Document:

Exhibit 10.1

 

LeapFrog
Enterprises, Inc.

 

AMENDED
AND RESTATED 2011 Equity AND Incentive Plan

 

Adopted
by the Board of Directors: March 17, 2011

Approved
by the Stockholders: June 2, 2011

Amended
and Restated: March 30, 2012

Approved
by the Stockholders: June 5, 2012

Amended
and Restated: June 19, 2015

Approved
by the Stockholders: August 13, 2015

Termination
Date: March 16, 2021

 

		1.	General.

 

(a)              
Successor to and Continuation of Prior Plan. The Plan is intended as the successor to and continuation of the LeapFrog
Enterprises, Inc. 2002 Equity Incentive Plan (the “Prior Plan”). Following the Effective Date, no additional
stock awards shall be granted under the Prior Plan. Any shares remaining available for issuance pursuant to the exercise of options
or issuance or settlement of stock awards under the Prior Plan as of the Effective Date (the “Prior Plan’s Available
Reserve”) shall become available for issuance pursuant to Stock Awards granted hereunder. From and after the Effective
Date, all outstanding stock awards granted under the Prior Plan shall remain subject to the terms of the Prior Plan; provided,
however, any shares subject to outstanding stock awards granted under the Prior Plan that expire or terminate for any reason
prior to exercise or settlement or are forfeited because of the failure to meet a contingency or condition required to vest such
shares or are reacquired or withheld by the Company to satisfy a tax withholding obligation or as consideration for the exercise
of an Option (the “Returning Shares”) shall become available for issuance pursuant to Awards granted
hereunder. All Awards granted on or after the Effective Date of this Plan shall be subject to the terms of this Plan.

 

(b)              
Eligible Award Recipients. The persons eligible to receive Awards are Employees, Directors and Consultants.

 

(c)               
Available Awards. The Plan provides for the grant of the following Awards: (i) Incentive Stock Options, (ii) Nonstatutory
Stock Options, (iii) Stock Appreciation Rights (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards, (vi) Performance
Stock Awards, (vii) Performance Cash Awards, and (viii) Other Stock Awards.

 

(d)              
Purpose. The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible
to receive Awards as set forth in Section 1(b), to provide incentives for such persons to exert maximum efforts for the success
of the Company and any Affiliate and to provide a means by which such eligible recipients may be given an opportunity to benefit
from increases in value of the Class A Common Stock through the granting of Awards.

 

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		2.	Administration.

 

(a)              
Administration by Board. The Board shall administer the Plan unless and until the Board delegates administration of
the Plan to a Committee or Committees, as provided in Section 2(c).

 

(b)              
Powers of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of
the Plan:

 

(i)                
To determine from time to time (A) which of the persons eligible under the Plan shall be granted Awards; (B) when and
how each Award shall be granted; (C) what type or combination of types of Award shall be granted; (D) the provisions of each Award
granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Class A
Common Stock pursuant to a Stock Award; (E) the number of shares of Class A Common Stock with respect to which a Stock Award shall
be granted to each such person; and (F) the Fair Market Value applicable to a Stock Award.

 

(ii)              
To construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations
for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan
or in any Stock Award Agreement or in the written terms of a Performance Cash Award, in a manner and to the extent it shall deem
necessary or expedient to make the Plan or Award fully effective.

 

(iii)            
To settle all controversies regarding the Plan and Awards granted under it.

 

(iv)            
To accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof
will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised
or the time during which it will vest.

 

(v)              
To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall not impair rights and obligations
under any Award granted while the Plan is in effect except with the written consent of the affected Participant.

 

(vi)            
To amend the Plan in any respect the Board deems necessary or advisable. However, except as provided in Section 9(a)
relating to Capitalization Adjustments, to the extent required by applicable law or listing requirements, stockholder approval
shall be required for any amendment of the Plan that either (A) materially increases the number of shares of Class A Common Stock
available for issuance under the Plan, (B) materially expands the class of individuals eligible to receive Awards under the Plan,
(C) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of
Class A Common Stock may be issued or purchased under the Plan, (D) materially extends the term of the Plan, or (E) expands the
types of Awards available for issuance under the Plan. Except as provided above, rights under any Award granted before amendment
of the Plan shall not be impaired by any amendment of the Plan unless (1) the Company requests the consent of the affected Participant,
and (2) such Participant consents in writing.

 

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(vii)          
To submit any amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of (A) Section 162(m) of the Code regarding the exclusion of performance-based compensation
from the limit on corporate deductibility of compensation paid to Covered Employees, (B) Section 422 of the Code regarding incentive
stock options or (C) Rule 16b-3.

 

(viii)        
To approve forms of Award Agreements for use under the Plan and to amend the terms of any one or more Awards, including,
but not limited to, amendments to provide terms more favorable to the Participant than previously provided in the Award Agreement,
subject to any specified limits in the Plan that are not subject to Board discretion; provided however, that except with
respect to amendments that disqualify or impair the status of an Incentive Stock Option, a Participant’s rights under any
Award shall not be impaired by any such amendment unless (A) the Company requests the consent of the affected Participant, and
(B) such Participant consents in writing. Notwithstanding the foregoing, subject to the limitations of applicable law, if any,
the Board may amend the terms of any one or more Awards without the affected Participant’s consent if necessary to maintain
the qualified status of the Award as an Incentive Stock Option or to bring the Award into compliance with Section 409A of the Code.

 

(ix)            
Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the
best interests of the Company and that are not in conflict with the provisions of the Plan or Awards.

 

(x)              
To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees,
Directors or Consultants who are foreign nationals or employed outside the United States.

 

(c)               
Delegation to Committee.

 

(i)                
General. The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration
of the Plan is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board that have been delegated to the Committee, including the power to delegate to a subcommittee
of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board
shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions
of the Plan, as may be adopted from time to time by the Board. The Committee may, at any time, abolish the subcommittee and/or
revest in the Committee any powers delegated to the subcommittee. The Board may retain the authority to concurrently administer
the Plan with the Committee and may, at any time, revest in the Board some or all of the powers previously delegated.

 

(ii)              
Section 162(m) and Rule 16b-3 Compliance. The Committee may consist solely of two or more Outside Directors, in accordance
with Section 162(m) of the Code, or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3.

