimeshareLoans,(iii)toconfirmorverifythecontentsofanyreportsorcertificatesoftheServicer ortheBorrowerdeliveredtothePayingAgentpursuant tothis AgreementbelievedbythePayingAgent to begenuineandtohavebeensignedorpresentedbytheproperpartyorpartiesor(iv)toascertainorinquire as to the performance or observance of any of theBorrower’sortheServicer’srepresentations, warranties or covenants under this Agreementor anyotherFacilityDocument.

(j)       ThePayingAgentshallnotberequiredtoexpendorriskitsownfundsorotherwise incurfinancialliabilityintheperformanceofanyofitsdutieshereunder,orintheexerciseofanyofits rightsorpowers,ifthereshallbereasonablegroundsforbelievingthattherepaymentofsuchfundsor adequateindemnityagainstsuchriskorliabilityshallnotbereasonablyassuredtoit,andnoneofthe provisionscontainedinthisAgreementshallinanyeventrequirethePayingAgenttoperform,orbe responsibleforthemannerofperformanceof,anyoftheobligationsoftheBorrowerunderthisAgreement.

(k)       ThePayingAgentmayrelyandshallbeprotectedinactingorrefrainingfrom actinguponanyresolution,certificateofaResponsibleOfficer,anyMonthlyReport,certificateofauditors oranyothercertificate,statement,instrument,opinion,report,notice,request,consent,order,appraisal, bondorotherpaperordocumentreasonablybelievedbyittobegenuineandtohavebeensignedor presented bythe properpartyor parties.

(l)       ThePayingAgentmayconsultwithcounselofitschoicewithregardtolegal questionsarisingoutoforinconnectionwiththisAgreementandtheadviceoropinionofsuchcounsel, selectedwithduecare,shallbefullandcompleteauthorizationandprotectioninrespectofanyactiontaken, omitted or sufferedbythePayingAgentin good faithand inaccordancetherewith.

(m)       ThePayingAgentshallbeundernoobligationtoexerciseanyoftherights,powers orremediesvestedinitbythisAgreement(excepttocomplywithitsobligationsunderthisAgreementand anyotherFacilityDocumenttowhichitisaparty)ortoinstitute,conductordefendanylitigationunder thisAgreementorinrelationtothisAgreement,attherequest,orderordirectionoftheAdministrative AgentoranyManagingAgentpursuanttotheprovisionsofthisAgreement,unlesstheAdministrative Agent,onbehalfoftheSecuredParties,orsuchManagingAgentshallhaveofferedtothePayingAgent reasonablesecurityorindemnityagainstthecosts,expensesandliabilitiesthatmaybeincurredthereinor thereby.

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(n)ThePayingAgentshallnotbeboundtomakeanyinvestigationintothefactsof mattersstatedinanyresolution,certificate,statement,instrument,opinion,report,notice,request,consent, order,approval,bondorotherpaperordocument,unlessrequestedinwritingsotodobyaLender,a ManagingAgentortheAdministrativeAgent;provided,thatifthepaymentwithinareasonabletimetothe PayingAgentofthecosts,expensesorliabilitieslikelytobeincurredbyitinthemakingofsuch investigationshallbe,intheopinionofthePayingAgent,notreasonablyassuredbytheBorrower,the PayingAgentmayrequire reasonable indemnityagainstsuchcost, expense or liabilityas a conditionto so proceeding. ThereasonableexpenseofeverysuchexaminationshallbepaidbytheBorroweror,ifpaidbythePayingAgent,shallbereimbursedbytheBorrowertotheextentoffundsavailablethereforpursuant to Section 2.06.

(o)       ThePayingAgentshallnotberesponsiblefortheactsor omissionsofthe AdministrativeAgent,theBorrower,theServicer,anyManagingAgents,anyLender,anyHedge Counterpartyor anyotherPerson.

(p)       AnyPersonintowhichthePayingAgentmaybemergedorconvertedorwith whichitmaybeconsolidated,oranyPersonresultingfromanymerger,conversionorconsolidationto whichtoPayingAgentshallbeaparty,oranyPersonsucceedingtothebusinessofthePayingAgent,shall bethe successorof thePayingAgentunder this Agreement,withouttheexecutionorfilingofanypaperor anyfurtheractonthe partof anyofthe parties hereto,anythinghereintothe contrarynotwithstanding.

(q)       ThePayingAgentdoesnotassumeandshallhavenoresponsibilityfor,andmakes no representationas to, monitoringthe valueoftheTimeshare Loans andotherCollateral.

(r)       IfthePayingAgentshallatanytimereceiveconflictinginstructionsfromthe AdministrativeAgentandtheBorrowerortheServiceroranyotherpartytothisAgreementandtheconflict betweensuchinstructionscannotberesolvedbyreferencetothetermsofthisAgreement,thePayingAgent shallbeentitledtorelyontheinstructionsoftheAdministrativeAgent.Intheabsenceofbadfaith,gross negligenceorwillfulmisconductonthepartofthePayingAgent,thePayingAgentmayrelyandshallbe protectedinactingorrefrainingfromactinguponanyresolution,officer’scertificate,anyMonthlyReport, certificateofauditors,oranyothercertificate,statement,instrument,opinion,report,noticerequest, consent,order,appraisal,bondorotherpaperordocumentbelievedbyittobegenuineandtohavebeen signedorpresentedbytheproperpartyorparties.ThePayingAgentmayrelyuponthevalidityof documentsdeliveredtoit,withoutinvestigationastotheirauthenticityorlegaleffectiveness,andtheparties tothisAgreementwillholdthePayingAgentharmlessfromanyclaimsthatmayariseorbeassertedagainst thePayingAgentbecauseoftheinvalidityofanysuchdocumentsortheirfailuretofulfilltheirintended purpose.

(s)       The Paying Agent is authorized, in its sole discretion, to disregard any and all notices or instructions given by any other party hereto or by any other person, firm or corporation, except only such notices or instructions as are herein provided for and orders or process of any court entered or issued with or without jurisdiction. If any property subject hereto is at any time attached, garnished or levied upon under any court order or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property or any part hereof, then and in any of such events the Paying Agent is authorized, in its sole discretion, to rely upon and comply with any such order, writ, judgment or decree with which it is advised by legal counsel of its own choosing is binding upon it, and if it complies with any such order, writ, judgment or decree it shall not be liable to any other party hereto or to any other person, firm or corporation by reason of such compliance even though such order, writ, judgment or decree maybe subsequently reversed, modified, annulled, set aside or vacated.

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(t)ThePayingAgentmay:(i)terminateitsobligationsasPayingAgentunderthis Agreement(subjecttothetermssetforthherein)uponatleast30days’priorwrittennoticetotheBorrower, theServicer,theManagingAgentsandtheAdministrativeAgent;provided,however,that,withoutthe consentoftheAdministrativeAgentandtheMajorityManagingAgents,suchresignationshallnotbe effectiveuntilasuccessorPayingAgentreasonablyacceptabletotheAdministrativeAgentandthe MajorityManagingAgentsshallhaveacceptedappointmentbytheBorrowerasPayingAgent,pursuant heretoandshallhaveagreedtobeboundbythe termsofthis Agreement;or (ii)beremovedatanytimeby writtendemand,oftheAdministrativeAgentandtheMajorityManagingAgents,deliveredtothePayingAgent,the Borrowerand theServicer.Inthe eventof such terminationor removal,theBorrowerwiththe consentoftheAdministrativeAgentandtheMajorityManagingAgentsshallappointasuccessorpaying. If,however,asuccessorpayingagentisnotappointedbytheBorrowerwithinninety(90)daysafterthe givingofnoticeofresignation,thePayingAgentmaypetitionacourtofcompetentjurisdictionforthe appointmentofa successorpayingagent.

(u)AnysuccessorPayingAgentappointedpursuantheretoshall(i)execute, acknowledge,anddelivertotheBorrower,theServicer,theAdministrativeAgent,andtothepredecessor PayingAgentaninstrumentacceptingsuchappointmentunderthisAgreement.Thereupon,theresignation orremovalofthepredecessorPayingAgentshallbecomeeffectiveandsuchsuccessorPayingAgent, withoutanyfurtheract,deedorconveyance,shallbecomefullyvestedwithalltherights,powers,duties, andobligationsofitspredecessorasPayingAgentunderthisAgreement,withlikeeffectasiforiginally namedasPayingAgent.ThepredecessorPayingAgentshalluponpaymentofitsfeesandexpensesdeliver tothesuccessorPayingAgentalldocumentsandstatementsandmoniesheldbyitunderthisAgreement; andtheBorrowerandthepredecessorPayingAgentshallexecuteanddeliversuchinstrumentsanddosuch otherthingsasmayreasonablyberequiredforfullyandcertainlyvestingandconfirminginthesuccessor PayingAgentallsuch rights, powers, duties, and obligations.

(v)IntheeventthePayingAgent’sappointmenthereunderisterminatedwithout cause,theBorrowershallreimbursethePayingAgentforthereasonableout-of-pocketexpensesofthe PayingAgentincurredin transferringanyfundsinitspossession to the successorPayingAgent.

(w)       ThepartiesheretoacknowledgeandagreethatthePayingAgentshallnotbe required to actas a “commoditypooloperator” (as defined inthe CommodityExchangeAct,as amended) orberequiredtoundertakeregulatoryfilingsrelatedtothisAgreementoranyFacilityDocumentin connection therewith.

SECTION2.18.  Defaulting  Committed  Lenders.Notwithstandinganyprovisionofthis Agreementtothecontrary,ifanyCommittedLenderbecomesaDefaultingCommittedLender,thenthe followingprovisions shallapplyforsolongassuchCommittedLenderisa DefaultingCommittedLender:

(a)       UnusedFees shallceaseto accrueon the unfunded portionof theCommitmentof such DefaultingCommittedLender pursuantto Section2.04;

(b)       notwithstandinganythingtothecontrarycontainedinSection2.03hereof,the unusedportionof theCommitmentof suchDefaulting CommittedLendermay bereducedtozero withoutanycontemporaneousratablereductionoftheCommitmentsoftheotherCommitted Lenders;

(c)       neithertheCommitmentnortheLoansofsuchDefaultingCommittedLendershall beincludedindeterminingwhetherallLenders,amajorityoftheLendersortheMajorityManaging Agentshavetakenor maytakeanyactionhereunderandtheManagingAgentoftheLenderGroup whichincludessuchDefaultingCommittedLendershallnotbeincludedindeterminingwhether allManagingAgentshavetakenormay havetakenany actionhereunder(including,ineachcase, anyconsenttoanyamendmentorwaiverpursuanttoSection10.01);provided,thatanywaiver, amendmentormodificationrequiringtheconsentofallLendersorManagingAgentsoreach affectedLenderorManagingAgent,asapplicable,whichaffectssuchDefaultingCommitted LenderortherelatedManagingAgentdifferentlythanotheraffectedLendersorManagingAgents shallrequire theconsentofsuchDefaulting Committed Lenderor the related ManagingAgent,as applicable;and

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(d)theBorrowermay replacesuchDefaulting Committed Lenderinaccordancewith Section 2.19 ofthis Agreement.

Inthe eventthatthe Administrative Agentdetermines thata DefaultingCommitted Lenderhas adequately remediedallmattersthatcausedsuchCommittedLendertobeaDefaultingCommittedLender,then(x) the Pro RataShares,theLenderGroupLimits andLenderGroupPercentages shallbe readjustedto reflect theinclusionofsuchCommittedLender’sCommitmentandonsuchdatesuchCommittedLendershall purchaseatparsuchoftheLoansoftheotherLendersastheAdministrativeAgentandtheManaging AgentsshalldeterminemaybenecessaryinorderforsuchCommittedLendertoholdsuchLoansin accordance withits Pro Rata Share andfor such Committed Lender’s Lender Group to hold such Loans in accordance withitsLenderGroup Percentage and(y) the provisionsof clauses(a)through (d)above shall, fromandaftersuchdetermination,ceasetobeoffurtherforceoreffectwithrespecttosuchCommitted Lender.

SECTION2.19. Replacement of Lender Group.If(i)anyAffectedPartyrequestscompensation underSection2.09(a)or2.10(a),(ii)anyConduitLenderceases tofundormaintainitsLoansthroughthe issuanceofCommercialPaper,(iii)anyManagingAgentfailstogiveconsenttoanyamendmentorwaiver totheFacilityDocumentsrequiringtheconsentof100%oftheManagingAgentsor100%oftheManaging AgentsforallaffectedLendersandManagingAgentswhoseLenderGroupLimitstogetherequalorexceed 662/3percentoftheLenderGroupLimitsrequiredforsuchvotehaveconsented,(iv)anyCommitted LenderbecomesaDefaultingCommittedLenderorbecomesthesubjectofaBail-InActionor(v)any DesignatedDelayFundingLenderdeliversaFundingDelayNotice,,thenBorrowermay,atitssoleexpense andeffort,uponnoticetotherelatedManagingAgentandtheAdministrativeAgent,requireeachLender in such Managing Agent’sLenderGroupto assign anddelegate, withoutrecourse(inaccordance withand subjecttotherestrictionscontainedinSection10.03),allofitsrespectiveinterests,rightsandobligations underthisAgreementtoanassigneethatshallassumesuchobligations(whichassigneemaybeanother ConduitLenderorCommittedLender,asapplicable,ifaConduitLenderorCommittedLenderaccepts suchassignment);provided,that(x)theBorrowershallhavereceivedthepriorwrittenconsentofthe AdministrativeAgentwithrespecttoanyassigneethatisnotalreadyamemberofaLenderGroup hereunder,which consentshallnotunreasonablybewithheld, conditionedordelayed,(y)eachmemberof suchassigningLenderGroupshallhavereceivedpaymentofanamountequaltoalloutstandingLoans fundedormaintainedbysuchLenderGroup,togetherwithallaccruedInterestthereonandallaccrued UnusedFeesandotherBorrowerObligationspayabletothemhereunderandundertheotherFacility Documents,fromtheassignee(totheextentofsuchoutstandingLoans)and(z)inthecaseofanysuch assignmentresultingfromaclaimforcompensationunderSection2.09(a)orSection2.10(a),such assignmentwillresultina reductionin suchcompensationorpayments.ALendershallnotberequired to makeanysuchassignmentanddelegationif,priorthereto,asaresultofawaiverbysuchLenderor otherwise,thecircumstancesentitlingtheBorrowertorequiresuchassignmentanddelegationceaseto exist.

SECTION2.20.  LIBOR Replacement. NotwithstandinganythingtothecontraryinthisAgreementoranyother FacilityDocuments, ifthe Administrative Agentdetermines(whichdeterminationshallbeconclusiveabsentmanifesterror),ortheBorrowerortheManagingAgentsnotifytheAdministrative Agent(with,inthecaseoftheManagingAgents,acopytoBorrower)thattheBorrowerortheManagingAgents (as applicable)have determined,that:

(a)adequateandreasonablemeansdonotexistforascertainingtheLIBORateforanyrequestedInterestPeriod,including,withoutlimitation,becausetheLIBORScreenRateisnotavailable or publishedon acurrentbasisand such circumstances are unlikelyto betemporary;

(b)theadministratoroftheLIBORScreenRateoraGovernmentalAuthorityhavingjurisdiction overtheAdministrativeAgenthasmadea publicstatementidentifyingaspecificdateafterwhichtheLIBORateortheLIBORScreenRateshallnolongerbemadeavailable,orusedfordeterminingtheinterestrateofloans(suchspecificdate,the“ScheduledUnavailabilityDate”);or

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(c)syndicated loanscurrentlybeingexecuted, orthat include language similarto thatcontainedinthisSection,arebeingexecutedoramended(asapplicable)toincorporateoradoptanew benchmarkinterestrate toreplace the LIBORate,

then,reasonablypromptlyaftersuchdeterminationbytheAdministrativeAgentorreceiptbytheAdministrativeAgentofsuchnotice,asapplicable,theAdministrativeAgentandtheBorrowermayamendthis Agreementtoreplacethe LIBORate withan alternatebenchmarkrate(includinganymathematicalorotheradjustmentstothebenchmark(ifany)incorporatedtherein),givingdueconsiderationtoanyevolvingorthenexistingconventionforsimilarU.S.dollardenominatedsyndicatedcreditfacilitiesforsuchalternativebenchmarks(anysuchproposedrate,a“LIBORSuccessorRate”),togetherwithanyproposedLIBORSuccessorRateConformingChangesandanysuchamendmentshallbecomeeffectiveat5:00p.m.(NewYorktime)onthefifthBusinessDayaftertheAdministrativeAgentshallhavepostedsuchproposedamendmenttoallLendersandtheBorrowerunless,priortosuchtime,theLenderscomprisingtheManagingAgentshavedeliveredtotheAdministrativeAgentwrittennoticethatsuchManagingAgentsdonot accept such amendment.

IfnoLIBORSuccessorRatehasbeendeterminedandthecircumstancesunderclause(a)aboveexistortheScheduledUnavailabilityDatehasoccurred(asapplicable),theAdministrativeAgentwillpromptlysonotifytheBorrowerandeachLender.Thereafter,(x)theobligationoftheLenderstomakeormaintainLoanstheInterestRatesforwhicharecalculatedusingtheLIBORateshallbesuspended,(totheextentoftheaffectedLoansorInterestPeriods),and(y)theAlternativeRateforanydayshouldbeaninterestrateperannum equaltothePrimeRateineffectonsuchday.Uponreceiptofsuchnotice,theBorrowermayrevokeanypendingrequestforaBorrowingof,conversiontoorcontinuationofEurodollarloans(totheextentoftheaffectedEurodollarloansorInterestPeriods)or,failingthat,willbedeemedtohaveconvertedsuchrequestintoarequestforaBorrowingofLoans(subjecttotheforegoingclause(y))intheamountspecifiedtherein.

Notwithstandinganythingelseherein,innoeventshalltheLIBORSuccessorRatebelessthanzeroforpurposesofthisAgreement.IftheLIBORSuccessorRateiscalculatedtobelessthanzerohereunder,itshall bedeemed zero forthe purposesofthis Agreement.

ARTICLEIII

CONDITIONS PRECEDENT

SECTION3.01.  Conditions  Precedent  to  Effectiveness.Asconditionsprecedenttothe effectivenessofthisAgreement,andtheinitialBorrowinghereundertheManagingAgentsshallhave receivedeachofthedocuments,instruments,legalopinionsandotheragreementslistedonScheduleIV that arerequiredtobedeliveredonorpriortothedatehereof,togetherwithall feesdueand payableonthe datehereof.

SECTION3.02.  Conditions  Precedent  to  All  Borrowings. Conditions Precedent to All Borrowings.EachBorrowing(includingtheInitialBorrowing)madebytheLenderstotheBorrower (exceptassetforthinSection2.02(e)(iv)),shallbesubjecttothefurtherconditionsprecedentthatonthe dateofeachBorrowing,eachofthefollowingshallbetrueandcorrectbothbeforeandimmediatelyafter givingeffectto such Borrowing:

(a)       theAdministrativeAgentshallhavereceivedfromtheServicertheMonthly Reportmostrecentlyrequired to be delivered pursuantto the ServicingAgreement;

(b)       therepresentationsandwarrantiescontainedinArticleIVshallbetrueandcorrect inallmaterialrespectsonandasofsuchdateasthoughmadeonandasofsuchdateunlesssuch representationsandwarrantiesbytheirtermsrefertoanearlierdate,inwhichcasetheyshallbetrueand correctinallmaterialrespects on andas of such earlierdate;

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(c)noeventhasoccurredandiscontinuing,orwouldresultfromsuchBorrowing whichconstitutesaDefault,anEventofDefault,aServicerTerminationEventoranUnmaturedServicer Termination Event;

(d)       the AmortizationDatehasnotoccurred;

(e)       eachoftheBorrower,theServicerandtheCustodianshallhavetimelymadeallof thedeliveriesrequiredpursuanttotheCustodyAgreementwithrespecttothePledgedTimeshareLoans and anyTimeshare Loans to become PledgedTimeshare Loans in connectionwithsuch Borrowing;

(f)       noBorrowingBaseDeficiencyshallexistbeforesuchBorrowingand,aftergiving proforma effect to suchBorrowing, anyconcurrentTransferofTimeshare LoanstotheBorrowerwiththe proceedsofsuchBorrowingand/oranyconcurrentreleaseofPledgedTimeshareLoansonsuchdate pursuantto Section 2.15, no BorrowingBase Deficiencyshallexist;

(g)       ifanyTimeshareLoansarebeingTransferredtotheBorrowerwiththeproceeds ofsuchBorrowing,aftergivingeffecttosuchTransfer,the weightedaverageFICO®scoreofall Obligors ofEligibleTimeshareLoansonthe ApplicableMeasurement Date withFICO®scores(weightedbasedon theTimeshare Loan Balances on suchdate) shallbeatleast700;and

(h)       if such dateoccursduringa HedgingPeriod,theBorrowershallbe in compliance with Section 5.03.5.03;

(i)       uponthereasonablerequestofanyLender,theBorrowershallhaveprovidedtosuchLenderthedocumentationandotherinformationsorequestedinconnectionwithapplicable“knowyourcustomer”andanti-moneylaunderingrulesandregulations,includingthePATRIOTAct,ineachcaseatleast fivedays priortoanyBorrowing;

(j)       ifanyTimeshareLoansforwhichtheapplicableTimeshareInterestrelatestothe“HiltonGrandVacationsattheCrane”ResortarebeingtransferredtotheBorrowerwiththeproceedsofsuch Borrowing, the Barbados Activation Date has occurred;

(k)       ifanyTimeshareLoansforwhichtheapplicableTimeshareInterestrelatestothe“HiltonGrandVacationsChicagoDowntown/MagnificentMile”ResortarebeingtransferredtotheBorrower with the proceedsof such Borrowing, the Chicago Activation Date hasoccurred; and

(l)       atleastfivedayspriortoanyBorrowing,anyBorrowerthatqualifiesasa“legalentitycustomer”undertheBeneficialOwnershipRegulationshallhavedeliveredaBeneficialOwnershipCertification inrelation tosuch Borrower.

EachdeliveryofaBorrowingRequesttothe Administrative Agent,andtheacceptancebytheBorrowerof theproceedsofanyBorrowing,shallconstitutearepresentationandwarrantybytheBorrowerthat,asof thedateofsuchBorrowing,bothbeforeandaftergivingeffecttheretoand theapplicationoftheproceeds thereof,eachoftheapplicablestatementssetforthinclauses(a)through (fj)abovearetrueandcorrectto the extentsetforthin suchclauses.

SECTION3.03. Conditions to Funding a Delayed Funding Amount.ThefundingofanyDelayed FundingAmountissubjecttotheconditions(andeachfundingshallevidencetheBorrower’srepresentation andwarrantythatclauses(a)through(e)ofthisSection3.03havebeensatisfiedasoftherelatedDelayed Funding Date) that:

(a)       theAmortizationDatehasnotoccurredbyreasonofanyactiontakenbythe Borrower underclause(iii)of the definitionthereof;

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(b)eachoftheBorrower,theServicerandtheCustodianshallhavetimelymadeallof thedeliveriesrequiredpursuanttotheCustodyAgreementwithrespecttothePledgedTimeshareLoans andanyTimeshareLoanstobecomePledgedTimeshareLoansinconnectionwiththefundingofsuch Delayed FundingAmount;

(c)       noBorrowingBaseDeficiencyshallexistbeforethefundingofsuchDelayed FundingAmountand,aftergivingproformaeffecttothefundingofsuchDelayedFundingAmount,any concurrentTransferofTimeshareLoans totheBorrower withtheproceedsofthe fundingofsuch Delayed FundingAmountand/oranyconcurrentreleaseofPledgedTimeshareLoansonsuchdatepursuantto Section 2.15, no BorrowingBase Deficiencyshallexist;

(d)       ifanyTimeshareLoansarebeingTransferredtotheBorroweronsuchDelayed FundingDate,aftergivingeffecttosuchTransfer,theweightedaverageFICO®scoreofallObligorsof EligibleTimeshareLoansontheApplicableMeasurementDatewithFICO®scores(weightedbasedon theTimeshare Loan Balances on such date) shallbeatleast700;and

(e)       if such dateoccursduringa HedgingPeriod,theBorrowershallbe in compliance with Section 5.03.

ARTICLEIV

REPRESENTATIONS AND WARRANTIES

SECTION4.01. Representations and Warranties of the Borrower.TheBorrowerrepresentsand warrantsas of the ClosingDate and on each date a Loan is made as follows:

(a)       Due Formation and Good Standing.TheBorroweris a limited liabilitycompany, dulyorganized,validlyexistingandingoodstandingunderthelawsoftheStateofDelawareandisduly qualifiedtodobusiness,andisingoodstanding,ineveryjurisdictionwherethenatureofitsbusiness requires itto beso qualified.

(b)       Due Authorization and No Conflict.Theexecution,deliveryand performanceby the Borrowerofthis Agreement, theSaleand Contribution AgreementandallotherFacilityDocumentsto whichitisaparty,andthetransactionscontemplatedherebyandthereby,arewithintheBorrower’slimited liabilitycompanypowers, have been dulyauthorized byallnecessarylimited liabilitycompanyactionand donotcontraveneorconstituteadefaultunder,anyprovisionofapplicablelaworoftheBorrower’s certificateofformationorofthelimitedliabilitycompanyagreementorofanyagreement,judgment, injunction,decree or otherinstrumentbindinguponthe Borroweror resultinthecreationor impositionof anyAdverseClaimonanyassetoftheBorrower.ThisAgreement,theSaleandContributionAgreement andtheotherFacilityDocumentstowhichtheBorrowerisapartyhavebeendulyexecutedanddelivered on behalfofthe Borrower.

(c)       Governmental Consent.Noauthorizationorapprovalorotheractionby,andno noticetoorfilingwith,anyGovernmentalAuthorityisrequiredforthedueexecution,deliveryand performancebytheBorrowerofthisAgreement,theSaleandContributionAgreementoranyother agreement,documentorinstrumenttobedeliveredbyithereunderthathasnotalreadybeengivenor obtained,exceptfor filings underthe UCCrequired underArticle III.

(d)       Enforceability of Facility Documents.EachofthisAgreement,theSaleand ContributionAgreementandeachotherFacilityDocumenttobedeliveredbytheBorrowerinconnection herewith,constitutesthelegal,validandbindingobligationoftheBorrowerenforceableagainstthe Borrower inaccordance with its terms, subjecttothe EnforceabilityExceptions.

(e)       No Litigation.(i)Thereisno action, suit,proceedingor investigationpendingor, tothebestknowledgeoftheBorrower,threatened,against theBorrowerorthepropertyoftheBorrowerin any

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court,orbeforeanyarbitratorofanykind,orbeforeorbyanyGovernmentalAuthorityand(ii)the Borrowerisnotsubjecttoanyorder,judgment,decree,injunction,stipulationorconsentorderoforwith anyGovernmentalAuthoritythat,inthecaseofeitheroftheforegoingclauses(i)and(ii),(A)assertsthe invalidityofthisAgreementoranyotherFacilityDocument,(B)seekstopreventthegrantofanyCollateral bytheBorrowertotheAdministrativeAgent,theownershiporacquisitionbytheBorrowerofthe TimeshareLoansortheconsummationofanyofthetransactionscontemplatedbythisAgreementorany otherFacilityDocument,(C)seeksanydeterminationorrulingthat,inthereasonablejudgmentofthe Borrower, would materiallyand adverselyaffectthe performance bythe Borrowerof its obligations under thisAgreementoranyotherFacilityDocumentorthevalidityorenforceabilityofthisAgreementorany other FacilityDocumentor (D) individuallyor inthe aggregate for allsuch actions, suits, proceedings and investigationscouldreasonablybeexpectedtohaveaMaterialAdverseEffect.TheBorrowerisnotin default with respectto anyorder ofanycourt, arbitrator or GovernmentalAuthority.

(f)       Perfection Representations.

(i)       ThisAgreementcreatesavalidandcontinuingsecurityinterest(asdefined intheapplicableUCC)intheCollateralinfavoroftheAdministrativeAgent,whichsecurity interestispriortoallotherAdverseClaimsarisingundertheUCC,andisenforceableassuch againstcreditorsoftheBorrower,subjecttoapplicablebankruptcy,insolvency,fraudulent conveyance,reorganization,moratoriumandsimilarlawsaffectingcreditors’rightsandremedies generally,andtogeneralprinciplesofequity(regardlessofwhetherenforcementissoughtina proceedingatlaw orin equity);

(ii)       ThePledgedTimeshareLoansandthedocumentsevidencingsuch PledgedTimeshareLoansconstitute“accounts”,“chattelpaper”,“instruments”or“general intangibles” within the meaningof the applicable UCC;

(iii)       TheBorrowerownsandhasgoodandmarketabletitletotheCollateral free andclearof anyAdverse Claims;

(iv)       TheBorrowerhascausedorwillhavecaused,withintendaysofthe ClosingDate,thefilingofallappropriatefinancingstatementsintheproperfilingofficeinthe appropriatejurisdictionsunderapplicablelawinordertoperfectthesecurityinterestinthe Collateralgranted to the Administrative Agenthereunder;

(v)       Alloriginalexecuted ObligorNotes (or anoriginallostnote affidavitand indemnityfromtheSeller)thatconstituteorevidencethePledgedTimeshareLoanshavebeen deliveredtotheCustodianandtheBorrowerhasreceivedareceipttherefor,whichacknowledges thattheCustodianis holdingtheObligorNotes thatconstituteorevidencethePledgedTimeshare Loans solelyon behalf andforthe benefitofthe Administrative Agent.

(vi)       OtherthanthesecurityinterestgrantedtotheAdministrativeAgent pursuanttothisAgreement,theBorrowerhasnotpledged,assigned,sold,grantedasecurityinterest in,orotherwise conveyedanyoftheCollateral. TheBorrowerhas notauthorized the filingof and isnotawareofanyfinancingstatementsagainsttheBorrowerthatincludeadescriptionofthe Collateralotherthananyfinancingstatementrelatingtothesecurityinterestgrantedtothe Administrative Agent hereunderor thathasbeenterminated.

(vii)       Allfinancingstatementsfiledortobefiledagainstthe Borrowerinfavor oftheAdministrativeAgentinconnectionherewithdescribingtheCollateralcontainastatement tothefollowingeffect:“Apurchaseoforsecurityinterestinanycollateraldescribedinthis financingstatementwillviolate the rights ofthe Secured Party.”

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(viii)NoneoftheObligorNotesthatconstituteorevidencethePledged TimeshareLoanshasanymarksornotationsindicatingthattheyhavebeenpledged,assignedor otherwise conveyed toanyPersonotherthanthe Borrowerandthe Administrative Agent.

(g)       Compliance with Laws.TheBorrowerhascompliedwithallapplicablelaws, rules,regulations,orders,writs,judgments,injunctions,decreesorawardstowhichitmaybesubject,the violation of which, eitherindividuallyor intheaggregate,couldreasonablybeexpectedto haveaMaterial Adverse Effect.

(h)       Accuracy of Information.The information,reports, financialstatements,exhibits andschedulesfurnishedinwritingbyoronbehalfoftheBorrowertotheAdministrativeAgent,any ManagingAgentor any Lenderin connection with the negotiation, preparation or deliveryof this AgreementandtheotherFacilityDocumentsorincludedhereinorthereinordeliveredpursuantheretoor thereto (butexcludingany projections,forwardlookingstatements,budgets,estimatesandgeneralmarket dataastowhichtheBorroweronlyrepresentsandwarrantsthatsuchinformationwaspreparedingood faithbaseduponassumptionsbelievedbyittobereasonableatthetime),whentakenasawhole,donot containanyuntruestatementofmaterialfactoromittostateanymaterialfactnecessarytomakethe statementshereinortherein,inlightofthecircumstancesunderwhichtheyweremade,notmisleading.All writteninformationfurnishedafterthedatehereofbyoronbehalfoftheBorrowertotheAdministrative Agent,anyManagingAgentoranyLenderinconnectionwiththisAgreementandtheotherFacility Documentsandthetransactionscontemplatedherebyandtherebywillbetrue,completeandaccuratein everymaterialrespect,or(inthecaseofprojections)basedonreasonableestimates,onthedateasofwhich suchinformationisstatedorcertified.EachdocumentorinstrumentincludedinaTimeshareLoanFile deliveredtotheCustodian by oronbehalfoftheBorrowerwithrespecttoaPledgedTimeshareLoan that isnottheoriginallyexecuteddocumentorinstrumentisatrueandcorrectcopyofsuchdocumentor instrument.

(i)       Location of Records; Organizational Identification Number.Thelocationsofthe officeswheretheBorrowerkeepsalltheRecordsarelistedonExhibitD.TheBorrower’sfederalemployer identificationnumberis95-4349751anditsorganizationalidentificationnumberis5313725.The Borrower is organized solelyunderthe laws oftheState ofDelaware.

(j)       Collection Information.ThenamesandaddressesofallAccountBanks,together withtheaddressoftheLockboxandtheaccountnumbersoftheAccountsareasspecifiedinExhibitE. TheLockboxsetforthonExhibitEistheonlyaddresstowhichObligorsaredirectedtomakepayment. TheClearingAccountsetforthonExhibitEistheonlyaccounttowhichCollectionsreceivedfrom Obligorsbymeansofpre-authorizeddebitsfromadepositofsuchObligorpursuanttoaPACorfroma creditcardofsuchObligorpursuanttoaCreditCardAccount willbedeposited.Exceptasprovidedinthe ClearingAccountControlAgreement,noneoftheSeller,theBorrowerortheServicerhasgrantedany Person,otherthantheAdministrativeAgent,“control”(withinthemeaningofSection9-102ofany applicableenactmentoftheUCC)oftheUnidentifiedReceiptsAccountortheClearingAccountorthe righttotakecontroloftheUnidentifiedReceipts AccountortheClearingAccountatafuture timeorupon the occurrence of afuture event.

(k)       No Trade Names.TheBorrowerhasno,andhasnotusedany,tradenames, fictitious names, assumed names or “doingbusinessas” names.

(l)       Investments.TheBorrowerdoesnotownorhold,directlyorindirectly(i)any capitalstockorequitysecurityof,oranyequityinterestin,anyPersonor(ii)anydebtsecurityorother evidenceofIndebtednessofanyPerson,exceptforPermittedInvestmentsandasotherwisecontemplated bythe FacilityDocuments.The Borrowerhas no Subsidiaries.

(m)       Facility Documents. TheSaleandContributionAgreementdeliveredtothe AdministrativeAgentistheonlyagreementpursuanttowhichtheBorrowerdirectlyorindirectlypurchases and receives capitalcontributions ofTimeshare Loansfromthe Seller.

