Exhibit 10.1

 

EXECUTION VERSION

 

Limited Waiver and Amendment

 

As of September 30, 2015

 

KeyBank National Association,

as Agent

1200 Abernathy Road, Suite 1550

Atlanta, Georgia 30328

 

Re:                             Forestar (USA) Real Estate Group Inc. Third
Amended and Restated Revolving Credit Agreement

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Third Amended and Restated Revolving
Credit Agreement dated as of May 15, 2014 (as amended, the “Credit Agreement”),
executed by Borrower, the Guarantors defined therein, the Lenders defined
therein, and KeyBank National Association, as administrative agent (“Agent”)
(Agent and Lenders are individually referred to herein as a “Credit Party” and
collectively referred to herein as the “Credit Parties”).  Capitalized terms
used herein shall, unless otherwise indicated, have the respective meanings set
forth in the Credit Agreement.

 

Section 1.                                          Limited Waiver and
Amendment.  Subject to the terms and conditions set forth herein, the Lenders
hereby agree (a) to waive the requirement to comply with the Consolidated
Tangible Net Worth covenant as required by §9.1(e) of the Credit Agreement (the
“TNW Covenant”) for the fiscal quarter ending September 30, 2015
(“September Fiscal Quarter”), and (b) that upon the earlier of (i) November 15,
2015 or (ii) the date upon which Forestar Group announces its financial results
for the September Fiscal Quarter, together with any quarterly impairments (the
“September Financials”), (A) the minimum TNW Covenant will automatically reset
such that in §9.1(e)(i) $572,000,000 shall be deleted and replaced with the
amount equal to 80% of Consolidated Tangible Net Worth as calculated per the
September Financials, and (B) the Effective Date, for the purposes of
calculating compliance with §9.1(e) only, shall be changed to September 30,
2015. (the “Limited Waiver and Amendment”).

 

Section 2.                                          Conditions Precedent.  The
Limited Waiver is subject to the following terms and conditions:

 

(a)                                 this Limited Waiver and Amendment shall have
been executed by each Loan Party, Agent, and the Required Lenders;

 

(b)                                 after giving effect to this Limited Waiver
and Amendment, the representations and warranties in this Limited Waiver and
Amendment shall be true and correct in all material respects; and

 

(c)                                  after giving effect to this Limited Waiver
and Amendment, no Default or Event of Default shall exist.

 

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Section 3.                                          Ratification.  By execution
of this Limited Waiver and Amendment in the space provided below, Borrower
(a) represents and warrants that, after giving effect to this Limited Waiver and
Amendment, the representations and warranties in the Credit Agreement are true
and correct in all material respects, on and as of the date of this Limited
Waiver and Amendment, except to the extent that (i) any of them speak to a
different specific date, or (ii) the facts on which any of them were based have
been changed by transactions contemplated or permitted by the Credit Agreement,
and (b) ratifies and confirms that the Credit Agreement and all other Loan
Documents, and all renewals, extensions, and restatements of, and amendments and
supplements to, any of the foregoing, are and remain in full force and effect in
accordance with their respective terms. Borrower affirms its obligation to pay
all reasonable fees, expenses and disbursements of Agent (including reasonable
attorneys’ fees) incurred by Agent in connection with this Limited Waiver and
Amendment pursuant to §15 of the Credit Agreement.

 

Section 4.                                          No Impairment.  The Limited
Waiver hereby granted by Lenders does not, other than to the extent expressly
waived or amended hereby, (a) constitute a waiver or modification of any other
terms or provisions set forth in the Credit Agreement or any other Loan
Document, (b) impair any right that any Credit Party may now or hereafter have
under or in connection with the Credit Agreement or any other Loan Document, or
(c) impair any Credit Party’s rights to insist upon strict compliance with the
Credit Agreement, as amended or otherwise modified hereby, or the other Loan
Documents.  The Loan Documents continue to bind and inure to the Loan Parties
and their respective successors and permitted assigns.

 

Section 5.                                          Counterparts.  This Limited
Waiver and Amendment, when countersigned by all required parties, shall be a
“Loan Document” as defined and referred to in the Credit Agreement and the other
Loan Documents, and may be signed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.  Delivery of an executed counterpart of a signature page of
this Limited Waiver and Amendment by facsimile or other electronic transmission
shall be effective as delivery of a manually executed counterpart of this
Limited Waiver and Amendment. THIS LIMITED WAIVER AND AMENDMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Section 6.                                          ENTIRE AGREEMENT.  THIS
LETTER, THE CREDIT AGREEMENT, THE NOTES, THE SECURITY DOCUMENTS, AND THE OTHER
LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND
SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF,
AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO.  THERE ARE NO
ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

[Remainder of Page Intentionally Left Blank;

Signature Pages to Follow.]

