Document:

Exhibit

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 2 dated as of June 16, 2017 (this “Amendment”), to the SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of July 1, 2016 (as amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among WILLIAM LYON HOMES, INC., a California corporation (the “Borrower”), WILLIAM LYON HOMES, a Delaware corporation (“Parent”), the lenders from time to time party thereto (the “Lenders”), and CREDIT SUISSE AG, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders.
A. Pursuant to the Credit Agreement, the Lenders have extended, and have agreed to extend, credit to the Borrower.

B. The Borrower and Parent have requested, and the Required Lenders have agreed, to amend the Credit Agreement as provided herein.

Accordingly, 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:

SECTION 1. Defined Terms.  Capitalized terms used but not defined herein shall have the meanings given them in the Credit Agreement.

SECTION 2. Amendment to the Credit Agreement.   Subject to the satisfaction of the conditions set forth in Section 4 hereof, the table set forth in Section 7.1(a) of the Credit Agreement is hereby amended  and restated in its entirety to read as follows: 

	
		
	Period
	Maximum Leverage Ratio

	June 30, 2016 through and including December 30, 2016
	65%

	December 31, 2016 through and including December 30, 2017
	62.5%

	December 31, 2017 and thereafter
	60%

SECTION 3. Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, Parent and the Borrower represent and warrant to each of the Lenders and the Administrative Agent that, after giving effect to this Amendment, (a) the representations and warranties set forth in Section 4 of the Credit Agreement are true and correct in all material respects (except any representations and warranties which are qualified by materiality, which are correct and accurate in all respects) on and as of the Amendment No. 2 Effective Date (as defined below) as if made on and as of the Amendment No. 2 Effective Date, provided if any such representations and warranties are expressly made only as of a prior date, such representations and warranties are true and correct in all material respects (except any representations and warranties which are qualified by materiality are correct and accurate in all respects) as of such prior date; and (b) No Default or Event of Default shall have occurred and be continuing on the Amendment No. 2 

1

Effective Date.

SECTION 4. Amendment Effectiveness.  This Amendment shall become effective on the date (the “Amendment No. 2 Effective Date”) on which (a) the Administrative Agent shall have received counterparts of this Amendment that, when taken together, bear the signatures of the Borrower, Parent and the Required Lenders; and (b) the Administrative Agent shall have received all fees and reimbursement of all expenses required to be paid by the Borrower in connection with the transactions contemplated hereby.

SECTION 5. Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Issuing Lenders or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  This Amendment shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to herein.  After the date hereof, any reference to the Credit Agreement shall mean the Credit Agreement as modified hereby.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

SECTION 6. Acknowledgment and Consent. Each Loan Party hereby acknowledges that it has read this Amendment and consents to the terms hereof and further hereby affirms, confirms and agrees that (a) notwithstanding the effectiveness of this Amendment, the obligations of such Loan Party under each of the Loan Documents to which it is a party shall not be impaired and each of the Loan Documents to which such Loan Party is a party is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects, in each case, as amended hereby; and (b) its guaranty of the Obligations, and the pledge of and/or grant of a security interest in its assets as Collateral to secure the Obligations, all as and to the extent provided in the Security Documents as originally executed, shall continue in full force and effect in respect of, and to secure, the Obligations as modified hereby.

SECTION 7. Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other customary means of electronic transmission (e.g., “pdf”) shall be as effective as delivery of a manually executed counterpart hereof.

SECTION 8.  Applicable Law.  THIS AMENDMENT AND ALL CLAIMS AND CONTROVERSIES IN CONNECTION HEREWITH SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 9. Submission to Jurisdiction.  Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Amendment, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding shall be heard and determined only in such New York 

2

State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action 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 Amendment shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Amendment or the other Loan Documents against the Borrower, Parent or their respective properties in the courts of any jurisdiction.

SECTION 10. Headings.  The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.
[Remainder of page intentionally left blank]

3

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized officers, all as of the date and year first above written.
	