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(n)Business.Since itsformation,theBorrowerhasconductednobusinessotherthan enteringintoandperformingitobligationsundertheFacilityDocumentstowhichitisaparty,andsuch otheractivitiesasareincidentaltotheforegoing.TheFacilityDocumentstowhichitisaparty,andany agreementsentered intoin connectionwith the transactionsthatarepermittedbySection5.03(kb), are the onlyagreements towhich the Borrowerisa party.

(o)       Taxes.TheBorrowerhas(i)filedorhasreceivedanextensionoftimeforfiling of,allUnitedStatesFederalincomeTaxreturns(ifany)andallothermaterialTaxreturnswhichare required tobefiledbyitand (ii)paid allmaterialTaxes thataredueand payable byit, excepttotheextent thatanysuchTaxisbeingcontestedingoodfaithbyappropriateproceedings.Thecharges,accrualsand reservesonthebooksoftheBorrowerinrespectofTaxesandothergovernmentalchargesare,inthe Borrower’sopinion, adequate.

(p)       Solvency. The Borrower:(i)isnot“insolvent”(assuch termisdefinedin §101(32)(A)oftheBankruptcyCode),(ii)isable topayitsdebts astheycomedue;and (iii)doesnothave unreasonablysmallcapitalforthebusinessinwhichitisengagedorforanybusinessortransactionin whichitis abouttoengage.

(q)       Use of Proceeds.NoproceedsofanyLoanwillbeusedbytheBorrowertoacquire anysecurityinanytransactionwhichissubjecttoSection13or14oftheSecuritiesExchangeActof1934.

(r)       Ownership.Asofthedatehereof,alloftheEquityInterests(otherthanthespecial membershipinterestoftheIndependentDirectors)intheBorrowerarevalidlyissuedanddirectlyowned ofrecordbytheSeller;theSellerhasnoobligationtomakefurtherpaymentsforthepurchaseofsuch EquityInterestsorcontributionstotheBorrowersolelybyreasonofitsownershipofsuchEquityInterests, and there are no options, warrants orotherrightsto acquire anyEquityInterests in the Borrower.

(s)       Eligibility.EachPledgedTimeshareLoanrepresentedbytheBorrowertobean “EligibleTimeshareLoan”inanyBorrowingRequestorincludedinthecalculationoftheBorrowingBase onanyDistributionDate,RefinancingDateorBorrowingDatesatisfiedtherequirementsofeligibility containedinthedefinitionof“EligibleTimeshareLoan”asoftheCutoff Dateforsuch PledgedTimeshare Loan.

(t)       Payments to Seller.WithrespecttoeachPledgedTimeshareLoan,theBorrower shallhave(i)receivedsuchPledgedTimeshareLoanasacontributiontothecapitaloftheBorrowerbythe Selleror(ii)purchasedsuchPledgedTimeshareLoanfromtheSellerinexchangeforpayment(madeby theSellerinaccordancewiththeprovisionsoftheSaleandContributionAgreement)inanamountwhich constitutesfairconsiderationandreasonablyequivalentvalue.Nosuchsaleshallhavebeenmadeforor onaccountofanantecedentdebtowedbytheSellertotheBorrowerandnosuchsaleisormaybevoidable or subjectto avoidanceunderanysection of the BankruptcyCode.

(u)       Event of Default.  No Defaultor Eventof Defaulthasoccurredoris continuing.

(v)       OFAC.NoneoftheBorroweroranyotherSubsidiaryoftheSeller(i)isa SanctionedPerson,(ii)hasanyassetsinSanctionedCountriesor(iii)derivesanyoperatingincomefrom investmentsin,ortransactionwith,SanctionedPersonsorSanctionedCountries.Noneoftheproceedsof anyLoanhavebeenorwillbeusedtofundanyoperationsorfinanceanyinvestmentsoractivitiesin,or make anypayments to, a Sanctioned Person or Sanctioned Country.

(w)       Investment Company Act; Volcker Rule.TheBorrower(i)isnota“coveredfund” undertheVolckerRuleand(ii)isnotan“investmentcompany”withinthemeaningoftheInvestment CompanyActandtheBorrowerhasnotreliedexclusivelyoneitherorbothofSections3(c)(1)or3(c)(7) ofthe InvestmentCompany Act for anexceptionfromregistration.

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(x)Certain LCR Matters.TheBorrowerhasnotissued(i)anyobligationsthat constituteasset-backedcommercialpaper,(ii)securitiesrequiredtoberegisteredundertheSecuritiesAct of1933,asamendedorthatmaybeofferedforsaleunderRule144AoftheSecuritiesandExchange Commissionthereunder,or(iii)anyotherdebtobligationsorequityinterestsotherthan(A)debtobligations substantiallysimilartotheobligationsoftheBorrowerunderthisAgreementthatare(1)issuedtobanksor asset-backedcommercialpaperconduitsinprivatelynegotiatedtransactions,and(2)subjecttotransfer restrictions substantiallysimilartothetransferrestrictions setforthinSection10.03ofthisAgreementand(B)EquityInterestsoftheBorrowerissuedtotheSeller.  TheBorrower’sassetsandliabilitiesare consolidated with the assetsand liabilities oftheSellerfor purposesof GAAP.

(y)       BeneficialOwnershipCertification.AsofApril25,2019,theinformationincluded in theBeneficial OwnershipCertification delivered bytheBorrower totheAdministrativeAgentis trueandcorrect in allrespects.

ARTICLEV

COVENANTS

SECTION5.01. Affirmative Covenants of the Borrower.Exceptasotherwiseprovidedherein, fromtheClosingDate untilthe later ofthe Amortization Dateand the FinalCollectionDate,theBorrower will,unlesstheAdministrativeAgentandtheMajorityManagingAgentsshallotherwiseconsentinwriting:

(a)       Compliance with Laws, Etc.Complyinallmaterialrespectswithallapplicable laws,ordinances,orders,rules,regulations andrequirementsof Governmental Authorities,theviolationof whicheitherindividuallyorintheaggregate,couldreasonablybeexpectedtohaveaMaterialAdverse Effect.

(b)       Preservation of Existence.(i) Observe allprocedures required by itscertificateof formationandthelimitedliabilitycompanyagreementandpreserveandmaintainitslimitedliability companyexistence,rights,franchisesandprivilegesinthejurisdictionofitsorganization,and(ii)qualify andremainqualifiedingoodstandingasaforeignlimitedliabilitycompanyineachotherjurisdictionwhere thenatureofitsbusinessrequiressuchqualificationandwhere,inthecaseofclause(ii),thefailuretobe so qualified couldreasonablybe expected tohave a MaterialAdverse Effect.

(c)       Audits.Atanytimeandfromtimetotimeduringregularbusinesshoursandupon reasonablepriornotice,permittheAdministrativeAgent,onbehalfoftheLendersandManagingAgents, oritsagentsorrepresentatives:(i)toconductperiodicauditsofthePledgedTimeshareLoansandtheother CollateralandcollectionsystemsoftheBorrower;(ii)toexamineandmakecopiesofandabstractsfrom theRecordsinitspossessionorcontrolrelatingtothePledgedTimeshareLoansandotherCollateral, including, therelated PledgedTimeshare Loans;(iii)to visitthe officesandproperties of the Borrower for thepurposeofexaminingthematerialsdescribedinclause(ii)above;and(iv)todiscussmattersrelating tothePledgedTimeshareLoans,theotherCollateralortheBorrower’sperformancehereunderwithanyof theofficersoremployeesoftheBorrowerhavingknowledgeofsuchmatters;provided,thatifnoEventof Defaultshallhaveoccurredandbecontinuing,theAdministrativeAgentoritsagentsorrepresentatives shallonlybeentitledtoconductone(1)auditoftheBorrowerattheexpenseoftheBorrowerduringany twelve(12)monthperiod,beginningonthedatehereofandoneachanniversaryofthedatehereof;and provided,further, thatif anEventof Defaultshallhave occurred and be continuing, there shallbe nolimit onthenumberofsuchauditstheAdministrativeAgentoritsagentsorrepresentativesshallbeentitledto conductattheexpenseoftheBorrower.TherightsgrantedtotheAdministrativeAgentinthisSection 5.01(c)shallbeexercisedinconjunctionwiththerightsgrantedtoitunderSection3.2(f)oftheServicing Agreement.

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(d)Keeping of Records and Books of Account.Maintainandimplement administrativeandoperatingprocedures (includinganabilitytorecreaterecordsevidencingthe Pledged TimeshareLoans intheevent ofthedestruction oftheoriginalsthereof) and keepand maintain(orcause the Servicerto keepand maintain) alldocuments,books,recordsand otherinformationreasonably necessaryforthecollectionofallPledgedTimeshareLoans, andin which timelyentriesare madein accordance with GAAP.Suchbooksandrecordsshall include, without limitation,records adequateto permitthedailyidentificationofeachnewPledged TimeshareLoanandall Collectionsofand adjustments to each existingPledged Timeshare Loan.

(e)       Collections.

(i)       InstructorcauseallObligorstobeinstructedto(A)sendallscheduled paymentsofprincipalorinterestunderthePledged TimeshareLoans directlyto theLockbox;(B) makescheduledpaymentsofprincipalorinterestunderthePledgedTimeshareLoansbywayof pre-authorizeddebitsfromadepositaccountofsuchObligorpursuanttoaPACorfromacredit cardofsuchObligorpursuanttoaCreditCardAccountfromwhichpaymentsunderthePledged TimeshareLoans shallbeelectronicallytransferred totheClearingAccount;or(C)makepayment byelectronictransferof funds tothe ClearingAccount.

(ii)       InthecaseoffundstransferspursuanttoaPACorCreditCardAccount, orotherelectronicmeans,take,orinstructtheClearingAccountBanktotake,allnecessaryand appropriateactiontoensurethateachsuchpre-authorizeddebitorcreditcardpaymentortransfer is credited directlyto the ClearingAccount.

(iii)       CausetheClearingAccounttoatalltimesbesubjecttotheClearing AccountControlAgreement.

(f)       Recordation of Assignments of Mortgage.AtthedirectionoftheAdministrative Agent,theBorrowershall,upontheoccurrenceofanEventofDefaultoraServicerTerminationEvent causetherecordationofeachunrecordedGlobalAssignmentoroneormoreassignmentswithrespectto theMortgages relatingto the PledgedTimeshare Loans(together,the“Assignments”)witheach Requisite Office.Eachsuchsubmissionforrecordationshalloccurwithinthirty(30)calendardaysoftheoccurrence ofsuchEventofDefaultorServicerTerminationEvent.TheBorrowershalldeliveralldocuments necessaryto effectsuch recordations and payallcosts,fees and expenses related to each such recordation, includingallrecordationtaxeswithrespecttosuchAssignments,anycostsand/orexpensesrelatedtothe assemblyofsuchAssignmentsandthedeliverythereoftotheproperGovernmentalAuthorityfor recordation,andanyattorneys’feesorfeesforotherprofessionalsincurredinconnectionwiththe recordation ofsuch Assignments.

(g)       Separate Existence.MaintaintheBorrower’sidentityasaseparatelegalentity fromeach ofthe Sellerandallother Subsidiaries oftheSeller(each a “Hilton Entity” and collectively, the “HiltonEntities”)andtomakeitmanifesttothirdpartiesthattheBorrowerisanentitywithassetsand liabilitiesdistinctfromthoseoftheHiltonEntities.TheBorrowershalloperateinsuchamannerandbe constituted sothateach of the followingstatements willbetrue andcorrectatall relevanttimes:

(i)       theBorrowermaintainsandshallmaintainseparaterecords,booksof accountand financialstatements fromthoseoftheHilton Entities;

(ii)       theBorrowershallatalltimesmaintainallofitsliabilitiesandtangible andintangibleassets,separateandreadilyidentifiable,fromthoseofeachHiltonEntityand,except totheextentpermittedpursuanttotheFacilityDocuments,theBorrowerdoesnotandshallnot commingle anyof itsassetsor funds withthose ofany Hilton Entity;

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(iii)theBorrowermaintainsandshallmaintainan officeseparate fromthatof anyotherentityandaseparateboardofdirectorsandobservesallseparatelimitedliabilitycompany formalities,andalldecisionswithrespecttotheBorrower’sbusinessanddailyoperationshave beenandshallbeindependentlymadebytheofficersoftheBorrowerpursuanttoauthoritygranted byits limitedliabilitycompanyagreementand byresolutions of its boardof directors;

(iv)       otherthancontributionsofcapital,distributionsoffundsandreturnof capital,notransactionshavebeenorwillbeenteredintobetweentheBorrowerandtheSelleror betweentheBorrowerandanyHiltonEntityexceptsuchtransactionsasarecontemplatedbythis AgreementandtheotherFacilityDocuments,oraspermittedbytheBorrower’sorganizational documents,andtheBorrowershallnotenterintoorpermittoexistany transaction(includingany purchase,leaseorexchangeofpropertyortherenderingofanyservice)withanyHiltonEntity other than thosedescribed in Section5.04(j);

(v)       theBorroweractssolelyinitsownnameandthroughitsownauthorized officersandagentsandtheBorrower doesnotand willnotactasagentofanyHiltonEntityorany other Personin anycapacity;

(vi)       exceptforanyfundsreceivedfromtheSellerasacapitalcontributionor asotherwisepermittedinthisAgreementoranyotherFacilityDocument,theBorrowershallnot acceptforitsownaccountfundsfromanyHiltonEntity;andtheBorrowershallnotallowany Hilton Entityotherwisetosupplyfunds to,or guarantee anyobligationof,the Borrower;

(vii)       theBorrower shallnotguarantee,orotherwisebecomeliable withrespect to, anyobligation of any Hilton Entity;

(viii)       theBorrowershallatalltimesholditselfouttothepublicunderthe Borrower’sownnameasalegalentityseparateanddistinctfromtheSellerandtheotherHilton Entities, and nothold itselfoutas a “division” ofthe Selleror anyotherHilton Entity;

(ix)       theBorrowerisacompanywithlimitedpurposes(asspecifiedinits limitedliabilitycompanyagreement)andhasnotengaged,anddoesnotpresentlyengageandshall notengage,inanyactivityother than theactivitiesundertakenpursuantto thisAgreementand the FacilityDocumentsandactivitiesancillaryorincidentaltheretoandtransactionspermittedpursuant toitsorganizationaldocuments,andhasnoIndebtednessotherthanascreatedby,orsetforthin, this Agreementorthe otherFacilityDocuments;

(x)       alloftheissuedandoutstandingmembershipinterestsoftheBorrowerare ownedbytheSeller,andalldistributionsbytheBorrowertotheSellershallbeproperlyreflected as distributionson the books andrecordsofthe Seller;

(xi)       theexecutionanddeliveryofthisAgreementand the FacilityDocuments andtheconsummationofthetransactionscontemplatedherebyandtherebywerenotmadein contemplationoftheinsolvencyoftheBorroweror afterthecommissionofany actof insolvency bytheBorrower.TheBorrowerdoesnotbelieve,nordoesithaveanyreasonablecausetobelieve, thatitcannotperformits covenants contained inthis Agreementand the otherFacilityDocuments towhichitisaparty.ThetransactionscontemplatedbythisAgreementandtheFacilityDocuments arebeingconsummatedbytheBorrowerinfurtheranceofitsordinarybusinesspurposes,withno intenttohinder,delayordefraudanyofitspresentorfuturecreditorsandwithnoviewtopreferring onecreditoroveranotherortopreventingtheapplicationoftheBorrower’sassetsinthemanner required byapplicablelawor regulations;and

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(xii)bothimmediatelybeforeandafterthetransactionscontemplatedbythis AgreementandtheotherFacilityDocuments(y)thepresentfairsalablevalueoftheBorrower’s assetsinthenormalcourseofitsbusinessoperationswasorwillbeinexcessoftheamountthat willberequiredtopayitsprobableliabilitiesastheythenexistandastheybecomeabsoluteand matured;and(z)thesumoftheBorrower’sassets wasandwillbegreaterthanthesumofitsdebts, valuingitsassetsatafairsalablevalue.ThisAgreementandtheFacilityDocumentsreflectbona fide transactions for legitimate business purposes;

(h)        [Reserved].BeneficialOwnershipCertification.TheBorrowerwillnotifytheAdministrativeAgentandtheLendersofanychangeintheinformationprovidedintheBeneficialOwnershipCertificationthatwouldresultinachangetothelistofbeneficialownersidentifiedonsuchcertification.

(i)       Location of Records.Keepitschiefplaceofbusinessandchiefexecutiveoffice andtheofficeswhereitkeepstheRecordsat(i)theaddress(es)oftheBorrowerreferredtoonExhibitDor (ii) upon30days’priorwrittennoticetotheAdministrativeAgent,atanyotherlocationintheUnitedStates whereallactionsreasonablyrequestedbythe Administrative Agentor anyManagingAgentto protectand perfecttheinterestsoftheAdministrativeAgentandtheLendersintheCollateralhavebeentakenand completed.

(j)       Taxes.File,causetobefiledorobtainanextensionofthetimetofile,all material TaxreturnsandreportsrequiredbylawtobefiledbyitandwillpromptlypayorcausetobepaidallTaxes andgovernmentalchargesatanytimeowing,providedthattheBorrowermaycontestingoodfaithany suchTaxes, assessments and other charges and, in such event, maypermitthe Taxes, assessments orother charges so contested toremainunpaid duringanyperiod, includingappeals, whenthe Borrower is in good faithcontestingthesamesolongas(i)adequatereserveshavebeen established inaccordance withGAAP, (ii) enforcementofthecontestedTax,assessmentorotherchargeiseffectivelystayedfortheentireduration ofsuchcontestifsuchenforcementcouldreasonablybeexpectedtohaveaMaterialAdverseEffect,and (iii) anyTax,assessmentorotherchargedeterminedtobedue,togetherwithanyinterestorpenalties thereon,ispromptlypaidasrequiredafterfinalresolutionofsuchcontest,andpaywhendueanyTaxes payableinconnectionwiththePledgedTimeshareLoans,exclusiveofTaxesonormeasuredbyincomeor grossreceiptsofthe Administrative Agent, the ManagingAgents ortheLenders.

(k)       Performance and Enforcement of Sale and Contribution Agreement.(i)Perform andrequire the Sellerto, performeach oftheirrespective obligationsandundertakings underand pursuant totheSaleandContributionAgreement;purchaseTimeshareLoansthereunderincompliancewiththe termsthereof;(ii)enforcetherightsandremediesaccordedtotheBorrowerundertheSaleandContribution Agreementand(iii)takeallactionstoperfectandenforceitsrightsandinterests(andtherightsandinterests oftheAdministrativeAgentandtheLendersasassigneesoftheBorrower)undertheSaleandContribution AgreementastheAdministrativeAgentmayfromtimetotimereasonablyrequest,includingmakingclaims to which itmay be entitledunderanyindemnity, reimbursementor similarprovision contained in the Sale and Contribution Agreement.

(l)       Ownership.Takeallnecessaryactionto(i)vestlegalandequitabletitletothe PledgedTimeshareLoansandtheotherCollateralpurchasedundertheSaleandContributionAgreement irrevocablyintheBorrower,freeandclearofanyAdverseClaims(includingthefilingofallfinancing statementsorothersimilarinstrumentsordocumentsnecessaryundertheUCC(oranycomparablelaw)of allappropriatejurisdictionstoperfecttheBorrower’sinterestinthePledgedTimeshareLoansandtheother Collateralandsuchotheractiontoperfect,protectormorefullyevidencetheinterestoftheBorrower thereinastheAdministrativeAgentoranyManagingAgent mayreasonablyrequest),and(ii)establishand maintain,infavorof the Administrative Agent,forthebenefitoftheSecuredParties,avalidandperfected firstpriorityperfectedsecurityinterestinallPledgedTimeshareLoansandtheotherCollateraltothefull extentcontemplatedherein,freeandclearofanyAdverseClaims(includingthefilingofallfinancing statementsorothersimilarinstrumentsordocumentsnecessaryundertheUCC(oranycomparablelaw)of allappropriate

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jurisdictionstoperfecttheAdministrativeAgent’s(forthebenefitoftheSecuredParties) securityinterestinsuchPledgedTimeshareLoansandtheotherCollateralandsuchotheractiontoperfect, protectormorefullyevidencetheinterestoftheAdministrativeAgentforthebenefitoftheSecuredParties as the Administrative AgentoranyManagingAgentmayreasonablyrequest).

(m)       Independent Directors.TheBorrowerwillatalltimeshavetwo(2)Independent Directorsandensurethatallactionsrelatingto(x)theselection,maintenanceorreplacementofthe IndependentDirectors,(y)thedissolutionorliquidationoftheBorroweror(z)theinitiationof,participation in,acquiescenceinorconsenttoany bankruptcy,insolvency,reorganization orsimilarproceeding involvingtheBorrower,aredulyauthorizedbyunanimousconsentoftheBorrower’sdirectors,including theIndependentDirectors;andnoneoftheBorrowerortheSelleroranyoftheBorrower’smembersor directorsshallremoveandreplaceanyIndependentDirectorwithoutgivingtheAdministrativeAgentten days’priorwrittennoticeandacertificationofaResponsibleOfficeroftheBorrowerthatsuchPerson satisfiesthecriteriasetforthinthedefinitionhereinof“IndependentDirector.”TheBorrowershall compensateeachIndependentDirectorinaccordancewithitsagreementwithsuchIndependentDirector (orthecompanyemployingsuchIndependentDirectorasapartofitsbusinessofsupplyingdirectorservices to specialpurpose entities).NoIndependentDirector shallatanytime serve as a trusteein bankruptcyfor theBorrowerortheSelleroranyoftheirrespectiveAffiliates.Withoutlimitingtheforegoing,theBorrower willpromptlynotifythe Administrative Agentin writingofthe resignation or removalof any Independent Director orits receiptofanynotice ofintendedresignationbyany IndependentDirector.

SECTION5.02. Reporting Requirements of the Borrower.FromtheClosingDateuntilthelater oftheAmortizationDateandtheFinalCollectionDate,theBorrowerwill,unlesstheAdministrativeAgent andtheMajorityManagingAgentsshallotherwiseconsentinwriting,furnishorcausetobefurnishedto theAdministrativeAgent(andtothePayingAgentandBackupServicer,withrespectto(a)and(f)below):

(a)       Notice of Certain Events. Assoonasreasonablypracticableandinanyevent withinthree(3)BusinessDaysafteranyResponsibleOfficeroftheBorrowerobtainsknowledgeofthe occurrenceofeachEventofDefault, ServicerTerminationEvent,Default(ifsuchDefaultis continuingon suchdate)orUnmaturedServicerTerminationEvent,thestatementofaResponsibleOfficerofthe Borrower settingforththedetails ofsucheventand theaction whichthe Borroweris takingor proposes to take withrespectthereto.

(b)       Financial Statements.Promptlyuponitsreceiptthereof,thefinancialstatements andcompliancecertificates oftheSellerprovidedbytheSellerto theBorrowerpursuanttoSection4.2(a) of the Sale and Contribution Agreement.

(c)       Copies of Notices.Promptlyuponitsreceiptofanywrittennotice,requestfor consent,financialstatements, certification,reportor othercommunicationunder or in connection withany FacilityDocumentfromtheSeller,theCustodian,theServicer,theBackupServicer,anyAccountBankor anyotherPerson other thanthe Administrative Agentthatis apartythereto copiesof the same.

(d)       ERISA Events.Assoonasreasonablypossible,andinanyeventwithinthirty(30) daysafteraResponsibleOfficerknows,orwithrespecttoanyPlanorMultiemployerPlantowhichany HiltonEntityoranyofitsSubsidiariesmakesdirectcontributions,hasreasontobelieve,thatanyofthe eventsorconditionsspecifiedbelowwithrespecttoanyPlanorMultiemployerPlanhasoccurredorexists, astatementsignedbyaseniorfinancialofficerofsuchHiltonEntitysettingforthdetailsrespectingsuch eventorconditionandtheaction,ifany,thatsuchHiltonEntityoranyERISAAffiliateproposestotake withrespectthereto(andacopyofanyreportornoticerequiredtobefiledwithorgiventhePBGCbysuch Hilton Entityor suchERISAAffiliate withrespectto such eventor condition):

(i)       anyReportableEventwithrespecttoaPlan,astowhichPBGChasnotby regulationorotherwisewaivedtherequirementofSection4043(a)ofERISAthatitbenotified withinthirty(30)daysoftheoccurrenceofsuchevent(providedthatafailuretomeettheminimum fundingstandardofSection412oftheCodeorSection302ofERISA,includingthefailuretomake

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onorbeforeitsduedatearequiredinstallmentunderSection412(m)oftheCodeorSection302(e) ofERISA,shallbeaReportableEventregardlessoftheissuanceofanywaiversinaccordancewith Section412(d)oftheCode);andanyrequestforawaiverunderSection412(d)oftheCodeforany Plan;

(ii)       thedistributionunderSection4041(c)ofERISAofanoticeofintentto terminate anyPlan or anyaction taken bysuch HiltonEntityor such ERISAAffiliate to terminate anyPlan;

(iii)       theinstitutionbyPBGCofproceedings under Section4042 ofERISAfor theterminationof,ortheappointmentofatrusteetoadminister,anyPlan,orthereceiptbysuch HiltonEntityoranyERISAAffiliateofanoticefromaMultiemployerPlanthatsuchactionhas beentaken byPBGCwith respectto such MultiemployerPlan;

(iv)       thecompleteorpartialwithdrawalfromaMultiemployerPlanbysuch HiltonEntityoranyERISAAffiliate thatresultsinliabilityunderSection4201 or4204ofERISA (includingtheobligationtosatisfysecondaryliabilityasaresultofapurchaserdefault)orthe receiptbysuch HiltonEntityoranyERISAAffiliateofnoticefromaMultiemployerPlanthatitis inreorganizationorinsolvencypursuanttoSection4241or4245ofERISAorthatitintendsto terminate or hasterminatedunderSection4041Aof ERISA;

(v)       theinstitutionofaproceedingbyafiduciaryofanyMultiemployerPlan againstsuchHiltonEntityoranyERISAAffiliatetoenforceSection515ofERISA,which proceedingis notdismissed within 30 days;and

(vi)       theadoptionofanamendmenttoanyPlanthat,pursuanttoSection 401(a)(29)oftheCodeorSection307ofERISA,wouldresultinthelossoftaxexemptstatusof thetrustofwhichsuchPlanisapartifsuchHiltonEntityoranERISAAffiliatefailstotimely provide securityto such Plan in accordance withthe provisionsof saidSections.

(e)       Reporting on Adverse Effects.Promptlyandinnoeventmorethanthree(3) BusinessDaysafteranyResponsibleOfficeroftheBorrowerobtainsknowledgeofanymatterorthe occurrenceofanyeventconcerningtheBorrower,theServicer,theSellerorthePerformanceGuarantor which would reasonablybe expectedto have a MaterialAdverse Effect,notice thereof.

(f)       Other Information.Assoonasreasonablypracticable,fromtimetotime,such otherinformation,documents,recordsorreportsrespectingthePledgedTimeshareLoansortheconditions or operations, financialor otherwise, oftheBorrower as the Administrative AgentoranyManagingAgent mayfromtime to time reasonablyrequest.

(g)       KYCInformation.Promptly,followinganyrequesttherefor,provideinformationanddocumentationreasonablyrequestedbytheAdministrativeAgentoranyLenderforpurposesofcompliancewithapplicable“knowyourcustomer”requirementsunderthePATRIOTAct,theBeneficialOwnership Regulation or otherapplicableanti-moneylaunderinglaws.

SECTION 5.03.  Covenants of the Borrower Relating to Hedging.(a)On the first Distribution Date that is at least thirty (30) days afterUpon the commencement of any Hedging Period and at all times thereafter during such Hedging Period, the Borrower shall be party to one or more Hedge Transactions which collectively satisfy the Hedge Requirements or shall provide Hedge Reserve Amounts as set forth in this Section 5.03.

(a)       Duringa HedgingPeriod asa result of clauses (ii) or (iii) of thedefinition thereof orifaSecuritizationhasnotoccurredwithinoneyearofthefirstdayofsuchHedgingPeriod(“Hedge PurchaseEvent”),theBorrowershallnolaterthan15calendardaysafterthecommencementofsuch

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HedgingPeriod,bepartytooneormoreHedgeTransactions,eachwithanEligibleHedgeCounterparty, pursuanttooneormoreHedgingAgreementsthat(x)areinformandsubstancereasonablyacceptableto theMajorityManagingAgentsand,(y)copiesofwhichhavebeendeliveredtotheAdministrativeAgent, havingthetermssetforthinthisand(z)whichsatisfytherequirementsofSection5.03(b)(the“HedgeRequirements”).DuringaHedgingPeriodwhichoccurssolelyasaresultofclause(i)ofthedefinition thereof,theBorrowermayenterintooneormoreHedgeTransactionseachwithanEligibleHedge CounterpartywhichsatisfytheHedgeRequirementsorexercisetheHedgeReserveOptionassetforthinSection 5.03.5.03(c) hereof.

(b)OnForpurposesofHedgeTransactionsenteredintoonthedatespecifiedin Section5.03(a),theBorrowershall(i)cause(A)theaggregateschedulednotionalamountsundertheHedge TransactionstoshallamortizeonamonthlybasisinaccordancewiththeHedgeAmortizationSchedule providedtotheBorrowerimmediatelypriortosuchdatepursuanttoSection5.13(h5.03(b)(vi),(B)inthe caseofHedgeTransactionsthatareintheformofinterestratecaps,theweightedaveragecaprate thereunderto be no greaterthanthe Required Rate on such date and(C)in the caseof Hedge Transactions thatareintheformofinterestrateswaps,theweightedaveragefixedrateswapratethereundertobeno greater thantheRequiredRateonsuchdateand(ii) thereafter,maintain.Thereafter,such Hedge Transactionsshallbesubjecttotherequirementssetforthintheimmediatelysucceedingsentenceand Sections 5.03(cb)(ii)and5.03(db)(iii).OneachDistributionDate thereafter,the Borrowershallenterinto oneormoreadditionalHedgeTransactions,ifandtotheextentthattheaggregatenotionalamountofthe existingHedgeTransactionsonsuchDistributionDateislessthan90%oftheAggregateLoanPrincipal BalanceonsuchDistributionDate,andterminateoneormoreexistingHedgeTransactionsorportions thereofonsuchDistributionDate,ifandtotheextentthattheaggregatenotionalamountofallexisting HedgeTransactionsthatareintheformofinterestrateswapsaregreaterthan110%oftheAggregateLoan PrincipalBalance onsuchDistribution Date.

(i) (c)On each BorrowingDate duringa HedgingPeriod,the Borrower shall enterintooneormoreadditionalHedgeTransactionsorterminateoneormoreexistingHedge TransactionsorportionsthereofsuchthattheaggregatenotionalamountoftheHedging TransactionsonthedateofsuchBorrowingarenotlessthan90%normorethan110%ofthe AggregateLoanPrincipalBalanceonsuchdateaftergivingeffecttosuchBorrowingandthe aggregateschedulednotionalamountsundertheHedgeTransactionsshallamortizeonamonthly basisinaccordancewiththeHedgeAmortizationSchedulemostrecentlyprovidedtotheBorrower pursuantto Section5.13(h5.03(b)(vi).The Borrower shallpayanyadditionalpremiumdue forthe adjustmentstotheHedgingAgreementsonanyBorrowingDatefromtheproceedsoftherelated Borrowing.

(ii) (d)OneachTransferDateduringaHedgingPeriod,theBorrowershall enterintooneormoreadditionalHedgeTransactions,terminateoneormoreexistingHedge TransactionsorportionsthereoforamendorotherwisemodifyexistingHedgeTransactions,(i) suchthattheaggregateschedulednotionalamountsundertheHedgeTransactionsshallamortize on a monthlybasisinaccordance withthe Hedge Amortization Schedulereflectingthe addition of PledgedTimeshareLoansonsuchTransferDateandprovidedtotheBorrower,(ii)inthecaseof HedgeTransactionsthatareintheformofinterestratecaps,suchthattheweightedaveragecap ratethereunderisnogreaterthantherevisedRequiredRatereflectingtheadditionofPledged TimeshareLoansonsuchTransferDateand(iii)inthecaseofHedgeTransactionsthatareinthe formofinterestrateswaps,suchthattheweightedaveragefixedrateswapratethereunderisno greaterthantherevisedRequiredRatereflectingtheadditionofPledgedTimeshareLoansonsuch Transfer Date.

(iii) (e)EachHedgeTransactionthatisintheformofaninterestrateswap shallprovideforthepaymentoneachDistributionDatetotherelatedHedgeCounterpartyof intereston the notionalamountthereof ata fixed rate per annumand the paymentto the Borrower fordepositintotheCollectionAccountofafloatingrateperannumequaltotheLIBORRatefor theInterestPeriodforsuchDistributionDate;providedthattheBorrowerandtheHedge Counterpartymay, subject to therelated HedgingAgreement, make payments on anetbasis.

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(iv) (f) Each HedgeTransactionthatisin the formof an interestrate cap shall provideforthepaymentoneachDistributionDatebytherelatedHedgeCounterpartytothe Borrower for depositinto the Collection Accounton the notionalamountthereofto the extentthat the LIBOR Rate fortheInterestPeriod for such Distribution Date exceeds afixedrate per annum.

(v) (g)Each HedgeTransaction shallterminate onthelastdaythatthe AggregateLoanPrincipalBalanceisassumedtobeoutstandingbasedonthethen-currentHedge Amortization Schedule.

(vi) (h)DuringtheHedgingPeriod,theBorrowershallcausetheServicer,at leastthree(3)BusinessDayspriortoeachBorrowingDateandDistributionDate,toprovidetothe AdministrativeAgentatimeshareloandatafilewithsufficientinformationsothatthe AdministrativeAgentmaypreparetheHedgeAmortizationSchedule.TheAdministrativeAgent shallprovidethe Borrowerandthe Servicerwiththe Hedge Amortization Schedule withintwo(2) BusinessDays of its receipt of the datafilefromthe Servicer.

(vii) (i)DuringtheHedgingPeriod,withinthirty(30)daysafter(i)the occurrenceofanyeventdefinedasan“EventofDefault”or“TerminationEvent”inaHedging AgreementwithrespecttotheHedgeCounterpartyor(ii)aHedgeCounterparty(otherthan DeutscheBankAGBANAoranyofitsAffiliates)ceasingtosatisfytheminimumrating requirementssetforthinthedefinitionof“EligibleHedgeCounterparty,”theBorrowershallcause suchHedgeCounterpartytoassignitsobligationsundertheHedgingAgreementtoanewHedge Counterpartywhichsatisfiestherequirementssetforthinthedefinitionof“EligibleHedge Counterparty.”