 

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(d)              
Delegation to an Officer. The Board may delegate to one (1) or more Officers the authority to do one or both of the
following (i) designate Employees who are providing Continuous Service to the Company or any of its Subsidiaries who are not Officers
to be recipients of Options and Stock Appreciation Rights (and, to the extent permitted by applicable law, other Stock Awards)
and the terms thereof, and (ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such
Employees; provided, however, that the Board resolutions regarding such delegation shall specify the total number of shares of
Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer may not grant a Stock Award
to himself or herself. Notwithstanding the foregoing, the Board may not delegate authority to an Officer to determine the Fair
Market Value pursuant to Section 13(w)(iii) below.

 

(e)               
Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith
shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

 

(f)               
Cancellation and Re-Grant of Stock Awards. Neither the Board nor any Committee shall have the authority to: (i) reduce
the exercise price of any outstanding Options or Stock Appreciation Rights under the Plan, or (ii) cancel any outstanding Options
or Stock Appreciation Rights that have an exercise price or strike price greater than the current Fair Market Value of the Class
A Common Stock in exchange for cash or other Stock Awards under the Plan, unless the stockholders of the Company have approved
such an action within twelve (12) months prior to such an event. Notwithstanding the foregoing, the Board or Committee shall have
the authority, without the approval of the Company’s stockholders, to cancel outstanding Options or Stock Appreciation Rights
that have an exercise price or strike price greater than the current Fair Market Value of the Class A Common Stock in exchange
only for a nominal cash payment of consideration as necessary to effect a cancellation of the Award, provided that such cancellation
is not treated as a repricing under United States generally accepted accounting principles.

 

		3.	Shares Subject
to the Plan.

 

(a)              
Share Reserve. Subject to Section 9(a) relating to Capitalization Adjustments, the aggregate number of shares of Class
A Common Stock that may be issued pursuant to Stock Awards from and after the Effective Date shall not exceed nineteen million
one hundred two thousand seven hundred nineteen (19,102,719) shares (the “Share Reserve”), which number
is the sum of (i) 4,183,697, which is equal to the number of shares subject to the Prior Plan’s Available Reserve, (ii) an
additional 12,200,000 new shares, plus (iii) a maximum of 2,719,022 Returning Shares (which number consists of 1,102,676 which
became available for issuance after approval of the Plan and 1,616,346 shares which remain subject to stock awards under the Prior
Plan as of May 31, 2015). The number of shares available for issuance under the Plan shall be reduced by one (1) share for each
share of Class A Common Stock issued pursuant to any Stock Award granted under the Plan. For clarity, the number of shares reserved
for issuance in this Section 3(a) is a limitation on the number of shares of the Class A Common Stock that may be issued pursuant
to the Plan and does not limit the granting of Stock Awards except as provided in Section 7(a). Shares may be issued in connection
with a merger or acquisition as permitted by, as applicable, NASDAQ Listing Rule 5635(c) or, if applicable, NYSE Listed Company
Manual Section 303A.08, AMEX Company Guide Section 711 or other applicable rule, and such issuance shall not reduce the number
of shares available for issuance under the Plan. Furthermore, if a Stock Award or any portion thereof (i) expires or otherwise
terminates without all of the shares covered by such Stock Award having been issued or (ii) is settled in cash (i.e., the
Participant receives cash rather than stock), such expiration, termination or settlement shall not reduce (or otherwise offset)
the number of shares of Class A Common Stock that may be available for issuance under the Plan.

 

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(b)              
Reversion of Shares to the Share Reserve. If any shares of Class A Common Stock issued pursuant to a Stock Award are
forfeited back to the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant,
then the shares that are forfeited shall revert to and again become available for issuance under the Plan. Any shares reacquired
by the Company pursuant to Section 8(g) or as consideration for the exercise of an Option shall again become available for issuance
under the Plan.

 

(c)               
Incentive Stock Option Limit. Notwithstanding anything to the contrary in this Section 3 and, subject to the provisions
of Section 9(a) relating to Capitalization Adjustments, the aggregate maximum number of shares of Class A Common Stock that may
be issued pursuant to the exercise of Incentive Stock Options shall be nineteen million one hundred two thousand seven hundred
nineteen (19,102,719) shares of Class A Common Stock.

 

(d)              
Section 162(m) Limitation on Annual Grants. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments,
at such time as the Company may be subject to the applicable provisions of Section 162(m) of the Code, a maximum of Three Million
Five Hundred Thousand (3,500,000) shares of Class A Common Stock subject to Options, Stock Appreciation Rights and Other Stock
Awards whose value is determined by reference to an increase over an exercise or strike price of at least one hundred percent (100%)
of the Fair Market Value on the date any such Stock Award is granted may be granted to any Participant during any calendar year.
Notwithstanding the foregoing, if any additional Options, Stock Appreciation Rights or Other Stock Awards whose value is determined
by reference to an increase over an exercise or strike price of at least one hundred percent (100%) of the Fair Market Value on
the date the Stock Award are granted to any Participant during any calendar year, compensation attributable to the exercise of
such additional Stock Awards shall not satisfy the requirements to be considered “qualified performance-based compensation”
under Section 162(m) of the Code unless such additional Stock Award is approved by the Company’s stockholders.

 

(e)               
Source of Shares. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Class A
Common Stock, including shares repurchased by the Company on the open market or otherwise.

 

		4.	Eligibility.

 

(a)              
Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to employees of the Company or a
“parent corporation” or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e)
and (f) of the Code). Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants; provided,
however, Nonstatutory Stock Options and SARs may not be granted to Employees, Directors and Consultants who are providing Continuous
Service only to any “parent” of the Company, as such term is defined in Rule 405 promulgated under the Securities
Act, unless the stock underlying such Stock Awards is treated as “service recipient stock” under Section 409A
of the Code because the Stock Awards are granted pursuant to a corporate transaction (such as a spin off transaction) or unless
such Stock Awards comply with the distribution requirements of Section 409A of the Code.

 

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(b)              
Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise
price of such Option is at least one hundred ten percent (110%) of the Fair Market Value on the date of grant and the Option is
not exercisable after the expiration of five (5) years from the date of grant.

 

		5.	Provisions
relating to Options and Stock Appreciation Rights.

 

Each Option or SAR
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates shall be issued for shares of Class A Common Stock purchased on exercise of each type of Option. If
an Option is not specifically designated as an Incentive Stock Option, then the Option shall be a Nonstatutory Stock Option. The
provisions of separate Options or SARs need not be identical; provided, however, that each Option Agreement or Stock Appreciation
Right Agreement shall conform to (through incorporation of provisions hereof by reference in the applicable Award Agreement or
otherwise) the substance of each of the following provisions:

 

(a)              
Term. Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no Option or SAR shall be exercisable
after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Award Agreement.

