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JPMORGAN CHASE BANK, N.A.
383 Madison Avenue, 24th Floor
New York, New York 10179

October 24, 2013

LETTER AGREEMENT
 
Standard Pacific Corp.
15360 Barranca Parkway
Irvine, CA  92618
Attn:        John P. Babel
 Jeff J. McCall

 
RE:
Amended and Restated Credit Agreement, dated as of October 19, 2012, among
Standard Pacific Corp. (“Borrower”), the lenders party thereto (“Lenders”) and
JPMorgan Chase Bank, N.A., as administrative agent for the Lenders
(“Administrative Agent”), as amended by the First Amendment to Amended and
Restated Credit Agreement, dated as of September 26, 2013 (as so amended, and as
the same may be further amended, modified and supplemented and in effect from
time to time, the “Credit Agreement”)

Ladies and Gentlemen:
 
Reference is made to the Credit Agreement.  Capitalized terms used but not
defined herein are used with the meanings assigned to such terms in the Credit
Agreement.
 
Borrower has elected to increase the Commitments in accordance with Section 2.21
of the Credit Agreement, and in connection therewith, Administrative Agent, the
Required Lenders and Borrower desire to modify the maximum Leverage Ratio
requirements in Section 7.12 of the Credit Agreement as set forth in this letter
agreement (this “Letter Agreement”). The parties hereto agree as follows:
 
A. Agreement.    Section 7.12 of the Credit Agreement is hereby amended and
restated to read as follows:
 
7.12           Leverage Ratio.
 
As of any Test Date, commencing with September 30, 2012, the Leverage Ratio
shall not be in excess of the ratio set forth opposite such date below:
 
Date
 
Leverage Ratio
December 31, 2012 thru December 31, 2013
 
2.50 to 1.00
March 31, 2014 thru December 31, 2014
 
2.25 to 1.00
March 31, 2015 and thereafter
 
2.00 to 1.00

 
 
 

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B. Representations and Warranties. In order to induce Administrative Agent and
the Required Lenders to enter into this Letter Agreement, Borrower hereby
represents and warrants to Administrative Agent and the Lenders as follows:
 
1. As of the date hereof, no Default or Event of Default has occurred and is
continuing under the Loan Documents; and
 
2. Borrower has the power and authority to enter into this Letter
Agreement.  This Letter Agreement has been duly executed and delivered, and
constitutes the legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency, or similar laws affecting the
enforcement of creditors’ rights generally, or by equitable principles relating
to enforceability.
 
C.           Conditions to Effectiveness.  It shall be a condition precedent to
the effectiveness of this Letter Agreement that each of the following conditions
are satisfied:
 
1. The parties hereto shall have executed and delivered counterparts of this
Letter Agreement to the Administrative Agent; and
 
2. Guarantors shall have executed and delivered to Administrative Agent the
Reaffirmation of Guaranty attached hereto as Exhibit A.
 
D.           Miscellaneous.
 
1. This Letter Agreement is a Loan Document.
 
2. The Credit Agreement and the Loan Documents are in all respects ratified and
confirmed, and except as otherwise expressly provided herein, nothing contained
in this Letter Agreement shall, or shall be construed to, modify, waive or
otherwise affect any provision of the Credit Agreement or the Loan Documents or
any right of the Administrative Agent and the Lenders arising thereunder.
 
3. This Letter Agreement may not be amended or any provision hereof waived or
modified except by an instrument executed in writing by Administrative Agent and
the Required Lenders and accepted in writing by the Borrower.  This Letter
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York.  This Letter Agreement may be executed in any number of
counterparts, each of which shall be an original, and all of which, when taken
together, shall constitute one and the same agreement.  Delivery of an executed
signature page of this Letter Agreement by facsimile transmission or electronic
transmission (e.g. “pdf” or “tif”) shall be as effective as delivery of a
manually executed counterpart thereof.
 

 
[Signatures appear on next page.]
 

 

 

 

 

 
 

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IN WITNESS WHEREOF, the parties hereto have caused this Letter Agreement to be
duly executed and delivered as of the day and year first above written.
 
 

 
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and Class A Lender
       
By:
/s/ MOHAMMAD HASAN
   
Name: Mohammad Hasan
   
Title:   Vice President

 
 

 
[Signatures continue on next page.]