(viii) (j)Asadditionalsecurityhereunder,theBorrowerhasgrantedtothe AdministrativeAgentasecurityinterestinallright,titleandinterestofBorrowerintheHedge Collateral.TheBorroweracknowledgesthat,asaresultofthatassignment,theBorrower maynot, withoutthepriorwrittenconsentoftheAdministrativeAgent,exerciseanyrightsunderany HedgingAgreementorHedgeTransaction,exceptfortheBorrower’srightunderanyHedging Agreementtoenterinto,terminate,amendorotherwisemodifyHedgeTransactionsinorderto meettheBorrower’sobligationshereunder.Nothinghereinshallhavetheeffectofreleasingthe BorrowerfromanyofitsobligationsunderanyHedgingAgreementoranyHedgeTransaction,nor beconstruedasrequiringtheconsentoftheAdministrativeAgentoranySecuredPartyforthe performance bythe Borrowerofanysuchobligations.

(c)UponthecommencementofanyHedgingPeriodoccurringsolelypursuanttoclause (i)ofthedefinitionthereof,theBorrowermayelectto,uponprior writtennoticetotheServicer,theLendersandtheAdministrativeAgent,depositHedgeReserveAmountsequaltotheHedgeReserveAccountRequiredBalanceintheHedgeReserveAccount;provided,thatifaHedgePurchaseEventhasoccurred,theBorrowershallberequiredtosatisfytheHedgeRequirementspursuanttoSection5.03(b)hereof.The Borrowermayalsoon any DistributionDate or BorrowingDate, revoke its option to fund theHedgeReserveAccountatanytimebysendingwrittennoticetotheServicer,theAdministrativeAgentandtheLenders;providedthatatthetimeofsuchfullorpartialrevocation,theHedgingRequirementshavebeensatisfied.TheBorrowermayelectmultipleexercisesandmultiplerevocationsofitsoptiontofundtheHedge Reserve Account.

(k)       DuringtheHedgingPeriod,allreasonablydocumentedcostsandexpenses(includingreasonable legalfeesanddisbursements)incurredbytheAdministrativeAgentandtheLendersincurredwitheach Hedge Transactionin connection with thisSection 5.03shallbepaid bythe Borrower.

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SECTION5.04.  Negative Covenants of the Borrower.FromtheClosingDateuntiltheFinal CollectionDate,theBorrowerwillnot,withoutthewrittenconsentoftheAdministrativeAgentandthe MajorityManagingAgents:

(a)       Sales, Liens, Etc. Against Collateral. Sell,assign(byoperationoflawor otherwise)orotherwisedisposeof,orcreateorsuffertoexistany AdverseClaimuponorwithrespectto, anyCollateralor assign anyrightto receive income in respectthereof exceptin each case ascontemplated or provided hereunder.

(b)       Extension or Amendment of Pledged Timeshare Loans. Consentto or permitany extension,amendment,waiverormodificationof,thetermsofanyPledgedTimeshareLoan,except(i)in accordance withthe Collection Policyor(ii)as otherwise permittedunder the ServicingAgreement.

(c)       Change in Business.Make anychange inthe character ofits business.

(d)       Changes to Accounts.NotaddorterminateanybankastheClearingAccount BankfromthoselistedonExhibitE,unlesstheAdministrativeAgentshallhavereceived(i)thirty(30) BusinessDays’priornoticeofsuchaddition,terminationorchangeand(ii)priortotheeffectivedateof suchaddition,terminationorchange,(x)anexecutedcopyofanamendmentorsupplementtotheClearing AccountControlAgreementpursuanttowhichsuchClearingAccountBankbecomesapartytothe ClearingAccountControlAgreementandtheClearingAccountbecomessubjecttotheClearingAccount ControlAgreementand(y)a revised ExhibitE hereto givingeffectto anysuch addition or termination.

(e)       Merger, Consolidation, Etc.Sellany equityinterestto any Person (otherthan the Seller)orconsolidatewithormergeintoorwithanyPerson,orpurchaseorotherwiseacquireallor substantiallyalloftheassetsorcapitalstock,orotherownershipinterestof,anyPerson,orsell,transfer, leaseorotherwisedisposeofallorsubstantiallyallofitsassetstoanyPerson,exceptasexpresslyprovided or permittedunder the terms ofthis Agreementoras consentedto bythe Administrative Agent.

(f)       Change in Name; Jurisdiction of Organization.(i)Makeanychangetoitsname (withinthemeaningofSection9-507(c)ofanyapplicableenactmentoftheUCC)indicatedonitscertificate oforganization(orequivalentorganizationaldocument),or(ii)changeitsformoforganizationorits jurisdictionoforganization,unless,ineithercase,priortotheeffectivedateofsuchchange,itdeliversto the Administrative Agentsuch financingstatements oramendments to financingstatements (FormUCC-1 orFormUCC-3,respectively)authorizedbyit whichthe Administrative Agent mayrequest toreflectsuch namechangeorchangeinformorjurisdictionoforganization,togetherwithsuchotherdocuments,legal opinionsandinstrumentsthattheAdministrativeAgentmayreasonablyrequestinconnectionwiththe transaction givingrisethereto.

(g)       ERISA Matters.EstablishorbeapartytoanyPlanorMultiemployerPlanother thananysuch planestablished byan Affiliate of the Borrower.

(h)       Indebtedness.Create,incur,assumeorsuffertoexist anyIndebtednessexceptfor (i) IndebtednesstotheAdministrativeAgent,anyLender,anyAffectedPartyortheServicerexpressly contemplatedhereunderor(ii) IndebtednesstotheSellerpursuanttotheSaleandContributionAgreement.

(i)       Guarantees.Guarantee,endorseorotherwisebeorbecomecontingentlyliable (includingbyagreementtomaintainbalancesheettests)inconnectionwiththeobligationsofanyother Person,exceptendorsementsofnegotiableinstrumentsforcollectionintheordinarycourseofbusinessand reimbursementandindemnificationobligationsinfavoroftheAdministrativeAgent,anyManagingAgent, anyLenderor any AffectedPartyasprovidedfor under this Agreement.

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(j)Limitation on Transactions with Affiliates.Enterinto,orbeapartytoany transactionwithanyHiltonEntity,exceptfor:(i)thetransactionscontemplatedhereby,bytheSaleand ContributionAgreementandbytheotherFacilityDocuments;(ii) capitalcontributionsbytheSellertothe BorrowerwhichareincompliancewithSection5.01(g);(iii)RestrictedJuniorPaymentswhicharein compliancewithSection5.04(n);and(iv)totheextentnototherwiseprohibitedunderthisAgreement, othertransactionsinthenatureofleases,serviceagreements,employmentcontractsanddirectors’or manager’sfees,uponfair andreasonabletermsmateriallynoless favorabletotheBorrowerthanwould be obtainedina comparable arm’s-length transaction witha Person notan Affiliate.

(k)Facility Documents. Terminate,amendorotherwisemodifyanyFacility Document,orgrantorconsenttoanysuchtermination,amendment,waiverorconsent,exceptin accordance withtheterms thereof.

(l)Limitation on Investments.Makeorsuffertoexistanyloansoradvancesto,or extendanycreditto,ormakeanyinvestments(bywayoftransferofproperty,contributionstocapital, purchaseofstockorsecuritiesorevidencesofIndebtedness,acquisitionofthebusinessorassets,or otherwise)in,anyHiltonEntityoranyotherPersonexceptforPermittedInvestmentsandthepurchaseand receiptofcapitalcontributions ofTimeshareLoansand relatedassetspursuanttotheterms ofthe Saleand ContributionAgreement.

(m)Organizational Documents.(i)Change,amend,alterorotherwisemodifyits limitedliabilitycompanyagreementinanyfashionthatcouldreasonablybeexpectedtohaveaMaterial Adverse Effector (ii) change, amend, alter orotherwise modifyits certificate offormationin anyfashion.

(n)Restricted Junior Payments.Makeany Restricted JuniorPayment;provided, that priortotheAmortizationDate,theBorrowermaymakeRestrictedJuniorPaymentssolongas(i)noDefault orEventofDefaultshallthenexistorwouldresulttherefromand(ii)suchRestrictedJuniorPaymentshave beenapprovedbyallnecessaryactiononthepartoftheBorrowerandincompliancewithallapplicable laws.

(o)Treatment as Sales.OtherthanforTaxandaccountingpurposesunderGAAP,not accountforortreat(whetherinfinancialstatementsorotherwise)thetransactionscontemplatedbytheSale andContributionAgreementinanymannerotherthanasthesaleand/orabsoluteconveyanceofTimeshare Loans and relatedassets bythe Sellertothe Borrower.

(p)       Acquisition of Timeshare Loans. Acquire any Timeshare Loans directly or indirectly from any Person other than the Seller pursuant to the terms of the Sale and Contribution Agreement.

(q)Certain LCR Matters. Issue(i)any obligationsthatconstituteasset-backed commercialpaper,(ii)securities required tobe registeredundertheSecurities Actof1933,as amendedor thatmaybeofferedforsaleunderRule144AoftheSecuritiesandExchangeCommissionthereunder,or (x) anyotherdebtobligationsorequityinterestsotherthan(A)debtobligationssubstantiallysimilartothe obligationsof theBorrower underthisAgreementthatare (1) issuedtobanksorasset-backedcommercial paperconduitsinprivatelynegotiatedtransactions,and(2)subjecttotransferrestrictionssubstantially similartothetransferrestrictionssetforthinSection10.03ofthisAgreementand(B)EquityInterestsof the Borrower issued totheSeller.

SECTION5.05. Special Covenants Regarding Retention.TheSeller,representsandundertakes asan“originator”forthepurposesoftheEUSecuritizationRules,totheAdministrativeAgentandeach LenderthatisrequiredtocomplywiththeRetentionRequirementsEUSecuritizationRules,that,untilthe Borrower Obligations have been paidinfull, it shall:

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(a)itisanentitywhichitselforthroughrelatedentities,directlyorindirectly,wasinvolvedintheoriginalagreementwhichcreatedtheobligationsorpotentialobligationsofthedebtororpotentialdebtor givingriseto thePledgedTimeshare Loans;

(b)       it isnotan entitythathasbeenestablishedor thatoperates forthesolepurposeofsecuritizingexposuresand(A)ithasabusinessstrategyandthecapacitytomeetpaymentobligationsconsistentwithabroadbusinessenterpriseandhasmaterialsupportfromcapital,assets,feesorother incomeavailabletoitotherthanthatderivedfromthePledgedTimeshareLoansortheRetainedInterestand(B)itsresponsibledecisionmakershavetherequiredexperiencetoenableittopursueitsestablishedbusinessstrategyand are subject to a documented corporate governancearrangement;

(c)       itgrantedallthecreditsgivingrisetothePledgedTimeshareLoans(orwillprocurethatallsuchcreditsaregranted)onthebasisofsoundandwell-definedcriteriaandclearlyestablishedprocessesforapproving,amending,renewingandfinancingthosecreditsandthatithaseffectivesystemsinplacetoapplythosecriteriaandprocessestoensurethatcredit-grantingisbasedonathoroughassessment oftheobligor’screditworthiness;

(d)        (a)itshallholdandwillretainownershipof100%oftheEquityInterestsinthe Borrower directlyor indirectlythrough one or more consolidated wholly-owned Subsidiaries;

(e)       (b)itshall,onanongoingbasis,holdandmaintaintheRetainedInterestdirectly or indirectlythrough its ownership of 100% of the EquityInterestsin the Borrower;

(f)       thattheRetainedInteresttakestheform ofafirstlosstrancheinaccordancewithparagraph(d)ofArticle6(3)oftheEUSecuritizationRegulation,asrepresentedbytheSeller’sEquityInterestsintheBorrowerandtheassociatedindirectrightstoresidualcashflowunderSection2.06(b)(viii);

(g)        (c)notsellorsubjectitwillnot,andwillprocurethattheBorrowerwillnot,sell,transferorotherwisesurrenderallorpartoftherights,benefitsorobligationsarisingfromtheRetained Interestorsubjectittoanyhedge,creditriskmitigationoranyshortpositionsinamannerthatwouldbe contrarytotheRetentionRequirementshedging,excepttotheextentpermittedundertheEUSecuritizationRules;

(h)       (d)itshallconfirmtotheServicerthatitcontinuestocomplywithsubsections(a),

through (b) and (cg) above;:

(i)       in each MonthlyReportasof the date of such MonthlyReport;

(ii)       intheeventofamaterialchangeintheanticipatedvalueofthePledged TimeshareLoansortherisk characteristicsofthe PledgedTimeshareLoans,ifreasonably requested bythe Administrative Agent;and

(iii)       upontheoccurrenceofanyEventofDefaultattherequestofthe Administrative Agent;

(i)       (e)itshallprovidenoticepromptlytoeachsuchLenderintheeventithasbreached subsections(a), through (b)or (cg)above;

(j)        (f)itwillnotchangetheformofretentionoftheRetainedInterestexceptaspermittedbytheEUSecuritizationRulesandwillnotifyeachsuchLenderofanychangetotheformof retention ofthe Retained Interest;and

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(k)(g)itwillprovideallinformationwhichanysuchLenderreasonablyrequestsin suchform assuchLendermayreasonablyrequestinorderforsuchLendertocomplywithitsobligations underthe Retention RequirementsEUSecuritization Rules.

ARTICLEVI

SERVICING

SECTION6.01. Servicing Agreement.Thepartiesheretoagreethattheservicing,administering andcollectionofthePledgedTimeshareLoansshallbeconductedbytheServicerfromtimetotimein accordance withthe ServicingAgreement.

ARTICLEVII

EVENTS OF DEFAULT

SECTION7.01. Events of Default.Eachofthefollowingeventsshallconstitutean“EventofDefault”hereunder:

(a)       defaultinthepaymentofanyInterestontheLoansor UnusedFeeswhenthesame becomesdueandpayable,and,inanysuchcase,suchdefaultshallcontinueforaperiodoftwo(2)Business Daysafterthe earlierofactualknowledgeofaResponsibleOfficeroftheBorrowerorwrittennoticetothe Borrower thereof;

(b)       defaultin the paymentof, oranyinstallmentof the principalamountof theLoans whenthesamebecomesdueandpayable,andsuchdefaultshallcontinue foraperiodof two(2)Business Daysafterthe earlierofactualknowledgeofaResponsibleOfficeroftheBorrowerorwrittennoticetothe Borrower thereof;

(c)       defaultinthepaymentofanyamount(exceptInterest,UnusedFeesorprincipal) dueandpayablebytheSeller,theBorrower,theServicerorthePerformanceGuarantorunderthis AgreementoranyotherFacilityDocumentwhenthesamebecomesdueandpayable,andsuchdefaultshall continueforaperiodofthirty(30)daysaftertheearlierofactualknowledgeofaResponsibleOfficerof theSeller,theBorrower,theServicerorthePerformanceGuarantor,asthecasemaybe,orwrittennotice to the Seller,the Borrower,the Servicer orthePerformance Guarantor, asthecasemaybe;

(d)       aBorrowingBaseDeficiencyshallexistandsuchconditionshallcontinue unremediedforthree(3)BusinessDaysaftertheearlierofactualknowledgeoftheBorrowerorwritten noticeto the Borrower thereof;

(e)       anEventofBankruptcyshalloccurwithrespecttothePerformanceGuarantor,the Seller,the Serviceror the Borrower;

(f)       anyfailureonthepartoftheSeller,theBorrower,theServicerorthePerformance Guarantortodulyobserveorperformanyofitscovenantsoragreementssetforthinthis Agreementorany otherFacilityDocument(otherthanasotherwisedescribedinthisSection7.01)thatcontinuesunremedied fora periodofthirty(30) daysaftertheearlierof actualknowledgeofaResponsibleOfficeroftheSeller, theBorrower,theServicerorthePerformanceGuarantor,asthecase maybeorwrittennoticetotheSeller, the Borrower, the Serviceror the Performance Guarantor, asthe case maybe;

(g)       anyrepresentation,warrantyorstatementoftheSeller,theBorrower,theServicer or the PerformanceGuarantormade in thisAgreementoranyFacilityDocument,oranycertificate, report orotherwritingdeliveredpursuantthereto,shallprovetobeincorrectinanymaterialrespectasofthetime whenthesameshallhavebeenmade,and,ifcapableofbeingcured,isnotcuredwithinthirty(30)days aftertheearlierofactualknowledgeofaResponsibleOfficeroftheSeller,theBorrower,theServiceror the

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PerformanceGuarantor,asthecasemaybeorwrittennoticetotheSeller,theBorrower,theServicer or the Performance Guarantor, asthe case maybe;

(h)       theIRSshallfilenoticeofaLienpursuanttoSection6323oftheCodewithregard toanyassetsofthePerformanceGuarantor,theSellerortheBorrowerandsuchLienshallnothavebeen released withinten(10)BusinessDays,orthePBGCshall filenoticeofaLienpursuanttoSection4068of ERISA with regard to anyof the assets ofthe Performance Guarantor,the Seller or the Borrowerand such Lien shallnothave been releasedwithinten(10) Business Days;

(i)        (x)anyFacilityDocumentshall,inwholeorinmaterialpart,terminate,ceaseto beeffectiveorceasetobethelegallyvalid,bindingandenforceableobligationofanyHiltonEntityparty theretoor (y) thePerformanceGuarantor,theBorrower, theSeller,theServicer orany otherHiltonEntity shall,directlyorindirectly,disaffirmorcontestinany mannersucheffectiveness, validity,bindingnature or enforceability;

(j)       anyLiensecuringanyobligationoftheSellerortheBorrowerundertheFacility Documentsshall,inwholeorinpart,ceasetobeaperfectedfirstpriorityLien(subjecttoPermittedLiens);

(k)       a ServicerTermination Eventshallhave occurred;

(l)       theSelleror any of itsmaterialsubsidiaries (otherthan the Borrower)shallfailto payanyprincipaloforpremiumorinterestonanyIndebtednesshavingaprincipalamountoftheApplicable CrossDefaultAmountorgreater,whenthesamebecomesdueandpayable(whetherbyscheduledmaturity, requiredprepayment,acceleration,demandorotherwise)andsuchfailureshallcontinueaftertheapplicable graceperiod,ifany,specifiedintheagreementorinstrumentrelatingtosuchIndebtednessandshallnotbe waivedbytherequisiteholdersofsuchIndebtedness;oranyotherdefaultunderanyagreementor instrumentrelatingtoanysuchIndebtednessoftheSelleroranyofitsmaterialsubsidiaries(otherthanthe Borrower),asapplicable,oranyothereventshalloccurandshallcontinueaftertheapplicablegraceperiod, ifany, specifiedinsuchagreementorinstrumentiftheeffectof suchdefaultoreventistoaccelerate, orto permittheaccelerationof,thematurityofsuchIndebtedness;oranysuchIndebtednessshallbedeclaredto bedueandpayableorrequiredtobeprepaid(otherthanbyaregularlyscheduledrequiredprepayment), redeemed,purchasedordefeased,oranoffertoprepay,redeem,purchaseordefeasesuchIndebtedness shallberequiredto be made, ineachcase, prior tothestated maturitythereof;

(m)       anyfailureonthepartoftheCustodiantodulyobserveorperformanyofits covenantsoragreementssetforthintheCustodyAgreementorunderanyotherFacilityDocumentwhich failure wouldreasonablybe expected to have a MaterialAdverse Effect, andshallcontinuefor a period of sixty(60)daysaftertheearlierofactualknowledgeofaResponsibleOfficeroftheCustodianorwritten noticeto the Custodian;

(n)       anoticeofterminationwithrespecttotheClearingAccountControlAgreement shallhavebeendelivered,oraterminationoftheClearingAccountControlAgreementshallhaveotherwise occurred,andareplacementClearingAccountControlAgreementinformandsubstancereasonably satisfactorytotheMajorityManagingAgents shallnothave been executed withinforty-five (45) days;

(o)       a Change ofControlshalloccur;

(p)       the Borrowershall failto complywith its obligationsunderSection 5.03 and such failure shallcontinue for aperiod ofthirty(30) days afterthe earlier of actualknowledge ofa Responsible Officerofthe Borrower or writtennoticetothe Borrowerofsuchfailure;

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(q)oneormorefinaljudgmentsforthepaymentoftheApplicableJudgmentDefault Amountormore renderedagainstthePerformance Guarantor,theSelleroranyof theirrespectivematerial Subsidiaries(otherthanthe Borrower) or one or more finaljudgments for the paymentof $25,000ormore renderedagainsttheBorrower,andsuchamountisnotcoveredbyinsuranceorindemnityornotdischarged,paidorstayedwithinthirtydaysafter(i)thedateonwhichtherighttoappealthereofhasexpiredifnosuch appealhas commenced, or(ii)the dateon which allrightsto appealhave been extinguished;

(r)       theBorrowershallbecomesubjecttoregistrationasan“investmentcompany” underthe InvestmentCompany Actof 1940;

(s)       for anyDistribution Date:

(i)       the Average Delinquency Ratio or the Average ManagedSecuritized PortfolioThreeMonth RollingAverageDelinquencyRatioPercentage exceeds3.003.50%;or

(ii)       theAverageDefaultRatioortheAverageManagedSecuritizedPortfolio ThreeMonth RollingAverageDefaultRatioPercentageexceeds1.0%;or

(t)       the Sellershallfailto maintain anyof the Seller FinancialCovenants.

SECTION7.02.  Right to Cure.

(a)       NotwithstandinganythingtothecontrarycontainedinSection7.01,butsubjectto therequirementsinSection7.02(b)below,intheeventtheSellerisnotincompliancewiththecovenant describedinclause(b)ofthedefinitionofSellerFinancialCovenantsasofanydayofdetermination,no Eventof Default shallbedeemedtoexistasaresultofsuchnon-compliance iftheSeller receivesacapital contribution,theproceedsofwhichshallbeusedtocauseanincreaseinConsolidatedEBITDAinan amount(such amount, the “Cure Amount”)necessarysuch that, if such proceeds had been received on the dayofdeterminationthatgaverisetoanynoncompliance,theConsolidatedEBITDA,ascalculatedasof such date, would have beensufficientto causethe Sellerto be in compliance withsuch clause (b)for such period(the“CureRight”);provided,that,suchproceeds(i)areactuallyreceivedbySellerand(ii)donot exceedtheaggregateamountnecessarytocuresuchnon-complianceundersuchclause(b).Theparties herebyacknowledgethatthisSection7.02maynotbereliedonfor anypurposesotherthantodemonstrate compliancewithclause(b)ofthedefinitionofSellerFinancialCovenantsforpurposesofdetermining whether an Eventof Defaultexists.

(b)       TheCureRight issubject tothefollowingconditions:(i)theSellermaynoteffect acure for(x)consecutiveFiscal Quartersor(y)more thantwotimesduringtheperiodcommencingonthe ClosingDateandendingontheAmortizationDate;and(ii)anycapitalcontributionmadeunderSection 7.02(a)shallnotbeincludedforpurposesofanycalculationotherthanfordeterminingcompliance(forthe Fiscal Quarter withrespecttowhichsuchcontributionismadeandforthefollowingthreeFiscal Quarters) withclause(b)ofthedefinitionofSellerFinancialCovenants.TotheextentthecalculationofConsolidated EBITDAunderclause(b)ofthedefinitionofSellerFinancialCovenantsisannualizedasdescribedin clauses(A)through(C)thereof,noCureAmountsreceivedbytheSellerforanyapplicableFiscalQuarters shallbesoannualized,butshallonlybeaddedtoConsolidatedEBITDAforpurposesofdetermining compliance with such clause (b)after Consolidated EBITDAhas been annualizedthereunder.

SECTION7.03.Remedies.

(a)       IfanEventofDefaultshalloccurandbecontinuing,theAdministrativeAgent shall, attherequest,or may withtheconsent,ofthe MajorityManagingAgents bynoticetothe Borrower, declaretheAmortizationDatetohaveoccurred;provided,however,that,inthecaseofanyeventdescribed inSection

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7.01(e)above,theAmortizationDateshallbedeemedtohaveoccurredautomaticallyuponthe occurrenceofsuchevent.Uponanysuchdeclarationorautomaticoccurrence,theAdministrativeAgent andtheSecuredPartiesshallhave,inadditiontoallotherrightsandremediesunderthisAgreementorotherwise,butsubjecttothefollowingsentence,thelimitationssetforthinthisArticleVIIandSection10.09 hereof,allotherrightsandremediesprovidedundertheUCCoftheapplicablejurisdictionand other applicablelaws,whichrightsshallbecumulative. UponthedeclarationorautomaticoccurrenceoftheAmortizationDateinaccordancewiththisSection7.03,allobligationshereundershallbeimmediatelydueand payable andallLoans shallbeimmediatelydue and payable.

(b)       Withoutlimitingthegeneralityoftheforegoing,duringthecontinuationofan EventofDefault,theAdministrativeAgentonbehalfoftheSecuredPartieswithoutdemandofperformance orotherdemand,presentment,protest,advertisementornoticeofanykind(exceptanynoticerequiredby lawreferredtobelow)toorupontheBorrower,theServiceroranyotherPerson(allandeachofwhich demands,defenses,advertisementsandnoticesareherebywaived),mayinsuchcircumstancesforthwith, deliveraNoticeofExclusiveControloranactivationorcontrolnoticeundertheClearingAccountControl Agreement,collect,receive,appropriateandrealizeupontheCollateral,oranypartthereof,and/ormay forthwithsell,lease,assign,giveoptionoroptionstopurchase,orotherwisedisposeofanddeliverthe Collateraloranypartthereof(orcontracttodoanyoftheforegoing),atpublicorprivatesaleorsales,at any exchange,auctionorofficeoftheAdministrativeAgentorelsewhereuponsuchtermsandconditions andatpricesthatareconsistentwiththeprevailingmarketforsimilarcollateralasitmaydeemadvisable andatsuchpricesasitmaydeembest,forcashoroncreditorforfuturedeliverywithoutassumptionof anycreditrisk.TheAdministrativeAgentshallhavetherightuponanysuchpublicsaleorsales,and,to theextentpermittedbylaw,uponanysuchprivatesaleorsales,topurchasethewholeoranypartofthe Collateralsosold,freeofanyrightorequityofredemptionintheBorrower,whichrightorequityishereby waivedorreleased.TheAdministrativeAgentshallapplythenetproceedsofanysuchcollection,recovery, receipt,appropriation,realizationorsale,afterdeductingallreasonablecostsandexpensesofeverykind incurredthereinorincidentaltothecareorsafekeepingofanyoftheCollateralorinanywayrelatingto theCollateralortherightsoftheAdministrativeAgenthereunder,includingreasonableattorneys’feesand disbursements,tothepaymentinwholeorinpartoftheBorrowerObligations,insuchorderasthe AdministrativeAgentmayelect,andonlyaftersuchapplicationandafterthepaymentbythe AdministrativeAgentofanyotheramountrequiredorpermittedbyanyprovisionoflaw,includingSection 9 504(1)(c)of the UCC, need the Administrative Agentaccountfor the surplus,ifany, to the Borrower.

(c)       DuringthecontinuationofanEventofDefault,theBorrowerfurtheragrees,atthe AdministrativeAgent’srequest,toinstructtheCustodiantoassembletheCollateralandmakeitavailable totheAdministrativeAgentatplaceswhichtheAdministrativeAgentshallreasonablyselect,whetherat the Borrower’s premises orelsewhere.

(d)       To the extentpermittedby applicablelaw,theBorrowerwaivesallclaims, damagesanddemandsitmayacquireagainsttheSecuredPartiesarisingoutoftheexercisebyanyofthe SecuredPartiesofanyof itsrights hereunder, otherthanthose claims,damagesanddemands arisingfrom thegrossnegligenceorwillfulmisconductofsuchSecuredParty.Ifanynoticeofaproposedsaleorother dispositionofCollateralshallberequiredbylaw,suchnoticeshallbedeemedreasonableandproperif givenatleastten(10)BusinessDaysbeforesuchsaleorotherdisposition.TheBorrowershallremain liableforanydeficiency(plusaccruedinterestthereon)iftheproceedsofanysaleorotherdispositionof theCollateralareinsufficienttopaytheBorrowerObligationsandthereasonablefeesanddisbursements ofanyattorneys employed byanyof the Secured Parties tocollectsuch deficiency.

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SECTION7.04.Appointment as Attorney in Fact.

(a)       TheBorrowerherebyirrevocablyconstitutesandappointstheAdministrative Agentandanyofficeroragentthereof,withfullpowerofsubstitution,effectiveduringthecontinuationof anyEventof Default,as itstrueand lawfulattorneyinfact withfullirrevocablepowerandauthorityinthe placeandsteadoftheBorrowerand inthenameoftheBorroweror initsownname,fromtimetotimein theAdministrativeAgent’s discretion,for thepurpose ofcarryingoutthe termsof thisAgreement,totake anyandallappropriateactionandtoexecuteanyandalldocumentsandinstrumentswhichmaybe necessaryordesirabletoaccomplishthepurposesofthisAgreement,and,withoutlimitingthegenerality oftheforegoing,theBorrowerherebygivestheAdministrativeAgentthepowerandright,onbehalfofthe Borrower,withoutassentby,butwithnoticeto,theBorrower,ifanEventofDefaultshallhaveoccurred and becontinuing, to dothefollowing:

(i)       inthenameoftheBorroweroritsownname,orotherwise,totake possessionofandendorseandcollectanychecks,drafts,notes,acceptancesorotherinstruments forthepaymentofmoneysdueunderorwithrespecttoanyotherCollateralandtofileanyclaim ortotakeanyotheractionorproceedinginanycourtoflaworequityorotherwisedeemed appropriatebytheAdministrativeAgentforthepurposeofcollectinganyandallsuchmoneyswith respecttoanyother Collateralwheneverpayable;

(ii)       topayordischargeTaxesandLiensleviedorplacedonorthreatened againstthe Collateral;and

(iii)        (A)todirectanypartyliableforanypaymentunderanyCollateraltomake paymentofanyandallmoneysdueortobecomeduethereunderdirectlytotheAdministrative AgentorastheAdministrativeAgentshalldirect;(B)toaskordemandfor,collect,receive paymentofandreceiptfor,anyandallmoneys,claimsandotheramountsdueortobecomedueat anytimeinrespectoforarisingoutofanyCollateral;(C)tosignandendorseanyinvoices, assignments,verifications,noticesandotherdocumentsinconnectionwithanyoftheCollateral; (D)tocommenceandprosecuteanysuits,actionsorproceedingsatlaworinequityinanycourt ofcompetentjurisdictiontocollecttheCollateraloranythereofandtoenforceanyotherrightin respectofanyCollateral;(E)todefendanysuit,actionorproceedingbroughtagainsttheBorrower withrespecttoanyCollateral;(F)tosettle,compromiseoradjustanysuit,actionorproceeding describedinclause(E)aboveand,inconnectiontherewith,togivesuchdischargesorreleasesas theAdministrativeAgentmaydeemappropriate;and(G)generally,tosell,transfer,pledgeand makeanyagreementwithrespecttoorotherwisedealwithanyoftheCollateralasfullyand completelyasthoughtheAdministrativeAgentweretheabsoluteownerthereofforallpurposes, andtodo,attheAdministrativeAgent’soptionand theBorrower’sexpense,atanytime,orfrom timetotime,allactsandthingswhichtheAdministrativeAgentdeemsnecessarytoprotect, preserveorrealizeuponthe CollateralandtheLienoftheAdministrativeAgentforthebenefitof theSecuredPartiesthereonandtoeffecttheintentofthisAgreement,allasfullyandeffectively as the Borrower mightdo.

The Borrower herebyratifies allthatsuch attorneys shalllawfullydo or cause tobe done by virtue hereof. Thispowerof attorneyisapowercoupled with aninterestandshallbeirrevocable untilpaymentinfullof allBorrowerObligations.

(b)       TheBorroweralsoauthorizestheAdministrativeAgent,atanytimeandfromtime totime,toexecute,inconnectionwiththesaleprovidedforinSection7.03hereof,anyendorsements, assignments or otherinstruments ofconveyance ortransfer with respecttothe Collateral.

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(c)ThepowersconferredontheAdministrativeAgentaresolelytoprotectthe AdministrativeAgent’s(forthebenefitoftheSecuredParties)interestsintheCollateralandshallnot imposeanydutyupontheAdministrativeAgenttoexerciseanysuchpowers.TheAdministrativeAgent shallbeaccountableonlyforamountsthatitactuallyreceivesasaresultoftheexerciseofsuchpowers, andneitherthe Administrative Agentnoranyofitsofficers,directors,oremployeesshallberesponsibletotheBorrowerforanyactorfailuretoacthereunder,exceptforitsowngrossnegligenceorwillful misconduct.

SECTION7.05. Performance of Borrower’s Obligations.IftheBorrowerfailstoperformor complywithanyofitsmaterialagreementscontainedintheFacilityDocumentsandtheAdministrative Agent, anyManagingAgentor anyLender mayitselfperformor comply, or otherwise cause performance orcompliance,withsuchagreement,thereasonableoutofpocketexpensesoftheAdministrativeAgent, suchManagingAgentorsuchLenderincurredinconnectionwithsuchperformanceorcompliance, togetherwithinterestthereonatarateperannumequaltotheAlternativeRate,shallbepayablebythe BorrowertotheAdministrativeAgent,suchManagingAgentorsuchLenderondemandandshall constitute BorrowerObligations.

SECTION7.06.  Powers Coupled with an Interest. Allauthorizationsandagenciesherein contained with respecttothe Collateralareirrevocableand powers coupled with an interest.