 

(b)              
Exercise Price. Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, the exercise price (or
strike price) of each Option or SAR shall be not less than one hundred percent (100%) of the Fair Market Value of the Class A Common
Stock subject to the Option or SAR on the date the Option or SAR is granted. Notwithstanding the foregoing, an Option or SAR may
be granted with an exercise price (or strike price) lower than one hundred percent (100%) of the Fair Market Value of the Class
A Common Stock subject to the Option or SAR if such Option or SAR is granted pursuant to an assumption of or substitution for another
option or stock appreciation right pursuant to a Corporate Transaction and in a manner consistent with the provisions of Sections
409A and, if applicable, 424(a) of the Code. Each SAR will be denominated in shares of Class A Common Stock equivalents.

 

(c)               
Purchase Price for Options. The purchase price of Class A Common Stock acquired pursuant to the exercise of an Option
shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination
of the methods of payment set forth below. The Board shall have the authority to grant Options that do not permit all of the following
methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of
the Company to utilize a particular method of payment. The permitted methods of payment are as follows:

 

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(i)                
by cash, check, bank draft or money order payable to the Company;

 

(ii)              
pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance
of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable
instructions to pay the aggregate exercise price to the Company from the sales proceeds;

 

(iii)            
by delivery to the Company (either by actual delivery or attestation) of shares of Class A Common Stock;

 

(iv)            
if the option is a Nonstatutory Stock Option, by a “net exercise” arrangement pursuant to which the Company
will reduce the number of shares of Class A Common Stock issuable upon exercise by the largest whole number of shares with a Fair
Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash
or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such
reduction in the number of whole shares to be issued; provided, further, that shares of Class A Common Stock will no longer
be subject to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are reduced
to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of
such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or

 

(v)              
in any other form of legal consideration that may be acceptable to the Board.

 

(d)              
Exercise and Payment of a SAR. To exercise any outstanding Stock Appreciation Right, the Participant must provide written
notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock
Appreciation Right. The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than
an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right)
of a number of shares of Class A Common Stock equal to the number of Class A Common Stock equivalents in which the Participant
is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right
on such date, over (B) the strike price that will be determined by the Board at the time of grant of the Stock Appreciation Right.
The appreciation distribution in respect to a Stock Appreciation Right may be paid in Class A Common Stock, in cash, in any combination
of the two or in any other form of consideration, as determined by the Board and contained in the Stock Appreciation Right Agreement
evidencing such Stock Appreciation Right.

 

(e)               
Transferability of Options and SARs. The Board may, in its sole discretion, impose such limitations on the transferability
of Options and SARs as the Board shall determine. In the absence of such a determination by the Board to the contrary, the following
restrictions on the transferability of Options and SARs shall apply:

 

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(i)                
Restrictions on Transfer. An Option or SAR shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Participant only by the Participant; provided, however, that the Board
may, in its sole discretion, permit transfer of the Option or SAR in a manner that is not prohibited by applicable tax and securities
laws upon the Participant’s request. Except as explicitly provided herein, neither an Option nor a SAR may be transferred
for consideration.

 

(ii)              
Domestic Relations Orders. Notwithstanding the foregoing, an Option or SAR may be transferred pursuant to a domestic
relations order; provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory
Stock Option as a result of such transfer.

 

(iii)            
Beneficiary Designation. Notwithstanding the foregoing, the Participant may, by delivering written notice to the Company,
in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises,
designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option
or SAR and receive the Class A Common Stock or other consideration resulting from such exercise. In the absence of such a designation,
the executor or administrator of the Participant’s estate shall be entitled to exercise the Option or SAR and receive the
Class A Common Stock or other consideration resulting from such exercise.

 

(f)               
Vesting Generally. The total number of shares of Class A Common Stock subject to an Option or SAR may vest and therefore
become exercisable in periodic installments that may or may not be equal. The Option or SAR may be subject to such other terms
and conditions on the time or times when it may or may not be exercised (which may be based on the satisfaction of Performance
Goals or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options or SARs may vary. The
provisions of this Section 5(f) are subject to any Option or SAR provisions governing the minimum number of shares of Class A Common
Stock as to which an Option or SAR may be exercised.

 

(g)              
Termination of Continuous Service. Except as otherwise provided in the applicable Award Agreement or other agreement
between the Participant and the Company, if a Participant’s Continuous Service terminates (other than for Cause or upon the
Participant’s death or Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant
was entitled to exercise such Award as of the date of termination of Continuous Service) but only within such period of time ending
on the earlier of (i) the date three (3) months following the termination of the Participant’s Continuous Service (or such
longer or shorter period specified in the applicable Award Agreement), or (ii) the expiration of the term of the Option or SAR
as set forth in the Award Agreement. If, after termination of Continuous Service, the Participant does not exercise his or her
Option or SAR within the time specified herein or in the Award Agreement (as applicable), the Option or SAR shall terminate.

 

(h)              
Extension of Termination Date. If the exercise of an Option or SAR following the termination of the Participant’s
Continuous Service (other than for Cause or upon the Participant’s death or Disability) would be prohibited at any time solely
because the issuance of shares of Class A Common Stock would violate the registration requirements under the Securities Act, then
the Option or SAR shall terminate on the earlier of (i) the expiration of a total period of three (3) months (that need not be
consecutive) after the termination of the Participant’s Continuous Service during which the exercise of the Option or SAR
would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option or SAR as set forth
in the applicable Award Agreement. In addition, unless otherwise provided in a Participant’s Award Agreement, if the immediate
sale of any Class A Common Stock received upon exercise of an Option or SAR following the termination of the Participant’s
Continuous Service (other than for Cause) would violate the Company’s insider trading policy, then the Option or SAR shall
terminate on the earlier of (i) the expiration of a period equal to the applicable post-termination exercise period after the termination
of the Participant’s Continuous Service during which the sale of the Class A Common Stock received upon exercise of the Option
or SAR would not be in violation of the Company’s insider trading policy, or (ii) the expiration of the term of the Option
or SAR as set forth in the applicable Award Agreement.