 

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Please execute a copy of this Limited Waiver and Amendment in the space provided
below to acknowledge your agreement to the foregoing.

 

 

Sincerely,

 

 

 

FORESTAR (USA) REAL ESTATE GROUP INC., as Borrower

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

Name:

Christopher L. Nines

 

Title:

Chief Financial Officer

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

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KEYBANK NATIONAL ASSOCIATION, as Agent and as a Lender

 

 

 

 

 

By:

/s/ Nathan Weyer

 

Name:

Nathan Weyer

 

Title:

Vice President

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

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To induce the Credit Parties to enter into this Limited Waiver and Amendment,
the undersigned jointly and severally (a) consent and agree to this Limited
Waiver and Amendment’s execution and delivery, (b) ratify and confirm that all
guaranties, assurances, and Liens granted, conveyed, or assigned to the Credit
Parties under the Loan Documents are not released, diminished, impaired,
reduced, or otherwise adversely affected by this Limited Waiver and Amendment
and continue to guarantee, assure, and secure the full payment and performance
of all present and future Obligations (except to the extent specifically limited
by the terms of such guaranties, assurances, or Liens), and (c) waive notice of
acceptance of this consent and agreement, which consent and agreement binds the
undersigned and their successors and permitted assigns and inures to the Credit
Parties and their respective successors and permitted assigns.

 

 

GUARANTORS:

 

 

 

FORESTAR GROUP INC., a Delaware corporation

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

FORESTAR MINERALS LP, a Delaware limited partnership

 

 

 

By:

Forestar Minerals GP, LLC, general partner

 

 

 

FORESTAR OIL & GAS LLC, a Delaware limited liability company

 

 

 

FORESTAR REALTY INC., a Delaware corporation

 

 

 

FORESTAR HOTEL HOLDING COMPANY INC., a Nevada corporation

 

 

 

CAPITOL OF TEXAS INSURANCE GROUP INC., a Delaware corporation

 

 

 

FORESTAR CAPITAL INC., a Delaware corporation

 

 

 

FORESTAR MINERALS GP LLC, a Delaware limited liability company

 

 

 

JOHNSTOWN FARMS, LLC, a Delaware limited liability company

 

 

 

SAN JACINTO I LLC, a Texas limited liability company

 

Guarantor  signature page to Limited Waiver and Amendment

 

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SUSTAINABLE WATER RESOURCES LLC, a Texas limited liability company

 

 

 

SWR HOLDINGS LLC, a Delaware limited liability company

 

 

 

STONEY CREEK PROPERTIES LLC, a Delaware limited liability company

 

 

 

FORCO REAL ESTATE INC., a Delaware corporation

 

 

 

FORESTAR PETROLEUM CORPORATION, a Delaware corporation

 

 

 

SECO ENERGY CORPORATION, a Nevada corporation

 

 

 

UNITED OIL CORPORATION, an Oklahoma corporation

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

FORESTAR MINERALS HOLDINGS LLC, a Delaware limited liability company

 

 

 

 

 

By:

/s/ Michael Quinley

 

 

Name:

Michael Quinley

 

 

Title:

President

 

Guarantor  signature page to Limited Waiver and Amendment

 

[SIGNATURES CONTINUED ON FOLLOWING PAGES]

 

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[execution continued from preceding page]

 

 

FORESTAR REALTY INC.,

 

a Delaware corporation

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

FORESTAR HOTEL HOLDING COMPANY INC.,

 

a Nevada corporation

 

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

CAPITOL OF TEXAS INSURANCE GROUP INC., a Delaware corporation

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Guarantor  signature page to Limited Waiver and Amendment

 

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[execution continued from preceding page]

 

 

FORESTAR CAPITAL INC.,

 

a Delaware corporation

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

FORESTAR MINERALS GP LLC,

 

a Delaware limited liability company

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

FORESTAR MINERALS HOLDINGS LLC, a Delaware limited liability company

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Guarantor  signature page to Limited Waiver and Amendment

 

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[execution continued from preceding page]

 

 

HARBOR LAKES GOLF CLUB LLC,

 

a Delaware limited liability company

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

HARBOR LAKES CLUB MANAGEMENT LLC, A Texas limited liability company

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

JOHNSTOWN FARMS, LLC, a Delaware limited liability company

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Guarantor  signature page to Limited Waiver and Amendment

 

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[execution continued from preceding page]

 

 

SAN JACINTO I LLC, a Texas limited liability company

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

SUSTAINABLE WATER RESOURCES LLC, a Texas limited liability company

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

SWR HOLDINGS LLC, a Delaware limited liability company

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

STONEY CREEK PROPERTIES LLC, a Delaware limited liability company

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

FORCO REAL ESTATE INC., a Delaware corporation

 