ARTICLEVIII

INDEMNIFICATION

SECTION8.01. Indemnities by the Borrower. Withoutlimitinganyotherrightswhichany AffectedPartymayhavehereunderorunderapplicablelaw(includingtherighttorecoverdamagesfor breachofcontract),theBorrowerherebyagreestoindemnifyeachLender,the Administrative Agent,each ManagingAgent,thePayingAgent,theBackupServicer,theCustodianandeachLiquidityProvider,and their respectivedirectors,officersandemployees (the“Indemnified Parties”),fromandagainstanyand all damages,losses, claims,liabilitiesandrelatedcostsandexpenses,includingreasonableexternal attorneys’ feesanddisbursements(alloftheforegoingbeingcollectivelyreferredtoas“Indemnified Amounts”), awardedagainstorincurredbysuchIndemnifiedPartytotheextentrelatingtoorarisingfromorasaresult ofthisAgreementorthefundingormaintenanceofLoansmadebyaLenderhereundersubjecttothe provisosetforthbelow.Withoutlimitingthegeneralityoftheforegoingindemnification,theBorrower shallindemnifytheIndemnifiedPartiesfor IndemnifiedAmountstotheextentrelatingtoorresultingfrom anyof thefollowing:

(i)       thefailureofanyPledgedTimeshareLoanrepresentedbytheBorrowerto beanEligibleTimeshareLoanhereundertobean“EligibleTimeshareLoan”atthetimeofsuch representation;

(ii)       relianceonanyrepresentationorwarrantymadeordeemedmadebythe BorrowerunderthisAgreementoranyotherFacilityDocumenttowhichitisapartywhichshall have beenfalse or incorrectwhen made or deemed made;

(iii)       thefailurebytheBorrowertocomplywithanyterm,provisionorcovenant containedinthisAgreement,theSaleandContributionAgreementoranyotherFacilityDocument towhichitispartyorwithanyapplicablelaw,ruleorregulationwithrespecttoanyPledged TimeshareLoanorother Collateral,orthenonconformityofanyPledgedTimeshareLoanorother Collateralwith anysuchapplicable law, rule or regulation;

(iv)       the failure to pay when dueanyTaxes, includingsales,excise orpersonal propertyTaxes payable by the Borrowerin connectionwiththe Collateral;

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(v)thepaymentbysuchIndemnifiedPartyofIndemnifiedTaxes,including anyIndemnifiedTaxesimposedbyanyjurisdictiononamountspayableandanyliability(includingpenalties,interestandexpenses)arisingtherefromorwithrespectthereto,totheextentcausedby the Borrower’s actions or failureto actin breach of this Agreement;

(vi)       thefailuretovestandmaintainvestedintheAdministrativeAgent,on behalfoftheSecuredParties,afirstpriorityperfectedsecurityinterestintheCollateral,freeand clearofanyAdverseClaim,whetherexistingatthetimesuchCollateralaroseoratanytime thereafter;

(vii)       thefailuretofile,oranydelayinfiling,financingstatementsorother similarinstrumentsordocumentsundertheapplicableUCCorotherapplicablelawsnamingthe Borrower as“Debtor” withrespecttoanyCollateral;

(viii)       anydispute,claim,offsetordefense(otherthanasaresultofthe bankruptcyorinsolvencyoftherelatedObligor)ofaObligortothepaymentofanyPledged TimeshareLoan(includingadefensebasedonsuchPledgedTimeshareLoannotbeingalegal, valid andbindingobligation of such Obligor enforceable againstitinaccordance withitsterms);

(ix)       the comminglingof Collections withanyother funds;

(x)       anyfailurebytheBorrowertogivereasonablyequivalentvaluetothe SellerinconsiderationforthetransferbytheSellertotheBorrowerofanyPledgedTimeshare Loan,oranyattemptbyanyPersontovoidanysuchtransferunderanystatutoryprovisionor common law or equitable action, includinganyprovision ofthe BankruptcyCode;

(xi)        (A)thefailureoftheClearingAccountBanktoremitanyCollectionsheld intheClearingAccounttotheCollectionAccountasprovidedintheClearingAccountControl Agreementor anyCollections held in the Unidentified Receipts Accountto the ClearingAccount, whetherbyreasonoftheexerciseofsetoffrightsorotherwise,or(B)anyclaimbytheClearing AccountBankforindemnificationbytheAdministrativeAgentpursuanttothetermsofthe ClearingAccountControl Agreement;

(xii)       anyinvestigation,litigationorproceedingrelatedtothisAgreementorthe useofproceedsofLoansmadepursuanttothisAgreementoranyotherFacilityDocument delivered hereunder orinrespectofanyof the Collateral;

(xiii)       the grantbythe Borrowerofa securityinterestinanyPledged Timeshare Loan in violation ofanyapplicable law, rule or regulation;

provided,however,thattheBorrowershallnotberequiredtoindemnifyanyIndemnifiedPartytotheextent of anyamounts(x)resultingfromthegrossnegligenceorwillful misconductofsuchIndemnifiedParty, or (y) constitutingcreditrecourseforthefailureofaObligortopayaPledgedTimeshareLoan,or(z) constitutingExcludedTaxes. AnyamountssubjecttotheindemnificationprovisionsofthisSection8.01 shallbepaidbytheBorrowertotherelatedIndemnifiedPartywithinten(10)BusinessDaysfollowing writtendemand therefor.

SECTION8.02.  LimitedLiabilityofParties. NoIndemnifiedPartyshallhaveanyliability (whetherincontract,tortorotherwise)totheBorrower,theSellerortheServiceroranyoftheirsecurity holdersorcreditorsfororinconnectionwiththetransactionscontemplatedhereby,excepttotheextent suchliabilityisdeterminedinafinalnon-appealablejudgmentbyacourtofcompetentjurisdictiontohave resulted fromsuchIndemnified Party’sgrossnegligenceor willfulmisconductor breachof its obligations underthis AgreementoranyFacilityDocument.

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ARTICLEIX

THE AGENTS

SECTION9.01. Authorization and Action.EachLenderherebyappointsandauthorizesitsrelated ManagingAgentandtheAdministrativeAgenttotakesuchactionasagentonitsbehalfandtoexercise suchpowersunderthisAgreementasaredelegatedtosuchManagingAgentortheAdministrativeAgent bytheterms hereof,togetherwithsuch powers asare reasonablyincidentalthereto.The provisionsof this ArticleIXaresolelyforthebenefitoftheManagingAgents,theAdministrativeAgentandtheLenders. TheBorrowershallnothaveanyrightsasathird-partybeneficiaryorotherwiseunderanyoftheprovisions hereof.Inperformingtheirfunctionsanddutieshereunder,theManagingAgentsshallactsolelyasthe agentfortherespectiveConduitLendersandtheCommittedLendersintherelatedLenderGroupanddo notassumenorshallbedeemedtohaveassumedanyobligationorrelationshipoftrustoragencywithor fortheotherLenders, theBorrower,theServicer,theSeller,anyAffiliatethereoforanyoftheirrespective successors and assigns.

SECTION9.02.Agents’ Reliance,Etc.NeithertheAdministrativeAgentnoranyManaging Agentnoranyoftheirrespectivedirectors,officers,agentsoremployeesshallbeliableforanyactiontaken oromittedtobetakenbyitorsuchManagingAgentortheAdministrativeAgentunderorinconnection withthisAgreement,exceptforitsortheirowngrossnegligenceorwillfulmisconduct.Withoutlimiting thegeneralityoftheforegoing,eachoftheAdministrativeAgentandtheManagingAgents:(i)mayconsult withlegalcounsel(includingcounselfortheBorrower,theServicerortheSeller),independentpublic accountantsandotherexpertsselectedbyitandshallnotbeliableforanyactiontakenoromittedtobe takeningoodfaithbyitinaccordancewiththeadviceofsuchcounsel,accountantsorexperts;(ii)makes no warrantyorrepresentation toanyLenderandshallnotberesponsible to anyLenderforanystatements, warrantiesorrepresentationsmadeinorinconnectionwiththis Agreement;(iii) shallnothaveanydutyto ascertainor toinquire astotheperformanceorobservanceofany of the terms,covenantsorconditionsof thisAgreementon the partoftheBorrowerortoinspecttheproperty(includingthebooksandrecords)of the Borrower;(iv) shallnotberesponsible toanyLenderfor thedue execution, legality, validity, enforceability,genuineness,sufficiencyorvalueofthisAgreementoranyotherinstrumentordocument furnishedpursuanthereto;and(v)shallincurnoliabilityunderorinrespectofthisAgreementbyacting uponany notice (includingnoticebytelephone), consent,certificate orotherinstrumentorwriting(which maybe byfacsimile) believed byitto be genuine and signed orsentbythe properpartyorparties.

SECTION9.03. Agents and Affiliates.EachManagingAgentandtheAdministrativeAgentand their respective Affiliatesmayengage in any kind of business with the Borrower, any Hilton Entityor any Obligor,anyoftheirrespectiveAffiliatesandanyPersonwhomaydobusinesswithorownsecuritiesof Borrower,anyHiltonEntityoranyObligororanyoftheirrespective Affiliates,allasifsuchPersons were notManagingAgentsand/orAdministrativeAgentandwithoutanydutytoaccounttherefortoanyLender.

SECTION9.04. Lender’s Loan Decision.EachLenderacknowledgesthatithas,independently andwithoutrelianceupontheAdministrativeAgent,anyManagingAgent,anyoftheirrespectiveAffiliates or anyotherLender, and based on such documents andinformation as ithas deemed appropriate, made its ownevaluationanddecisiontoenterintothisAgreementand,ifitsodetermines,tomakeLoanshereunder. EachLenderalsoacknowledgesthatitwill,independentlyandwithoutrelianceupontheAdministrative Agent,anyManagingAgent,anyoftheirrespectiveAffiliates,oranyotherLender,andbasedonsuch documentsandinformationasitshalldeemappropriateatthetime,continuetomakeitsowndecisionsin takingor not takingactionunderthis Agreement.

SECTION9.05. Delegation of Duties.The Administrative Agentand eachManagingAgentmay eachexecuteanyofitsdutiesunderthisAgreementbyorthroughagentsorattorneys-in-factandshallbe entitledtoadviceofcounselconcerningallmatterspertainingtosuchduties. NeithertheAdministrative AgentnoranyManagingAgentshallberesponsibleforthenegligenceormisconductofanyagentsor attorneys-in-factselected byitwithreasonable care.

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SECTION9.06. Indemnification.EachManagingAgentseverallyagreestoindemnifythe AdministrativeAgent(totheextentnotreimbursedbytheBorrower,theSellerorthePerformance Guarantor),ratablyaccordingtoitsrelatedLenderGroupPercentage,fromandagainstanyandall liabilities,obligations,losses,damages,penalties,actions,judgments,suits,costs,expensesor disbursementsofanykindornaturewhatsoeverwhichmaybeimposedon,incurredby,orassertedagainst theAdministrativeAgentinanywayrelatingtoorarisingoutofthisAgreementoranyactiontakenor omitted bythe Administrative Agentunderthis Agreement;provided, that(i) noManagingAgentshallbe liableforanyportionofsuchliabilities,obligations,losses,damages,penalties,actions,judgments,suits, costs,expensesordisbursementsresultingorarisingfromtheAdministrativeAgent’sgrossnegligenceor willfulmisconductand(ii)noManagingAgentshallbeliableforanyamountinrespectofanycompromise orsettlementofanyoftheforegoingunlesssuchcompromiseorsettlementisapprovedbytheMajority ManagingAgents.Withoutlimitationofthegeneralityoftheforegoing,eachManagingAgentagreesto reimbursetheAdministrativeAgent,ratablyaccordingtoitsrelatedLenderGroupPercentage,promptly upondemand,foranyreasonableout-of-pocketexpenses(includingreasonablefeesofasinglecounsel) incurredbytheAdministrativeAgentinconnectionwiththeadministration,modification,amendmentor enforcement(whetherthroughnegotiations,legalproceedingsorotherwise)of,orlegaladviceinrespect ofrights or responsibilitiesunder,this Agreement;provided,thatno ManagingAgentshallbe responsible forthecostsandexpensesoftheAdministrativeAgentindefendingitselfagainstanyclaimallegingthe grossnegligenceorwillfulmisconductoftheAdministrativeAgentto theextentsuchgrossnegligenceor willfulmisconductisdeterminedbyacourtofcompetentjurisdictioninafinalandnon-appealabledecision.

SECTION9.07. Successor Agents.TheAdministrativeAgentandeachManagingAgentmay, uponthirty(30)days’noticetotheBorrower, each Lenderandeach otherpartyhereto,resign as AdministrativeAgentorManagingAgent,asapplicable.IfanysuchpartyshallresignasAdministrative AgentorManagingAgentunderthisAgreement,then,inthecaseoftheAdministrativeAgent,theMajority CommittedLendersandtheBorrower,andinthecaseofanyManagingAgent,itsrelatedConduitLenders, duringsuchthirty-dayperiodshallappointasuccessoragent,whereuponsuchsuccessoragentshallsucceed to therights, powers and duties ofthe Administrative Agentor applicableManagingAgentand references hereintotheAdministrativeAgentorsuchManagingAgentshallmeansuchsuccessoragent,effective uponitsappointment;andsuchformerAdministrativeAgent’sorManagingAgent’srights,powersand dutiesinsuchcapacityshallbeterminated,withoutanyotherorfurtheractordeedonthepartofsuch formerAdministrativeAgentorManagingAgentoranyofthepartiestothisAgreement.Afteranyretiring AdministrativeAgent’sorManagingAgent’sresignationhereunderassuchagent,theprovisionsofArticle VIII,thisArticleIXandSection10.09shallinuretoitsbenefitastoanyactionstakenoromittedtobe taken byitwhile itwas Administrative Agentor aManagingAgentunderthis Agreement.

ARTICLEX

MISCELLANEOUS

SECTION10.01.Amendments, Etc.

(a)       Nowaiverofanyprovisionofthis Agreementnorconsenttoanydeparturebythe Borrowertherefromshallinanyeventbeeffectiveunlessthesameshallbeinwritingandsignedbythe AdministrativeAgentandtheMajorityManagingAgents(onbehalfoftheLendersintherelatedLender Group) and then such waiveror consentshallbeeffectiveonlyin the specific instance and for the specific purpose for which given.

(b)       NoamendmenttothisAgreementshallbeeffectiveunlessthesameshallbein writingandsignedbyeach oftheBorrower,theAdministrativeAgentandtheMajorityManagingAgents (onbehalfoftheLendersintherelatedLenderGroup),provided, however,that,withoutthewrittenconsent of allthe ManagingAgents(onbehalfofthe Lenders in the relatedLenderGroup)(or,solelyin thecaseof clauses(iv)and(v)below,theManagingAgentsforeachaffectedLenderGroup),nosuchamendment shall:

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(i)       extend the Commitment Termination Date;

(ii)       extend the date ofanypaymentor depositof Collections bythe Borrower or the time ofpaymentof the principalamountof, or accrued intereston,the Loans;

(iii)       releasethesecurityinterestin ortransferalloranymaterialportionofthe Collateral;

(iv)       changetheoutstandingprincipalamountofanyoftheLoansmadebyany Lenderhereunderother than as provided herein;

(v)       changetheamountofanyLenderGroupLimitotherthanasprovided herein or increasethe FacilityLimithereunder;

(vi)       amend,modifyorwaiveanyprovisionofthedefinitionsof,“Majority ManagingAgents”,“BorrowingBase”,“CollateralValue”oranyofthedefinedtermsusedinsuch definitions or this Section 10.01;

(vii)       consenttoorpermittheassignmentortransferbythe Borroweror any of itsrightsandobligationsunderthisAgreementorofanyofitsright,titleorinterestinortothe PledgedTimeshare Loans;

(viii)       amend ormodifyanyprovision of Section 7.01 or Section 10.03, or

(ix)       amendormodifyanydefinedterm(oranydefinedtermuseddirectlyor indirectlyinsuchdefinedterm)usedinclauses(i)through(viii)aboveinamannerwhichwould circumventthe intention oftherestrictions setforth in suchclauses;

(x)       provided,thatwithoutthewrittenconsentoftheServicer,thePaying Agent,theBackupServicerand/ortheCustodian,asapplicable,nosuchamendmentshalladversely affecttheServicer,thePayingAgent,theBackupServicerortheCustodian;provided,further,that ifthisAgreementisamendedwithouttheconsentoftheServicer,thePayingAgent,theBackup ServicerortheCustodian,theBorrowershallprovidetheServicer,thePayingAgent,theBackup ServicerandtheCustodianwithacopyoftherelatedamendmentpromptlyfollowingexecution thereof.

SECTION10.02. Notices, Etc.Allnoticesandothercommunicationsprovidedforhereunder shall,unlessotherwisestatedherein,beinwriting(includingcommunicationbyelectronicmailorfacsimile copy)andshallbepersonallydelivered or sentbyregisteredmail,returnreceiptrequested,orbycourieror byelectronicmailorfacsimile,toeachpartyhereto,atitsaddresssetforthonScheduleIIIhereoforatsuch otheraddressasshallbedesignatedbysuchpartyinawrittennoticetotheotherpartieshereto.Allsuch noticesandcommunicationsshallbeeffective,uponreceipt,orinthecaseofovernightcourier,two(2) days after beingdepositedwithsuchcourier, or,inthecase of noticebyelectronic mailorfacsimile, when electronic confirmation of receiptis obtained, ineach case addressed asaforesaid.

SECTION10.03.Assignability.

(a)       AnyConduitLendermay(i)withnoticetotheBorrowerandtheServicer,and withtheconsentof the ManagingAgentfor theLenderGroupofwhichitis amember,assignatanytime alloranyportionofitsrightsandobligationshereunderandinterestshereinto(A)anyotherLender,(B) anycommercialpaperconduitmanagedbysuchConduitLender’ssponsororadministratorbankifthe CommercialPaper of suchcommercialpaper conduithave short-termratings fromS&P and Moody’s that areequivalenttoorhigherthantheshort-termratingsbyS&PandMoody’softheCommercialPaperof such

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ConduitLender,(C)anyAffiliateofsuchConduitLender’ssponsorbankor(D)anyLiquidity ProviderwithrespecttosuchConduitLenderand(ii)withtheconsentoftheBorrower(suchconsentnot tobeunreasonablywithheldordelayed)andtheManagingAgentfortheLenderGroupofwhichitisa member, assign atanytime alloranyportionof itsrightsandobligationshereunderandinterestshereinto anyotherPersonnotlistedinclause(i)above.AnyManagingAgentmay,withnoticetotheBorrower, andwiththeconsentoftheLendersinitsLenderGroup,assignatanytimealloranyportionofitsrights and obligationshereunder and interests hereinto any Affiliate ofsuchManagingAgent.

(b)       AnyCommittedLendermay,withthe consentoftheAdministrative Agentand,if noEventof Defaultis continuing,theBorrower(such consentnot tobeunreasonablywithheld ordelayed) assignatanytimealloranyportionofitsrightsandobligationshereunderandinterestshereintoany Person;provided,however,thatnotwithstandingtheforegoing,noconsentoftheBorrowershallberequired for anyassignmentistoa Lenderoran Affiliate of a Lenderotherthana ConduitLender.

(c)       With respectto anyassignmenthereunder

(i)       eachsuchassignmentshallbeofaconstant,andnotavarying,percentage of allrightsand obligationsunderthis Agreement,

(ii)       theamountbeingassigned pursuanttoeach such assignment(determined asofthedateoftheAssignmentandAcceptancewithrespecttosuchassignment)shallinnoevent be lessthan$10,000,000, and

(iii)       thepartiestoeachsuchassignmentshallexecuteand delivertothe AdministrativeAgent,foritsacceptanceandrecordingintheRegister(asdefinedbelow),an Assignmentand Acceptance, togetherwitha processingand recordation fee of$2,500.

(d)       Uponsuchexecution,delivery,acceptanceandrecordingfromandafterthe effectivedatespecifiedinsuch Assignmentand Acceptance,(x)theassigneethereunder shallbeapartyto this Agreementand,totheextentthat rightsandobligationsunderthis Agreementhavebeenassignedtoit pursuanttosuchAssignmentandAcceptance,havetherightsandobligationsofaLenderthereunderand (y) theassigningLendershall,totheextentthatrightsandobligationshavebeenassignedbyitpursuant to suchAssignmentandAcceptance,relinquishsuchrightsandbereleasedfromsuchobligationsunderthis Agreement(and, in the caseof anAssignmentandAcceptance coveringallor the remainingportionofan assigningLender’srightsandobligationsunderthisAgreement,suchLendershallceasetobeaparty hereto).Atalltimesduringwhichany Loanis outstanding,theAdministrativeAgentshallmaintainatits addressreferredtoinSection10.02ofthisAgreement(orsuchotheraddressoftheAdministrativeAgent notifiedbytheAdministrativeAgenttotheotherpartieshereto)aregisterasprovidedherein(the “Register”).TheAggregateLoanPrincipalBalance(includingstatedinterest)andanyintereststherein, andanyAssignmentsandAcceptancesoftheAggregateLoanPrincipalBalanceoranyinteresttherein delivered toandacceptedbythe Administrative Agent,shallberegisteredintheRegister,andtheRegister shallserveasarecordofownershipthatidentifiestheowneroftheAggregateLoanPrincipalBalancesand any interesttherein. Notwithstandingany otherprovisionof thisAgreement,notransferoftheAggregate LoanPrincipalBalancesoranyinterestthereinshallbeeffectiveunlessanduntilsuchtransferhasbeen recordedintheRegister.TheentriesintheRegistershallbeconclusiveandbindingforallpurposes,absent manifesterror,andtheBorrower,theServicer,theAdministrativeAgent,theManagingAgentsandthe LendersmaytreateachPersonwhosenameisrecordedintheRegisterasaLender,asthecasemaybe, underthisAgreementforallpurposesof thisAgreement.ThisSection10.03(d) shallbe construed so that theAggregateLoanPrincipalBalanceandanyinterestthereinismaintainedatalltimesin“registeredform” withinthemeaningofSections163(f),871(h)and881(c)oftheCode,solelyforthepurposesofthisSection 10.03,theAdministrativeAgentwillactasanagentoftheBorrower.TheRegistershallbeavailablefor inspectionbytheBorroweroranyManagingAgentatanyreasonabletimeandfromtimetotimeupon reasonable prior notice.

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(e)UponitsreceiptofanAssignmentandAcceptance,theAdministrativeAgentshall, if such AssignmentandAcceptancehasbeendulycompleted, (i)acceptsuchAssignmentand Acceptance,(ii)recordtheinformationcontainedthereinintheRegisterand(iii)givepromptnoticethereoftothe Borrower.

(f)       AnyLendermay,withouttheconsentoftheBorrower,sellparticipationstoone ormorebanksorotherentities(each,a“Participant”)inalloraportionofitsrightsandobligations hereunder(includingtheoutstandingLoan);providedthatfollowingthesaleofaparticipationunderthis Agreement(i) the obligations ofsuch Lender shallremain unchanged, (ii) such Lendershallremain solely responsibletotheotherpartiesheretofortheperformanceofsuchobligationsand(iii)theBorrower,the AdministrativeAgent,theServicerandtheotherLendersshallcontinuetodealsolelyanddirectlywith suchLenderinconnectionwithsuchLender’srightsandobligationsunderthisAgreement.Anyagreement orinstrumentpursuanttowhichsuchLendersellssuchaparticipationshallprovidethattheParticipant shallnothaveanyrighttodirecttheenforcementofthisAgreementortheotherFacilityDocumentsorto approveanyamendment,modificationorwaiverofanyprovisionofthisAgreementortheotherFacility Documents;providedthatsuchagreementorinstrumentmayprovidethatsuchLenderwillnot,without theconsentofthe Participant, agreeto anyamendment, modificationor waiverthat(i) reducestheamount ofprincipalorInterestthatispayableonaccountofanyLoanordelaysanyscheduleddateforpayment thereofor (ii)reducesanyfeespayablebytheBorrowertothe Administrative Agent(totheextentrelating topaymentstotheParticipant)ordelaysanyscheduleddateforpaymentofsuchfees.TheBorrower acknowledgesandagreesthatanyLender’ssourceoffundsmayderiveinpartfromitsParticipants. Accordingly,references inSections2.09or 2.10 and the otherterms and provisions ofthis Agreementand theotherFacilityDocumentstodeterminations,reserveandcapitaladequacyrequirements,expenses, increasedcosts,reducedreceipts andthelikeastheypertaintotheLendersshallbedeemedalsotoinclude thoseof itsParticipants; provided,however,thatinnoeventshalltheBorrowerbeliabletoanyParticipant underSections2.09or2.10foranamountinexcessofthatwhichwouldbepayabletotheapplicableLender undersuchsections.EachLenderthatsellsaparticipationshall,actingsolelyforthispurposeasanagent oftheBorrower,maintainaregisteronwhichitentersthenameandaddressofeachParticipantandthe aggregateprincipalbalance(includingstatedinterest)ofeachParticipant’sinterestintheLoansorother obligationsundertheFacilityDocuments(the“ParticipantRegister”);providedthatnoLendershallhave anyobligationtodisclosealloranyportionoftheParticipant RegistertoanyPerson(includingtheidentity of anyParticipantor otherinformation relatingtothe Participant’s interestinanyCommitments orLoans) excepttotheextentthatsuchdisclosureisnecessarytoestablishthatsuchCommitmentorLoanisin registeredformunderSection5f.103-1(c)oftheUnitedStatesTreasuryRegulations.Theentriesinthe ParticipantRegistershallbeconclusiveandbindingforallpurposes,absentmanifesterror,andsuchLender shalltreateachPersonwhosenameisrecordedintheParticipantRegisterastheownerofsuchparticipation for allpurposesofthisAgreementnotwithstandingany notice to the contrary.Fortheavoidanceofdoubt, theAdministrativeAgent(inits capacityasAdministrative Agent)shallhave no responsibilityfor maintaininga Participant Register.

(g)       TheBorrowermaynotassignanyofitsrightsorobligationshereunderorany interesthereinwithoutthepriorwrittenconsentoftheAdministrativeAgentandtheMajorityManaging Agents.

(h)       NotwithstandinganyotherprovisionofthisAgreementtothecontrary,anyLender mayatanytimepledgeorgrantasecurityinterestinalloranyportionofitsrights(includingrightsto paymentoftheprincipalbalanceoftheLoansandInterestwithrespectthereto)hereundertosecure obligationsof suchLender toaFederalReserveBank,withoutnotice toor consentof theBorrowerorthe AdministrativeAgent;provided,thatnosuchpledgeorgrantofasecurityinterestshall(x)releaseaLender fromanyofitsobligationshereunderorsubstituteanysuchpledgeeorgranteeforsuchLenderasaparty heretoor(y)createanyadditional,ormodifyanyexisting,obligationsoftheSeller,theBorrowerorthe Servicer underthis Agreementor anyotherFacilityDocument.

SECTION10.04. Additional Lender Groups.UpontheBorrower’srequestandwiththeprior writtenconsentoftheAdministrativeAgent(suchconsentnottobeunreasonablywithheldordelayed), oneormoreadditionalLenderGroupmaybeaddedtothisAgreementatanytimebytheexecutionand deliveryof aJoinder Agreementbythe members ofsuch proposedadditionalLenderGroup,the Borrower andthe

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AdministrativeAgent.UpontheeffectivedateofsuchJoinderAgreement,(i)eachPersonspecified thereinasa“ConduitLender”shallbecomeapartyheretoasaConduitLender,entitledtotherightsand subjecttotheobligationsofaConduitLenderhereunder,(ii)eachPersonspecifiedthereinasa“Committed Lender”shallbecomeapartyheretoasaCommittedLender,entitledtotherightsandsubjecttothe obligationsofaCommittedLenderhereunder,(iii)eachPersonspecifiedthereinasa“ManagingAgent” shallbecomeapartyheretoasaManagingAgent,entitledtotherightsandsubjecttotheobligationsofa ManagingAgenthereunderand(iv)theFacilityLimitshallbeincreasedbyanamountequaltothe aggregate Commitments ofthe Committed Lenderspartyto suchJoinder Agreement.

SECTION10.05.  Consent to Jurisdiction.

(a)       Eachpartyheretoherebyirrevocablysubmitstothenon-exclusivejurisdictionof anyNewYorkStateorFederalcourt sittinginNewYorkCityinanyactionorproceedingarisingoutofor relatingtothisAgreement,andeachpartyheretoherebyirrevocablyagreesthatallclaimsinrespectofsuch actionorproceedingmaybeheardanddeterminedinsuchNewYorkStatecourtor,totheextentpermitted bylaw,insuchFederalcourt.Thepartiesheretoherebyirrevocablywaive,tothefullestextenttheymay effectivelydoso,thedefenseofaninconvenientforumtothemaintenanceofsuchactionorproceeding. Thepartiesheretoagreethatafinaljudgmentinanysuchactionorproceedingshallbeconclusiveandmay be enforcedin otherjurisdictions bysuitonthejudgmentor inanyother mannerprovided bylaw.

(b)       TheBorrowerconsentstotheserviceofanyandallprocessinanysuchactionor proceedingbythe mailingofcopies of suchprocess toitatits address specified inSection10.02.Nothing inthisSection10.05shall affect the rightofanyLenderorthe Administrative Agenttoservelegalprocess in anyothermannerpermitted bylaw.

SECTION10.06. WAIVER OF JURY TRIAL. EACHPARTYHERETOHEREBY WAIVES,TOTHEMAXIMUMEXTENTPERMITTEDBYAPPLICABLELAW,TRIALBY JURYINANYJUDICIALPROCEEDINGINVOLVING,DIRECTLYORINDIRECTLY,ANY MATTER(WHETHERSOUNDINGINTORT,CONTRACTOROTHERWISE)INANYWAY ARISINGOUTOF,RELATEDTO,ORCONNECTEDWITHTHISAGREEMENTORANY OTHERFACILITYDOCUMENT.

SECTION10.07. Right of Setoff.EachLenderisherebyauthorized(inadditiontoanyotherrights itmayhave)atanytimeaftertheoccurrenceoftheAmortizationDateduetotheoccurrenceofanEvent ofDefault,oratanytimethatanyBorrowerObligationhereunderisdueandpayable,tosetoff,appropriate andapply(withoutpresentment,demand,protestorothernoticewhichareherebyexpresslywaived)any depositsandanyotherindebtednessheldorowingbysuchLenderto,orfortheaccountof,theBorrower againsttheamountofthe Borrower Obligations owingbythe Borrowerto such Person.

SECTION10.08. Ratable Payments.IfanyLender,whetherbysetofforotherwise,haspayment madetoitwithrespecttoanyBorrowerObligationsorobligationoftheServicerinagreaterproportion thanthatreceivedbyanyotherLenderentitledtoreceivearatableshareofsuchamount,suchLender agrees,promptlyupondemand,topurchaseforcashwithoutrecourseorwarrantyaportionofsuch BorrowerObligationsorServicerobligationheldbytheotherLenderssothataftersuchpurchaseeach LenderwillholditsratableproportionofsuchBorrowerObligationsorServicerobligations,asapplicable; providedthatifalloranyportionofsuchexcessamountisthereafterrecoveredfromsuchLender,such purchaseshallberescindedandthepurchasepricerestoredtotheextentofsuchrecovery,butwithout interest.

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SECTION10.09.  Limitation of Liability.

(a)       No claim maybe made byanyTransactionPartyoranyotherpartyheretoagainst anyotherpartyheretoortheirrespectiveAffiliates,directors,officers,employees,attorneysoragentsfor anyspecial,indirect,consequentialorpunitivedamagesinrespectofanyclaimforbreachofcontractor anyothertheoryof liabilityarisingoutof orrelated tothe transactions contemplated bythis Agreementor any otherFacilityDocument,orany act,omissionor eventoccurringinconnectionherewithortherewith; andeachpartyheretoherebywaives,releases,andagreesnottosueuponanyclaimforanysuchdamages, whether ornotaccrued and whether ornotknown or suspectedto existin itsfavor.

(b)       Notwithstandinganythingtothecontrarycontainedherein,theobligationsofthe ConduitLendersunderthisAgreementaresolelythecorporateobligationsofeachsuchConduitLender andshallbepayableonlyatsuchtimeasfundsareactuallyreceivedby,orareavailableto,suchConduit LenderinexcessoffundsnecessarytopayinfullalloutstandingCommercialPaperissuedbysuchConduit Lenderand,totheextentfundsarenotavailabletopaysuchobligations,theclaimsrelatingtheretoshall notconstituteaclaimagainstsuchConduitLender.Eachpartyheretoagreesthatthepaymentofanyclaim (asdefinedinSection101ofTitle11oftheBankruptcyCode)ofanysuchpartyshallbesubordinatedto the paymentinfullof allCommercialPaper.

(c)       Norecourseunderanyobligation,covenantoragreementofanyConduitLender containedinthisAgreementshallbehadagainstanyincorporator,stockholder,officer,director,member, manager,employeeoragentofsuchConduitLenderoranyofitsAffiliates(solelybyvirtueofsuch capacity)bytheenforcementofanyassessmentorbyanylegalorequitableproceeding,byvirtueofany statuteorotherwise;itbeingexpresslyagreedandunderstoodthatthisAgreementissolelyacorporate obligation of such ConduitLender, andthatno personalliabilitywhatevershallattach to or be incurredby anyincorporator,stockholder,officer,director,member,manager,employeeoragentofanyConduit Lenderorany of itsAffiliates (solelybyvirtueof such capacity) or any of themunderor byreason ofany oftheobligations,covenantsoragreementsofsuchConduitLendercontainedinthisAgreement,orimplied therefrom,andthatanyandallpersonalliabilityforbreachesbyanyConduitLenderofanyofsuch obligations,covenantsoragreements,eitheratcommonlaworatequity,orbystatute,ruleorregulation, ofeverysuchincorporator,stockholder,officer,director,member,manager,employeeoragentishereby expresslywaived as aconditionof and in considerationfortheexecution of this Agreement;provided that theforegoingshallnotrelieveanysuchPersonfromanyliabilityitmightotherwisehaveasaresultof fraudulentactions taken orfraudulentomissions made bythem.

SECTION10.10.Costs, Expenses and Taxes.

(a)       InadditiontotherightsofindemnificationunderArticleVIIIhereof,theBorrower agreestopaytotheAdministrativeAgentandeachManagingAgentpromptlyafterwrittendemandthereof (i) allreasonable costs andexpenses of theAdministrativeAgentand each ManagingAgentinconnection withthepreparation,executionanddelivery(includinganyrequestedamendments,waiversorconsents)of this Agreementand the otherdocumentsto be delivered hereunder, includingallpre-closingdue diligence expensesandthereasonablefeesandout-of-pocketexpensesofasinglelawfirmasspecialcounselforthe Administrative Agentwith respectthereto and with respectto advisingthe Administrative Agentand each ManagingAgentandtherelatedLendersastotheirrespectiverightsandremediesunderthisAgreement, andtheotheragreementsexecutedpursuanthereto,(ii)allreasonablecostsandout-of-pocketexpenses (includingfeesandexpensesofasingleoutsidecounsel),incurredbytheAdministrativeAgentandeach ManagingAgentinconnectionwithanyamendmenttoanyoftheFacilityDocumentsaftertheClosing Dateand(iii)allreasonablecostsandout-of-pocketexpensesincurredbytheAdministrativeAgentand each ManagingAgentinconnectionwiththe enforcementofthis Agreementandtheotheragreementsand documents to be deliveredhereunder after the occurrence of an Eventof Default.

