Document:

Letter Amendment dated March 18, 2009

 Exhibit 10.1 
 LETTER AMENDMENT 
 March 18, 2009 
 Mr. Mike Grubbs 
 William Lyon Homes, Inc. 
 4490 Von Karman Avenue 
 Newport Beach, CA 92660 
  

	Re:	Guaranty Bank Loan No. 906-0100 

 Dear Mike, 
 With reference to that certain Amended and Restated Master Loan Agreement dated as of January 28, 2008 (“Original Loan Agreement”) by and between WILLIAM
LYON HOMES, INC., a California corporation (“Borrower”), and GUARANTY BANK, a federal savings bank organized and existing under the laws of the United States (“Lender”), as amended by that certain Agreement for First Modification
of Amended and Restated Loan Agreement, Deeds of Trust and Other Loan Instruments dated as of December 5, 2008 (“First Modification,” and collectively with the “Original Loan Agreement,” the “Loan Agreement”), this
letter is to serve as confirmation that Lender has approved Borrower’s request for an extension of the Facility Expiration Date as detailed in Exhibit “A,” Paragraph 1(D)(b) of the First Modification, and the Facility Expiration Date
is hereby extended to December 3, 2009, subject to Exhibit “A,” Paragraph 1(D)(b) of the First Modification. Initially capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Loan
Agreement. 
 This letter also serves as confirmation that effective as of March 5, 2009, Paragraph 3(iv) of the First Modification is hereby amended to
provide that the Loan Amount is hereby reduced to THIRTY MILLION DOLLARS ($30,000,000.00), and aggregate Loan Allocations shall not exceed THIRTY MILLION DOLLARS ($30,000,000.00). 
 Except as expressly provided in this letter amendment, nothing provided herein shall alter or affect any provision, condition or covenant contained in the Loan Instruments or affect or impair any of Lender’s
rights, powers or remedies thereunder. It is the intent of the parties hereto that the provisions of the Loan Instruments shall continue in full force and effect except as expressly modified hereby. 

 Please indicate your agreement to these terms by signing the original of this letter and returning it to us. The enclosed
copy is for your records. 
  

			
	Very truly yours,
	
	 GUARANTY BANK,
 a federal savings bank
organized and existing under the laws of the United States

		
	By:	 	 /s/ Kent Newberry

	Name:	 	Kent Newberry
	Title:	 	Senior Vice President

  

			
	Agreed to by:
	
	 WILLIAM LYON HOMES, INC.,
 a California
corporation

		
	By:	 	 /s/ Michael D. Grubbs

	Name:	 	 Michael D. Grubbs

	Title:	 	 Senior Vice President

		
	By:	 	 /s/ Richard S. Robinson

	Name:	 	 Richard S. Robinson

	Title:	 	 Senior Vice PresidentLetter Amendment to Amended and Restated Revolving Line of Credit

 Exhibit 10.2 
  

			
	

	  	 Roxana K. Chamouille
 Direct: (949)
223-7224
 roxana.chamouille@bryancave.com

  

			
	 March 13, 2009
  
 VIA E-MAIL
  
 Mr. Richard S. Robinson and
 Mr. Michael D. Grubbs
 William Lyon Homes, Inc.
 4490 Von Karman Avenue
 Newport Beach, California 92660
  
 Re:   That certain Revolving Line of Credit Loan (Borrowing Base) in an amount not to exceed $30,000,000 (“Loan”) by CALIFORNIA BANK & TRUST, a California banking corporation
(“Lender”), to WILLIAM LYON HOMES, INC., a California corporation (“Borrower”)
  
 Dear Messrs. Robinson and Grubbs:
  
 As you know, this firm represents Lender in connection with the Loan. The Loan is being administered pursuant to the terms of that certain Amended and Restated Revolving Line of Credit Loan Agreement (Borrowing Base Loan) dated as of
September 16, 2004, by and between Borrower and Lender (as the same has been and may be further amended from time to time, “Loan Agreement”). The Loan is evidenced by that certain Eighth Amended and Restated Construction Loan
Promissory Note (Construction Revolving Line of Credit) dated as of September 17, 2008, given by Borrower to Lender (as the same has been and may be further amended from time to time, “Current Note”). All present and future
agreements evidencing and/or relating to the Loan collectively shall be referred to herein as the “Loan Documents.” Unless otherwise specified herein, all capitalized terms shall have such meanings as provided in the Loan Agreement.