 

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(i)                
Disability of Participant. Except as otherwise provided in the applicable Award Agreement or other agreement between
the Participant and the Company, if a Participant’s Continuous Service terminates as a result of the Participant’s
Disability, the Participant may exercise his or her Option or SAR (to the extent that the Participant was entitled to exercise
such Option or SAR as of the date of termination of Continuous Service), but only within such period of time ending on the earlier
of (i) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified
in the Award Agreement), or (ii) the expiration of the term of the Option or SAR as set forth in the Award Agreement. If, after
termination of Continuous Service, the Participant does not exercise his or her Option or SAR within the time specified herein
or in the Award Agreement (as applicable), the Option or SAR (as applicable) shall terminate.

 

(j)                
Death of Participant. Except as otherwise provided in the applicable Award Agreement or other agreement between the
Participant and the Company, if (i) a Participant’s Continuous Service terminates as a result of the Participant’s
death, or (ii) the Participant dies within the period (if any) specified in the Award Agreement for exercisability after the termination
of the Participant’s Continuous Service (for a reason other than death), then the Option or SAR may be exercised (to the
extent the Participant was entitled to exercise such Option or SAR as of the date of death) by the Participant’s estate,
by a person who acquired the right to exercise the Option or SAR by bequest or inheritance or by a person designated to exercise
the Option or SAR upon the Participant’s death, but only within the period ending on the earlier of (i) the date eighteen
(18) months following the date of death (or such longer or shorter period specified in the Award Agreement), or (ii) the expiration
of the term of such Option or SAR as set forth in the Award Agreement. If, after the Participant’s death, the Option or SAR
is not exercised within the time specified herein or in the Award Agreement (as applicable), the Option or SAR shall terminate.

 

(k)              
Termination for Cause. Except as explicitly provided otherwise in a Participant’s Award Agreement or other individual
written agreement between the Company or any Affiliate and the Participant, if a Participant’s Continuous Service is terminated
for Cause, the Option or SAR shall terminate immediately upon such Participant’s termination of Continuous Service, and the
Participant shall be prohibited from exercising his or her Option or SAR from and after the time of such termination of Continuous
Service.

 

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(l)                
Non-Exempt Employees. No Option or SAR, whether or not vested, granted to an Employee who is a non-exempt employee for
purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any shares of Class A Common Stock
until at least six months following the date of grant of the Option or SAR. Notwithstanding the foregoing, consistent with the
provisions of the Worker Economic Opportunity Act, (i) in the event of the Participant’s death or Disability, (ii) upon a
Corporate Transaction in which such Option or SAR is not assumed, continued, or substituted, (iii) upon a Change in Control, or
(iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Award Agreement or in
another applicable agreement or in accordance with the Company’s then current employment policies and guidelines), any such
vested Options and SARs may be exercised earlier than six months following the date of grant. The foregoing provision is intended
to operate so that any income derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will
be exempt from his or her regular rate of pay.

 

		6.	Provisions
of Stock Awards other than Options and SARs.

 

(a)              
Restricted Stock Awards. Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. To the extent consistent with the Company’s Bylaws, at the Board’s
election, shares of Class A Common Stock may be (i) held in book entry form subject to the Company’s instructions until any
restrictions relating to the Restricted Stock Award lapse; or (ii) evidenced by a certificate, which certificate shall be
held in such form and manner as determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change
from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical; provided,
however, that each Restricted Stock Award Agreement shall conform to (through incorporation of the provisions hereof by reference
in the agreement or otherwise) the substance of each of the following provisions:

 

(i)                
Consideration. A Restricted Stock Award may be awarded in consideration for (A) cash, check, bank draft or money order
payable to the Company, (B) past services to the Company or an Affiliate, or (C) any other form of legal consideration (including
future services) that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

 

(ii)              
Vesting. Shares of Class A Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture
to the Company in accordance with a vesting schedule to be determined by the Board.

 

(iii)            
Termination of Participant’s Continuous Service. If a Participant’s Continuous Service terminates, the Company
may receive through a forfeiture condition or a repurchase right any or all of the shares of Class A Common Stock held by the Participant
that have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

 

(iv)            
Transferability. Rights to acquire shares of Class A Common Stock under the Restricted Stock Award Agreement shall be
transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as
the Board shall determine in its sole discretion, so long as Class A Common Stock awarded under the Restricted Stock Award Agreement
remains subject to the terms of the Restricted Stock Award Agreement.

 

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(v)              
Dividends. A Restricted Stock Award Agreement may provide that any dividends paid on Restricted Stock will be subject
to the same vesting and forfeiture restrictions as apply to the shares subject to the Restricted Stock Award to which they relate.

 

(b)              
Restricted Stock Unit Awards. Each Restricted Stock Unit Award Agreement shall be in such form and shall contain such
terms and conditions as the Board shall deem appropriate. The terms and conditions of Restricted Stock Unit Award Agreements may
change from time to time, and the terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical;
provided, however, that each Restricted Stock Unit Award Agreement shall conform to (through incorporation of the
provisions hereof by reference in the Agreement or otherwise) the substance of each of the following provisions:

 

(i)                
Consideration. At the time of grant of a Restricted Stock Unit Award, the Board will determine the consideration, if
any, to be paid by the Participant upon delivery of each share of Class A Common Stock subject to the Restricted Stock Unit Award.
The consideration to be paid (if any) by the Participant for each share of Class A Common Stock subject to a Restricted Stock Unit
Award may be paid in any form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible
under applicable law.

 

(ii)              
Vesting. At the time of the grant of a Restricted Stock Unit Award, the Board may impose such restrictions on or conditions
to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate.

 

(iii)            
Payment. A Restricted Stock Unit Award may be settled by the delivery of shares of Class A Common Stock, their cash
equivalent, any combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted
Stock Unit Award Agreement.

 

(iv)            
Additional Restrictions. At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate,
may impose such restrictions or conditions that delay the delivery of the shares of Class A Common Stock (or their cash equivalent)
subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award.

 

(v)              
Dividend Equivalents. Dividend equivalents may be credited in respect of shares of Class A Common Stock covered by a
Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. At the sole
discretion of the Board, such dividend equivalents may be converted into additional shares of Class A Common Stock covered by the
Restricted Stock Unit Award in such manner as determined by the Board. Any additional shares covered by the Restricted Stock Unit
Award credited by reason of such dividend equivalents will be subject to all of the same terms and conditions of the underlying
Restricted Stock Unit Award Agreement to which they relate.

 

    	 	11	 

     

    

 

 

(vi)            
Termination of Participant’s Continuous Service. Except as otherwise provided in the applicable Restricted Stock
Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s
termination of Continuous Service.