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(b)Inaddition,theBorrowershallpayanyandallstamp,sales,transferandother taxesandfees(includingUCCfilingfeesandanypenaltiesassociatedwiththelatepaymentofanyUCC filingfees)payableordeterminedtobepayableinconnectionwiththeexecution,delivery,filingand recordingofthisAgreementortheotheragreementsanddocumentstobedeliveredhereunder(including anyUCCfinancingstatements)andagreestoindemnifytheAdministrativeAgent,theManagingAgents, theLendersandtheLiquidityProvidersagainstanyliabilitieswithrespecttoorresultingfromanydelay bythe Borrowerin payingor omission topaysuchtaxes andfees.

SECTION10.11. NoProceedings.TheBorrower,eachLender,eachManagingAgentandthe AdministrativeAgenteachhereby agreesthatitwillnotinstitute againstany ConduitLenderany proceedingofthetypereferredtointhedefinitionofEventofBankruptcysolongasanyCommercial PaperissuedbysuchConduitLendershallbeoutstandingorthereshallnothave elapsedoneyearplusone daysincethelastdayon whichanysuch CommercialPapershallhave beenoutstanding.

SECTION10.12.Confidentiality.

(a)       ByacceptingdeliveryofthisAgreement,theBorroweragreesnottodiscloseto anyPerson the materialeconomic orcommercialterms ofthis Agreement,the ServicingAgreementorthe FeeLetter(includinganyspecificpricinginformationprovidedbytheAdministrativeAgent,theManaging AgentsortheLendersortheamountortermsofanyfeespayabletotheAdministrativeAgent,the ManagingAgentsortheLenders(collectively,the“ProductInformation”)inconnectionwiththe transactioncontemplatedbythis Agreement (the“Transaction”),except(i)toitsand itsaffiliates’officers, directors,employees,agents,accountants,legalcounselandotherrepresentatives(collectively,the “BorrowerRepresentatives”)whohaveaneedtoknowtheProductInformationforthepurposeofassisting inthenegotiationandcompletionoftheTransactionandwhoagreetobeboundbytheprovisionsofthis sectionapplicabletotheBorrower,(ii)inconnectionwithanylegalorregulatoryactionorproceeding relatingtothisAgreementorthetransactionscontemplatedherebyortheexerciseofanyremedies hereunder, (iii)to extentdetermined bythe Seller to berequired byapplicablelaw(includingfilinga copy ofthisAgreementandtheotherFacilityDocuments(otherthantheFeeLetter)asexhibitstofilingsrequired tobemadewiththeSecuritiesandExchangeCommission),regulation,subpoenaorotherlegalprocess, (iv)totheextentrequestedbyanyGovernmentalAuthorityhavingjurisdictionovertheBorrower,theSeller oranyBorrowerRepresentative,(v)totheextentrequiredtoperformtheirrespectiveobligationsunderthe FacilityDocuments,totheCustodianortheServiceror(vi)toexistingorprospectivelendersto,orinvestors in, any Hilton Entityor any Affiliatethereof, orto anyRatingAgencyin connection witha Securitization; provided,ineachcaseinthisclause(vi),suchrecipientsagreetobeboundbytheprovisionsofthissection applicabletotheBorrower.TheBorrowerwillberesponsibleforanyfailureofanyBorrower Representative to complywiththe provisions ofthis clause (a).

(b)       TheAdministrativeAgent,theManagingAgentsandtheLenderswillnotdisclose toanyPersontheconfidentialorproprietaryinformationoftheBorrower,theSeller,theServicerorthe PerformanceGuarantorfurnishedtotheAdministrativeAgent,theManagingAgentsandtheLendersin connectionwiththeTransaction(the“BorrowerInformation”),except(i)totheirrespectiveandtheir Affiliates’officers,directors,employees,agents,accountants,legalcounselandotherrepresentatives (collectively,the“LenderRepresentatives”)whohaveaneedtoknowtheBorrowerInformationforthe purposeofassistinginthenegotiationand completionoftheTransactionandwhoagreetobeboundbythe provisionsinthissectionapplicabletotheAdministrativeAgent,theManagingAgentsandtheLenders, (ii)totheextentrequiredbyapplicablelaw,regulation,subpoenaorotherlegalprocess,(iii)totheextent requestedbyanygovernmentalorregulatoryauthorityhaving,orclaimingtohave,jurisdictionoverthe Administrative Agent,theManagingAgents,theLendersoranyLenderRepresentative,(iv)toanyRating Agency,includingincompliancewithRule17g-5undertheSecuritiesExchangeActof1934oranysimilar ruleorregulationinanyrelevantjurisdiction,(v)toanyactualorpotentialsubordinatedinvestorinany ConduitLenderorLiquidityProviderthathassignedaconfidentialityagreementcontainingrestrictionson disclosure

93

substantiallysimilartothisSectionor(vi)tocreditenhancersanddealersandinvestorsinrespect ofCommercialPaperofanyConduitLenderinaccordancewiththecustomarypracticesofsuchLender fordisclosurestocreditenhancers,dealersorinvestors,asthecasemaybe,itbeingunderstoodthatanysuchdisclosuretodealersorinvestorswillnotidentifytheBorrower,theSellerortheServiceroranyof their respectiveAffiliates byname. TheAdministrativeAgent,the ManagingAgentsandeachLender, asthecasemaybe,willberesponsibleforanyfailureofanyrelatedLenderRepresentativetocomplywith the provisions of thisclause (b).

(c)       TheAdministrativeAgent,theManagingAgentsandtheLenderswill(i)not disclosetoanypersonorentitytheconfidentialorproprietaryinformationofObligorsrelatingtothe PledgedTimeshareLoans(ifany)obtainedpursuanttothisAgreement(the“ObligorInformation”),and (ii)complywithallapplicablelaws(includingGraham-Leach-BlileyAct)withrespecttoObligor Information.

SECTION10.13. No Waiver; Remedies.Nofailureonthepartof theAdministrativeAgent,any ManagingAgent,anyLenderoranyLiquidityProvidertoexercise,andnodelayinexercising,anyright hereundershalloperateasawaiverthereof;norshallanysingleorpartialexerciseofanyrighthereunder precludeanyotherorfurtherexercisethereofortheexerciseofanyotherright. Theremediesherein providedarecumulative and notexclusive ofanyremediesprovided bylaw.

SECTION10.14. GOVERNING LAW.THISAGREEMENTSHALLBEGOVERNEDBY, ANDCONSTRUEDANDINTERPRETEDINACCORDANCEWITH,THELAWSOFTHESTATE OF NEW YORK.

SECTION10.15. Execution in Counterparts.This Agreementmaybe executed in anynumberof counterparts,eachofwhichwhensoexecutedshallbedeemedtobeanoriginalandallofwhichwhen takentogethershallconstituteoneandthesameagreement.Deliveryofanexecutedcounterpartofa signaturepagetothisAgreementbyfacsimileorbyelectronicmailina“.pdf”fileshallbeeffectiveas deliveryof a manuallyexecutedcounterpartof this Agreement.

SECTION10.16. Integration; Binding Effect; Survival of Termination.ThisAgreementandthe otherFacilityDocumentsexecutedbythepartiesheretoonthedatehereofcontainthefinalandcomplete integrationofallpriorexpressionsbythepartiesheretowithrespectto thesubjectmatterhereofandshall constitute the entire agreement among the parties hereto with respect to the subject matter hereof supersedingallpriororalorwrittenunderstandings.ThisAgreementshallbebindinguponandinureto thebenefitofthepartiesheretoandtheirrespectivesuccessorsandpermittedassigns(includinganytrustee inbankruptcy).AnyprovisionsofthisAgreementwhichareprohibitedorunenforceableinanyjurisdiction shall,astosuchjurisdiction,beineffectivetotheextentofsuchprohibitionorunenforceabilitywithout invalidatingtheremainingprovisionshereof,andanysuchprohibitionorunenforceabilityinany jurisdictionshallnotinvalidateorrenderunenforceablesuchprovisioninanyotherjurisdiction. This Agreementshallcreateandconstitutethecontinuingobligationsofthepartiesheretoinaccordancewithits termsandshallremaininfullforceandeffectuntiltheFinalCollectionDate;provided,however,thatthe provisionsof2.09,2.10,2.11,2.12,2.17andArticleVIII,andtheprovisionsofSections10.06,10.09, 10.10, 10.11 and10.12shallsurvive anytermination ofthis Agreement.

94

INWITNESSWHEREOF,thepartieshave causedthisAgreement to beexecutedbytheir respective officers thereunto dulyauthorized, asofthedatefirstabove written.

HILTON GRAND VACATIONS TRUST I LLC,

as Borrower

By:

Name:

Title:

Solely as to Section 5.05:

HILTON RESORTS CORPORATION

By:

Name:

Title:

DEUTSCHE BANK SECURITIES, INCOF AMERICA, N.A.,

as Administrative Agent

By:

Name:

Title:

BANK OF AMERICA, N.A.,

as a Managing Agent and a Committed Lender

By:

Name:

Title:

DEUTSCHE BANK AG, NEW YORK BRANCH,

as a Managing Agent and a Committed Lender

By:

Name:

Title:

By:

Name:

Title:

Signature Page to Receivables Loan Agreement

BARCLAYS BANK OF AMERICA, N.A.,PLC.
as  a  Managing  Agent  and  a  Committed  Lender  and  a Managing Agent
By:
Name:
Title:
SHEFFIELD RECEIVABLES COMPANY LLC,
as a Conduit Lender
By:	Barclays Bank PLC,
	as attorney-in-fact
By:
Name:
Title:
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as a Committed Lender and a Managing Agent
By:
Name:
Title:
SUNTRUST BANK,
as a Committed Lender and a Managing Agent
By:
Name:
Title:
WELLS FARGO BANK, NATIONAL ASSOCIATION
as Paying Agent and Securities Intermediary
By:
Name:
Title:

Signature Page to Receivables Loan Agreement

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Mark D. Wang, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of Hilton Grand Vacations Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Mark D. Wang
	Mark D. Wang
	President and Chief Executive Officer (Principal Executive Officer)
	August 1, 2019

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Daniel J. Mathewes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of Hilton Grand Vacations Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Daniel J. Mathewes
	Daniel J. Mathewes
	Executive Vice President and Chief Financial Officer
	(principal financial officer)
	August 1, 2019

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY

ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Hilton Grand Vacations Inc. (the “Company”) for the quarter ended June 30, 2019 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark D. Wang, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Mark D. Wang
	Mark D. Wang
	President and Chief Executive Officer (Principal Executive Officer)
August 1, 2019

A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY

ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Hilton Grand Vacations Inc. (the “Company”) for the quarterly period ended June 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel J. Mathewes, Executive Vice President and Chief Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, certify that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Daniel J. Mathewes
	Daniel J. Mathewes
	Executive Vice President and Chief Financial Officer (Principal Financial Officer)
August 1, 2019

A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 26, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	Hilton Grand Vacations Inc.
Entity Central Index Key	0001674168
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		85,911,860
Entity Emerging Growth Company	false
Entity Small Business	false
Trading Symbol	HGV
Entity Shell Company	false
Entity File Number	001-37794
Entity Tax Identification Number	812545345
Entity Address, Address Line One	6355 MetroWest Boulevard
Entity Address, Address Line Two	Suite 180
Entity Address, City or Town	Orlando
Entity Address, State or Province	Florida
Entity Address, Postal Zip Code	32835
City Area Code	407
Local Phone Number	613-3100

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents		$ 120	$ 108
Restricted cash		67	72
Accounts receivable, net of allowance for doubtful accounts of $17 and $14		156	153
Timeshare financing receivables, net		1,125	1,120
Inventory		536	527
Property and equipment, net		673	559
Operating lease right-of-use assets, net		63
Investments in unconsolidated affiliates		43	38
Intangible assets, net		84	81
Other assets		122	95
TOTAL ASSETS (variable interest entities - $571 and $647)		2,989	2,753
Liabilities:
Accounts payable, accrued expenses and other		312	324
Advanced deposits		108	101
Debt, net		937	604
Non-recourse debt, net		696	759
Operating lease liabilities	[1]	76
Deferred revenues		163	95
Deferred income tax liabilities		247	254
Total liabilities (variable interest entities - $562 and $640)		2,539	2,137
Commitments and contingencies - see Note 19
Equity:
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of June 30, 2019 and December 31, 2018
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 85,910,022 issued and outstanding as of June 30, 2019 and 94,558,086 issued and outstanding as of December 31, 2018		1	1
Additional paid-in capital		169	174
Accumulated retained earnings		280	441
Total equity		450	616
TOTAL LIABILITIES AND EQUITY		$ 2,989	$ 2,753

[1] Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 17	$ 14
Assets, variable interest entity	571	647
Liabilities, variable interest entity	$ 562	$ 640
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized	300,000,000	300,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	3,000,000,000	3,000,000,000
Common Stock, shares issued (in shares)	85,910,022	94,558,086
Common Stock, shares outstanding (in shares)	85,910,022	94,558,086

XML

Condensed Consolidated Statements of Operations (UNAUDITED) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Total revenues		$ 454,000,000	$ 563,000,000	$ 904,000,000	$ 930,000,000
Expenses
General and administrative		29,000,000	30,000,000	54,000,000	53,000,000
Depreciation and amortization		13,000,000	8,000,000	23,000,000	16,000,000
Total operating expenses		390,000,000	408,000,000	755,000,000	728,000,000
Interest expense		(11,000,000)	(8,000,000)	(21,000,000)	(15,000,000)
Equity in earnings (losses) from unconsolidated affiliates		2,000,000	(2,000,000)	3,000,000	(1,000,000)
Other (loss) gain, net		(1,000,000)	1,000,000	(2,000,000)
Income before income taxes		54,000,000	146,000,000	129,000,000	186,000,000
Income tax expense		(15,000,000)	(39,000,000)	(35,000,000)	(49,000,000)
Net income	[1]	$ 38,624,856	$ 106,861,230	$ 93,692,657	$ 137,031,259
Earnings per share:
Basic		$ 0.43	$ 1.10	$ 1.02	$ 1.40
Diluted		$ 0.43	$ 1.10	$ 1.01	$ 1.39
Sales of VOIs, Net
Revenues
Total revenues		$ 120,000,000	$ 250,000,000	$ 245,000,000	$ 328,000,000
Sales, Marketing, Brand and Other Fees
Revenues
Total revenues		145,000,000	146,000,000	286,000,000	271,000,000
Financing
Revenues
Total revenues		43,000,000	39,000,000	84,000,000	77,000,000
Expenses
Expenses		12,000,000	12,000,000	25,000,000	23,000,000
Resort and Club Management
Revenues
Total revenues		43,000,000	37,000,000	85,000,000	76,000,000
Expenses
Expenses		12,000,000	11,000,000	23,000,000	22,000,000
Rental and Ancillary Services
Revenues
Total revenues		60,000,000	53,000,000	119,000,000	104,000,000
Expenses
Expenses		37,000,000	30,000,000	72,000,000	58,000,000
Cost Reimbursements
Revenues
Total revenues		43,000,000	38,000,000	85,000,000	74,000,000
Expenses
Expenses		43,000,000	38,000,000	85,000,000	74,000,000
Cost of VOI Sales
Expenses
Expenses		32,000,000	61,000,000	68,000,000	80,000,000
Sales and Marketing
Expenses
Expenses		186,000,000	193,000,000	356,000,000	354,000,000
License Fee Expense
Expenses
Expenses		$ 26,000,000	$ 25,000,000	$ 49,000,000	$ 48,000,000

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

XML

Condensed Consolidated Statements of Cash Flows (UNAUDITED)	6 Months Ended
	Jun. 30, 2019 USD ($)		Jun. 30, 2018 USD ($)
Operating Activities
Net income	$ 93,692,657	[1]	$ 137,031,259	[1]
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	23,000,000		16,000,000
Amortization of deferred financing costs and other	5,000,000		3,000,000
Provision for financing receivables losses	38,000,000	[2]	30,000,000	[2]
Other loss, net	2,000,000
Share-based compensation	12,000,000		8,000,000
Deferred income tax benefit	(9,000,000)		(6,000,000)
Equity in (earnings) losses from unconsolidated affiliates	(3,000,000)		1,000,000
Distributions received from unconsolidated affiliates			2,000,000
Net changes in assets and liabilities:
Accounts receivable, net	(3,000,000)		(26,000,000)
Timeshare financing receivables, net	(42,000,000)		(48,000,000)
Inventory	(11,000,000)		11,000,000
Purchases and development of real estate for future conversion to inventory	(80,000,000)		(176,000,000)
Other assets	(26,000,000)		(58,000,000)
Accounts payable, accrued expenses and other	(3,000,000)		(42,000,000)
Advanced deposits	7,000,000		8,000,000
Deferred revenues	68,000,000		4,000,000
Other			2,000,000
Net cash provided by (used in) operating activities	72,000,000		(134,000,000)
Investing Activities
Capital expenditures for property and equipment	(17,000,000)		(20,000,000)
Software capitalization costs	(11,000,000)		(9,000,000)
Return of investment from unconsolidated affiliates			11,000,000
Investments in unconsolidated affiliates	(2,000,000)		(5,000,000)
Net cash used in investing activities	(30,000,000)		(23,000,000)
Financing Activities
Issuance of debt	410,000,000		160,000,000
Issuance of non-recourse debt	15,000,000		100,000,000
Repayment of debt	(105,000,000)		(5,000,000)
Repayment of non-recourse debt	(79,000,000)		(80,000,000)
Debt issuance costs	(2,000,000)		(2,000,000)
Repurchase and retirement of common stock	(271,000,000)		(112,000,000)
Payment of withholding taxes on vesting of restricted stock units	(3,000,000)		(1,000,000)
Proceeds from employee stock plan purchases	2,000,000
Capital contribution			3,000,000
Other financing activity	(2,000,000)
Net cash (used in) provided by financing activities	(35,000,000)		63,000,000
Net increase (decrease) in cash, cash equivalents and restricted cash	7,000,000		(94,000,000)
Cash, cash equivalents and restricted cash, beginning of period	180,000,000		297,000,000
Cash, cash equivalents and restricted cash, end of period	187,000,000		203,000,000
Supplemental disclosure of non-cash operating activities:
Cumulative effect of adoption of new accounting standard			$ 38,000,000
Supplemental disclosure of non-cash financing activities:
Issuance of other debt	$ 23,000,000

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

[2] Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables.

XML

Condensed Consolidated Statements of Stockholders' Equity (UNAUDITED) - USD ($)		Total		Common Stock	Additional Paid-in Capital	Accumulated Retained Earnings
Beginning balance, value at Dec. 31, 2017		$ 518,000,000		$ 1,000,000	$ 162,000,000	$ 355,000,000
Beginning balance, shares at Dec. 31, 2017				99,000,000
Net income		30,000,000		$ 0	0	30,000,000
Activity related to share-based compensation		(1,000,000)		0	(1,000,000)	0
Repurchase and retirement of common stock		(112,000,000)		$ 0	(3,000,000)	(109,000,000)
Repurchase and retirement of common stock, shares				(2,000,000)
Revenue recognition cumulative-effect adjustment		(38,000,000)		$ 0	0	(38,000,000)
Capital contribution		3,000,000		0	3,000,000	0
Ending balance, value at Mar. 31, 2018		400,000,000		$ 1,000,000	161,000,000	238,000,000
Ending balance, shares at Mar. 31, 2018				97,000,000
Beginning balance, value at Dec. 31, 2017		518,000,000		$ 1,000,000	162,000,000	355,000,000
Beginning balance, shares at Dec. 31, 2017				99,000,000
Net income	[1]	137,031,259
Ending balance, value at Jun. 30, 2018		517,000,000		$ 1,000,000	170,000,000	346,000,000
Ending balance, shares at Jun. 30, 2018				97,000,000
Beginning balance, value at Mar. 31, 2018		400,000,000		$ 1,000,000	161,000,000	238,000,000
Beginning balance, shares at Mar. 31, 2018				97,000,000
Net income		106,861,230	[1]	$ 0	0	107,000,000
Activity related to share-based compensation		6,000,000		0	6,000,000	0
Other		4,000,000		0	3,000,000	1,000,000
Ending balance, value at Jun. 30, 2018		517,000,000		$ 1,000,000	170,000,000	346,000,000
Ending balance, shares at Jun. 30, 2018				97,000,000
Beginning balance, value at Dec. 31, 2018		$ 616,000,000		$ 1,000,000	174,000,000	441,000,000
Beginning balance, shares at Dec. 31, 2018		94,558,086		94,000,000
Net income		$ 55,000,000		$ 0	0	55,000,000
Activity related to share-based compensation		1,000,000		0	1,000,000	0
Repurchase and retirement of common stock		(97,000,000)		$ 0	(5,000,000)	(92,000,000)
Repurchase and retirement of common stock, shares				(3,000,000)
Ending balance, value at Mar. 31, 2019		575,000,000		$ 1,000,000	170,000,000	404,000,000
Ending balance, shares at Mar. 31, 2019				91,000,000
Beginning balance, value at Dec. 31, 2018		$ 616,000,000		$ 1,000,000	174,000,000	441,000,000
Beginning balance, shares at Dec. 31, 2018		94,558,086		94,000,000
Net income	[1]	$ 93,692,657
Ending balance, value at Jun. 30, 2019		$ 450,000,000		$ 1,000,000	169,000,000	280,000,000
Ending balance, shares at Jun. 30, 2019		85,910,022		86,000,000
Beginning balance, value at Mar. 31, 2019		$ 575,000,000		$ 1,000,000	170,000,000	404,000,000
Beginning balance, shares at Mar. 31, 2019				91,000,000
Net income		38,624,856	[1]	$ 0	0	39,000,000
Activity related to share-based compensation		10,000,000		0	10,000,000	0
Repurchase and retirement of common stock		(174,000,000)		$ 0	(11,000,000)	(163,000,000)
Repurchase and retirement of common stock, shares				(5,000,000)
Ending balance, value at Jun. 30, 2019		$ 450,000,000		$ 1,000,000	$ 169,000,000	$ 280,000,000
Ending balance, shares at Jun. 30, 2019		85,910,022		86,000,000

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

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Organization

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

Note 1: Organization

Our Business

Hilton Grand Vacations Inc. (“Hilton Grand Vacations,” “we,” “us,” “our,” “HGV” or the “Company”) is a global timeshare company engaged in developing, marketing, selling and managing timeshare resorts primarily under the Hilton Grand Vacations brand. Our operations primarily consist of: selling vacation ownership intervals (“VOIs”) for us and third parties; financing and servicing loans provided to consumers for their timeshare purchases; operating resorts; and managing our points-based Hilton Grand Vacations Club exchange program (the “Club”). As of June 30, 2019, we had 57 properties, comprised of 9,177 units, located in the United States (“U.S.”), Japan and Europe.

In connection with the completion of the spin-off in January 2017, we entered into agreements with Hilton Worldwide (“Hilton”) (who at the time was a related party) and other third parties, including licenses to use the Hilton Grand Vacations brand. The unaudited condensed consolidated financial statements reflect the effect of these agreements. For the three months ended June 30, 2019 and 2018, we incurred $36 million and $38 million, respectively, and for each of the six months ended June 30, 2019 and 2018, we incurred $92 million and $97 million, respectively, in costs relating to the agreements entered with Hilton. See Key Agreements Related to the Spin-Off section in Part I - Item 1. Business of our Annual Report on Form 10-K for the year ended December 31, 2018 for further information.

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2: Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest.  In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods.  All material intercompany transactions and balances have been eliminated in consolidation.

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2019.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

Summary of Significant Accounting Policies

Leases

We lease sales centers, office space and equipment under operating leases. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net and Operating lease liabilities in our condensed consolidated balance sheets. Operating lease ROU assets are adjusted for lease incentives received.

ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit or implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms.

We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the condensed consolidated balance sheets and lease expense is recognized on a straight-line basis over the lease term.

We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating and financing leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

Recently Issued Accounting Pronouncements

Adopted Accounting Standards

On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) as amended, using the modified retrospective approach permitted under ASU No. 2018-11, Targeted Improvements, collectively Accounting Standards Codification Topic 842 (“ASC 842”). Accordingly, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. As permitted under the transition guidance in ASC 842, we have made an accounting policy election to adopt the following package of practical expedients:  

i. to not reassess whether expired or existing contracts are or contain leases;

ii. to not reassess lease classification for expired or existing leases;

iii. to not reassess any initial direct costs for any existing leases;  

iv. to not reassess the existence of a lease for existing or expired land easements that were not previously accounted for as leases;

v. to record short-term lease payments (less than 12 months) in profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred; and

vi. to not prospectively, and upon adoption, separate lease and non-lease components.

ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ASC 842 had no impact on our condensed consolidated statements of operations or on our condensed consolidated statements of cash flows. Upon adoption, we recognized ROU assets of $68 million and operating lease liabilities of $80 million for our real estate and equipment operating leases on the condensed consolidated balance sheets.

Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. Subsequent to ASU 2016-13, the FASB has issued several related ASUs amending the original ASU. The updates are intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update is effective for annual periods beginning after December 15, 2019. We are currently evaluating the effect of this ASU but we do not expect it to have a material impact on our unaudited condensed consolidated financial statements.

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

Note 3: Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management. Please refer to Note 18: Business Segments below for more details related to our segments.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Real Estate and Financing Segment
Sales of VOIs, net	$	120	$	250	$	245	$	328
Sales, marketing, brand and other fees		145		146		286		271
Interest income		36		34		72		68
Other financing revenue		7		5		12		9
Real estate and financing segment revenues	$	308	$	435	$	615	$	676

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Resort Operations and Club Management    Segment
Club management	$	26	$	23	$	52	$	46
Resort management		17		14		33		30
Rental (1)		53		46		105		91
Ancillary services		7		7		14		13
Resort operations and club management    segment revenues	$	103	$	90	$	204	$	180

^{(1) Includes intersegment eliminations. See Note 18:  Business Segments for additional information.}

Contract Balances

The following table provides information on our accounts receivable and contract asset from contracts with customers which are included in Accounts receivable, net on our condensed consolidated balance sheets:

($ in millions)	June 30, 2019		December 31, 2018
Receivables	$	128	$	122
Contract asset		3		—

The following table presents the composition of our contract liabilities for the six months ended June 30, 2019.

($ in millions)	June 30, 2019		December 31, 2018
Contract liabilities:
Advanced deposits	$	108	$	101
Deferred revenues(1)		145		72
Club Bonus Point incentive liability(2)		61		56

^{(1) The deferred revenues balance is primarily comprised of (i) sales of VOIs under construction and not yet acquired under a just-in-time arrangement, (ii) club activation fees that are paid at the closing of a VOI purchase, which grants access to our points-based Club and (iii) annual dues for Club membership renewals.}

⁽²⁾ Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements.

Revenue earned during the three and six months ended June 30, 2019 that was included in the contract liabilities balance at December 31, 2018 was approximately $39 million and $78 million, respectively.

Our accounts receivables that relate to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations related primarily to our fee-for-service arrangements and homeowners’ associations (“HOA”) management agreements and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Refer to Note 5: Timeshare Financing Receivables for information on balances and changes in balances during the period related to our timeshare financing receivables.

Contract assets relate to incentive fees that can be earned for meeting certain target on sales of VOIs at properties under our fee-for-service arrangements; however, our right to consideration is conditional upon completing the requirements of the annual incentive fee period.  

Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advance deposits received on prepaid vacation packages for future stays at our resorts, deferred revenues and the liability for Club Bonus Points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future.

Transaction Price Allocated to Remaining Performance Obligations

Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) Club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on prepaid vacation packages and (iv) Club Bonus Points that may be redeemed in the future. As of June 30, 2019, we deferred $34 million of revenue and $5 million of direct selling costs from sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete.  We expect to recognize the revenue and direct selling costs during the second quarter of 2020.  Upon acquisition, we expect to recognize $11 million in costs of VOI sales related to these sales.  As of December 31, 2018, we had no remaining performance obligations on sales of VOIs under construction.

The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of June 30, 2019:

($ in millions)	Remaining Transaction Price		Recognition Period	Recognition Method
Advanced deposits	$	108	18 months	Upon customer stays
Club activation fees		67	7 years	Straight-line basis over average inventory holding    period
Club Bonus Points		61	24 months	Upon redemption

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Restricted Cash

6 Months Ended

Jun. 30, 2019

Cash And Cash Equivalents [Abstract]

Restricted Cash

Note 4: Restricted Cash

Restricted cash was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Escrow deposits on VOI sales	$	41	$	45
Reserves related to non-recourse debt(1)		26		27
	$	67	$	72

⁽¹⁾ See Note 11: Debt & Non-recourse Debt for further discussion.

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Timeshare Financing Receivables

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Timeshare Financing Receivables

Note 5: Timeshare Financing Receivables

Timeshare financing receivables were as follows:

	June 30, 2019
($ in millions)	Securitized and Pledged			Unsecuritized(1)			Total
Timeshare financing receivables	$	579		$	720		$	1,299
Less: allowance for financing receivables losses		(35	)		(139	)		(174	)
	$	544		$	581		$	1,125

	December 31, 2018
($ in millions)	Securitized and Pledged			Unsecuritized(1)			Total
Timeshare financing receivables	$	660		$	632		$	1,292
Less: allowance for financing receivables losses		(43	)		(129	)		(172	)
	$	617		$	503		$	1,120

⁽¹⁾ Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities.

As of June 30, 2019 and December 31, 2018, we had $279 million and $190 million, respectively, of gross timeshare financing receivables securing the outstanding debt balance of our Timeshare Facility. We record an estimate of variable consideration for estimated defaults as a reduction of revenue from VOI sales at the time revenue is recognized on a VOI sale.

Our timeshare financing receivables as of June 30, 2019 mature as follows:

($ in millions)	Securitized and Pledged			Unsecuritized			Total
Year
2019 (remaining)	$	40		$	39		$	79
2020		81			58			139
2021		80			64			144
2022		77			70			147
2023		75			75			150
Thereafter		226			414			640
		579			720			1,299
Less: allowance for financing receivables losses		(35	)		(139	)		(174	)
	$	544		$	581		$	1,125

We evaluate this portfolio collectively for purposes of estimating variable consideration, since we hold a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the credit quality of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for determining our allowance for financing receivables losses on our timeshare financing receivables. For static pool analysis, we use certain key dimensions to stratify our portfolio, including FICO scores, equity percentage at the time of sale and certain other factors. The adequacy of the related allowance is determined by management through analysis of several factors, such as current economic conditions and industry trends, as well as the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. The allowance is maintained at a level deemed adequate by management based on a periodic analysis of the mortgage portfolio.

We recognize interest income on our timeshare financing receivables as earned. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of June 30, 2019, our timeshare financing receivables had interest rates ranging from 5.25 percent to 20.50 percent, a weighted-average interest rate of 12.36 percent, a weighted-average remaining term of 7.7 years and maturities through 2031.

Our gross timeshare financing receivables balances by FICO score were as follows:

	June 30,		December 31,
($ in millions)	2019		2018
FICO score
700+	$	853	$	843
600-699		234		237
<600		27		27
No score(1)		185		185
	$	1,299	$	1,292

⁽¹⁾ Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

We apply payments we receive for timeshare financing receivables, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a receivable is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for receivables for which we had previously ceased accruing interest once the receivable is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the receivable is 121 days past due and, subsequently, we write off the uncollectible balance against the reserve once the foreclosure process is complete and we receive the deed for the foreclosed unit.

As of June 30, 2019 and December 31, 2018, we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $70 million and $69 million, respectively. The following tables detail an aged analysis of our gross timeshare financing receivables balance:

	June 30, 2019
($ in millions)	Securitized and Pledged		Unsecuritized		Total
Current	$	566	$	644	$	1,210
31 - 90 days past due		8		11		19
91 - 120 days past due		2		4		6
121 days and greater past due		3		61		64
	$	579	$	720	$	1,299

	December 31, 2018
($ in millions)	Securitized and Pledged		Unsecuritized		Total
Current	$	648	$	556	$	1,204
31 - 90 days past due		8		11		19
91 - 120 days past due		3		3		6
121 days and greater past due		1		62		63
	$	660	$	632	$	1,292

The changes in our allowance for financing receivables losses were as follows:

	June 30, 2019
($ in millions)	Securitized and Pledged			Unsecuritized			Total
Balance as of December 31, 2018	$	43		$	129		$	172
Write-offs		—			(36	)		(36	)
Provision for financing receivables losses(1)		(8	)		46			38
Balance as of June 30, 2019	$	35		$	139		$	174

	June 30, 2018
($ in millions)	Securitized and Pledged			Unsecuritized			Total
Balance as of December 31, 2017	$	27		$	114		$	141
Write-offs		—			(14	)		(14	)
Provision for financing receivables losses(1)		(7	)		37			30
Balance as of June 30, 2018	$	20		$	137		$	157

⁽¹⁾ Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables.

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Inventory

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventory

Note 6: Inventory

Inventory was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Completed unsold VOIs	$	249	$	243
Construction in process		11		9
Land, infrastructure and other		276		275
	$	536	$	527

We benefited from $5 million in costs of sales true-ups relating to VOI products for the six months ended June 30, 2019, which resulted in a $5 million increase to the carrying value of inventory as of June 30, 2019. We benefited from $10 million in costs of sales true-ups relating to VOI products for the year ended December 31, 2018, which resulted in a $10 million increase to the carrying value of inventory as of December 31, 2018. Shown below are expenses incurred, recorded in Cost of VOI sales, related to granting credit to customers for their existing ownership when upgrading into fee-for-service projects.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Cost of VOI sales related to fee-for-service upgrades	$	7	$	9	$	16	$	15

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Property and Equipment

6 Months Ended

Jun. 30, 2019

Property Plant And Equipment [Abstract]

Property and Equipment

Note 7: Property and Equipment

Property and equipment was as follows:

	June 30,			December 31,
($ in millions)	2019			2018
Land	$	335		$	268
Building and leasehold improvements		300			295
Furniture and equipment		68			54
Construction in progress		66			25
		769			642
Accumulated depreciation		(96	)		(83	)
	$	673		$	559

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Consolidated Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Variable Interest Entities

Note 8: Consolidated Variable Interest Entities

As of June 30, 2019 and December 31, 2018, we consolidated four variable interest entities (“VIEs”) that issued non-recourse debt backed by pledged assets consisting primarily of a pool of timeshare financing receivables which is without recourse to us. We are the primary beneficiaries of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. We are also the servicer of these timeshare financing receivables and we are required to replace or repurchase timeshare financing receivables that are in default at their outstanding principal amounts. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. Only the assets of our VIEs are available to settle the obligations of the respective entities.

Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following:

	June 30,		December 31,
($ in millions)	2019		2018
Restricted cash	$	20	$	23
Timeshare financing receivables, net		544		617
Non-recourse debt(1)		561		639

⁽¹⁾ Net of deferred financing costs.

During the six months ended June 30, 2019 and 2018, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future.