  
 Borrower and Lender have agreed to the following modifications to
the Loan Documents from and after the date hereof:
  
 A.
Decrease in the Maximum Commitment Amount and Maximum Loan Amount. From and after the date hereof, the maximum amount of the Loan and the maximum “Commitment Amount” (as defined in the Loan Agreement) are hereby decreased
from the current amount of Thirty Million Dollars ($30,000,000.00) to Twenty Million Dollars ($20,000,000.00) (“New Commitment Amount”). All references in the Loan Documents to the maximum amount of the Loan and maximum Commitment
Amount shall be revised to refer to the New Commitment Amount set forth herein.
	 	 Bryan Cave LLP
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Suite 1500
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 Tel (949) 223-7000
 Fax (949) 223-7100
 www.bryancave.com
  
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	Messrs. Richard S. Robinson and Michael D. Grubbs	 	Bryan Cave LLP
	March 13, 2009	 	
	 Page
 2
	 	

  

 B. Amendment to Definition of Commitment Amount. The definition of “Commitment
Amount” set forth in the Loan Agreement shall be replaced with the following: 
 “Commitment Amount”
means (a) during the Initial Line Term, the sum of Twenty Million Dollars ($20,000,000.00), and (b) during the Reduction Period, beginning upon the last day of the first Calendar Quarter following the Initial Line Maturity Date, and on or prior
to the last day of each Calendar Quartet thereafter during the Reduction Period, the Commitment Amount shall be reduced in the minimum amount of Five Million Dollars ($5,000,000.00) (each, “Reduced Commitment Amount”): 

 

			
	 Date
	  	 Reduced Commitment Amount

	Initial Line Maturity Date	  	$20,000,000.00
	First Calendar Quarter	  	$15,000,000.00
	Second Calendar Quarter	  	$10,000,000.00
	Third Calendar Quarter	  	$5,000,000.00
	Fourth Calendar Quarter	  	$0.00

 C. Decrease in the Amount of the Current Note. As a result of the decrease in the
amount of the Loan and the maximum Commitment Amount, the face amount of the Current Note shall be decreased from the current amount of Thirty Million Dollars ($30,000,000.00) to the New Commitment Amount of Twenty Million Dollars ($20,000,000.00)
(“New Note Amount”). All references in the Loan Documents to the face amount of the Current Note shall be revised to refer to the New Note Amount set forth herein. 
 D. Modification of the Current Note. From and after the date hereof, the Current Note shall be modified to evidence the decrease in the
amount of the Loan and the maximum Commitment Amount as described herein (the Current Note, as amended herein, shall be referred to as the “Note”). 
 Except as may otherwise specifically be provided herein, the Loan Documents are in full force and effect and shall be enforceable in accordance with their terms and provisions. Furthermore, by its execution and
delivery of this letter agreement, Borrower hereby reaffirms all of the terms, conditions, obligations, responsibilities, indemnities and duties imposed on Borrower under the Loan Documents (“Obligations”), without qualification or
condition, and said Obligations shall continue to be the primary responsibility and liability of Borrower. Borrower’s failure to comply with the terms and conditions of this letter agreement shall constitute an Event of Default under the Loan
Agreement. 

			
	Messrs Richard S. Robinson and Michael D. Grubbs	 	Bryan Cave LLP
	March 13, 2009	 	
	 Page
 3
	 	

  

 Please execute this letter agreement in the spaces provided below to indicate Borrower’s
agreement to the terms set forth herein. This letter agreement, once signed by Borrower and Lender, shall be included as one of the Loan Documents evidencing and/or relating to the Loan. 
 Please feel free to contact me with any questions. 
  