 

(c)               
Performance Awards.

 

(i)                
Performance Stock Awards. A Performance Stock Award is a Stock Award that may vest or may be exercised contingent upon
the attainment during a Performance Period of certain Performance Goals. A Performance Stock Award may, but need not, require the
completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved
during the Performance Period, and the measure of whether and to what degree such Performance Goals have been attained shall be
conclusively determined by the Committee, in its sole discretion. The maximum number of shares covered by an Award that may be
granted to any Participant in a calendar year attributable to Stock Awards described in this Section 6(c)(i) (whether the grant,
vesting or exercise is contingent upon the attainment during a Performance Period of the Performance Goals) shall not exceed three
million five hundred thousand (3,500,000) shares of Class A Common Stock. The Board may provide for or, subject to such terms and
conditions as the Board may specify, may permit a Participant to elect for, the payment of any Performance Stock Award to be deferred
to a specified date or event. In addition, to the extent permitted by applicable law and the applicable Award Agreement, the Board
may determine that cash may be used in payment of Performance Stock Awards.

 

(ii)              
Performance Cash Awards. A Performance Cash Award is a cash award that may be paid contingent upon the attainment during
a Performance Period of certain Performance Goals. A Performance Cash Award may also require the completion of a specified period
of Continuous Service. At the time of grant of a Performance Cash Award, the length of any Performance Period, the Performance
Goals to be achieved during the Performance Period, and the measure of whether and to what degree such Performance Goals have been
attained shall be conclusively determined by the Committee, in its sole discretion. In any calendar year, the Committee may not
grant a Performance Cash Award that has a maximum value that may be paid to any Participant in excess of one million dollars ($1,000,000).
The Board may provide for or, subject to such terms and conditions as the Board may specify, may permit a Participant to elect
for, the payment of any Performance Cash Award to be deferred to a specified date or event. The Committee may specify the form
of payment of Performance Cash Awards, which may be cash or other property, or may provide for a Participant to have the option
for his or her Performance Cash Award, or such portion thereof as the Board may specify, to be paid in whole or in part in cash
or other property.

 

(iii)            
Board Discretion. The Board retains the discretion to reduce or eliminate the compensation or economic benefit due upon
attainment of Performance Goals and to define the manner of calculating the Performance Criteria it selects to use for a Performance
Period.

 

(iv)            
Section 162(m) Compliance. Unless otherwise permitted in compliance with the requirements of Section 162(m) of the Code
with respect to an Award intended to qualify as “performance-based compensation” thereunder, the Committee shall establish
the Performance Goals applicable to, and the formula for calculating the amount payable under, the Award no later than the earlier
of (a) the date ninety (90) days after the commencement of the applicable Performance Period, or (b) the date on which twenty-five
percent (25%) of the Performance Period has elapsed, and in either event at a time when the achievement of the applicable Performance
Goals remains substantially uncertain. Prior to the payment of any compensation under an Award intended to qualify as “performance-based
compensation” under Section 162(m) of the Code, the Committee shall certify the extent to which any Performance Goals
and any other material terms under such Award have been satisfied (other than in cases where such relate solely to the increase
in the value of the Class A Common Stock). Notwithstanding satisfaction of any completion of any Performance Goals, to the extent
specified at the time of grant of an Award to “covered employees” within the meaning of Section 162(m) of the Code,
the number of shares of Class A Common Stock, Options, cash or other benefits granted, issued, retainable and/or vested under an
Award on account of satisfaction of such Performance Goals may be reduced by the Committee on the basis of such further considerations
as the Committee, in its sole discretion, shall determine.

 

    	 	12	 

     

    

 

 

(d)              
Other Stock Awards. Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Class
A Common Stock, including the appreciation in value thereof (e.g., options or stock rights with an exercise price or strike price
less than 100% of the Fair Market Value of the Class A Common Stock at the time of grant) may be granted either alone or in addition
to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6. Subject to the provisions of the Plan,
the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock
Awards will be granted, the number of shares of Class A Common Stock (or the cash equivalent thereof) to be granted pursuant to
such Other Stock Awards and all other terms and conditions of such Other Stock Awards.

 

		7.	Covenants of
the Company.

 

(a)              
Availability of Shares. During the terms of the Stock Awards, the Company shall keep available at all times the number
of shares of Class A Common Stock reasonably required to satisfy such Stock Awards.

 

(b)              
Securities Law Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction
over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Class A Common Stock upon
exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the
Securities Act the Plan, any Stock Award or any Class A Common Stock issued or issuable pursuant to any such Stock Award. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for
the Company deems necessary for the lawful issuance and sale of Class A Common Stock under the Plan, the Company shall be relieved
from any liability for failure to issue and sell Class A Common Stock upon exercise of such Stock Awards unless and until such
authority is obtained. A Participant shall not be eligible for the grant of a Stock Award or the subsequent issuance of Class A
Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities law.

 

    	 	13	 

     

    

 

 

(c)               
No Obligation to Notify or Minimize Taxes. The Company shall have no duty or obligation to any Participant to advise
such holder as to the time or manner of exercising such Stock Award. Furthermore, the Company shall have no duty or obligation
to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the
Stock Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the
holder of such Stock Award.

 

		8.	Miscellaneous.

 

(a)              
Use of Proceeds from Sales of Class A Common Stock. Proceeds from the sale of shares of Class A Common Stock pursuant
to Stock Awards shall constitute general funds of the Company.

 

(b)              
Corporate Action Constituting Grant of Stock Awards. Corporate action constituting a grant by the Company of a Stock
Award to any Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the
Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received
or accepted by, the Participant.

 

(c)               
Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Class A Common Stock subject to such Stock Award unless and until (i) such Participant has satisfied
all requirements for exercise of the Stock Award pursuant to its terms, if applicable, and (ii) the issuance of the Class A Common
Stock subject to such Stock Award has been entered into the books and records of the Company.

 

(d)              
No Employment or Other Service Rights. Nothing in the Plan, any Stock Award Agreement or any other instrument executed
thereunder or in connection with any Award granted pursuant thereto shall confer upon any Participant any right to continue to
serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of
the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii)
the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii)
the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate
law of the state in which the Company or the Affiliate is incorporated, as the case may be.

 

(e)               
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time
of grant) of Class A Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder
during any calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory
Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s).