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Investments in Unconsolidated Affiliates

6 Months Ended

Jun. 30, 2019

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Affiliates

Note 9: Investments in Unconsolidated Affiliates

As of June 30, 2019, we have 25 percent and 50 percent ownership interests in BRE Ace LLC and 1776 Holdings LLC, respectively, that are deemed as VIEs. We do not consolidate BRE Ace LLC and 1776 Holdings LLC because we are not the primary beneficiary. Our investment interests in and equity earned from both VIEs are included in the consolidated balance sheets as Investments in unconsolidated affiliates and in the consolidated statements of operations as Equity in earnings (losses) from unconsolidated affiliates, respectively.

We held investments in our two unconsolidated affiliates with aggregated debt balances of $478 million and $490 million as of June 30, 2019 and December 31, 2018, respectively. The debt is secured by their assets and is without recourse to us. Our maximum exposure to loss as a result of our investment interests in the two unconsolidated affiliates is primarily limited to (i) the carrying amount of the investments which totals $43 million and $38 million as of June 30, 2019 and December 31, 2018, respectively and (ii) receivables for commission and other fees earned under a fee-for-service arrangement.  See Note 17:  Related Party Transactions for additional information.  

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Other Assets

6 Months Ended

Jun. 30, 2019

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Other Assets

Note 10: Other Assets

Other assets were as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Inventory deposits	$	44	$	46
Prepaid expenses		34		18
Other		44		31
	$	122	$	95

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Debt & Non-recourse Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Debt & Non-recourse Debt

Note 11: Debt & Non-recourse Debt

Debt

The following table details our outstanding debt balance and its associated interest rates:

	June 30,			December 31,
($ in millions)	2019			2018
Debt(1)
Senior secured credit facilities:
Term loan with an average rate of 3.898%, due 2023	$	192		$	197
Revolver with an average rate of 3.898%, due 2023		425			115
Senior notes with a rate of 6.125%, due 2024		300			300
Other debt		27			—
		944			612
Less: unamortized deferred financing costs and discount(2)(3)		(7	)		(8	)
	$	937		$	604

⁽¹⁾ For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.699 percent and 5.170 percent, respectively.

⁽²⁾ Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $5 million both as of June 30, 2019 and $2 million and $6 million as of December 31, 2018.

⁽³⁾ Amount does not include deferred financing costs of $6 million as of June 30, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets in our condensed consolidated balance sheets.

During the six months ended June 30, 2019, we borrowed $410 million and repaid $105 million (including recurring payments) under the senior secured credit facilities with an interest rate based on one month LIBOR plus 1.5 percent.  

As of June 30, 2019 and December 31, 2018, we had $1 million of outstanding letter of credit under the revolving credit facility.  We were in compliance with all applicable financial covenants as of June 30, 2019.

Non-recourse Debt

The following table details our outstanding non-recourse debt balance and its associated interest rates:

	June 30,			December 31,
($ in millions)	2019			2018
Non-recourse debt(1)
Timeshare Facility with an average rate of 3.337%, due 2021	$	135		$	120
Securitized Debt with a rate of 2.280%, due 2026		25			33
Securitized Debt with an average rate of 1.810%, due 2026		59			74
Securitized Debt with an average rate of 2.711%, due 2028		176			206
Securitized Debt with an average rate of 3.602%, due 2032		307			333
		702			766
Less: unamortized deferred financing costs(2)		(6	)		(7	)
	$	696		$	759

⁽¹⁾ For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.130 percent and 3.126 percent, respectively.

⁽²⁾ Amount relates to securitized debt only and does not include deferred financing costs of $4 million and $3 million as of June 30, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets in our condensed consolidated balance sheets.

The Timeshare Facility is a non-recourse obligation with a borrowing capacity of $450 million and is payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. In April 2019, we amended the Timeshare Facility, excluding the end of the commitment period, from March 2020 to April 2021. All other terms and borrowing capacity remained the same. 

We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $26 million and $27 million as of June 30, 2019 and December 31, 2018, respectively, and were included in Restricted cash in our condensed consolidated balance sheets.

Debt Maturities

The contractual maturities of our debt and non-recourse debt as of June 30, 2019 were as follows:

($ in millions)	Debt		Non-recourse Debt		Total
Year
2019 (remaining)	$	6	$	110	$	116
2020		12		167		179
2021		11		88		99
2022		10		200		210
2023		582		76		658
Thereafter		323		61		384
	$	944	$	702	$	1,646

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Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 12: Fair Value Measurements

The carrying amounts and estimated fair values of our financial assets and liabilities were as follows:

	June 30, 2019
			Hierarchy Level
($ in millions)	Carrying Amount		Level 1		Level 3
Assets:
Timeshare financing receivables, net(1)	$	1,125	$	—	$	1,387
Liabilities:
Debt, net(2)		937		320		649
Non-recourse debt, net(2)		696		—		707

⁽¹⁾ Carrying amount net of allowance for financing receivables losses.

⁽²⁾ Carrying amount net of unamortized deferred financing costs and discount.

	December 31, 2018
			Hierarchy Level
($ in millions)	Carrying Amount		Level 1		Level 3
Assets:
Timeshare financing receivables, net(1)	$	1,120	$	—	$	1,339
Liabilities:
Debt, net(2)		604		302		309
Non-recourse debt, net(2)		759		—		753

⁽¹⁾ Carrying amount net of allowance for financing receivables losses.

⁽²⁾ Carrying amount net of unamortized deferred financing costs and discount.

Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes cash and cash equivalents, restricted cash, accounts receivable, accounts payable, advance deposits and accrued liabilities, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.

The estimated fair values of our timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and borrowing terms respective to the portfolio based on current market assumptions for similar types of arrangements.

The estimated fair values of our Level 1 debt was based on prices in active debt markets. The estimated fair value of our Level 3 debt and non-recourse debt were as follows:

• Debt - based on indicative quotes obtained for similar issuances and projected future cash flows discounted at risk-adjusted rates.

• Non-recourse debt - based on projected future cash flows discounted at risk-adjusted rates.

We do not have any assets or liabilities measured at fair value on a recurring basis as of June 30, 2019.

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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Note 13: Leases

We lease sales centers, office space and equipment under operating leases. Our leases expire at various dates from 2019 through 2030, with varying renewal and termination options. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

Rent expense for lease payments is recognized on a straight-line basis over the lease term. Rental expense for all operating leases was $4 million and $10 million for the three and six months ended June 30, 2019 respectively. This amount includes immaterial short-term leases and variable lease costs. Rent expense for all operating leases for the year ended December 31, 2018 was as follows:

($ in millions)
Minimum rentals	$	21
Contingent rentals		3
	$	24

Supplemental information related to operating leases for the six months ending June 30, 2019:

($ in millions)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	8
Right-of-use assets obtained in exchange for new operating lease liabilities		1
Weighted-average remaining lease term of operating leases	6.6 years
Weighted-average discount rate of operating leases		5.33	%

Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of June 30, 2019, are as follows:

($ in millions)	Operating Leases (1)
Year
2019 (remaining)	$	8
2020		16
2021		15
2022		10
2023		10
Thereafter		32
Total future minimum lease payments	$	91
Less: interest		(15	)
Present value of lease liabilities	$	76

⁽¹⁾ Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of December 31, 2018, are as follows:

($ in millions)	Operating Leases
Year
2019	$	16
2020		15
2021		14
2022		10
2023		10
Thereafter		29
Total future minimum lease payments	$	94

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Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 14: Income Taxes

At the end of each quarter, we estimate the effective tax rate expected to be applied for the full year. The effective tax rate is determined by the level and composition of pre-tax income or loss, which is subject to federal, foreign and state and local income taxes. The effective tax rate for the six months ended June 30, 2019 and 2018 was approximately 27 percent and 26 percent, respectively, which increased primarily due to a reduction in the tax benefit related to share-based compensation awards exercised or vested during the six months ended June 30, 2019.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note 15: Share-Based Compensation

Stock Plan

We issue service-based restricted stock units (“Service RSUs”), service and performance-based restricted stock units (“Performance RSUs”) and nonqualified stock options (“Options”) to certain employees and directors. We recognized share-based compensation expense of $7 million and $5 million during the three months ended June 30, 2019 and 2018, respectively, and $12 million and $8 million for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019, unrecognized compensation costs for unvested awards were approximately $34 million, which is expected to be recognized over a weighted average period of 1.9 years. As of June 30, 2019, there were 6,386,657 shares of common stock available for future issuance.

Service RSUs

During the six months ended June 30, 2019, we issued 500,925 Service RSUs with a weighted-average grant date fair value of $33.07, which generally vest in equal annual installments over three years from the date of grant.

Options

During the six months ended June 30, 2019, we issued 544,209 Options with a weighted-average exercise price of $33.32, which vest over three years from the date of the grant.

The weighted-average grant date fair value of these options was $12.29, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility	33.1	%
Dividend yield	—	%
Risk-free rate	2.6	%
Expected term (in years)	6.0

As of June 30, 2019, we had 648,617 Options outstanding that were exercisable.

Performance Shares

During the six months ended June 30, 2019, we issued 133,660 Performance RSUs with a weighted-average grant date fair value of $33.32. The Performance RSUs are settled at the end of a three-year performance period, with 70 percent of the Performance RSUs subject to achievement based on the Company’s adjusted earnings before interest expense, taxes and depreciation and amortization further adjusted for net impacts and recognitions of revenues and expenses related to sales of VOIs of projects under construction. The remaining 30 percent of the Performance RSUs are subject to the achievement of certain contract sales targets.  We determined that the performance conditions for these awards are probable of achievement and, as of June 30, 2019, we recognized compensation expense based on the number of Performance RSUs we expect to vest.

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Earnings Per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Note 16: Earnings Per Share

The following table presents the calculation of our basic and diluted earnings per share (“EPS”).  The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended June 30, 2019 is 89,849,803 and 90,271,976, respectively, and for the six months ended June 30, 2019 is 91,959,041 and 92,421,752, respectively.  The weighted-average shares outstanding used to compute basic EPS and diluted EPS for the three months ended June 30, 2018 was 96,774,130 and 97,463,820, respectively, and six months ended June 30, 2018 was 97,692,558 and 98,474,971, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
($ and shares outstanding in millions, except per share amounts)	2019		2018		2019		2018
Basic EPS:
Numerator:
Net Income(1)	$	39	$	107	$	94	$	137
Denominator:
Weighted average shares outstanding		90		97		92		98
Basic EPS	$	0.43	$	1.10	$	1.02	$	1.40
Diluted EPS:
Numerator:
Net Income(1)	$	39	$	107	$	94	$	137
Denominator:
Weighted average shares outstanding		90		97		92		98
Diluted EPS	$	0.43	$	1.10	$	1.01	$	1.39

⁽¹⁾ Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019 and 2018 was $93,692,657 and $137,031,259, respectively.

The dilutive effect of outstanding share-based compensation awards is reflected in diluted earnings per common share by application of the treasury stock method using average market prices during the period.

For the three and six months ended June 30, 2019, we excluded 1,433,833 and 1,168,159, respectively, and for the three and six months ended June 30, 2018, we excluded 533,609 and 341,246 share-based compensation awards, respectively, because their effect would have been anti-dilutive under the treasury stock method.

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Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Note 17: Related Party Transactions

BRE Ace LLC

In July 2017, we acquired a 25 percent ownership interest in BRE Ace LLC, a VIE, which owns a timeshare resort property and related operations, commonly known as “Elara, by Hilton Grand Vacations.” During the three and six months ended June 30, 2019, we recorded $2 million and $3 million, respectively, of Equity in earnings from unconsolidated affiliates in our condensed consolidated statements of operations. During the three and six months ended June 30, 2018, we recorded $2 million and $1 million, respectively, of Equity in losses from unconsolidated affiliates in our condensed consolidated statements of operations. Additionally, we earn commissions and other fees related to a fee-for-service agreement with the investee to sell VOIs at Elara, by Hilton Grand Vacations.  These amounts are summarized in the following table and are included in our condensed consolidated statements of operations as of the date they became a related party.  

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Commission and other fees	$	32	$	32	$	68	$	64

We also have $27 million of outstanding receivables related to the fee-for-service agreement as of June 30, 2019.   

1776 Holding, LLC

In March 2018, we entered into an agreement with SCG 1776, LLC to form 1776 Holding, LLC.  In conjunction with this agreement, we contributed $5 million in cash for a 50 percent ownership interest in 1776 Holding, LLC.  In May 2019, the agreement was amended to assign the interest of SCG 1776, LLC in 1776 Holding, LLC to 1776 Investment Group, LLC. In May 2019, we also contributed an additional $2 million in cash to 1776 Holding, LLC. During each of the three and six months ended June 30, 2019 and 2018, we recorded less than $1 million, respectively, of Equity in earnings (losses) from unconsolidated affiliates included in our condensed consolidated statements of operations. See Note 9: Investments in Unconsolidated Affiliates for additional information.

HNA Tourism Group Co., Ltd (“HNA”)

On March 13, 2018, HNA entered into an underwriting agreement with several underwriters to sell 22,250,000 shares of our common stock. In connection with the underwriting offer, we elected to purchase 2,500,000 shares at a price of approximately $44.75 per share. The transactions were completed on March 19, 2018 and HNA ceased to be a related party.

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Business Segments

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Business Segments

Note 18: Business Segments

We operate our business through the following two segments:

• Real estate sales and financing – We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer receivables to customers to finance their purchase of VOIs and revenue from servicing the timeshare financing receivables. We also generate fee revenue from servicing the timeshare financing receivables provided by third-party developers to purchasers of their VOIs.

• Resort operations and club management – We manage the Club, earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our Club program. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties.

The performance of our operating segments is evaluated primarily based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA which has been further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) reorganization costs, including severance and relocation costs; (vi) share-based and other compensation expenses; (vii) costs related to the spin-off; and (viii) other items.

We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues. The following table presents revenues for our reportable segments reconciled to consolidated amounts:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2019			2018			2019			2018
Revenues:
Real estate sales and financing	$	308		$	435		$	615		$	676
Resort operations and club management(1)(2)		114			98			224			196
Total segment revenues		422			533			839			872
Cost reimbursements		43			38			85			74
Intersegment eliminations(1)(2)		(11	)		(8	)		(20	)		(16	)
Total revenues	$	454		$	563		$	904		$	930

⁽¹⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $11 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $20 million and $16 million for the six months ended June 30, 2019 and 2018, respectively

⁽²⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three and six months ended June 30, 2019 and 2018.

The following table presents Adjusted EBITDA for our reportable segments reconciled to net income:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2019			2018			2019			2018
Adjusted EBITDA:
Real estate sales and financing(1)	$	69		$	163		$	149		$	207
Resort operations and club management(1)		66			58			131			117
Segment Adjusted EBITDA		135			221			280			324
General and administrative		(29	)		(30	)		(54	)		(53	)
Depreciation and amortization		(13	)		(8	)		(23	)		(16	)
License fee expense		(26	)		(25	)		(49	)		(48	)
Other (loss) gain, net		(1	)		1			(2	)		—
Interest expense		(11	)		(8	)		(21	)		(15	)
Income tax expense		(15	)		(39	)		(35	)		(49	)
Equity in earnings (losses) from unconsolidated affiliates		2			(2	)		3			(1	)
Other adjustment items		(3	)		(3	)		(5	)		(5	)
Net income	$	39		$	107		$	94		$	137

⁽¹⁾ Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 19: Commitments and Contingencies

We have entered into certain arrangements with developers to commit to purchase vacation ownership units at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of June 30, 2019, we were committed to purchase approximately $511 million of inventory and land over a period of 12 years. The actual amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the six months ended June 30, 2019 and 2018, we purchased $28 million and $4 million, respectively, of VOI inventory as required under our commitments. As of June 30, 2019, our remaining obligation pursuant to these arrangements were expected to be incurred as follows:

($ in millions)	Purchase Obligations
Year
2019 (remaining)	$	38
2020		220
2021		87
2022		57
2023		54
Thereafter		55
Total	$	511

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. Management has evaluated these legal matters and we believe that possible losses derived from an unfavorable outcome that is reasonably possible or remote is not reasonably estimable. While the actual results of claims and litigation cannot be predicted with certainty, we expect that the resolution of all pending or threatened claims and litigation as of June 30, 2019, will not materially affect our unaudited condensed consolidated financial statements.

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Condensed Consolidating Guarantor Financial Information

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Consolidating Guarantor Financial Information

Note 20: Condensed Consolidating Guarantor Financial Information

The following schedules present the unaudited condensed consolidating financial information as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors.

	June 30, 2019
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	7	$	—	$	93	$	20	$	—		$	120
Restricted cash		—		—		41		26		—			67
Accounts receivable, net		—		—		156		20		(20	)		156
Timeshare financing receivables, net		—		—		332		793		—			1,125
Inventory		—		—		496		40		—			536
Property and equipment, net		—		—		666		7		—			673
Operating lease right-of-use assets, net						63		—		—			63
Investments in unconsolidated affiliates		—		—		43		—		—			43
Intangible assets, net		—		—		84		—		—			84
Other assets		—		6		67		49		—			122
Investments in subsidiaries		443		1,347		243		—		(2,033	)		—
TOTAL ASSETS	$	450	$	1,353	$	2,284	$	955	$	(2,053	)	$	2,989
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	317	$	15	$	(20	)	$	312
Advanced deposits		—		—		108		—		—			108
Debt, net		—		910		27		—		—			937
Non-recourse debt, net		—		—		—		696		—			696
Operating lease liabilities		—		—		76		—		—			76
Deferred revenues		—		—		163		—		—			163
Deferred income tax liabilities		—		—		246		1		—			247
Total equity		450		443		1,347		243		(2,033	)		450
TOTAL LIABILITIES AND EQUITY	$	450	$	1,353	$	2,284	$	955	$	(2,053	)	$	2,989

	December 31, 2018
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	4	$	—	$	89	$	15	$	—		$	108
Restricted cash		—		—		45		27		—			72
Accounts receivable, net		—		—		157		17		(21	)		153
Timeshare financing receivables, net		—		—		209		911		—			1,120
Inventory		—		—		502		25		—			527
Property and equipment, net		—		—		553		6		—			559
Investments in unconsolidated affiliate		—		—		38		—		—			38
Intangible assets, net		—		—		81		—		—			81
Other assets		—		6		41		48		—			95
Investments in subsidiaries		612		1,210		277		—		(2,099	)		—
TOTAL ASSETS	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	332	$	13	$	(21	)	$	324
Advanced deposits		—		—		101		—		—			101
Debt, net		—		604		—		—		—			604
Non-recourse debt, net		—		—		—		759		—			759
Deferred revenues		—		—		95		—		—			95
Deferred income tax liabilities		—		—		254		—		—			254
Total equity		616		612		1,210		277		(2,099	)		616
TOTAL LIABILITIES AND EQUITY	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753

	For the Three Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	103		$	17		$	—		$	120
Sales, marketing, license and other fees		—			—			154			3			(12	)		145
Financing		—			—			20			25			(2	)		43
Resort and club management		—			—			43			—			—			43
Rental and ancillary services		—			—			60			—			—			60
Cost reimbursements		—			—			42			1			—			43
Total revenues		—			—			422			46			(14	)		454
Expenses
Cost of VOI sales		—			—			28			4			—			32
Sales and marketing		—			—			187			11			(12	)		186
Financing		—			—			4			10			(2	)		12
Resort and club management		—			—			12			—			—			12
Rental and ancillary services		—			—			36			1			—			37
General and administrative		—			—			29			—			—			29
Depreciation and amortization		—			—			13			—			—			13
License fee expense		—			—			25			1			—			26
Cost reimbursements		—			—			42			1			—			43
Total operating expenses		—			—			376			28			(14	)		390
Interest expense		—			(11	)		—			—			—			(11	)
Dividends from subsidiary		150			150			—			—			(300	)		—
Equity in earnings from unconsolidated    affiliates		—			—			2			—			—			2
Other loss, net		—			—			(1	)		—			—			(1	)
Income before income taxes		150			139			47			18			(300	)		54
Income tax expense		—			—			(14	)		(1	)		—			(15	)
Income before equity in earnings    from subsidiaries		150			139			33			17			(300	)		39
Equity in (losses) earnings from subsidiaries		(111	)		50			17			—			44			—
Net income	$	39		$	189		$	50		$	17		$	(256	)	$	39

	For the Three Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	248		$	2	$	—		$	250
Sales, marketing, license and other fees		—		—			147			1		(2	)		146
Financing		—		—			17			23		(1	)		39
Resort and club management		—		—			37			—		—			37
Rental and ancillary services		—		—			53			—		—			53
Cost reimbursements		—		—			37			1		—			38
Total revenues		—		—			539			27		(3	)		563
Expenses
Cost of VOI sales		—		—			61			—		—			61
Sales and marketing		—		—			193			2		(2	)		193
Financing		—		—			5			8		(1	)		12
Resort and club management		—		—			11			—		—			11
Rental and ancillary services		—		—			30			—		—			30
General and administrative		—		—			30			—		—			30
Depreciation and amortization		—		—			8			—		—			8
License fee expense		—		—			25			—		—			25
Cost reimbursements		—		—			37			1		—			38
Total operating expenses		—		—			400			11		(3	)		408
Interest expense		—		(8	)		—			—		—			(8	)
Equity in losses from unconsolidated    affiliates		—		—			(2	)		—		—			(2	)
Other gain, net		—		—			1			—		—			1
Income (loss) before income taxes		—		(8	)		138			16		—			146
Income tax expense		—		—			(39	)		—		—			(39	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(8	)		99			16		—			107
Equity in earnings from subsidiaries		107		115			16			—		(238	)		—
Net income	$	107	$	107		$	115		$	16	$	(238	)	$	107

	For the Six Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	210		$	35		$	—		$	245
Sales, marketing, license and other fees		—			—			305			4			(23	)		286
Financing		—			—			38			50			(4	)		84
Resort and club management		—			—			85			—			—			85
Rental and ancillary services		—			—			118			1			—			119
Cost reimbursements		—			—			83			2			—			85
Total revenues		—			—			839			92			(27	)		904
Expenses
Cost of VOI sales		—			—			61			7			—			68
Sales and marketing		—			—			357			22			(23	)		356
Financing		—			—			8			21			(4	)		25
Resort and club management		—			—			23			—			—			23
Rental and ancillary services		—			—			70			2			—			72
General and administrative		—			—			54			—			—			54
Depreciation and amortization		—			—			23			—			—			23
License fee expense		—			—			47			2			—			49
Cost reimbursements		—			—			83			2			—			85
Total operating expenses		—			—			726			56			(27	)		755
Interest expense		—			(21	)		—			—			—			(21	)
Dividends from subsidiary		275			275			—			—			(550	)		—
Equity in earnings from unconsolidated    affiliates		—			—			3			—			—			3
Other loss, net		—			—			(2	)		—			—			(2	)
Income before income taxes		275			254			114			36			(550	)		129
Income tax expense		—			—			(34	)		(1	)		—			(35	)
Income before equity in earnings    from subsidiaries		275			254			80			35			(550	)		94
Equity in (losses) earnings from subsidiaries		(181	)		115			35			—			31			—
Net income	$	94		$	369		$	115		$	35		$	(519	)	$	94

	For the Six Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	325		$	3	$	—		$	328
Sales, marketing, license and other fees		—		—			273			2		(4	)		271
Financing		—		—			37			42		(2	)		77
Resort and club management		—		—			76			—		—			76
Rental and ancillary services		—		—			103			1		—			104
Cost reimbursements		—		—			72			2		—			74
Total revenues		—		—			886			50		(6	)		930
Expenses
Cost of VOI sales		—		—			80			—		—			80
Sales and marketing		—		—			354			4		(4	)		354
Financing		—		—			10			15		(2	)		23
Resort and club management		—		—			22			—		—			22
Rental and ancillary services		—		—			57			1		—			58
General and administrative		—		—			53			—		—			53
Depreciation and amortization		—		—			16			—		—			16
License fee expense		—		—			48			—		—			48
Cost reimbursements		—		—			72			2		—			74
Total operating expenses		—		—			712			22		(6	)		728
Interest expense		—		(15	)		—			—		—			(15	)
Equity in losses from unconsolidated    affiliates		—		—			(1	)		—		—			(1	)
Income (loss) before income taxes		—		(15	)		173			28		—			186
Income tax expense		—		—			(49	)		—		—			(49	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(15	)		124			28		—			137
Equity in earnings from subsidiaries		137		152			28			—		(317	)		—
Net income	$	137	$	137		$	152		$	28	$	(317	)	$	137

	For the Six Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash provided by (used in) operating    activities	$	—		$	254		$	(43	)	$	136		$	(275	)	$	72
Investing Activities
Capital expenditures for property and    equipment		—			—			(17	)		—			—			(17	)
Software capitalization costs		—			—			(11	)		—			—			(11	)
Investments in unconsolidated affiliates		—			—			(2	)		—			—			(2	)
Dividends from subsidiary		275			275			—			—			(550	)		—
Net cash used in (provided by) investing activities		275			275			(30	)		—			(550	)		(30	)
Financing Activities
Issuance of debt		—			410			—			—			—			410
Issuance of non-recourse debt		—			—			—			15			—			15
Repayment of debt		—			(100	)		(5	)		—			—			(105	)
Repayment of non-recourse debt		—			—			—			(79	)		—			(79	)
Debt issuance costs		—			—			—			(2	)		—			(2	)
Repurchase and retirement of common stock		(271	)		—			—			—			—			(271	)
Payment of withholding taxes on vesting of    restricted stock units		—						(3	)		—			—			(3	)
Proceeds from employee stock plan purchases		—			—			2			—			—			2
Other financing activity		—			—			(2	)		—			—			(2	)
Intercompany transfers		(1	)		(839	)		81			(66	)		825			—
Net cash used in (provided by) financing    activities		(272	)		(529	)		73			(132	)		825			(35	)
Net increase in cash, cash equivalents and    restricted cash		3			—			—			4			—			7
Cash, cash equivalents and restricted cash,    beginning of period		4			—			134			42			—			180
Cash, cash equivalents and restricted cash,    end of period	$	7		$	—		$	134		$	46		$	—		$	187

	For the Six Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash (used in) provided by operating    activities	$	—	$	(14	)	$	42		$	(205	)	$	43		$	(134	)
Investing Activities
Capital expenditures for property and    equipment		—		—			(18	)		(2	)		—			(20	)
Software capitalization costs		—		—			(9	)		—			—			(9	)
Return of investment from unconsolidated affiliates		—		—			11			—			—			11
Investment in unconsolidated affiliates		—		—			(5	)		—			—			(5	)
Net cash used in investing activities		—		—			(21	)		(2	)		—			(23	)
Financing Activities
Issuance of debt		—		160			—			—			—			160
Issuance of non-recourse debt		—		—			—			100			—			100
Repurchase and retirement of common stock		—		(112	)		—			—			—			(112	)
Repayment of non-recourse debt		—		—			—			(80	)		—			(80	)
Repayment of debt		—		(5	)		—			—			—			(5	)
Debt issuance costs		—		—			—			(2	)		—			(2	)
Payment of withholding taxes on vesting of restricted stock units		—		(1	)		—			—			—			(1	)
Capital contribution		—		3			—			—			—			3
Intercompany transfers		—		(31	)		(111	)		185			(43	)		—
Net cash provided by (used in) financing    activities		—		14			(111	)		203			(43	)		63
Net decrease in cash, cash equivalents and    restricted cash		—		—			(90	)		(4	)		—			(94	)
Cash, cash equivalents and restricted cash,    beginning of period		—		—			259			38			—			297
Cash, cash equivalents and restricted cash,    end of period	$	—	$	—		$	169		$	34		$	—		$	203

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Subsequent Events

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 21: Subsequent Events

In July 2019, we executed the following transactions:

• we completed the purchase of 87 hotel units for future conversion to 74 timeshare units located in Los Cabos, Mexico for $37 million;

• we borrowed $20 million and repaid $5 million, respectively, under our revolving credit facility; and

• we repaid $15 million under our Timeshare Facility.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements presented herein include 100 percent of our assets, liabilities, revenues, expenses and cash flows as well as all entities in which we have a controlling financial interest.  In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods.  All material intercompany transactions and balances have been eliminated in consolidation.

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows as prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Although we believe the disclosures made are adequate to prevent information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the SEC on February 28, 2019.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

Leases

Leases

We lease sales centers, office space and equipment under operating leases. We determine if an arrangement is a lease at inception. Amounts related to operating leases are included in Operating lease right-of-use (“ROU”) assets, net and Operating lease liabilities in our condensed consolidated balance sheets. Operating lease ROU assets are adjusted for lease incentives received.

ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because most of our leases do not provide an explicit or implicit rate of return, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar terms.

We have lease agreements with lease and non-lease components. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rental payments adjusted periodically for inflation, or rent payments equal to the greater of a minimum rent or contingent rent. Our leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the condensed consolidated balance sheets and lease expense is recognized on a straight-line basis over the lease term.

We monitor events or changes in circumstances that change the timing or amount of future lease payments which results in the remeasurement of a lease liability, with a corresponding adjustment to the ROU asset. ROU assets for operating and financing leases are periodically reviewed for impairment losses under ASC 360-10, Property, Plant, and Equipment, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Adopted Accounting Standards

On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) as amended, using the modified retrospective approach permitted under ASU No. 2018-11, Targeted Improvements, collectively Accounting Standards Codification Topic 842 (“ASC 842”). Accordingly, previously reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented. As permitted under the transition guidance in ASC 842, we have made an accounting policy election to adopt the following package of practical expedients:  

i. to not reassess whether expired or existing contracts are or contain leases;

ii. to not reassess lease classification for expired or existing leases;

iii. to not reassess any initial direct costs for any existing leases;  

iv. to not reassess the existence of a lease for existing or expired land easements that were not previously accounted for as leases;

v. to record short-term lease payments (less than 12 months) in profit and loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred; and

vi. to not prospectively, and upon adoption, separate lease and non-lease components.

ROU assets represent our right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ASC 842 had no impact on our condensed consolidated statements of operations or on our condensed consolidated statements of cash flows. Upon adoption, we recognized ROU assets of $68 million and operating lease liabilities of $80 million for our real estate and equipment operating leases on the condensed consolidated balance sheets.

Accounting Standards Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, (“ASU 2016-13”), Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. Subsequent to ASU 2016-13, the FASB has issued several related ASUs amending the original ASU. The updates are intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update is effective for annual periods beginning after December 15, 2019. We are currently evaluating the effect of this ASU but we do not expect it to have a material impact on our unaudited condensed consolidated financial statements.

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Disaggregated Revenues by Segment from Contracts with Customers

The following tables show our disaggregated revenues by segment from contracts with customers. We operate our business in the following two segments: (i) Real estate sales and financing and (ii) Resort operations and club management. Please refer to Note 18: Business Segments below for more details related to our segments.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Real Estate and Financing Segment
Sales of VOIs, net	$	120	$	250	$	245	$	328
Sales, marketing, brand and other fees		145		146		286		271
Interest income		36		34		72		68
Other financing revenue		7		5		12		9
Real estate and financing segment revenues	$	308	$	435	$	615	$	676

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Resort Operations and Club Management    Segment
Club management	$	26	$	23	$	52	$	46
Resort management		17		14		33		30
Rental (1)		53		46		105		91
Ancillary services		7		7		14		13
Resort operations and club management    segment revenues	$	103	$	90	$	204	$	180

^{(1) Includes intersegment eliminations. See Note 18:  Business Segments for additional information.}

Schedule of Accounts Receivable and Contract Asset from Contracts with Customers and Composition of Contract Liabilities

The following table provides information on our accounts receivable and contract asset from contracts with customers which are included in Accounts receivable, net on our condensed consolidated balance sheets:

($ in millions)	June 30, 2019		December 31, 2018
Receivables	$	128	$	122
Contract asset		3		—

The following table presents the composition of our contract liabilities for the six months ended June 30, 2019.

($ in millions)	June 30, 2019		December 31, 2018
Contract liabilities:
Advanced deposits	$	108	$	101
Deferred revenues(1)		145		72
Club Bonus Point incentive liability(2)		61		56

^{(1) The deferred revenues balance is primarily comprised of (i) sales of VOIs under construction and not yet acquired under a just-in-time arrangement, (ii) club activation fees that are paid at the closing of a VOI purchase, which grants access to our points-based Club and (iii) annual dues for Club membership renewals.}

⁽²⁾ Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements.

Schedule of Remaining Transaction Price Related to Advanced Deposits Club Activation Fees and Club Bonus Points

The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Club Bonus Points as of June 30, 2019:

($ in millions)	Remaining Transaction Price		Recognition Period	Recognition Method
Advanced deposits	$	108	18 months	Upon customer stays
Club activation fees		67	7 years	Straight-line basis over average inventory holding    period
Club Bonus Points		61	24 months	Upon redemption

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Restricted Cash (Tables)

6 Months Ended

Jun. 30, 2019

Cash And Cash Equivalents [Abstract]

Schedule of Restricted Cash

Restricted cash was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Escrow deposits on VOI sales	$	41	$	45
Reserves related to non-recourse debt(1)		26		27
	$	67	$	72

⁽¹⁾ See Note 11: Debt & Non-recourse Debt for further discussion.

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Timeshare Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of financing receivables

Timeshare financing receivables were as follows:

	June 30, 2019
($ in millions)	Securitized and Pledged			Unsecuritized(1)			Total
Timeshare financing receivables	$	579		$	720		$	1,299
Less: allowance for financing receivables losses		(35	)		(139	)		(174	)
	$	544		$	581		$	1,125

	December 31, 2018
($ in millions)	Securitized and Pledged			Unsecuritized(1)			Total
Timeshare financing receivables	$	660		$	632		$	1,292
Less: allowance for financing receivables losses		(43	)		(129	)		(172	)
	$	617		$	503		$	1,120

⁽¹⁾ Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities.