	
	 Very truly yours,

	
	 /s/ Roxana K. Chamouille

	 Roxana K. Chamouille

	 For the Firm

 [Signatures continued on the following page.] 
  

			
	Messrs. Richard S. Robinson and Michael D. Grubbs	 	Bryan Cave LLP
	March 13, 2009	 	
	 Page
 4
	 	

  

			
	 ACKNOWLEDGED AND AGREED AS OF

	 March 20, 2009:

	
	 BORROWER:

	
	 WILLIAM LYON HOMES, INC.,
 a California corporation

		
	 By:
	 	 /s/ Richard S. Robinson

	 Name:
	 	Richard S. Robinson
	 Title:
	 	Senior Vice President
		
	 By:
	 	 /s/ Michael D. Grubbs

	 Name:
	 	Michael D. Grubbs
	 Title:
	 	Senior Vice President
	
	 LENDER:

	
	 CALIFORNIA BANK & TRUST,
 a California banking corporation

		
	 By:
	 	 /s/ James A. Lehmkuhl

		 	James A. Lehmkuhl
		 	VICE PRESIDENTFourth Amendment Agreement

 Exhibit 10.3 
 FOURTH AMENDMENT AGREEMENT 
 This Fourth Amendment Agreement (this “Fourth
Amendment Agreement”) is entered into as of March 17, 2009, by and between WILLIAM LYON HOMES, INC., a California corporation (“Borrower”), and COMERICA BANK (“Lender”).
This Fourth Amendment Agreement is made with reference to the following facts: 
 RECITALS 
 A. Lender has made a revolving line of credit available to Borrower in the initial maximum outstanding principal amount of $50,000,000 (the
“Loan”), pursuant to the terms of that certain Revolving Line of Credit Loan Agreement (Borrowing Base Loan) dated as of March 8, 2006 (as amended by the First Amendment Agreement, Second Amendment Agreement and Third
Amendment Agreement described below and by this Fourth Amendment Agreement, the “Loan Agreement”). Capitalized terms used in this Fourth Amendment Agreement and not defined shall have the meanings assigned to such terms in
the Loan Agreement. 
 B. Pursuant to that certain Amendment Agreement dated as of February 28, 2008, by and between Borrower and Lender
(the “First Amendment Agreement”), among other things (i) the maximum Commitment Amount was reduced to $35,000,000, (ii) certain adjustments were made to the Borrowing Base, and (iii) the Initial Line Maturity
Date was extended by twelve (12) months to and until April 3, 2009. 
 C. The Loan Agreement was further modified pursuant to that
certain Second Amendment Agreement dated as of September 2, 2008, by and between Borrower and Lender (the “Second Amendment Agreement”) to make certain additional changes to the Borrowing Base. 
 D. Pursuant to that certain Third Amendment Agreement dated as of December 22, 2008, by and between Borrower and Lender (the “Third
Amendment Agreement”), among other things (i) the parties reduced the Commitment Amount to $30,000,000 and agreed to make further quarterly reductions in the Commitment Amount, (ii) certain additional adjustments were made to
the Borrowing Base, and (iii) certain financial covenants were revised. 
 E. Subject to the terms and conditions contained in this
Fourth Amendment Agreement, Borrower and Lender have agreed to further modify the Loan Agreement as set forth herein. 
 F. As used in this
Fourth Amendment Agreement, the term “Loan Documents” means the Loan Agreement, the Amended and Restated Note, the Deeds of Trust, the other Security Documents, the Environmental Indemnity, the Guaranty, and the other
“Loan Documents” described in the Loan Agreement. This Fourth Amendment Agreement shall also constitute a Loan Document. 
  