 

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Guarantor  signature page to Limited Waiver and Amendment

 

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[execution continued from preceding page]

 

 

FORESTAR PETROLEUM CORPORATION, a Delaware corporation

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

SECO ENERGY CORPORATION, a Nevada corporation

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

 

 

 

 

 

UNITED OIL CORPORATION, an Oklahoma corporation

 

 

 

 

By:

/s/ Christopher L. Nines

 

 

Name:

Christopher L. Nines

 

 

Title:

Chief Financial Officer

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Guarantor  signature page to Limited Waiver and Amendment

 

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[execution continued from preceding page]

 

 

 

OTHER LENDERS:

 

AgFIRST FARM CREDIT BANK, as a Lender

 

 

 

 

 

 

 

By:

/s/ Matthew H. Jeffords

 

Name:

Matthew H. Jeffords

 

Title:

Vice President

 

 

Address:

 

1401 Hampton Street

Columbia, SC  29201

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

 

NORTHWEST FARM CREDIT SERVICES, PCA, as
a Lender

 

 

 

 

 

By:

/s/ Candy Casteal

 

Name:

Candy Casteal

 

Title:

SVP Credit

 

 

Address:

 

1700 South Assembly Street

Spokane, WA  99224

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

 

AMEGY BANK NATIONAL ASSOCIATION, as a

 

Lender

 

 

 

 

 

 

 

By:

/s/ Barrett Tondre

 

Name:

Barrett Tondre

 

Title:

Assistant Vice President

 

 

Address:

 

10001 Reunion Place, Ste 300

San Antonio, TX  78216

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

CAPITAL ONE N.A., as a Lender

 

 

 

 

 

 

 

By:

/s/ Michael B. Perrine

 

Name:

Michael B. Perrine

 

Title:

Commercial Banking President - Austin

 

 

Address:

 

106 East 6th Street

Suite 600

Austin, TX  78701

 

Attn: Michael B. Perrine

Fax #-

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

 

TEXAS CAPITAL BANK, NATIONAL
ASSOCIATION, as a Lender

 

 

 

 

 

 

 

By:

/s/ Mike McConnell

 

Name:

Mike McConnell

 

Title:

Senior Vice President

 

 

Address:

 

98 San Jacinto Blvd., Ste. 200

Austin, TX  78701

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

GOLDMAN SACHS BANK USA, as a Lender

 

 

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

Name:

Michelle Latzoni

 

Title:

Authorized Signatory

 

 

Address:

 

200 West Street

New York, NY  10282

Fax # 917-977-3966

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Waiver Letter

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

 

JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION, as a Lender

 

 

 

 

 

 

 

By:

/s/ Melissa Burnett

 

Name:

Melissa Burnett

 

Title:

Senior Commercial Banker

 

 

Address:

 

TX3-8211

P.O. Box 550

Austin, TX  78767-0550

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

 

 

 

 

 

 

By:

/s/ Chris M. Garza

 

Name: Chris M. Garza

 

Title: Senior Vice President

 

 

Address:

 

111 Congress Avenue, Suite 530

Austin, TX  78701

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

SYNOVUS BANK, as a Lender and a LC Issuer

 

 

 

 

 

 

By:

/s/ David W. Bowman

 

Name: David W. Bowman

 

Title: Director

 

Address:

 

800 Shades Creek Parkway

Birmingham, AL  35209

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

UNITED FCS, PCA, d/b/a FCS COMMERCIAL

 

FINANCE GROUP, as a Lender

 

 

 

 

 

 

By:

/s/ Lisa Caswell

 

Name: Lisa Caswell

 

Title: Vice President

 

 

Address:

 

600 Highway 169 South, Suite 850

Minneapolis, MN 55426

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

CADENCE BANK, N.A.as a Lender

 

 

 

 

 

 

By:

/s/ Melinda N. Jackson

 

Name: Melinda N. Jackson

 

Title: Senior Vice President

 

Address:

 

3500 Colonnade Pkwy, Ste. 600

Birmingham, AL  35243

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

Lender signature pages to Limited Waiver and Amendment

 

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[Execution of Limited Waiver and Amendment Continued]

 

 

METROPOLITAN LIFE INSURANCE COMPANY, .as a Lender

 

 

 

 

 

 

By:

/s/ W. Kirk Purvis

 

Name: W. Kirk Purvis

 

Title: Director

 

 

Address:

 

6750 Poplar Avenue

Suite 109

Germantown, TN  38138

 

[END OF SIGNATURES]

 

Lender signature pages to Limited Waiver and Amendment

 

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