Schedule of future payments due from financing receivables

Our timeshare financing receivables as of June 30, 2019 mature as follows:

($ in millions)	Securitized and Pledged			Unsecuritized			Total
Year
2019 (remaining)	$	40		$	39		$	79
2020		81			58			139
2021		80			64			144
2022		77			70			147
2023		75			75			150
Thereafter		226			414			640
		579			720			1,299
Less: allowance for financing receivables losses		(35	)		(139	)		(174	)
	$	544		$	581		$	1,125

Schedule of financing receivables by FICO score

Our gross timeshare financing receivables balances by FICO score were as follows:

	June 30,		December 31,
($ in millions)	2019		2018
FICO score
700+	$	853	$	843
600-699		234		237
<600		27		27
No score(1)		185		185
	$	1,299	$	1,292

⁽¹⁾ Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

Schedule of past due financing receivables

The following tables detail an aged analysis of our gross timeshare financing receivables balance:

	June 30, 2019
($ in millions)	Securitized and Pledged		Unsecuritized		Total
Current	$	566	$	644	$	1,210
31 - 90 days past due		8		11		19
91 - 120 days past due		2		4		6
121 days and greater past due		3		61		64
	$	579	$	720	$	1,299

	December 31, 2018
($ in millions)	Securitized and Pledged		Unsecuritized		Total
Current	$	648	$	556	$	1,204
31 - 90 days past due		8		11		19
91 - 120 days past due		3		3		6
121 days and greater past due		1		62		63
	$	660	$	632	$	1,292

Schedule of Change in Allowance For Financing Receivables Losses

The changes in our allowance for financing receivables losses were as follows:

	June 30, 2019
($ in millions)	Securitized and Pledged			Unsecuritized			Total
Balance as of December 31, 2018	$	43		$	129		$	172
Write-offs		—			(36	)		(36	)
Provision for financing receivables losses(1)		(8	)		46			38
Balance as of June 30, 2019	$	35		$	139		$	174

	June 30, 2018
($ in millions)	Securitized and Pledged			Unsecuritized			Total
Balance as of December 31, 2017	$	27		$	114		$	141
Write-offs		—			(14	)		(14	)
Provision for financing receivables losses(1)		(7	)		37			30
Balance as of June 30, 2018	$	20		$	137		$	157

⁽¹⁾ Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables.

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Inventory (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of inventory, current

Inventory was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Completed unsold VOIs	$	249	$	243
Construction in process		11		9
Land, infrastructure and other		276		275
	$	536	$	527

Schedule of inventory, noncurrent

Inventory was as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Completed unsold VOIs	$	249	$	243
Construction in process		11		9
Land, infrastructure and other		276		275
	$	536	$	527

Schedule of expense incurred when customers upgrade existing ownership to fee-for-service project

We benefited from $10 million in costs of sales true-ups relating to VOI products for the year ended December 31, 2018, which resulted in a $10 million increase to the carrying value of inventory as of December 31, 2018. Shown below are expenses incurred, recorded in Cost of VOI sales, related to granting credit to customers for their existing ownership when upgrading into fee-for-service projects.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Cost of VOI sales related to fee-for-service upgrades	$	7	$	9	$	16	$	15

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Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2019

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment was as follows:

	June 30,			December 31,
($ in millions)	2019			2018
Land	$	335		$	268
Building and leasehold improvements		300			295
Furniture and equipment		68			54
Construction in progress		66			25
		769			642
Accumulated depreciation		(96	)		(83	)
	$	673		$	559

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Consolidated Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Consolidated Variable Interest Entities

Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily consisted of the following:

	June 30,		December 31,
($ in millions)	2019		2018
Restricted cash	$	20	$	23
Timeshare financing receivables, net		544		617
Non-recourse debt(1)		561		639

⁽¹⁾ Net of deferred financing costs.

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2019

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Schedule of Other Assets

Other assets were as follows:

	June 30,		December 31,
($ in millions)	2019		2018
Inventory deposits	$	44	$	46
Prepaid expenses		34		18
Other		44		31
	$	122	$	95

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Debt & Non-recourse Debt (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Outstanding Borrowings

The following table details our outstanding debt balance and its associated interest rates:

	June 30,			December 31,
($ in millions)	2019			2018
Debt(1)
Senior secured credit facilities:
Term loan with an average rate of 3.898%, due 2023	$	192		$	197
Revolver with an average rate of 3.898%, due 2023		425			115
Senior notes with a rate of 6.125%, due 2024		300			300
Other debt		27			—
		944			612
Less: unamortized deferred financing costs and discount(2)(3)		(7	)		(8	)
	$	937		$	604

⁽¹⁾ For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.699 percent and 5.170 percent, respectively.

⁽²⁾ Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $5 million both as of June 30, 2019 and $2 million and $6 million as of December 31, 2018.

⁽³⁾ Amount does not include deferred financing costs of $6 million as of June 30, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets in our condensed consolidated balance sheets.

The following table details our outstanding non-recourse debt balance and its associated interest rates:

	June 30,			December 31,
($ in millions)	2019			2018
Non-recourse debt(1)
Timeshare Facility with an average rate of 3.337%, due 2021	$	135		$	120
Securitized Debt with a rate of 2.280%, due 2026		25			33
Securitized Debt with an average rate of 1.810%, due 2026		59			74
Securitized Debt with an average rate of 2.711%, due 2028		176			206
Securitized Debt with an average rate of 3.602%, due 2032		307			333
		702			766
Less: unamortized deferred financing costs(2)		(6	)		(7	)
	$	696		$	759

⁽¹⁾ For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.130 percent and 3.126 percent, respectively.

⁽²⁾ Amount relates to securitized debt only and does not include deferred financing costs of $4 million and $3 million as of June 30, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets in our condensed consolidated balance sheets.

Schedule of Contractual Maturities of Debt

The contractual maturities of our debt and non-recourse debt as of June 30, 2019 were as follows:

($ in millions)	Debt		Non-recourse Debt		Total
Year
2019 (remaining)	$	6	$	110	$	116
2020		12		167		179
2021		11		88		99
2022		10		200		210
2023		582		76		658
Thereafter		323		61		384
	$	944	$	702	$	1,646

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Carrying and Estimated Fair Value Amounts

The carrying amounts and estimated fair values of our financial assets and liabilities were as follows:

	June 30, 2019
			Hierarchy Level
($ in millions)	Carrying Amount		Level 1		Level 3
Assets:
Timeshare financing receivables, net(1)	$	1,125	$	—	$	1,387
Liabilities:
Debt, net(2)		937		320		649
Non-recourse debt, net(2)		696		—		707

⁽¹⁾ Carrying amount net of allowance for financing receivables losses.

⁽²⁾ Carrying amount net of unamortized deferred financing costs and discount.

	December 31, 2018
			Hierarchy Level
($ in millions)	Carrying Amount		Level 1		Level 3
Assets:
Timeshare financing receivables, net(1)	$	1,120	$	—	$	1,339
Liabilities:
Debt, net(2)		604		302		309
Non-recourse debt, net(2)		759		—		753

⁽¹⁾ Carrying amount net of allowance for financing receivables losses.

⁽²⁾ Carrying amount net of unamortized deferred financing costs and discount.

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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of Rent Expense

Rent expense for all operating leases for the year ended December 31, 2018 was as follows:

($ in millions)
Minimum rentals	$	21
Contingent rentals		3
	$	24

Schedule of Supplemental Information Related to Operating Leases

Supplemental information related to operating leases for the six months ending June 30, 2019:

($ in millions)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$	8
Right-of-use assets obtained in exchange for new operating lease liabilities		1
Weighted-average remaining lease term of operating leases	6.6 years
Weighted-average discount rate of operating leases		5.33	%

Future Minimum Lease Payments Under Non-Cancelable Operating Leases

Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of June 30, 2019, are as follows:

($ in millions)	Operating Leases (1)
Year
2019 (remaining)	$	8
2020		16
2021		15
2022		10
2023		10
Thereafter		32
Total future minimum lease payments	$	91
Less: interest		(15	)
Present value of lease liabilities	$	76

⁽¹⁾ Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

Future Minimum Lease Payments Under Non-Cancelable Operating Leases for Prior Period

Future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of December 31, 2018, are as follows:

($ in millions)	Operating Leases
Year
2019	$	16
2020		15
2021		14
2022		10
2023		10
Thereafter		29
Total future minimum lease payments	$	94

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Stock Option Valuation Assumptions

The weighted-average grant date fair value of these options was $12.29, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility	33.1	%
Dividend yield	—	%
Risk-free rate	2.6	%
Expected term (in years)	6.0

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of our basic and diluted earnings per share (“EPS”).  The weighted- average shares outstanding used to compute basic EPS and diluted EPS for the three months ended June 30, 2019 is 89,849,803 and 90,271,976, respectively, and for the six months ended June 30, 2019 is 91,959,041 and 92,421,752, respectively.  The weighted-average shares outstanding used to compute basic EPS and diluted EPS for the three months ended June 30, 2018 was 96,774,130 and 97,463,820, respectively, and six months ended June 30, 2018 was 97,692,558 and 98,474,971, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
($ and shares outstanding in millions, except per share amounts)	2019		2018		2019		2018
Basic EPS:
Numerator:
Net Income(1)	$	39	$	107	$	94	$	137
Denominator:
Weighted average shares outstanding		90		97		92		98
Basic EPS	$	0.43	$	1.10	$	1.02	$	1.40
Diluted EPS:
Numerator:
Net Income(1)	$	39	$	107	$	94	$	137
Denominator:
Weighted average shares outstanding		90		97		92		98
Diluted EPS	$	0.43	$	1.10	$	1.01	$	1.39

⁽¹⁾ Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019 and 2018 was $93,692,657 and $137,031,259, respectively.

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2019

BRE Ace LLC

Related Party Transaction [Line Items]

Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement

These amounts are summarized in the following table and are included in our condensed consolidated statements of operations as of the date they became a related party.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2019		2018		2019		2018
Commission and other fees	$	32	$	32	$	68	$	64

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Revenues Reconciled to Consolidated Amounts

We do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues. The following table presents revenues for our reportable segments reconciled to consolidated amounts:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2019			2018			2019			2018
Revenues:
Real estate sales and financing	$	308		$	435		$	615		$	676
Resort operations and club management(1)(2)		114			98			224			196
Total segment revenues		422			533			839			872
Cost reimbursements		43			38			85			74
Intersegment eliminations(1)(2)		(11	)		(8	)		(20	)		(16	)
Total revenues	$	454		$	563		$	904		$	930

⁽¹⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $11 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $20 million and $16 million for the six months ended June 30, 2019 and 2018, respectively

⁽²⁾ Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three and six months ended June 30, 2019 and 2018.

Schedule of Adjusted EBITDA Reconciled to Net Income

The following table presents Adjusted EBITDA for our reportable segments reconciled to net income:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2019			2018			2019			2018
Adjusted EBITDA:
Real estate sales and financing(1)	$	69		$	163		$	149		$	207
Resort operations and club management(1)		66			58			131			117
Segment Adjusted EBITDA		135			221			280			324
General and administrative		(29	)		(30	)		(54	)		(53	)
Depreciation and amortization		(13	)		(8	)		(23	)		(16	)
License fee expense		(26	)		(25	)		(49	)		(48	)
Other (loss) gain, net		(1	)		1			(2	)		—
Interest expense		(11	)		(8	)		(21	)		(15	)
Income tax expense		(15	)		(39	)		(35	)		(49	)
Equity in earnings (losses) from unconsolidated affiliates		2			(2	)		3			(1	)
Other adjustment items		(3	)		(3	)		(5	)		(5	)
Net income	$	39		$	107		$	94		$	137

⁽¹⁾ Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion.

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Schedule of Remaining Purchase Obligations

As of June 30, 2019, our remaining obligation pursuant to these arrangements were expected to be incurred as follows:

($ in millions)	Purchase Obligations
Year
2019 (remaining)	$	38
2020		220
2021		87
2022		57
2023		54
Thereafter		55
Total	$	511

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Condensed Consolidating Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Guarantor Financial Information [Abstract]

Schedule of Unaudited Condensed Consolidating Guarantor Balance Sheets

The following schedules present the unaudited condensed consolidating financial information as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors.

	June 30, 2019
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	7	$	—	$	93	$	20	$	—		$	120
Restricted cash		—		—		41		26		—			67
Accounts receivable, net		—		—		156		20		(20	)		156
Timeshare financing receivables, net		—		—		332		793		—			1,125
Inventory		—		—		496		40		—			536
Property and equipment, net		—		—		666		7		—			673
Operating lease right-of-use assets, net						63		—		—			63
Investments in unconsolidated affiliates		—		—		43		—		—			43
Intangible assets, net		—		—		84		—		—			84
Other assets		—		6		67		49		—			122
Investments in subsidiaries		443		1,347		243		—		(2,033	)		—
TOTAL ASSETS	$	450	$	1,353	$	2,284	$	955	$	(2,053	)	$	2,989
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	317	$	15	$	(20	)	$	312
Advanced deposits		—		—		108		—		—			108
Debt, net		—		910		27		—		—			937
Non-recourse debt, net		—		—		—		696		—			696
Operating lease liabilities		—		—		76		—		—			76
Deferred revenues		—		—		163		—		—			163
Deferred income tax liabilities		—		—		246		1		—			247
Total equity		450		443		1,347		243		(2,033	)		450
TOTAL LIABILITIES AND EQUITY	$	450	$	1,353	$	2,284	$	955	$	(2,053	)	$	2,989

	December 31, 2018
($ in millions)	Parent		Issuers		Guarantors		Non- Guarantors		Eliminations			Total
ASSETS
Cash and cash equivalents	$	4	$	—	$	89	$	15	$	—		$	108
Restricted cash		—		—		45		27		—			72
Accounts receivable, net		—		—		157		17		(21	)		153
Timeshare financing receivables, net		—		—		209		911		—			1,120
Inventory		—		—		502		25		—			527
Property and equipment, net		—		—		553		6		—			559
Investments in unconsolidated affiliate		—		—		38		—		—			38
Intangible assets, net		—		—		81		—		—			81
Other assets		—		6		41		48		—			95
Investments in subsidiaries		612		1,210		277		—		(2,099	)		—
TOTAL ASSETS	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753
LIABILITIES AND EQUITY
Accounts payable, accrued    expenses and other	$	—	$	—	$	332	$	13	$	(21	)	$	324
Advanced deposits		—		—		101		—		—			101
Debt, net		—		604		—		—		—			604
Non-recourse debt, net		—		—		—		759		—			759
Deferred revenues		—		—		95		—		—			95
Deferred income tax liabilities		—		—		254		—		—			254
Total equity		616		612		1,210		277		(2,099	)		616
TOTAL LIABILITIES AND EQUITY	$	616	$	1,216	$	1,992	$	1,049	$	(2,120	)	$	2,753

Schedule of Unaudited Condensed Consolidating Guarantor Statements of Operations

	For the Three Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	103		$	17		$	—		$	120
Sales, marketing, license and other fees		—			—			154			3			(12	)		145
Financing		—			—			20			25			(2	)		43
Resort and club management		—			—			43			—			—			43
Rental and ancillary services		—			—			60			—			—			60
Cost reimbursements		—			—			42			1			—			43
Total revenues		—			—			422			46			(14	)		454
Expenses
Cost of VOI sales		—			—			28			4			—			32
Sales and marketing		—			—			187			11			(12	)		186
Financing		—			—			4			10			(2	)		12
Resort and club management		—			—			12			—			—			12
Rental and ancillary services		—			—			36			1			—			37
General and administrative		—			—			29			—			—			29
Depreciation and amortization		—			—			13			—			—			13
License fee expense		—			—			25			1			—			26
Cost reimbursements		—			—			42			1			—			43
Total operating expenses		—			—			376			28			(14	)		390
Interest expense		—			(11	)		—			—			—			(11	)
Dividends from subsidiary		150			150			—			—			(300	)		—
Equity in earnings from unconsolidated    affiliates		—			—			2			—			—			2
Other loss, net		—			—			(1	)		—			—			(1	)
Income before income taxes		150			139			47			18			(300	)		54
Income tax expense		—			—			(14	)		(1	)		—			(15	)
Income before equity in earnings    from subsidiaries		150			139			33			17			(300	)		39
Equity in (losses) earnings from subsidiaries		(111	)		50			17			—			44			—
Net income	$	39		$	189		$	50		$	17		$	(256	)	$	39

	For the Three Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	248		$	2	$	—		$	250
Sales, marketing, license and other fees		—		—			147			1		(2	)		146
Financing		—		—			17			23		(1	)		39
Resort and club management		—		—			37			—		—			37
Rental and ancillary services		—		—			53			—		—			53
Cost reimbursements		—		—			37			1		—			38
Total revenues		—		—			539			27		(3	)		563
Expenses
Cost of VOI sales		—		—			61			—		—			61
Sales and marketing		—		—			193			2		(2	)		193
Financing		—		—			5			8		(1	)		12
Resort and club management		—		—			11			—		—			11
Rental and ancillary services		—		—			30			—		—			30
General and administrative		—		—			30			—		—			30
Depreciation and amortization		—		—			8			—		—			8
License fee expense		—		—			25			—		—			25
Cost reimbursements		—		—			37			1		—			38
Total operating expenses		—		—			400			11		(3	)		408
Interest expense		—		(8	)		—			—		—			(8	)
Equity in losses from unconsolidated    affiliates		—		—			(2	)		—		—			(2	)
Other gain, net		—		—			1			—		—			1
Income (loss) before income taxes		—		(8	)		138			16		—			146
Income tax expense		—		—			(39	)		—		—			(39	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(8	)		99			16		—			107
Equity in earnings from subsidiaries		107		115			16			—		(238	)		—
Net income	$	107	$	107		$	115		$	16	$	(238	)	$	107

	For the Six Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Revenues
Sales of VOIs, net	$	—		$	—		$	210		$	35		$	—		$	245
Sales, marketing, license and other fees		—			—			305			4			(23	)		286
Financing		—			—			38			50			(4	)		84
Resort and club management		—			—			85			—			—			85
Rental and ancillary services		—			—			118			1			—			119
Cost reimbursements		—			—			83			2			—			85
Total revenues		—			—			839			92			(27	)		904
Expenses
Cost of VOI sales		—			—			61			7			—			68
Sales and marketing		—			—			357			22			(23	)		356
Financing		—			—			8			21			(4	)		25
Resort and club management		—			—			23			—			—			23
Rental and ancillary services		—			—			70			2			—			72
General and administrative		—			—			54			—			—			54
Depreciation and amortization		—			—			23			—			—			23
License fee expense		—			—			47			2			—			49
Cost reimbursements		—			—			83			2			—			85
Total operating expenses		—			—			726			56			(27	)		755
Interest expense		—			(21	)		—			—			—			(21	)
Dividends from subsidiary		275			275			—			—			(550	)		—
Equity in earnings from unconsolidated    affiliates		—			—			3			—			—			3
Other loss, net		—			—			(2	)		—			—			(2	)
Income before income taxes		275			254			114			36			(550	)		129
Income tax expense		—			—			(34	)		(1	)		—			(35	)
Income before equity in earnings    from subsidiaries		275			254			80			35			(550	)		94
Equity in (losses) earnings from subsidiaries		(181	)		115			35			—			31			—
Net income	$	94		$	369		$	115		$	35		$	(519	)	$	94

	For the Six Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors		Eliminations			Total
Revenues
Sales of VOIs, net	$	—	$	—		$	325		$	3	$	—		$	328
Sales, marketing, license and other fees		—		—			273			2		(4	)		271
Financing		—		—			37			42		(2	)		77
Resort and club management		—		—			76			—		—			76
Rental and ancillary services		—		—			103			1		—			104
Cost reimbursements		—		—			72			2		—			74
Total revenues		—		—			886			50		(6	)		930
Expenses
Cost of VOI sales		—		—			80			—		—			80
Sales and marketing		—		—			354			4		(4	)		354
Financing		—		—			10			15		(2	)		23
Resort and club management		—		—			22			—		—			22
Rental and ancillary services		—		—			57			1		—			58
General and administrative		—		—			53			—		—			53
Depreciation and amortization		—		—			16			—		—			16
License fee expense		—		—			48			—		—			48
Cost reimbursements		—		—			72			2		—			74
Total operating expenses		—		—			712			22		(6	)		728
Interest expense		—		(15	)		—			—		—			(15	)
Equity in losses from unconsolidated    affiliates		—		—			(1	)		—		—			(1	)
Income (loss) before income taxes		—		(15	)		173			28		—			186
Income tax expense		—		—			(49	)		—		—			(49	)
Income (loss) before equity in earnings    (loss) from subsidiaries		—		(15	)		124			28		—			137
Equity in earnings from subsidiaries		137		152			28			—		(317	)		—
Net income	$	137	$	137		$	152		$	28	$	(317	)	$	137

Schedule of Unaudited Condensed Consolidating Guarantor Statements of Cash Flows

	For the Six Months Ended June 30, 2019
($ in millions)	Parent			Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash provided by (used in) operating    activities	$	—		$	254		$	(43	)	$	136		$	(275	)	$	72
Investing Activities
Capital expenditures for property and    equipment		—			—			(17	)		—			—			(17	)
Software capitalization costs		—			—			(11	)		—			—			(11	)
Investments in unconsolidated affiliates		—			—			(2	)		—			—			(2	)
Dividends from subsidiary		275			275			—			—			(550	)		—
Net cash used in (provided by) investing activities		275			275			(30	)		—			(550	)		(30	)
Financing Activities
Issuance of debt		—			410			—			—			—			410
Issuance of non-recourse debt		—			—			—			15			—			15
Repayment of debt		—			(100	)		(5	)		—			—			(105	)
Repayment of non-recourse debt		—			—			—			(79	)		—			(79	)
Debt issuance costs		—			—			—			(2	)		—			(2	)
Repurchase and retirement of common stock		(271	)		—			—			—			—			(271	)
Payment of withholding taxes on vesting of    restricted stock units		—						(3	)		—			—			(3	)
Proceeds from employee stock plan purchases		—			—			2			—			—			2
Other financing activity		—			—			(2	)		—			—			(2	)
Intercompany transfers		(1	)		(839	)		81			(66	)		825			—
Net cash used in (provided by) financing    activities		(272	)		(529	)		73			(132	)		825			(35	)
Net increase in cash, cash equivalents and    restricted cash		3			—			—			4			—			7
Cash, cash equivalents and restricted cash,    beginning of period		4			—			134			42			—			180
Cash, cash equivalents and restricted cash,    end of period	$	7		$	—		$	134		$	46		$	—		$	187

	For the Six Months Ended June 30, 2018
($ in millions)	Parent		Issuers			Guarantors			Non- Guarantors			Eliminations			Total
Operating Activities
Net cash (used in) provided by operating    activities	$	—	$	(14	)	$	42		$	(205	)	$	43		$	(134	)
Investing Activities
Capital expenditures for property and    equipment		—		—			(18	)		(2	)		—			(20	)
Software capitalization costs		—		—			(9	)		—			—			(9	)
Return of investment from unconsolidated affiliates		—		—			11			—			—			11
Investment in unconsolidated affiliates		—		—			(5	)		—			—			(5	)
Net cash used in investing activities		—		—			(21	)		(2	)		—			(23	)
Financing Activities
Issuance of debt		—		160			—			—			—			160
Issuance of non-recourse debt		—		—			—			100			—			100
Repurchase and retirement of common stock		—		(112	)		—			—			—			(112	)
Repayment of non-recourse debt		—		—			—			(80	)		—			(80	)
Repayment of debt		—		(5	)		—			—			—			(5	)
Debt issuance costs		—		—			—			(2	)		—			(2	)
Payment of withholding taxes on vesting of restricted stock units		—		(1	)		—			—			—			(1	)
Capital contribution		—		3			—			—			—			3
Intercompany transfers		—		(31	)		(111	)		185			(43	)		—
Net cash provided by (used in) financing    activities		—		14			(111	)		203			(43	)		63
Net decrease in cash, cash equivalents and    restricted cash		—		—			(90	)		(4	)		—			(94	)
Cash, cash equivalents and restricted cash,    beginning of period		—		—			259			38			—			297
Cash, cash equivalents and restricted cash,    end of period	$	—	$	—		$	169		$	34		$	—		$	203

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Organization - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) property unit	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) property unit	Jun. 30, 2018 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of timeshare properties | property	57		57
Number of units in timeshare properties | unit	9,177		9,177
Costs related to agreements with related parties | $	$ 36	$ 38	$ 92	$ 97

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Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions		Jun. 30, 2019	Jan. 01, 2019
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Operating lease right of use assets		$ 63
Operating lease liabilities	[1]	$ 76
ASU 2016-02
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Operating lease right of use assets			$ 68
Operating lease liabilities			$ 80

[1] Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

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Revenue from Contracts with Customers - Additional Information (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($) segment	Dec. 31, 2018 USD ($)
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Number of operating segments | segment		2
Deferred revenues	$ 163,000,000	$ 163,000,000	$ 95,000,000
Sales of VOIs
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Deferred revenues	34,000,000	34,000,000
Direct selling cost		5,000,000
Direct selling cost to be recognized upon acquisition	11,000,000	11,000,000
Remaining performance obligations			$ 0
Topic 606
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Revenue earned that was included in the contract liabilities balance	$ 39,000,000	$ 78,000,000

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Revenue from Contracts with Customers - Schedule of Disaggregated Revenues by Segment from Contracts with Customers (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation Of Revenue [Line Items]
Total revenues		$ 454	$ 563	$ 904	$ 930
Sales of VOIs, Net
Disaggregation Of Revenue [Line Items]
Total revenues		120	250	245	328
Sales, Marketing, Brand and Other Fees
Disaggregation Of Revenue [Line Items]
Total revenues		145	146	286	271
Real Estate and Financing Segment
Disaggregation Of Revenue [Line Items]
Total revenues		308	435	615	676
Real Estate and Financing Segment | Sales of VOIs, Net
Disaggregation Of Revenue [Line Items]
Total revenues		120	250	245	328
Real Estate and Financing Segment | Sales, Marketing, Brand and Other Fees
Disaggregation Of Revenue [Line Items]
Total revenues		145	146	286	271
Real Estate and Financing Segment | Interest Income
Disaggregation Of Revenue [Line Items]
Total revenues		36	34	72	68
Real Estate and Financing Segment | Other Financing Revenue
Disaggregation Of Revenue [Line Items]
Total revenues		7	5	12	9
Resort Operations and Club Management Segment
Disaggregation Of Revenue [Line Items]
Total revenues		103	90	204	180
Resort Operations and Club Management Segment | Club Management
Disaggregation Of Revenue [Line Items]
Total revenues		26	23	52	46
Resort Operations and Club Management Segment | Resort Management
Disaggregation Of Revenue [Line Items]
Total revenues		17	14	33	30
Resort Operations and Club Management Segment | Rental
Disaggregation Of Revenue [Line Items]
Total revenues	[1]	53	46	105	91
Resort Operations and Club Management Segment | Ancillary Services
Disaggregation Of Revenue [Line Items]
Total revenues		$ 7	$ 7	$ 14	$ 13

[1] ^{Includes intersegment eliminations. See Note 18:  Business Segments for additional information}

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Revenue from Contracts with Customers - Schedule of Accounts Receivable and Contract Asset from Contracts with Customers (Details) - Accounts Receivable - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Receivables	$ 128	$ 122
Contract asset	$ 3

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Revenue from Contracts with Customers - Composition of Contract Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities		$ 163	$ 95
Topic 606 | Advanced deposits
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities		108	101
Topic 606 | Deferred revenues
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	[1]	145	72
Topic 606 | Club Bonus Point incentive liability
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	[2]	$ 61	$ 56

[1] The deferred revenues balance is primarily comprised of (i) sales of VOIs under construction and not yet acquired under a just-in-time arrangement, (ii) club activation fees that are paid at the closing of a VOI purchase, which grants access to our points-based Club and (iii) annual dues for Club membership renewals.

[2] Amounts related to the Club Bonus Point incentive liability are included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets. This liability is comprised of revenue for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements

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Revenue from Contracts with Customers - Remaining Transaction Price (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Advanced deposits
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining Transaction Price	$ 108
Recognition Period	18 months
Recognition Method	Upon customer stays
Club Activation Fees
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining Transaction Price	$ 67
Recognition Period	7 years
Recognition Method	Straight-line basis over average inventory holding    period
Club Bonus Points
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Remaining Transaction Price	$ 61
Recognition Period	24 months
Recognition Method	Upon redemption

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Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash		$ 67	$ 72
Escrow deposits on VOI sales
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash		41	45
Reserves related to non-recourse debt
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	[1]	$ 26	$ 27

[1] See Note 11: Debt & Non-recourse Debt for further discussion.

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Timeshare Financing Receivables - Schedule of Timeshare Financing Receivables (Details) - USD ($) $ in Millions		Jun. 30, 2019		Dec. 31, 2018		Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Timeshare financing receivables		$ 1,299		$ 1,292
Less: allowance for financing receivables losses		(174)		(172)		$ (157)	$ (141)
Timeshare financing receivables, net		1,125		1,120
Securitized and Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Timeshare financing receivables		579		660
Less: allowance for financing receivables losses		(35)		(43)		(20)	(27)
Timeshare financing receivables, net		544		617
Unsecuritized
Accounts, Notes, Loans and Financing Receivable [Line Items]
Timeshare financing receivables	[1]	720		632
Less: allowance for financing receivables losses		(139)	[1]	(129)	[1]	$ (137)	$ (114)
Timeshare financing receivables, net	[1]	$ 581		$ 503

[1] Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities.

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Timeshare Financing Receivables - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, weighted average interest rate (as a percent)	12.36%
Financing receivable, weighted average remaining term (in years)	7 years 8 months 12 days
Financing receivable weighted average maturities year	2031
Timeshare financing receivable not accruing interest	$ 70	$ 69
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, stated interest rate (as a percent)	5.25%
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, stated interest rate (as a percent)	20.50%
Non-recourse Debt
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross timeshare receivables securing the Timeshare Facility	$ 279	$ 190

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Timeshare Financing Receivables - Maturities of Financing Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2019		Dec. 31, 2018		Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
2019 (remaining)	$ 79
2020	139
2021	144
2022	147
2023	150
Thereafter	640
Timeshare financing receivable maturities, gross	1,299
Less: allowance for financing receivables losses	(174)		$ (172)		$ (157)	$ (141)
Timeshare financing receivable maturities, net	1,125
Securitized and Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
2019 (remaining)	40
2020	81
2021	80
2022	77
2023	75
Thereafter	226
Timeshare financing receivable maturities, gross	579
Less: allowance for financing receivables losses	(35)		(43)		(20)	(27)
Timeshare financing receivable maturities, net	544
Unsecuritized
Accounts, Notes, Loans and Financing Receivable [Line Items]
2019 (remaining)	39
2020	58
2021	64
2022	70
2023	75
Thereafter	414
Timeshare financing receivable maturities, gross	720
Less: allowance for financing receivables losses	(139)	[1]	$ (129)	[1]	$ (137)	$ (114)
Timeshare financing receivable maturities, net	$ 581

[1] Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities.

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Timeshare Financing Receivables - Financing Receivable by FICO Score (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Timeshare financing receivables		$ 1,299	$ 1,292
More than 700
Financing Receivable, Recorded Investment [Line Items]
Timeshare financing receivables		853	843
600-699
Financing Receivable, Recorded Investment [Line Items]
Timeshare financing receivables		234	237
Less than 600
Financing Receivable, Recorded Investment [Line Items]
Timeshare financing receivables		27	27
No score
Financing Receivable, Recorded Investment [Line Items]
Timeshare financing receivables	[1]	$ 185	$ 185

[1] Timeshare financing receivables without a FICO score are primarily related to foreign borrowers.

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Timeshare Financing Receivables - Past Due Financing Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,210	$ 1,204
Financing receivable, past due	1,299	1,292
Securitized and Pledged
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	566	648
Financing receivable, past due	579	660
Unsecuritized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	644	556
Financing receivable, past due	720	632
31 - 90 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	19	19
31 - 90 days past due | Securitized and Pledged
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	8	8
31 - 90 days past due | Unsecuritized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	11	11
91 - 120 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	6	6
91 - 120 days past due | Securitized and Pledged
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	2	3
91 - 120 days past due | Unsecuritized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	4	3
121 days and greater past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	64	63
121 days and greater past due | Securitized and Pledged
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	3	1
121 days and greater past due | Unsecuritized
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivable, past due	$ 61	$ 62

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Timeshare Financing Receivables - Schedule of Change in Allowance For Financing Receivables Losses (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2019		Jun. 30, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Allowance for loan loss, beginning balance		$ 172		$ 141
Write-offs		(36)		(14)
Provision for financing receivables losses	[1]	38		30
Allowance for loan loss, ending balance		174		157
Securitized and Pledged
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Allowance for loan loss, beginning balance		43		27
Write-offs		0		0
Provision for financing receivables losses	[1]	(8)		(7)
Allowance for loan loss, ending balance		35		20
Unsecuritized
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Allowance for loan loss, beginning balance		129	[2]	114
Write-offs		(36)		(14)
Provision for financing receivables losses	[1]	46		37
Allowance for loan loss, ending balance		$ 139	[2]	$ 137

[1] Includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded securitized timeshare financing receivables.

[2] Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility ("Timeshare Facility") as well as amounts held as future collateral for upcoming securitization activities.

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Inventory - Schedule of Inventory, Noncurrent (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Completed unsold VOIs	$ 249	$ 243
Construction in process	11	9
Land, infrastructure and other	276	275
Inventory	$ 536	$ 527

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Inventory - Additional information (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Inventory [Line Items]
Increase (decrease) in inventories due to the true up of cost of sale (less than for the $1 million)	$ 11	$ (11)
Time Share
Inventory [Line Items]
Cost of VOI sales (less than for the $1 million)	5		$ 10
Increase (decrease) in inventories due to the true up of cost of sale (less than for the $1 million)	$ 5		$ 10

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Inventory - Schedule of Expenses Incurred, Recorded in Cost of VOI Sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Cost of VOI sales related to fee-for-service upgrades	$ 7	$ 9	$ 16	$ 15

XML

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 769	$ 642
Accumulated depreciation	(96)	(83)
Property and equipment, net	673	559
Land
Property Plant And Equipment [Line Items]
Property and equipment, gross	335	268
Building and Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	300	295
Furniture and Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	68	54
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 66	$ 25

XML

Consolidated Variable Interest Entities - Additional Information (Details)	6 Months Ended
	Jun. 30, 2019 USD ($) entity	Jun. 30, 2018 USD ($)	Dec. 31, 2018 entity
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of VIEs consolidated | entity	4		4
Financial or other support to any VIEs | $	$ 0	$ 0

XML

Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Assets, variable interest entity		$ 571	$ 647
Liabilities, variable interest entity		562	640
Variable Interest Entity, Primary Beneficiary | Restricted cash
Variable Interest Entity [Line Items]
Assets, variable interest entity		20	23
Variable Interest Entity, Primary Beneficiary | Timeshare financing receivables, net
Variable Interest Entity [Line Items]
Assets, variable interest entity		544	617
Variable Interest Entity, Primary Beneficiary | Non-recourse debt
Variable Interest Entity [Line Items]
Liabilities, variable interest entity	[1]	$ 561	$ 639

[1] Net of deferred financing costs

XML

Investments in Unconsolidated Affiliates - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) Affiliate	Dec. 31, 2018 USD ($)
Schedule Of Investments [Line Items]
Number of unconsolidated affiliates | Affiliate	2
Debt	$ 937	$ 604
Investments in unconsolidated affiliates	$ 43	38
BRE Ace LLC
Schedule Of Investments [Line Items]
Equity method investment, ownership percentage	25.00%
1776 Holding, LLC
Schedule Of Investments [Line Items]
Equity method investment, ownership percentage	50.00%
BRE Ace LLC and 1776 Holding, LLC
Schedule Of Investments [Line Items]
Debt	$ 478	$ 490

XML

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Inventory deposits	$ 44	$ 46
Prepaid expenses	34	18
Other	44	31
Other Assets	$ 122	$ 95

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Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt, gross	[1]	$ 944	$ 612
Less: unamortized deferred financing costs and discount	[2],[3]	(7)	(8)
Long-term debt		937	604
Revolving Credit Facility
Debt Instrument [Line Items]
Less: unamortized deferred financing costs and discount		(6)	(6)
Revolver with an average rate of 3.898%, due 2023 | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	[1]	425	115
Line of Credit | Term loans with an average rate of 3.898%, due 2023
Debt Instrument [Line Items]
Long-term debt, gross	[1]	192	197
Less: unamortized deferred financing costs and discount		(2)	(2)
Senior Notes | Senior notes with a rate of 6.125%, due 2024
Debt Instrument [Line Items]
Long-term debt, gross	[1]	300	300
Less: unamortized deferred financing costs and discount		(5)	(6)
Other Debt
Debt Instrument [Line Items]
Long-term debt, gross	[1]	27	0
Non-recourse Debt
Debt Instrument [Line Items]
Long-term debt, gross	[4]	702	766
Less: unamortized deferred financing costs and discount	[5]	(6)	(7)
Long-term debt		696	759
Non-recourse Debt | Timeshare Facility with an average rate of 3.337%, due 2021
Debt Instrument [Line Items]
Long-term debt, gross	[4]	135	120
Less: unamortized deferred financing costs and discount		(4)	(3)
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026
Debt Instrument [Line Items]
Long-term debt, gross	[4]	25	33
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032
Debt Instrument [Line Items]
Long-term debt, gross	[4]	307	333
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026
Debt Instrument [Line Items]
Long-term debt, gross	[4]	59	74
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028
Debt Instrument [Line Items]
Long-term debt, gross	[4]	$ 176	$ 206

[1] For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.699 percent and 5.170 percent, respectively.