 -1- 

 AGREEMENT 
 NOW, THEREFORE, with reference to the foregoing Recitals and information, and in consideration of the mutual covenants and agreements contained in this Fourth Amendment Agreement, and for other valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender agree as follows: 
 1. Recitals: Representations and
Warranties. The above statement of facts set forth in the Recitals is true and correct, and the Recitals are hereby incorporated herein as an agreement of Borrower and Lender. Borrower hereby represents and warrants to Lender that (a) no
Event of Default or Unmatured Event of Default has occurred or exists, and (b) all representations and warranties of Borrower contained in the Loan Agreement or in any of the other Loan Documents are true and correct as of the date hereof.

 2. Amendments to Loan Agreement. Borrower and Lender hereby amend the Loan Agreement as follows: 
 2.1 The definition of “Commitment Amount” set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following: 
 ‘“Commitment Amount’ means (a) through March 30, 2009, the sum of Thirty Million
Dollars ($30,000,000.00), (b) from March 31, 2009, through December 30, 2009, the sum of Fifteen Million Dollars ($15,000,000.00), and (c) from and after December 31,2009, the sum of Fourteen Million Dollars
($14,000,000.00).” 
 3. Lender’s Waiver of Set-off Rights. Notwithstanding any provision of any Loan Document or applicable
law to the contrary, in no event shall Lender, whether with or without demand or notice to Borrower, exercise any right to set-off and apply deposits (whether certificates of deposit, demand, general, savings, special, time, or other, and whether
provisional or final) held by Lender for Borrower or any other liabilities or other obligations of Lender to Borrower against or to the Obligations. By its signature below, Lender hereby waives any right it may have to set-off and apply such
deposits or other liabilities against or to the Obligations. 
 4. Security Documents. Each Deed of Trust, and all other Security
Documents, shall secure, in addition to all other indebtedness and obligations secured thereby, the payment and performance of all present and future indebtedness and obligations of Borrower under (a) this Fourth Amendment Agreement,
(b) the Amended and Restated Note, (c) any and all amendments, modifications, renewals and/or extensions of the Loan Agreement, regardless of whether any such amendment, modification, renewal or extension is evidenced by a new or
additional instrument, document or agreement, and (d) all other Loan Documents (other than the Guaranty and the Environmental Indemnity, the obligations under which are not secured by the Deeds of Trust). 
 5. Definitions. Except as provided in this Fourth Amendment Agreement, all references in the Loan Agreement and in the other Loan Documents
(a) to the Loan Agreement shall mean the Loan Agreement as amended by this Fourth Amendment Agreement, and (b) to the Loan Documents shall mean the Loan Documents as such term is defined in this Fourth Amendment Agreement. 
  

 -2- 

 6. Conditions Precedent. Lender’s obligation to modify the terms of the Loan Agreement as set
forth herein is subject to the satisfaction of all of the following conditions precedent (any of which may be waived by Lender in its sole discretion); 
 6.1 Lender shall have received a fully executed original of this Fourth Amendment Agreement (including an original of the executed Guarantor’s Consent attached hereto). 
 6.2 No change shall have occurred in the financial condition of Borrower, Guarantor or any Project, which would have, in Lender’s sole judgment, a
material adverse effect on such Project or on Borrower’s or Guarantor’s ability to repay the Loan or otherwise perform their respective obligations under the Loan Documents as of the date hereof. 
 6.3 No condemnation or adverse zoning or usage change proceeding shall have occurred or shall have been threatened against any Project; no Project shall
have suffered any significant damage by fire or other casualty which has not been repaired; no law, regulation, ordinance, moratorium, injunctive proceeding, restriction, litigation, action, citation or similar proceeding or matter shall have been
enacted, adopted, or threatened by any governmental authority, which would have, in Lender’s judgment, a material adverse effect on Borrower or any Project as of the date hereof. 
 6.4 The representations and warranties contained in the Loan Agreement and in all other Loan Documents shall remain true and correct as of the date
hereof. 
 6.5 No Event of Default or Unmatured Event of Default shall have occurred and be continuing. 
 6.6 Borrower shall have reimbursed Lender for all costs and expenses incurred by Lender in connection with the transaction contemplated by this Fourth
Amendment Agreement, including all attorneys’ fees and costs. 
 7. Non-Impairment. Except as expressly provided herein, nothing
in this Fourth Amendment Agreement shall alter or affect any provision, condition or covenant contained in the Loan Agreement or the other Loan Documents or affect or impair any rights, powers or remedies thereunder, and the parties hereto intend
that the provisions of the Loan Agreement and the other Loan Documents shall continue in full force and effect except as expressly modified hereby. 
 8. Miscellaneous. This Fourth Amendment Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California applicable to contracts made and performed in such state, without regard to
the principles thereof regarding conflict of laws, and any applicable laws of the United States of America. The headings used in this Fourth Amendment Agreement are for convenience only and shall be disregarded in interpreting the substantive
provisions of this Fourth Amendment Agreement. If any provision of this Fourth Amendment Agreement shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed herefrom and
the remaining parts shall remain in full force as though the invalid, illegal or unenforceable provision had never been a part hereof. As used in this Fourth Amendment Agreement, the term “include(s)” shall mean
“include(s), without limitation,” and the term “including” shall mean “including, but not limited to.” 
  

