Exhibit 10.15 


 


SIXTH
AMENDMENT TO CREDIT AGREEMENT


 


This
SIXTH AMENDMENT TO CREDIT AGREEMENT, dated as of December 31, 2020 (this “Amendment”), is made and entered
into by and among LANDSEA HOMES- WAB LLC, a Delaware limited liability company (the “Borrower”), WESTERN ALLIANCE
BANK, an Arizona corporation, as Administrative Agent (in such capacity, the “Administrative Agent”), the lenders
party to the Credit Agreement, and the other Loan Parties as of the date hereof.


 


RECITALS:


 


WHEREAS,
reference is made to the Senior Secured Credit Agreement dated as of February 1, 2018 (as amended, supplemented or otherwise modified
to the date hereof, the “Credit Agreement”), by and among the Borrower, the lenders from time to time party
thereto (“Lenders”) and the Administrative Agent;


 


WHEREAS,
the Borrower has requested that Administrative Agent and Lenders amend the Credit Agreement as provided herein;


 


WHEREAS,
the Lenders are willing to agree to the amendments herein subject to the conditions set forth herein and in the Credit Agreement.


 


NOW,
THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto agree as follows:


 


1.            Defined
Terms; Interpretation; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in
the Credit Agreement.


 


2.
           Amendments to Credit Agreement; Other Agreements.


 


(a)           The
definition of “LHI” provided in the Credit Agreement is hereby amended in its entirety and restated to provide as
follows, which is to be effective from and after January 7, 2021:


 


“LHI”
means Landsea Homes US Corporation, a Delaware corporation (f/k/a Landsea Homes Incorporated).


 


(b)           The
definition of “Floor Rate” provided in the Credit Agreement is hereby amended in its entirety and restated to provide
as follows, which is to be effective from and after March 1, 2021:


 


“Floor
Rate” means a rate of interest equal to 5.25% per annum.


 


(c)           The
definition of “Net Profit Margin” provided in the Credit Agreement is hereby amended in its entirety and restated
to provide as follows, which is to be effective




     


     


    

for
purposes of testing the financial covenant provided in Section 7.13(g) of the Credit Agreement for the calendar year 2020 and
thereafter:


 


“Net
Profit Margin” means total consolidated revenues of Parent from the sale of homes, Lots and land in the ordinary course
of business (a) reduced by the sum of the following: (i) the “cost of sales” less intercompany interest expensed in
“cost of sales”, (ii) “impairment of real estate held for sale”, (iii) selling expense, (iv) general and
administrative expense, (v) incentive compensation, and (vi) management fee revenue and as further reduced or increased (as applicable)
by gain or loss on foreign currency exchange, (b) plus the following items (without duplication) to the extent such items are
included in calculating the items described in clause (a): (i) net losses from unconsolidated joint ventures, (ii) purchase price
accounting for acquired inventory amortization resulting from the valuation step-up of acquired inventory, (iii) acquisition transaction
related costs and (iv) non-recurring / extraordinary expense as approved by Administrative Agent, expressed as a percentage of
total consolidated revenues of Parent from the sale of homes, Lots and land in the ordinary course of business.


 


(d)          Section
6.4(h) of the Credit Agreement is amended in its entirety and restated to provide as follows:


 


(h)       Projections.
On or before March 31 of each Fiscal Year, Borrower shall provide projections and budgets of Parent for such Fiscal Year, which
shall be in form and content satisfactory to Administrative Agent and shall include Parent’s projections of the Gross Profit
Margin and Net Profit Margin for such Fiscal Year. The Gross Profit Margin and Net Profit Margin shall be subject to review and
adjustment by Administrative Agent and upon Administrative Agent’s approval (subject to the limitations on the minimum Gross
Profit Margin and Net Profit Margin in Sections 7.13(f) and 7.13(g)) shall be the applicable Gross Profit Margin and Net Profit
Margin for purposes of the financial covenants in Sections 7.13(f) and 7.13(g). Administrative Agent agrees to consult with Borrower
prior to approving a Gross Profit Margin and Net Profit Margin that differs from Parent’s projections.


 


3.            Conditions
Precedent. This Amendment shall become effective as of the date on which the following conditions precedent are satisfied
(such date, the “Amendment Effective Date”):


 


(a)          The
Administrative Agent shall have received from the Borrower, each other Loan Party and each Lender a counterpart of this Amendment
duly executed and delivered on behalf of such party.


 


(b)          The
Administrative Agent shall have received all fees and other amounts due and payable on or prior to the date hereof, including
reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel) required
to be reimbursed or paid by any Loan Party in connection with this Amendment.






    2


     


    

(c)          The
Administrative Agent shall have received such other documents and agreements as required by Administrative Agent in connection
with this Amendment.


 


(d)          Upon
the effectiveness of this Amendment and both immediately before and immediately after giving effect to this Amendment, no Default
or Event of Default shall exist.


 


(e)           The
representations and warranties in Section 4 of this Amendment shall be true and correct in all material respects.


 


The
Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and
binding.