 

    	 	14	 

     

    

 

 

(f)               
Investment Assurances. The Company may require a Participant, as a condition of exercising or acquiring Class A Common
Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge
and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together
with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory
to the Company stating that the Participant is acquiring Class A Common Stock subject to the Stock Award for the Participant’s
own account and not with any present intention of selling or otherwise distributing the Class A Common Stock. The foregoing requirements,
and any assurances given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise
or acquisition of Class A Common Stock under the Stock Award has been registered under a then currently effective registration
statement under the Securities Act, or (B) as to any particular requirement, a determination is made by counsel for the Company
that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice
of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate
in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Class
A Common Stock.

 

(g)              
Withholding Obligations. Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion,
satisfy any federal, state or local tax withholding obligation relating to an Award by any of the following means or by a combination
of such means: (i) causing the Participant to tender a cash payment; (ii)  withholding shares of Class A Common Stock
from the shares of Class A Common Stock issued or otherwise issuable to the Participant in connection with the Award; provided,
however, that no shares of Class A Common Stock are withheld with a value exceeding the minimum amount of tax required to be
withheld by law (or such lesser amount as may be necessary to avoid classification of the Stock Award as a liability for financial
accounting purposes); (iii) withholding cash from an Award settled in cash; (iv) withholding payment from any amounts otherwise
payable to the Participant; or (v) by such other method as may be set forth in the Award Agreement.

 

(h)              
Electronic Delivery. Any reference herein to a “written” agreement or document shall include any agreement
or document delivered electronically or posted on the Company’s intranet (or other shared electronic medium controlled by
the Company to which the Participant has access).

 

(i)                
Deferrals. To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery
of Class A Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Award may be
deferred and may establish programs and procedures for deferral elections to be made by Participants. Deferrals by Participants
will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions
while a Participant is still an employee or otherwise providing services to the Company. The Board is authorized to make deferrals
of Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following
the Participant’s termination of Continuous Service, and implement such other terms and conditions consistent with the provisions
of the Plan and in accordance with applicable law.

 

    	 	15	 

     

    

 

 

(j)                
Compliance with Section 409A. To the extent that the Board determines that any Award granted hereunder is subject to
Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid
the consequences specified in Section 409A(a)(1) of the Code. To the extent applicable, the Plan and Award Agreements shall be
interpreted in accordance with Section 409A of the Code. Notwithstanding anything to the contrary in this Plan (and unless the
Award Agreement specifically provides otherwise), if the shares of Class A Common Stock are publicly traded and a Participant holding
an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee”
for purposes of Section 409A of the Code, no distribution or payment of any amount shall be made upon a “separation from
service” before a date that is six (6) months following the date of such Participant’s “separation from service”
(as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s
death.

 

		9.	Adjustments
upon Changes in Stock; Other Corporate Events.

 

(a)              
Capitalization Adjustments. In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately
adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es) and
maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c), (iii)
the class(es) and maximum number of securities that may be awarded to any person pursuant to Sections 3(d) and 6(c)(i) , and (iv)
the class(es) and number of securities and price per share of stock subject to outstanding Stock Awards. The Board shall make such
adjustments, and its determination shall be final, binding and conclusive.

 

(b)              
Dissolution or Liquidation. Except as otherwise provided in the Stock Award Agreement, in the event of a dissolution
or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares
of Class A Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall terminate immediately
prior to the completion of such dissolution or liquidation, and the shares of Class A Common Stock subject to the Company’s
repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company notwithstanding the fact
that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole
discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture
(to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed
but contingent on its completion.

 

(c)               
Corporate Transaction. The following provisions shall apply to Stock Awards in the event of a Corporate Transaction
unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any
Affiliate and the Participant or unless otherwise expressly provided by the Board at the time of grant of a Stock Award. In the
event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board shall take one or more of the
following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate Transaction:

 

    	 	16	 

     

    

 

 

(i)                
arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent
company) to assume or continue the Stock Award or to substitute a similar stock award for the Stock Award (including, but not limited
to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);

 

(ii)              
arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Class A Common
Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s
parent company);

 

(iii)            
accelerate the vesting, in whole or in part, of the Stock Award (and, if applicable, the time at which the Stock Award
may be exercised) to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the
Board shall not determine such a date, to the date that is five (5) days prior to the effective date of the Corporate Transaction),
with such Stock Award terminating if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction;

 

(iv)            
arrange for the lapse of any reacquisition or repurchase rights held by the Company with respect to the Stock Award;

 

(v)              
cancel or arrange for the cancellation of the Stock Award, to the extent not vested or not exercised prior to the effective
time of the Corporate Transaction, in exchange for such cash consideration, if any, as the Board, in its sole discretion, may consider
appropriate; or

 

(vi)            
make a payment, in such form as may be determined by the Board equal to the excess, if any, of (A) the value of the
property the Participant would have received upon the exercise of the Stock Award, over (B) any exercise price payable by such
holder in connection with such exercise.

 

The Board need not take the same action
or actions with respect to all Stock Awards or portions thereof or with respect to all Participants.

 

(d)              
Change in Control. A Stock Award may be subject to additional acceleration of vesting and exercisability upon or after
a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written
agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration
shall occur.

 

		10.	Termination
or Suspension of the Plan.

 

(a)              
Plan Term. The Board may suspend or terminate the Plan at any time. Unless terminated sooner by the Board, the Plan
shall automatically terminate on the day before the tenth (10th) anniversary of the earlier of (i) the date the Plan is adopted
by the Board, or (ii) the date the Plan is approved by the stockholders of the Company. No Awards may be granted under the Plan
while the Plan is suspended or after it is terminated.

 

    	 	17	 

     

    

 

 

(b)              
No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Award
granted while the Plan is in effect except with the written consent of the affected Participant.

 

		11.	Effective Date
of Plan.

 

This Plan shall become
effective on the Effective Date.

 

		12.	Choice of Law.

 

The laws of the State
of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to
that state’s conflict of laws rules.

 

		13.	Definitions.
As used in the Plan, the following definitions shall apply to the capitalized terms indicated below:

 

(a)              
 “Affiliate” means, at the time of determination, any “parent” or “subsidiary”
of the Company as such terms are defined in Rule 405 promulgated under the Securities Act. The Board shall have the authority to
determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing
definition.

 

(b)              
“Award” means a Stock Award or a Performance Cash Award.

 

(c)               
“Award Agreement” means a written agreement between the Company and a Participant evidencing
the terms and conditions of an Award.

 

(d)              
“Board” means the Board of Directors of the Company.