Signature page to Letter Agreement

 

 
 

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CITICORP NORTH AMERICA, INC.,
as a Class A Lender
       
By:
/s/ JOHN C. ROWLAND
   
Name: John C. Rowland
   
Title:   Vice President

 
 
 
 
 
 
 
 
Signature page to Letter Agreement

 
 

 
 

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BANK OF AMERICA, N.A.,
as a Class A Lender
       
By:
/s/ ANN E. KENZIE
   
Name: Ann E. Kenzie
   
Title:   Vice President

 
 
 
 
 
 
 
 
Signature page to Letter Agreement

 
 

 
 

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as a Lender
       
By:
/s/ BILL O'DALY
   
Name: Bill O'Daly
   
Title:   Authorized Signatory
        By: /s/ VIPUL DHADDA     Name: Vipul Dhadda     Title: Authorized
Signatory

 
 
 
 
 
 
 
 
Signature page to Letter Agreement

 
 

 
 

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ACKNOWLEDGED AND AGREED TO BY BORROWER
AS OF THIS 24th DAY OF OCTOBER, 2013

 
 

  STANDARD PACIFIC CORP., as Borrower        
By:
/s/ JEFF J. MCCALL
   
Name: Jeff J. McCall
   
Title:   Chief Financial Officer
       
By:
/s/ DAVID VAZQUEZ     Name: David Vazquez     Title:   Vice President - Treasury

Signature page to Letter Agreement

 
 

 
 

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EXHIBIT A

REAFFIRMATION OF GUARANTY

As consideration for the agreements and covenants contained in the within Letter
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, each of the undersigned
(“Guarantor”), as a guarantor under that certain Amended and Restated Guaranty,
dated as of October 19, 2012, as reaffirmed by that certain Reaffirmation of
Amended and Restated Guaranty dated as of September 26, 2013 (as reaffirmed, the
“Guaranty”), delivered to the Administrative Agent in connection with the
extension of credit made by the Lenders pursuant to the Credit Agreement
referred to above, hereby acknowledges, covenants and agrees as follows: (a)
consents to the terms of the Letter Agreement, (b) ratifies, confirms, and
acknowledges its obligations under the Guaranty which shall remain in full force
and effect for all the obligations of such Guarantor now or hereafter owing to
Administrative Agent (on behalf of the Lenders) pursuant to the terms and
conditions of the Guaranty, and (c) agrees that the Guaranty remains in full
force and effect, undiminished by the Letter Agreement.
 
This Reaffirmation of Guarantor Documents may be executed in one or more
counterparts, each of which shall, for all purposes, be deemed an original and
all such counterparts, taken together, shall constitute one and the same
instrument.
 

 
[SIGNATURES APPEAR ON NEXT PAGE]
 

 
 

 
 

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IN WITNESS WHEREOF, each Guarantor has caused this Reaffirmation of Guaranty to
be duly executed and delivered as of this October 24, 2013.
 
GUARANTORS:

STANDARD PACIFIC OF COLORADO, INC.;
HSP ARIZONA, INC.;
HWB INVESTMENTS, INC.;
STANDARD PACIFIC OF ARIZONA, INC.;
STANDARD PACIFIC OF FLORIDA GP, INC.;
STANDARD PACIFIC OF LAS VEGAS, INC.;
STANDARD PACIFIC OF ORANGE COUNTY, INC.;
STANDARD PACIFIC OF SOUTH FLORIDA GP, INC.;
STANDARD PACIFIC OF TAMPA GP, INC.;
STANDARD PACIFIC OF TEXAS, INC.;
STANDARD PACIFIC OF WALNUT HILLS, INC.;
STANDARD PACIFIC INVESTMENT CORP.;
STANDARD PACIFIC 1, INC.;
WESTFIELD HOMES USA, INC.

 
 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

 
HILLTOP RESIDENTIAL, LTD
By:           Residential Acquisition GP, LLC
By:           Standard Pacific of South Florida
By:           Standard Pacific of South Florida GP, Inc.
 
 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

[Signatures Continued on Next Page]

 
 

Signature page to Reaffirmation of Guaranty
 
 

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SP TALEGA, LLC
By:           Standard Pacific of Orange County, Inc.

 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

STANDARD PACIFIC OF THE CAROLINAS, LLC
By:           Westfield Homes USA, Inc.

 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

STANDARD PACIFIC OF FLORIDA;
STANDARD PACIFIC OF SOUTH FLORIDA
By:           Standard Pacific of Florida GP, Inc.

 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

STANDARD PACIFIC OF TAMPA
By:           Standard Pacific of Tampa GP, Inc.

 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

[Signatures Continued on Next Page]

 
 

Signature page to Reaffirmation of Guaranty
 
 

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TERRA/WINDING CREEK, LLC
By:           Standard Pacific of Texas, Inc.
 
 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Principal Financial & Accounting Officer

 
BARRINGTON ESTATES, LLC;
CAMARILLO VILLAGE PARK, LLC;
HARBOR HIGHLANDS GROUP, LLC;
LAGOON VALLEY RESIDENTIAL, LLC;
MENIFEE DEVELOPMENT, LLC;
LB/L-DUC III ANTIOCH 330, LLC;
STANDARD PACIFIC OF TONNER HILLS, LLC
By:           Standard Pacific Corp.
 
 

 
By:
/s/ JEFF J. MCCALL
  Name:
Jeff J. McCall
  Title:
Executive Vice President and Chief Financial Officer

 

[End of Signature Pages]
 
 
 

 
 

Signature page to Reaffirmation of Guaranty
 
 

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