 


4.            Representations
and Warranties. In order to induce the Lenders and the Administrative Agent to enter into this Amendment, the Borrower hereby
represents and warrants to the Lenders and the Administrative Agent on and as of the Amendment Effective Date that:


 


(a)          Existence,
Qualification and Power. The Borrower and each Loan Party (i) is duly organized or formed, validly existing and, as applicable,
in good standing under the Laws of the jurisdiction of its incorporation or organization, (ii) has all requisite power and authority
and all requisite governmental licenses, authorizations, consents and approvals to (x) own or lease its assets and carry on its
business and (y) execute, deliver and perform its obligations under the Amendment and the other Loan Documents to which it is
a party, and (iii) is duly qualified and is licensed and, as applicable, in good standing under the laws of each jurisdiction
where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except
to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Change.


 


(b)          Authorization;
No Contravention. The execution, delivery and performance by the Borrower of the Amendment and each Loan Document to which
it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene
the terms of its certificate or articles of incorporation or organization or other applicable constitutive documents, (ii) conflict
with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (x)
any material contractual obligation to which the Borrower is a party or affecting the Borrower or the properties of the Borrower
or any Subsidiary or (y) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to
which the Borrower or any Subsidiary or its property is subject or (c) violate any law in any material respect.


 


(c)          Governmental
Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance
by, or enforcement against, the Borrower of this Amendment or anyotherLoanDocument,exceptforsuchapprovals,consents,exemptions,




    3


     


    

authorizations,
actions or notices that have been duly obtained, taken or made and in full force and effect.


 


(d)          Execution
and Delivery; Binding Effect. This Amendment has been, and each other Loan Document, when delivered hereunder, will have been,
duly executed and delivered by the Loan Parties party thereto. This Amendment constitutes, and each other Loan Document when so
delivered will constitute, a legal, valid and binding obligation of each Loan Party party thereto, enforceable against each such
Loan Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of equity.


 


(e)          Credit
Agreement Representations and Warranties. The representations and warranties of the Borrower and the other Loan Parties set
forth in the Credit Agreement or in any other Loan Document are true and correct in all material respects (or, in the case of
any such representation or warranty already qualified by materiality, in all respects) on and as of the Amendment Effective Date
(or, in the case of any such representation or warranty expressly stated to have been made as of a specific date, as of such specific
date).


 


5.            Reaffirmation
of Guarantees and Security Interests. Each Loan Party hereby acknowledges its receipt of a copy of this Amendment and its
review of the terms and conditions hereof and consents to the terms and conditions of this Amendment and the transactions contemplated
thereby. Each Loan Party hereby (a) affirms and confirms its guarantees, pledges, grants and other undertakings under the Credit
Agreement and the other Loan Documents to which it is a party, (b) agrees that (i) each Loan Document to which it is a party shall
continue to be in full force and effect and (ii) all guarantees, pledges, grants and other undertakings thereunder shall continue
to be in full force and effect and shall accrue to the benefit of the Administrative Agent and Lenders, and (c) acknowledges that
from and after the date hereof, all Revolving Loans under the Credit Agreement from time to time outstanding shall be deemed to
be Borrower Obligations.


 


6.
           Miscellaneous.


 


(a)       Release.
Each Loan Party fully, finally, and forever releases and discharges Administrative Agent, Lenders and their successors, assigns,
directors, officers, employees, agents, and representatives from any and all actions, causes of action, claims, debts, demands,
liabilities, obligations, and suits, of whatever kind or nature, in law or equity, that such Loan Party has or in the future may
have, whether known or unknown, (i) in respect of the Loan, the Loan Documents, or the actions or omissions of Administrative
Agent or Lenders in respect of the Loan or the Loan Documents and (ii) arising from events occurring prior to the date of this
Amendment. FURTHER, BORROWER AND EACH OTHER LOAN PARTY EXPRESSLY WAIVES ANY PROVISION OF APPLICABLE LAW TO THE EFFECT THAT
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT, IF KNOWN BY HIM OR




    4


     


    

HER,
WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.


 


(b)          Amendment,
Modification and Waiver. This Amendment may not be amended and no provision hereof may be waived except pursuant to a writing
signed by each of the parties hereto.


 


(c)           Entire
Agreement. This Amendment, the Credit Agreement (as amended hereby) and the other Loan Documents constitute the entire
agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and
understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.


 


(d)          Governing
Law. This Amendment and any claims controversy, dispute or cause of action (whether in contract or tort or otherwise) based
upon, arising out of or relating to this Amendment and the transactions contemplated hereby shall be governed by, and construed
in accordance with, the laws of the State of Arizona.


 


(e)          Jurisdiction.
The Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation
or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative
Agent, any Lender, or any Related Party of the foregoing in any way relating to this Amendment, the Credit Agreement or any other
Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of Arizona sitting
in Maricopa County, and of the United States District Court of the District of Arizona, and any appellate court from any thereof,
and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all
claims in respect of any such action, litigation or proceeding may be heard and determined in such Arizona State court or, to
the fullest extent permitted by applicable Law, in such federal court. Each of the parties hereto agrees that a final judgment
in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that the
Administrative Agent, any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other
Loan Document against Borrower or its properties in the courts of any jurisdiction.