 

(e)               
“Capitalization Adjustment” means any change that is made in, or other events that occur with
respect to, the Class A Common Stock subject to the Plan or subject to any Stock Award after the Effective Date without the receipt
of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend,
dividend in property other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares,
exchange of shares, change in corporate structure or any similar equity restructuring transaction, as that term is used in Statement
of Financial Accounting Standards No. 123 (revised). Notwithstanding the foregoing, the conversion of any convertible securities
of the Company shall not be treated as a Capitalization Adjustment.

 

(f)               
“Cause” shall have the meaning ascribed to such term in any written agreement
between the Participant and the Company defining such term and, in the absence of such agreement, such term shall mean, with respect
to a Participant, the occurrence of any of the following events that has a material negative impact on the business or reputation
of the Company: (i) such Participant’s attempted commission of, or participation in, a fraud or act of dishonesty against
the Company; (ii) such Participant’s intentional, material violation of any contract or agreement between the Participant
and the Company or of any statutory duty owed to the Company; (iii)  such Participant’s unauthorized use or disclosure
of the Company’s confidential information or trade secrets; or (iv) such Participant’s gross misconduct. The determination
that a termination of the Participant’s Continuous Service is either for Cause or without Cause shall be made by the Company,
in its sole discretion. Any determination by the Company that the Continuous Service of a Participant was terminated with or without
Cause for the purposes of outstanding Awards held by such Participant shall have no effect upon any determination of the rights
or obligations of the Company or such Participant for any other purpose.

 

    	 	18	 

     

    

 

 

(g)              
“Change in Control” means the occurrence, in a single transaction or in a series of related
transactions, of any one or more of the following:

 

(i)                
any Exchange Act Person (other than Larry Ellison, Michael Milken, Lowell Milken, or any combination of the foregoing)
becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined
voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.

 

(ii)              
there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately
prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent
(50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or
(B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger,
consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding
voting securities of the Company immediately prior to such transaction;

 

(iii)            
the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company,
or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation;

 

(iv)            
there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated
assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all
of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their
Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition;
or

 

Notwithstanding the
foregoing or any other provision of this Plan, (A) the term Change in Control shall not include a sale of assets, merger or other
transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control
(or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede
the foregoing definition with respect to Awards subject to such agreement; provided, however, that if no definition of Change
in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.

 

    	 	19	 

     

    

 

 

(h)              
“Class A Common Stock” means the Class A common stock of the Company.

 

(i)                
“Code” means the Internal Revenue Code of 1986, as amended, including any applicable regulations
and guidance thereunder.

 

(j)                
“Committee” means a committee of one or more Directors to whom authority has been delegated
by the Board in accordance with Section 2(c).

 

(k)              
“Company” means LeapFrog Enterprises, Inc., a Delaware corporation.

 

(l)                
“Consultant” means any person, including an advisor, who is (i) engaged by the Company or
an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the
board of directors of an Affiliate and is compensated for such services. However, service solely as a Director, or payment of a
fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan. Notwithstanding
the foregoing, a person is treated as a Consultant under this Plan only if a Form S-8 Registration Statement under the Securities
Act is available to register either the offer or the sale of the Company’s securities to such person.

 

(m)            
“Continuous Service” means that the Participant’s service with the Company or an Affiliate,
whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant
renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of the Participant’s service with the Company
or an Affiliate, shall not terminate a Participant’s Continuous Service; provided, however, if the Entity for which
a Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board, in its sole discretion, such
Participant’s Continuous Service shall be considered to have terminated on the date such Entity ceases to qualify as an Affiliate.
To the extent permitted by law, the Board or the chief executive officer of the Company, in that party’s sole discretion,
may determine whether Continuous Service shall be considered interrupted in the case of (i) any leave of absence approved by the
Board or Chief Executive Officer, including sick leave, military leave or any other personal leave, or (ii) transfers between the
Company, an Affiliate, or their successors. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service
for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy,
in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.

 

(n)              
“Corporate Transaction” means the consummation, in a single transaction or in a series of
related transactions, of any one or more of the following events:

 

(i)                
a sale or other disposition of all or substantially all, as determined by the Board, in its sole discretion,
of the consolidated assets of the Company and its Subsidiaries;

 

(ii)              
a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company;

 

    	 	20	 

     

    

 

 

(iii)            
a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

 

(iv)            
a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares
of Class A Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged
by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

 

(o)              
“Covered Employee” shall have the meaning provided in Section 162(m)(3) of the Code.

 

(p)              
“Director” means a member of the Board.

 

(q)              
“Disability” means, with respect to a Participant, the inability of such Participant to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected
to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months,
as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and shall be determined by the Board on the basis of such medical
evidence as the Board deems warranted under the circumstances.

 

(r)               
“Effective Date” means June 2, 2011.

 

(s)               
“Employee” means any person employed by the Company or an Affiliate. However, service solely
as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for
purposes of the Plan.

 

(t)                
“Entity” means a corporation, partnership, limited liability company, or other entity.

 

(u)              
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

(v)              
“Exchange Act Person” means any natural person, Entity or “group”
(within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include
(i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company
or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company,
(iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity
Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock
of the Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange
Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.

 

    	 	21	 

     

    

 

 

(w)            
“Fair Market Value” means, as of any date, the value of the Class A Common Stock determined
as follows:

 

(i)                
If the Class A Common Stock is listed on any established stock exchange or traded on any established market, the Fair
Market Value of a share of Class A Common Stock shall be the closing selling price for such stock as quoted on such exchange or
market (or the exchange or market with the greatest volume of trading in the Class A Common Stock) on the date of determination
or, if the day of determination is not a market trading day, the last market trading day prior to the day of determination, as
reported in a source the Board deems reliable.

 

(ii)              
Unless otherwise provided by the Board, if there is no closing sales price for the Class A Common Stock on the date
of determination, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation
exists.

 

(iii)            
In the absence of such markets for the Class A Common Stock, the Fair Market Value shall be determined by the Board
in good faith and in a manner that complies with Sections 409A and 422 of the Code.

 

(x)              
“Incentive Stock Option” means an option granted pursuant to Section 5 of the Plan that is
intended to be, and qualifies as, an “incentive stock option” within the meaning of Section 422 of the Code.

 

(y)              
“Non-Employee Director” means a Director who either (i) is not a current employee or
officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate
for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure
would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)),
does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K,
and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation
S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.