 -3- 

 9. Integration; Interpretation. The Loan Documents, including this Fourth Amendment Agreement,
contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated therein, and supersede all prior negotiations. No reference to this Fourth Amendment Agreement is necessary in any instrument
or document at any time referring to a Loan Document. Any reference to a Loan Document (including in any other Loan Document) shall be deemed a reference to such document as amended hereby. 
 10. Counterparts. This Fourth Amendment Agreement may by executed in any number of counterparts, all of which shall be considered one and the same
instrument. The original, executed signature pages of exact copies of this Fourth Amendment Agreement may be attached to one of such copies to form one document. 
  

 -4- 

 IN WITNESS WHEREOF, Borrower and Lender have executed this Fourth Amendment Agreement as of the day and
year first set forth above. 
  

			
	BORROWER:
	
	WILLIAM LYON HOMES, INC., a California corporation
		
	By:	 	 /s/ Michael D. Grubbs

	Name:	 	Michael D. Grubbs
	Title:	 	Senior Vice President
		
	By:	 	 /s/ Richard S. Robinson

	Name:	 	Richard S. Robinson
	Title:	 	Senior Vice President
	
	LENDER:
	
	COMERICA BANK
		
	By:	 	 /s/ David Plattner

	Name:	 	David Plattner
	Title:	 	Vice President—Western Market

  

 S-1 

 GUARANTOR’S CONSENT 
 WILLIAM LYON HOMES, a Delaware corporation (“Guarantor”), hereby consents to the terms, conditions and provisions of the
foregoing Fourth Amendment Agreement (“Fourth Amendment Agreement”) and the transactions contemplated by the Fourth Amendment Agreement. Guarantor hereby reaffirms the full force and effectiveness of its Guaranty dated as of
March 8, 2006 (the “Guaranty”), in light of the Fourth Amendment Agreement, including without limitation all waivers, authorizations and agreements set forth therein. Guarantor hereby confirms and agrees that all
references in the Guaranty to the Loan Agreement shall hereafter be deemed references to the Loan Agreement as amended by the Fourth Amendment Agreement. In addition, Guarantor acknowledges that its obligations under the Guaranty are separate and
distinct from those of Borrower on the Loan. 
 Dated as of March 17, 2009. 
  

			
	GUARANTOR:
	
	WILLIAM LYON HOMES, a Delaware corporation
		
	By:	 	 /s/ Michael D. Grubbs

	Name:	 	Michael D. Grubbs
	Title:	 	Senior Vice President
		
	By:	 	 /s/ Richard S. Robinson

	Name:	 	Richard S. Robinson
	Title:	 	Senior Vice President

 CONSENT

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