 


(f)           Waiver
of Venue. The Borrower and each other Loan Party irrevocably and unconditionally waives, to the fullest extent permitted
by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising
out of or relating to this Amendment or any other Loan Document in any court referred to in paragraph (e) of this Section. Each
of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.




    5


     


    

(g)          Service
of Process. Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 10.1
of the Credit Agreement. Nothing in this Amendment or any other Loan Document will affect the right of any party hereto to serve
process in any other manner permitted by Applicable Law.


 


(h)          WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. WITHOUT
LIMITING THE FOREGOING WAIVER OF JURY TRIAL, SECTION 10.12 OF THE CREDIT AGREEMENT IS HEREBY INCORPORATED HEREIN BY REFERENCE.


 


(i)           Severability.
Any term or provision of this Amendment that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions of this Amendment
in any other jurisdiction. If any provision of this Amendment is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as would be enforceable.


 


(j)           Counterparts;
Integration; Effectiveness. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Amendment
and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided
in Section 5 hereof, this Amendment shall become effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the
other parties hereto. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic
(i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this
Amendment.


 


(k)          Headings.
The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.




    6


     


    

(l)            Reference
to and Effect on the Credit Agreement and the Other Loan Documents. On and after the Amendment Effective Date, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “herein” or words of like import
referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”,
“thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement
as amended by this Amendment. Except as specifically amended by this Amendment, the Credit Agreement and the other Loan Documents
shall remain in full force and effect and are hereby ratified and confirmed and this Amendment shall not be considered a novation.
The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver
of any right, power or remedy of the Administrative Agent or Lender under, the Credit Agreement or any of the other Loan Documents.
This Amendment shall be deemed to be a Loan Document as defined in the Credit Agreement.


 


[SIGNATURE
PAGES FOLLOW]




    7


     


    



IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as
of the day and year first above written.


 


	 	BORROWER:
	 	 
	 	LANDSEA HOMES- WAB LLC, a Delaware
limited liability company
	 	 	 
	 	By:	/s/ Bart Beasley
	 	 	Bart Beasley, Senior Vice President





 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Signature
Page to Sixth Amendment to Credit Agreement





     


     


    

	 	GUARANTORS:
	 	 
	 	LANDSEA HOMES US CORPORATION, a Delaware corporation (f/k/a Landsea Homes Incorporated)
	 	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer



 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Signature
Page to Sixth Amendment to Credit Agreement






     


     


    


	 	LS
    INVESTCO VALE LLC, a Delaware limited liability company
	 	 
	 	SF
    VALE, LLC, a Delaware limited liability company
	 	 
	 	LS
    MANAGER VALE LLC, a Delaware limited liability company
	 	 
	 	LS-SUNNYVALE
    LLC, a California limited liability company
	 	 
	 	THE
    VALE PA-1 OWNER, LLC, a Delaware limited liability company
	 	 
	 	THE
    VALE PA-2 OWNER, LLC, a Delaware limited liability company
	 	 
	 	THE
    VALE PA-3 OWNER, LLC, a Delaware limited liability company
	 	 
	 	LS-MILPITAS
    LLC, a Delaware limited liability company
	 	 
	 	LS-LIDO
    LLC, a Delaware limited liability company
	 	 
	 	LS-CHANDLER
    LLC, a Delaware limited liability company
	 	 
	 	LS-NEWARK
    LLC, a Delaware limited liability company
	 	 
	 	LS-CHATSWORTH
    LLC, a Delaware limited liability company
	 	 
	 	LS-ONTARIO
    LLC, a Delaware limited liability company
	 	 
	 	LS-ONTARIO
    II LLC, a Delaware limited liability company
	 	 
	 	LS-EASTMARK
    LLC, a Delaware limited liability company
	 	 
	 	PINNACLE
    WEST HOMES E92 LLC, an Arizona limited liability company
	 	 
	 	LS-TRACY
    LLC, a Delaware limited liability company
	 	 
	 	LS-GOODYEAR
    LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ /s/ Bart Beasley
	 	 	Bart
    Beasley, Senior Vice President




 


Signature
Page to Sixth Amendment to Credit Agreement




     


     


    




	 	ADMINISTRATIVE
    AGENT:
	 	 
	 	WESTERN
    ALLIANCE BANK, an Arizona corporation
	 	 	 	 
	 	By:	/s/ John Eidean
	 	Name:	John EIDEAN
	 	Title:	SVP


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Signature
Page to Sixth Amendment to Credit Agreement




     


     


    



	 	LENDER:
	 	 
	 	WESTERN
    ALLIANCE BANK, an Arizona corporation
	 	 	 	 
	 	By:	/s/ John Eidean
	 	Name:	John EIDEAN
	 	Title:	SVP



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Signature
Page to Sixth Amendment to Credit Agreement




     


     


    



	 	LENDER:
	 	 
	 	FLAGSTAR
    BANK, FSB
	 	 	 	 
	 	By:	/s/ Philip Trujillo
	 	Name:	PHILIP TRUJILLO
	 	Title:	Vice President



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Signature
Page to Sixth Amendment to Credit Agreement