[2] Amount does not include deferred financing costs of $6 million as of June 30, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets in our condensed consolidated balance sheets.

[3] Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $5 million both as of June 30, 2019 and $2 million and $6 million as of December 31, 2018.

[4] For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.130 percent and 3.126 percent, respectively.

[5] Amount relates to securitized debt only and does not include deferred financing costs of $4 million and $3 million as of June 30, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets in our condensed consolidated balance sheets.

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Debt & Non-recourse Debt - Schedule of Outstanding Borrowings (Parenthetical) (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
		Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt instrument, average interest rate		4.699%	5.17%
Less: unamortized deferred financing costs and discount	[1],[2]	$ (7)	$ (8)
Revolving Credit Facility
Debt Instrument [Line Items]
Less: unamortized deferred financing costs and discount		$ (6)	$ (6)
Revolving Credit Facility | Revolver with an average rate of 3.898%, due 2023
Debt Instrument [Line Items]
Debt instrument, average interest rate		3.898%	3.898%
Debt instrument, maturity year		2023	2023
Line of Credit | Term loans with an average rate of 3.898%, due 2023
Debt Instrument [Line Items]
Debt instrument, average interest rate		3.898%	3.898%
Debt instrument, maturity year		2023	2023
Less: unamortized deferred financing costs and discount		$ (2)	$ (2)
Senior Notes | Senior notes with a rate of 6.125%, due 2024
Debt Instrument [Line Items]
Debt instrument, maturity year		2024	2024
Debt instrument, stated interest rate		6.125%	6.125%
Less: unamortized deferred financing costs and discount		$ (5)	$ (6)
Non-recourse Debt
Debt Instrument [Line Items]
Debt instrument, average interest rate		3.13%	3.126%
Less: unamortized deferred financing costs and discount	[3]	$ (6)	$ (7)
Non-recourse Debt | Timeshare Facility with an average rate of 3.337%, due 2021
Debt Instrument [Line Items]
Debt instrument, maturity year		2021	2021
Debt instrument, stated interest rate		3.337%	3.337%
Less: unamortized deferred financing costs and discount		$ (4)	$ (3)
Non-recourse Debt | Securitized Debt with a rate of 2.280%, due 2026
Debt Instrument [Line Items]
Debt instrument, average interest rate		2.28%	2.28%
Debt instrument, maturity year		2026	2026
Non-recourse Debt | Securitized Debt with an average rate of 1.810%, due 2026
Debt Instrument [Line Items]
Debt instrument, average interest rate		1.81%	1.81%
Debt instrument, maturity year		2026	2026
Non-recourse Debt | Securitized Debt with an average rate of 2.711%, due 2028
Debt Instrument [Line Items]
Debt instrument, average interest rate		2.711%	2.711%
Debt instrument, maturity year		2028	2028
Non-recourse Debt | Securitized Debt with an average rate of 3.602%, due 2032
Debt Instrument [Line Items]
Debt instrument, average interest rate		3.602%	3.602%
Debt instrument, maturity year		2032	2032

[1] Amount does not include deferred financing costs of $6 million as of June 30, 2019 and December 31, 2018, relating to our revolving facility included in Other Assets in our condensed consolidated balance sheets.

[2] Amount includes deferred financing costs related to our term loan and senior notes of $2 million and $5 million both as of June 30, 2019 and $2 million and $6 million as of December 31, 2018.

[3] Amount relates to securitized debt only and does not include deferred financing costs of $4 million and $3 million as of June 30, 2019 and December 31, 2018, respectively, relating to our Timeshare Facility which are included in Other Assets in our condensed consolidated balance sheets.

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Debt & Non-recourse Debt - Additional Information (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Restricted cash		$ 67	$ 72
Reserves related to non-recourse debt
Debt Instrument [Line Items]
Restricted cash	[1]	26	27
Timeshare Facility
Debt Instrument [Line Items]
Term loan outstanding		$ 450
Debt instrument commitment termination date		2021-04
Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument borrowed amount		$ 410
Debt instrument repaid amount		$ 105
Interest rate on revolving credit facility description		one month LIBOR
Letters of credit outstanding, amount		$ 1	$ 1
Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Interest rate on revolving credit facility		1.50%

[1] See Note 11: Debt & Non-recourse Debt for further discussion.

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Debt & Non-recourse Debt - Schedule of Contractual Maturities of Debt (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
2019 (remaining)		$ 6
2020		12
2021		11
2022		10
2023		582
Thereafter		323
Long-term debt	[1]	944	$ 612
Non-recourse Debt
Debt Instrument [Line Items]
2019 (remaining)		110
2020		167
2021		88
2022		200
2023		76
Thereafter		61
Long-term debt	[2]	702	$ 766
Debt and Non-recourse Debt
Debt Instrument [Line Items]
2019 (remaining)		116
2020		179
2021		99
2022		210
2023		658
Thereafter		384
Long-term debt		$ 1,646

[1] For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 4.699 percent and 5.170 percent, respectively.

[2] For the six months ended June 30, 2019 and year ended December 31, 2018, weighted-average interest rates were 3.130 percent and 3.126 percent, respectively.

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Fair Value Measurements - Schedule of Carrying and Estimated Fair Value Amounts (Details) - USD ($) $ in Millions		Jun. 30, 2019	Dec. 31, 2018
Carrying Amount
Assets:
Timeshare financing receivables, net	[1]	$ 1,125	$ 1,120
Liabilities:
Debt, net	[2]	937	604
Non-recourse debt, net	[2]	696	759
Level 1
Assets:
Timeshare financing receivables, net	[1]	0	0
Liabilities:
Debt, net	[2]	320	302
Non-recourse debt, net	[2]	0	0
Level 3
Assets:
Timeshare financing receivables, net	[1]	1,387	1,339
Liabilities:
Debt, net	[2]	649	309
Non-recourse debt, net	[2]	$ 707	$ 753

[1] Carrying amount net of allowance for financing receivables losses.

[2] Carrying amount net of unamortized deferred financing costs and discount.

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Fair Value Measurements - Additional Information (Details) - Fair Value, Measurements, Recurring	Jun. 30, 2019 USD ($)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets measured at fair value on recurring basis	$ 0
Liabilities measured at fair value on recurring basis	$ 0

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Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Leases starting expiration date		2019
Leases ending expiration date		2030
Operating leases, rent expense	$ 4	$ 10	$ 24

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Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Schedule Of Rent Expense [Abstract]
Minimum rentals			$ 21
Contingent rentals			3
Rent expense	$ 4	$ 10	$ 24

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Leases - Schedule of Supplemental Information Related to Operating Leases (Details) $ in Millions	3 Months Ended
	Jun. 30, 2019 USD ($)
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows from operating leases	$ 8
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1
Weighted-average remaining lease term of operating leases	6 years 7 months 6 days
Weighted-average discount rate of operating leases	5.33%

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Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details) $ in Millions	Jun. 30, 2019 USD ($)	[1]
Leases [Abstract]
2019 (remaining)	$ 8
2020	16
2021	15
2022	10
2023	10
Thereafter	32
Total future minimum lease payments	91
Less: interest	(15)
Present value of lease liabilities	$ 76

[1] Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

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Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Parenthetical) (Details) $ in Millions	Jun. 30, 2019 USD ($)
Leases [Abstract]
Operating leases legally binding minimum lease payments, signed but not yet commenced	$ 1

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Leases - Future Minimum Lease Payments Under Non-Cancelable Operating Leases for Prior Period (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 16
2020	15
2021	14
2022	10
2023	10
Thereafter	29
Total future minimum lease payments	$ 94

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Income Taxes - Additional Information (Details)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	27.00%	26.00%

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Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated share-based compensation expense	$ 7	$ 5	$ 12	$ 8
Unrecognized compensation costs for unvested awards	$ 34		$ 34
Unrecognized compensation costs, weighted average period for recognition			1 year 10 months 24 days
Shares of common stock available for future issuance	6,386,657		6,386,657
Service Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued (in shares)			500,925
Grant date fair value (in dollars per share)			$ 33.07
Service Restricted Stock Units (RSUs) | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			3 years
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued (in shares)			544,209
Exercise price (in dollars per share)			$ 33.32
Grant date fair value (in dollars per share)			$ 12.29
Stock options exercisable (in shares)	648,617		648,617
Stock Options | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			3 years
Performance RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued (in shares)			133,660
Grant date fair value (in dollars per share)			$ 33.32
Award vesting period			3 years
Performance RSUs | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage			70.00%
Performance RSUs | VOI sale | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage			30.00%

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Share-Based Compensation - Options Assumptions (Details) - Stock Options	6 Months Ended
	Jun. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	33.10%
Dividend yield	0.00%
Risk-free rate	2.60%
Expected term (in years)	6 years

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Earnings Per Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares outstanding, Basic	89,849,803	96,774,130	91,959,041	97,692,558
Weighted average shares outstanding, diluted	90,271,976	97,463,820	92,421,752	98,474,971
Stock Compensation Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	1,433,833	533,609	1,168,159	341,246

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Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	3 Months Ended						6 Months Ended
	Jun. 30, 2019		Mar. 31, 2019	Jun. 30, 2018		Mar. 31, 2018	Jun. 30, 2019		Jun. 30, 2018
Numerator:
Net income	$ 38,624,856	[1]	$ 55,000,000	$ 106,861,230	[1]	$ 30,000,000	$ 93,692,657	[1]	$ 137,031,259	[1]
Denominator:
Weighted average shares outstanding, Basic	89,849,803			96,774,130			91,959,041		97,692,558
Basic EPS	$ 0.43			$ 1.10			$ 1.02		$ 1.40
Denominator:
Weighted average shares outstanding, diluted	90,271,976			97,463,820			92,421,752		98,474,971
Diluted EPS	$ 0.43			$ 1.10			$ 1.01		$ 1.39

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

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Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Parenthetical) (Details) - USD ($)	3 Months Ended						6 Months Ended
	Jun. 30, 2019		Mar. 31, 2019	Jun. 30, 2018		Mar. 31, 2018	Jun. 30, 2019		Jun. 30, 2018
Earnings Per Share [Abstract]
Net income	$ 38,624,856	[1]	$ 55,000,000	$ 106,861,230	[1]	$ 30,000,000	$ 93,692,657	[1]	$ 137,031,259	[1]

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

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Related Party Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions			1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 23, 2018	Mar. 13, 2018	May 31, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jul. 31, 2017
Related Party Transaction [Line Items]
Equity in earnings (loss) from unconsolidated affiliates				$ 2	$ (2)	$ 3	$ (1)
Due from related parties				27		27
Underwriting Agreement
Related Party Transaction [Line Items]
Stock purchased, shares		2,500,000
Sale of stock completion date		Mar. 19, 2018
Underwriting Agreement | Common Stock
Related Party Transaction [Line Items]
Sale of stock (in shares)		22,250,000
Stock price per share		$ 44.75
BRE Ace LLC
Related Party Transaction [Line Items]
Equity in earnings (loss) from unconsolidated affiliates				2	(2)	3	(1)
Equity method investment, ownership percentage								25.00%
1776 Holding, LLC
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	50.00%
Cash contributed to an equity method investment	$ 5		$ 2
1776 Holding, LLC | Maximum
Related Party Transaction [Line Items]
Equity in earnings (loss) from unconsolidated affiliates				$ 1	$ 1	$ 1	$ 1

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Related Party Transactions - Summary of Amounts Included in Condensed Consolidated Statements of Operations Related to Fee for Service Arrangement (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
BRE Ace LLC
Related Party Transaction [Line Items]
Commission and other fees	$ 32	$ 32	$ 68	$ 64

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Business Segments - Additional Information (Details)	6 Months Ended
	Jun. 30, 2019 segment
Segment Reporting [Abstract]
Number of operating segments	2

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Business Segments - Schedule of Segment Revenues Reconciled to Consolidated Amounts (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		$ 454	$ 563	$ 904	$ 930
Real Estate and Financing Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		308	435	615	676
Resort Operations and Club Management Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		103	90	204	180
Operating segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		422	533	839	872
Operating segments | Real Estate and Financing Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		308	435	615	676
Operating segments | Resort Operations and Club Management Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	[1],[2]	114	98	224	196
Segment Reconciling Items
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		43	38	85	74
Intersegment eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	[1],[2]	$ (11)	$ (8)	$ (20)	$ (16)

[1] Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $11 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $20 million and $16 million for the six months ended June 30, 2019 and 2018, respectively

[2] Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three and six months ended June 30, 2019 and 2018.

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Business Segments - Schedule of Segment Revenues Reconciled to Consolidated Amounts (Parenthetical) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		$ 454	$ 563	$ 904	$ 930
Intersegment eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	[1],[2]	(11)	(8)	(20)	(16)
Intersegment eliminations | Maximum
Segment Reporting, Revenue Reconciling Item [Line Items]
Rental expense for model units		1	1	1	1
Intersegment eliminations | Promotional Allowances
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues		$ (11)	$ (8)	$ (20)	$ (16)

[1] Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $11 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $20 million and $16 million for the six months ended June 30, 2019 and 2018, respectively

[2] Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled less than $1 million for each of the three and six months ended June 30, 2019 and 2018.

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Business Segments - Schedule of Adjusted EBITDA Reconciled to Net Income (Details) - USD ($)		3 Months Ended						6 Months Ended
		Jun. 30, 2019		Mar. 31, 2019	Jun. 30, 2018		Mar. 31, 2018	Jun. 30, 2019		Jun. 30, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative		$ (29,000,000)			$ (30,000,000)			$ (54,000,000)		$ (53,000,000)
Depreciation and amortization		(13,000,000)			(8,000,000)			(23,000,000)		(16,000,000)
Other (loss) gain, net		(1,000,000)			1,000,000			(2,000,000)
Interest expense		(11,000,000)			(8,000,000)			(21,000,000)		(15,000,000)
Income tax expense		(15,000,000)			(39,000,000)			(35,000,000)		(49,000,000)
Equity in earnings (losses) from unconsolidated affiliates		2,000,000			(2,000,000)			3,000,000		(1,000,000)
Net income		38,624,856	[1]	$ 55,000,000	106,861,230	[1]	$ 30,000,000	93,692,657	[1]	137,031,259	[1]
Operating segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA		135,000,000			221,000,000			280,000,000		324,000,000
Operating segments | Real Estate and Financing Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	[2]	69,000,000			163,000,000			149,000,000		207,000,000
Operating segments | Resort Operations and Club Management Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment Adjusted EBITDA	[2]	66,000,000			58,000,000			131,000,000		117,000,000
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative		(29,000,000)			(30,000,000)			(54,000,000)		(53,000,000)
Depreciation and amortization		(13,000,000)			(8,000,000)			(23,000,000)		(16,000,000)
License fee expense		(26,000,000)			(25,000,000)			(49,000,000)		(48,000,000)
Other (loss) gain, net		(1,000,000)			1,000,000			(2,000,000)
Interest expense		(11,000,000)			(8,000,000)			(21,000,000)		(15,000,000)
Income tax expense		(15,000,000)			(39,000,000)			(35,000,000)		(49,000,000)
Equity in earnings (losses) from unconsolidated affiliates		2,000,000			(2,000,000)			3,000,000		(1,000,000)
Other adjustment items		$ (3,000,000)			$ (3,000,000)			$ (5,000,000)		$ (5,000,000)

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

[2] Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion.

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Commitments and Contingencies - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Long-term Purchase Commitment [Line Items]
Reasonably estimable of possible losses	$ 0
Inventories
Long-term Purchase Commitment [Line Items]
Purchase commitment	$ 511,000,000
Purchase commitment, period (in years)	12 years
Purchase commitment, purchases made	$ 28,000,000	$ 4,000,000

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Commitments and Contingencies - Schedule of Remaining Purchase Obligations (Details) - Inventories $ in Millions	Jun. 30, 2019 USD ($)
Long-term Purchase Commitment [Line Items]
2019 (remaining)	$ 38
2020	220
2021	87
2022	57
2023	54
Thereafter	55
Total	$ 511

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Condensed Consolidating Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Millions		Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents		$ 120		$ 108
Restricted cash		67		72
Accounts receivable, net		156		153
Timeshare financing receivables, net		1,125		1,120
Inventory		536		527
Property and equipment, net		673		559
Operating lease right-of-use assets, net		63
Investments in unconsolidated affiliates		43		38
Intangible assets, net		84		81
Other assets		122		95
TOTAL ASSETS (variable interest entities - $571 and $647)		2,989		2,753
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other		312		324
Advanced deposits		108		101
Debt, net		937		604
Non-recourse debt, net		696		759
Operating lease liabilities	[1]	76
Deferred revenues		163		95
Deferred income tax liabilities		247		254
Total equity		450	$ 575	616	$ 517	$ 400	$ 518
TOTAL LIABILITIES AND EQUITY		2,989		2,753
Parent
ASSETS
Cash and cash equivalents		7		4
Investments in subsidiaries		443		612
TOTAL ASSETS (variable interest entities - $571 and $647)		450		616
LIABILITIES AND EQUITY
Total equity		450		616
TOTAL LIABILITIES AND EQUITY		450		616
Issuers
ASSETS
Other assets		6		6
Investments in subsidiaries		1,347		1,210
TOTAL ASSETS (variable interest entities - $571 and $647)		1,353		1,216
LIABILITIES AND EQUITY
Debt, net		910		604
Total equity		443		612
TOTAL LIABILITIES AND EQUITY		1,353		1,216
Guarantors
ASSETS
Cash and cash equivalents		93		89
Restricted cash		41		45
Accounts receivable, net		156		157
Timeshare financing receivables, net		332		209
Inventory		496		502
Property and equipment, net		666		553
Operating lease right-of-use assets, net		63
Investments in unconsolidated affiliates		43		38
Intangible assets, net		84		81
Other assets		67		41
Investments in subsidiaries		243		277
TOTAL ASSETS (variable interest entities - $571 and $647)		2,284		1,992
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other		317		332
Advanced deposits		108		101
Debt, net		27
Operating lease liabilities		76
Deferred revenues		163		95
Deferred income tax liabilities		246		254
Total equity		1,347		1,210
TOTAL LIABILITIES AND EQUITY		2,284		1,992
Non-Guarantors
ASSETS
Cash and cash equivalents		20		15
Restricted cash		26		27
Accounts receivable, net		20		17
Timeshare financing receivables, net		793		911
Inventory		40		25
Property and equipment, net		7		6
Other assets		49		48
TOTAL ASSETS (variable interest entities - $571 and $647)		955		1,049
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other		15		13
Non-recourse debt, net		696		759
Deferred income tax liabilities		1
Total equity		243		277
TOTAL LIABILITIES AND EQUITY		955		1,049
Eliminations
ASSETS
Accounts receivable, net		(20)		(21)
Investments in subsidiaries		(2,033)		(2,099)
TOTAL ASSETS (variable interest entities - $571 and $647)		(2,053)		(2,120)
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other		(20)		(21)
Total equity		(2,033)		(2,099)
TOTAL LIABILITIES AND EQUITY		$ (2,053)		$ (2,120)

[1] Operating lease payments exclude $1 million of legally binding minimum lease payments for leases signed but not yet commenced.

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Condensed Consolidating Guarantor Financial Information - Statements of Operations (Details) - USD ($)	3 Months Ended						6 Months Ended
	Jun. 30, 2019		Mar. 31, 2019	Jun. 30, 2018		Mar. 31, 2018	Jun. 30, 2019		Jun. 30, 2018
Revenues
Total revenues	$ 454,000,000			$ 563,000,000			$ 904,000,000		$ 930,000,000
Expenses
General and administrative	29,000,000			30,000,000			54,000,000		53,000,000
Depreciation and amortization	13,000,000			8,000,000			23,000,000		16,000,000
Total operating expenses	390,000,000			408,000,000			755,000,000		728,000,000
Interest expense	(11,000,000)			(8,000,000)			(21,000,000)		(15,000,000)
Equity in earnings (losses) from unconsolidated affiliates	2,000,000			(2,000,000)			3,000,000		(1,000,000)
Other (loss) gain, net	(1,000,000)			1,000,000			(2,000,000)
Income before income taxes	54,000,000			146,000,000			129,000,000		186,000,000
Income tax expense	(15,000,000)			(39,000,000)			(35,000,000)		(49,000,000)
Income before equity in earnings from subsidiaries	39,000,000			107,000,000			94,000,000		137,000,000
Net income	38,624,856	[1]	$ 55,000,000	106,861,230	[1]	$ 30,000,000	93,692,657	[1]	137,031,259	[1]
Eliminations
Revenues
Total revenues	(14,000,000)			(3,000,000)			(27,000,000)		(6,000,000)
Expenses
Total operating expenses	(14,000,000)			(3,000,000)			(27,000,000)		(6,000,000)
Dividends from subsidiary	(300,000,000)						(550,000,000)
Income before income taxes	(300,000,000)						(550,000,000)
Income before equity in earnings from subsidiaries	(300,000,000)						(550,000,000)
Equity in (losses) earnings from subsidiaries	44,000,000			(238,000,000)			31,000,000		(317,000,000)
Net income	(256,000,000)			(238,000,000)			(519,000,000)		(317,000,000)
Sales of VOIs, Net
Revenues
Total revenues	120,000,000			250,000,000			245,000,000		328,000,000
Sales, marketing, license and other fees
Revenues
Total revenues	145,000,000			146,000,000			286,000,000		271,000,000
Sales, marketing, license and other fees | Eliminations
Revenues
Total revenues	(12,000,000)			(2,000,000)			(23,000,000)		(4,000,000)
Financing
Revenues
Total revenues	43,000,000			39,000,000			84,000,000		77,000,000
Expenses
Expenses	12,000,000			12,000,000			25,000,000		23,000,000
Financing | Eliminations
Revenues
Total revenues	(2,000,000)			(1,000,000)			(4,000,000)		(2,000,000)
Expenses
Expenses	(2,000,000)			(1,000,000)			(4,000,000)		(2,000,000)
Resort and Club Management
Revenues
Total revenues	43,000,000			37,000,000			85,000,000		76,000,000
Expenses
Expenses	12,000,000			11,000,000			23,000,000		22,000,000
Rental and Ancillary Services
Revenues
Total revenues	60,000,000			53,000,000			119,000,000		104,000,000
Expenses
Expenses	37,000,000			30,000,000			72,000,000		58,000,000
Cost Reimbursements
Revenues
Total revenues	43,000,000			38,000,000			85,000,000		74,000,000
Expenses
Expenses	43,000,000			38,000,000			85,000,000		74,000,000
Cost of VOI Sales
Expenses
Expenses	32,000,000			61,000,000			68,000,000		80,000,000
Sales and Marketing
Expenses
Expenses	186,000,000			193,000,000			356,000,000		354,000,000
Sales and Marketing | Eliminations
Expenses
Expenses	(12,000,000)			(2,000,000)			(23,000,000)		(4,000,000)
License Fee Expense
Expenses
Expenses	26,000,000			25,000,000			49,000,000		48,000,000
Parent
Expenses
Dividends from subsidiary	150,000,000						275,000,000
Income before income taxes	150,000,000						275,000,000
Income before equity in earnings from subsidiaries	150,000,000						275,000,000
Equity in (losses) earnings from subsidiaries	(111,000,000)			107,000,000			(181,000,000)		137,000,000
Net income	39,000,000			107,000,000			94,000,000		137,000,000
Issuers
Expenses
Interest expense	(11,000,000)			(8,000,000)			(21,000,000)		(15,000,000)
Dividends from subsidiary	150,000,000						275,000,000
Income before income taxes	139,000,000			(8,000,000)			254,000,000		(15,000,000)
Income before equity in earnings from subsidiaries	139,000,000			(8,000,000)			254,000,000		(15,000,000)
Equity in (losses) earnings from subsidiaries	50,000,000			115,000,000			115,000,000		152,000,000
Net income	189,000,000			107,000,000			369,000,000		137,000,000
Guarantors
Revenues
Total revenues	422,000,000			539,000,000			839,000,000		886,000,000
Expenses
General and administrative	29,000,000			30,000,000			54,000,000		53,000,000
Depreciation and amortization	13,000,000			8,000,000			23,000,000		16,000,000
Total operating expenses	376,000,000			400,000,000			726,000,000		712,000,000
Equity in earnings (losses) from unconsolidated affiliates	2,000,000			(2,000,000)			3,000,000		(1,000,000)
Other (loss) gain, net	(1,000,000)			1,000,000			(2,000,000)
Income before income taxes	47,000,000			138,000,000			114,000,000		173,000,000
Income tax expense	(14,000,000)			(39,000,000)			(34,000,000)		(49,000,000)
Income before equity in earnings from subsidiaries	33,000,000			99,000,000			80,000,000		124,000,000
Equity in (losses) earnings from subsidiaries	17,000,000			16,000,000			35,000,000		28,000,000
Net income	50,000,000			115,000,000			115,000,000		152,000,000
Guarantors | Sales of VOIs, Net
Revenues
Total revenues	103,000,000			248,000,000			210,000,000		325,000,000
Guarantors | Sales, marketing, license and other fees
Revenues
Total revenues	154,000,000			147,000,000			305,000,000		273,000,000
Guarantors | Financing
Revenues
Total revenues	20,000,000			17,000,000			38,000,000		37,000,000
Expenses
Expenses	4,000,000			5,000,000			8,000,000		10,000,000
Guarantors | Resort and Club Management
Revenues
Total revenues	43,000,000			37,000,000			85,000,000		76,000,000
Expenses
Expenses	12,000,000			11,000,000			23,000,000		22,000,000
Guarantors | Rental and Ancillary Services
Revenues
Total revenues	60,000,000			53,000,000			118,000,000		103,000,000
Expenses
Expenses	36,000,000			30,000,000			70,000,000		57,000,000
Guarantors | Cost Reimbursements
Revenues
Total revenues	42,000,000			37,000,000			83,000,000		72,000,000
Expenses
Expenses	42,000,000			37,000,000			83,000,000		72,000,000
Guarantors | Cost of VOI Sales
Expenses
Expenses	28,000,000			61,000,000			61,000,000		80,000,000
Guarantors | Sales and Marketing
Expenses
Expenses	187,000,000			193,000,000			357,000,000		354,000,000
Guarantors | License Fee Expense
Expenses
Expenses	25,000,000			25,000,000			47,000,000		48,000,000
Non-Guarantors
Revenues
Total revenues	46,000,000			27,000,000			92,000,000		50,000,000
Expenses
Total operating expenses	28,000,000			11,000,000			56,000,000		22,000,000
Income before income taxes	18,000,000			16,000,000			36,000,000		28,000,000
Income tax expense	(1,000,000)						(1,000,000)
Income before equity in earnings from subsidiaries	17,000,000			16,000,000			35,000,000		28,000,000
Net income	17,000,000			16,000,000			35,000,000		28,000,000
Non-Guarantors | Sales of VOIs, Net
Revenues
Total revenues	17,000,000			2,000,000			35,000,000		3,000,000
Non-Guarantors | Sales, marketing, license and other fees
Revenues
Total revenues	3,000,000			1,000,000			4,000,000		2,000,000
Non-Guarantors | Financing
Revenues
Total revenues	25,000,000			23,000,000			50,000,000		42,000,000
Expenses
Expenses	10,000,000			8,000,000			21,000,000		15,000,000
Non-Guarantors | Rental and Ancillary Services
Revenues
Total revenues							1,000,000		1,000,000
Expenses
Expenses	1,000,000						2,000,000		1,000,000
Non-Guarantors | Cost Reimbursements
Revenues
Total revenues	1,000,000			1,000,000			2,000,000		2,000,000
Expenses
Expenses	1,000,000			1,000,000			2,000,000		2,000,000
Non-Guarantors | Cost of VOI Sales
Expenses
Expenses	4,000,000						7,000,000
Non-Guarantors | Sales and Marketing
Expenses
Expenses	11,000,000			$ 2,000,000			22,000,000		$ 4,000,000
Non-Guarantors | License Fee Expense
Expenses
Expenses	$ 1,000,000						$ 2,000,000

[1] Net income for the three months ended June 30, 2019 and 2018 was $38,624,856 and $106,861,230, respectively, and for the six months ended June 30, 2019

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Condensed Consolidating Guarantor Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating Activities
Net cash provided by (used in) operating activities	$ 72	$ (134)
Investing Activities
Capital expenditures for property and equipment	(17)	(20)
Software capitalization costs	(11)	(9)
Return of investment from unconsolidated affiliates		11
Investments in unconsolidated affiliates	(2)	(5)
Net cash used in investing activities	(30)	(23)
Financing Activities
Issuance of debt	410	160
Issuance of non-recourse debt	15	100
Repayment of debt	(105)	(5)
Repayment of non-recourse debt	(79)	(80)
Debt issuance costs	(2)	(2)
Repurchase and retirement of common stock	(271)	(112)
Payment of withholding taxes on vesting of restricted stock units	(3)	(1)
Capital contribution		3
Proceeds from employee stock plan purchases	2
Other financing activity	(2)
Net cash (used in) provided by financing activities	(35)	63
Net increase (decrease) in cash, cash equivalents and restricted cash	7	(94)
Cash, cash equivalents and restricted cash, beginning of period	180	297
Cash, cash equivalents and restricted cash, end of period	187	203
Eliminations
Operating Activities
Net cash provided by (used in) operating activities	(275)	43
Investing Activities
Dividends from subsidiary	(550)
Net cash used in investing activities	(550)
Financing Activities
Intercompany transfers	825	(43)
Net cash (used in) provided by financing activities	825	(43)
Parent
Investing Activities
Dividends from subsidiary	275
Net cash used in investing activities	275
Financing Activities
Repurchase and retirement of common stock	(271)
Intercompany transfers	(1)
Net cash (used in) provided by financing activities	(272)
Net increase (decrease) in cash, cash equivalents and restricted cash	3
Cash, cash equivalents and restricted cash, beginning of period	4
Cash, cash equivalents and restricted cash, end of period	7
Issuers
Operating Activities
Net cash provided by (used in) operating activities	254	(14)
Investing Activities
Dividends from subsidiary	275
Net cash used in investing activities	275
Financing Activities
Issuance of debt	410	160
Repayment of debt	(100)	(5)
Repurchase and retirement of common stock		(112)
Payment of withholding taxes on vesting of restricted stock units		(1)
Capital contribution		3
Intercompany transfers	(839)	(31)
Net cash (used in) provided by financing activities	(529)	14
Guarantors
Operating Activities
Net cash provided by (used in) operating activities	(43)	42
Investing Activities
Capital expenditures for property and equipment	(17)	(18)
Software capitalization costs	(11)	(9)
Return of investment from unconsolidated affiliates		11
Investments in unconsolidated affiliates	(2)	(5)
Net cash used in investing activities	(30)	(21)
Financing Activities
Repayment of debt	(5)
Payment of withholding taxes on vesting of restricted stock units	(3)
Proceeds from employee stock plan purchases	2
Other financing activity	(2)
Intercompany transfers	81	(111)
Net cash (used in) provided by financing activities	73	(111)
Net increase (decrease) in cash, cash equivalents and restricted cash		(90)
Cash, cash equivalents and restricted cash, beginning of period	134	259
Cash, cash equivalents and restricted cash, end of period	134	169
Non-Guarantors
Operating Activities
Net cash provided by (used in) operating activities	136	(205)
Investing Activities
Capital expenditures for property and equipment		(2)
Net cash used in investing activities		(2)
Financing Activities
Issuance of non-recourse debt	15	100
Repayment of non-recourse debt	(79)	(80)
Debt issuance costs	(2)	(2)
Intercompany transfers	(66)	185
Net cash (used in) provided by financing activities	(132)	203
Net increase (decrease) in cash, cash equivalents and restricted cash	4	(4)
Cash, cash equivalents and restricted cash, beginning of period	42	38
Cash, cash equivalents and restricted cash, end of period	$ 46	$ 34

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Subsequent Events - Additional Information (Details) $ in Millions	1 Months Ended	6 Months Ended
	Jul. 31, 2019 USD ($) property shares	Jun. 30, 2019 USD ($) property
Subsequent Event [Line Items]
Number of timeshare properties | property		57
Revolving Credit Facility
Subsequent Event [Line Items]
Debt instrument borrowed amount		$ 410
Debt instrument repaid amount		$ 105
Subsequent Event
Subsequent Event [Line Items]
Number of shares repurchased | shares	74
Average price per share	$ 37
Number of timeshare properties | property	87
Subsequent Event | Timeshare Facility
Subsequent Event [Line Items]
Debt instrument repaid amount	$ 15
Subsequent Event | Revolving Credit Facility
Subsequent Event [Line Items]
Debt instrument borrowed amount	20
Debt instrument repaid amount	$ 5