		
	WILLIAM LYON HOMES, INC.,

	By /s/ Matthew R. Zaist

	 
	 

	 
	Name: Matthew R. Zaist

	 
	Title: President & Chief Executive Officer

	 
	 

	 
	 

	By /s/ Colin T. Severn

	 
	 

	 
	Name: Colin T. Severn

	 
	Title: Senior Vice President and Chief Financial Officer

	 
	 

	
		
	WILLIAM LYON HOMES,

	By /s/ Matthew R. Zaist

	 
	 

	 
	Name: Matthew R. Zaist

	 
	Title: President & Chief Executive Officer

	 
	 

	 
	 

	By /s/ Colin T. Severn

	 
	 

	 
	Name: Colin T. Severn

	 
	Title: Senior Vice President and Chief Financial Officer

	 
	 

4

	
		
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, individually and as Administrative Agent,

	By /s/ William O’Daly

	 
	 

	 
	Name: William O’Daly

	 
	Title: Authorized Signatory

	 
	 

	By /s/ Karim Rahimtoola

	 
	 

	 
	Name: Karim Rahimtoola

	 
	Title: Authorized Signatory

5

SIGNATURE PAGE TO 
AMENDMENT NO. 2 TO
WILLIAM LYON HOMES, INC.
SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
DATED AS OF JULY 1, 2016

	
		
	COMERICA BANK

	By /s/ David Plattner

	 
	 

	 
	Name: David Plattner

	 
	Title: VP - Western Market

	 
	 

6

SIGNATURE PAGE TO 
AMENDMENT NO. 2 TO
WILLIAM LYON HOMES, INC.
SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
DATED AS OF JULY 1, 2016

	
		
	Name of Lender: Citibank, N.A.

	By /s/ Michael Vondriska

	 
	 

	 
	Name: Michael Vondriska

	 
	Title: Vice President

	 
	 

7

SIGNATURE PAGE TO 
AMENDMENT NO. 2 TO
WILLIAM LYON HOMES, INC.
SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
DATED AS OF JULY 1, 2016

	
		
	Name of Lender: JPMorgan Chase Bank, N.A.

	By /s/ Chiara Carter

	 
	 

	 
	Name: Chiara Carter

	 
	Title: Executive Director

	 
	 

8Exhibit 10.1

 

Third Amended and Restated Director Compensation Policy

Effective July 1, 2017

 

Annual Compensation For Board Members:

 

·                  $150,000 of which, $100,000 is awarded by equity awards and $50,000 is awarded in cash, payable quarterly.

 

	
Additional Committee Chair Fees   (payable quarterly):
    	
 
    	
 
    	
 
    
	
Audit Committee:
    	
 
    	
$
    	
22,000
    	
 
    
	
Compensation Committee:
    	
 
    	
$
    	
15,000
    	
 
    
	
Nominating/Corporate Governance:
    	
 
    	
$
    	
10,000
    	
 
    
	
Finance Committee:
    	
 
    	
$
    	
10,000
    	
 
    
	
Lead Director
    	
 
    	
$
    	
30,000
    	
 
    

 

Subject to the terms herein, the equity awards granted as part of the annual compensation set forth above will be made at the Board Meeting immediately following the meeting of stockholders, commencing with the 2008 Annual Meeting of Stockholders.

 

Equity Awards granted to board members shall be in the form of restricted stock (or restricted stock units or other similar equity award instrument as agreed to by the compensation committee); these shares will vest in three equal installments annually at a rate of 33.333%, with the first installment vesting on the next September 1 following the annual meeting of stockholders, with vesting each one year anniversary thereafter.  The annual restricted stock award granted to a non-employee director under the non-employee director compensation policy will be made at the board of directors’ meeting immediately following our annual meeting of stockholders.

 

In addition, we will make, under our 2015 Stock Option and Incentive Plan (or plan that is in effect), a one-time, initial restricted stock unit award of $50,000 (with the number of shares or units determined by dividing $50,000 by the fair market value of the closing price of our common shares on the date of grant) to any new non-employee director (who was not previously a director) who joins the board of directors. These shares will vest in three equal installments annually at a rate of 33.333%, with the first vesting date on the anniversary of the first day of the third month of the quarter following the director’s join date.

 

The vesting of all of the equity awards granted to our non-employee directors will also accelerate by 12 months in the event of a change in control.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]