 

(z)               
“Nonstatutory Stock Option” means any option granted pursuant to Section 5 of the Plan that
does not qualify as an Incentive Stock Option.

 

(aa)          
“Officer” means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act.

 

(bb)         
“Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares
of Class A Common Stock granted pursuant to the Plan.

 

(cc)           
“Option Agreement” means a written agreement between the Company and an Optionholder evidencing
the terms and conditions of an Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan.

 

(dd)         
“Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Option.

 

    	 	22	 

     

    

 

 

(ee)           
“Other Stock Award” means an award based in whole or in part by reference to the Class A Common
Stock which is granted pursuant to the terms and conditions of Section 6(d).

 

(ff)            
“Other Stock Award Agreement” means a written agreement between the Company
and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each Other Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

 

(gg)          
“Outside Director” means a Director who either (i) is not a current employee of the Company
or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the
Code), is not a former employee of the Company or an “affiliated corporation” who receives compensation for prior services
(other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or
an “affiliated corporation,” and does not receive remuneration from the Company or an “affiliated corporation,”
either directly or indirectly, in any capacity other than as a Director, or (ii) is otherwise considered an “outside director”
for purposes of Section 162(m) of the Code.

 

(hh)         
“Own,” “Owned,” “Owner,”
“Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,”
to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly
or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes
the power to vote or to direct the voting, with respect to such securities.

 

(ii)              
“Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Stock Award.

 

(jj)             
“Performance Cash Award” means an award of cash granted pursuant to the terms and conditions
of Section 6(c)(ii).

 

(kk)         
“Performance Criteria” means the one or more criteria that the Board shall select for purposes
of establishing the Performance Goals for a Performance Period. The Performance Criteria that shall be used to establish such Performance
Goals may be based on any one of, or combination of, the following as determined by the Board: (i) earnings (including earnings
per share and net earnings); (ii) earnings before interest, taxes and depreciation; (iii) earnings before interest, taxes, depreciation
and amortization; (iv) total stockholder return; (v) return on equity or average stockholder’s equity; (vi) return on assets,
investment, or capital employed; (vii) stock price; (viii) margin (including gross margin); (ix) income (before or after taxes);
(x) operating income; (xi) operating income after taxes; (xii) pre-tax profit; (xiii) operating cash flow; (xiv) sales or revenue
targets; (xv) increases in revenue or product revenue; (xvi) expenses and cost reduction goals; (xvii) improvement in or attainment
of working capital levels; (xiii) economic value added (or an equivalent metric); (xix) market share; (xx) cash flow; (xxi) cash
flow per share; (xxii) share price performance; (xxiii) debt reduction; (xxiv) implementation or completion of projects or processes;
(xxv) customer satisfaction; (xxvi) stockholders’ equity; (xxvii) capital expenditures; (xxiii) debt levels; (xxix) operating
profit or net operating profit; (xxx) workforce diversity; (xxxi) growth of net income or operating income; (xxxii) billings; and
(xxxiii) to the extent that an Award is not intended to comply with Section 162(m) of the Code, other measures of performance selected
by the Board.

 

    	 	23	 

     

    

 

 

(ll)              
“Performance Goals” means, for a Performance Period, the one or more goals established by
the Board for the Performance Period based upon the Performance Criteria. Performance Goals may be based on a Company-wide basis,
with respect to one or more business units, divisions, Affiliates, or business segments, and in either absolute terms or relative
to the performance of one or more comparable companies or the performance of one or more relevant indices. Unless specified otherwise
by the Board (i) in the Award Agreement at the time the Award is granted or (ii) in such other document setting forth the Performance
Goals at the time the Performance Goals are established, the Board may make adjustments in the method of calculating the attainment
of Performance Goals for a Performance Period as follows: (1) to exclude restructuring and/or other nonrecurring charges; (2) to
exclude exchange rate effects, as applicable, for non-U.S. dollar denominated Performance Goals; (3) to exclude the effects of
changes to generally accepted accounting principles; (4) to exclude the effects of any statutory adjustments to corporate tax rates;
(5) to exclude the effects of any “extraordinary items” as determined under generally accepted accounting principles;
(6) to exclude the dilutive effects of acquisitions or joint ventures; (7) to assume that any business divested by the Company
achieved performance objectives at targeted levels during the balance of a Performance Period following such divestiture; (8) to
exclude the effect of any change in the outstanding shares of common stock of the Company by reason of any stock dividend or split,
stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other
similar corporate change, or any distributions to common shareholders other than regular cash dividends; and (9) to exclude the
effect of any other unusual, non-recurring gain or loss or other extraordinary item.

 

(mm)     
“Performance Period” means the period of time selected by the Board over which the attainment
of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and the payment
of a Stock Award or a Performance Cash Award. Performance Periods may be of varying and overlapping duration, at the sole discretion
of the Board.

 

(nn)         
“Performance Stock Award” means a Stock Award granted under the terms and conditions of Section
6(c)(i).

 

(oo)          
“Plan” means this LeapFrog Enterprises, Inc. 2011 Equity and Incentive Plan.

 

(pp)         
“Restricted Stock Award” means an award of shares of Class A Common Stock which is granted
pursuant to the terms and conditions of Section 6(a).

 

(qq)         
“Restricted Stock Award Agreement” means a written agreement between the Company and a holder
of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant. Each Restricted Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

 

(rr)           
“Restricted Stock Unit Award” means a right to receive shares of Class A Common
Stock which is granted pursuant to the terms and conditions of Section 6(b).

 

    	 	24	 

     

    

 

 

(ss)            
“Restricted Stock Unit Award Agreement” means a written agreement between the
Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant.
Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan.

 

(tt)             
“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

 

(uu)         
“Securities Act” means the Securities Act of 1933, as amended.

 

(vv)          
“Stock Appreciation Right” or “SAR” means a right
to receive the appreciation on Class A Common Stock that is granted pursuant to the terms and conditions of Section 5.

 

(ww)      
“Stock Appreciation Right Agreement” means a written agreement between the Company and a holder
of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation
Right Agreement shall be subject to the terms and conditions of the Plan.

 

(xx)          
“Stock Award” means any right to receive Class A Common Stock granted under the Plan, including
an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation
Right, a Performance Stock Award or any Other Stock Award.

 

(yy)          
“Stock Award Agreement” means a written agreement between the Company and a Participant evidencing
the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the
Plan.

 

(zz)           
“Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty
percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such
corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might
have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company,
and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether
in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%).

 

(aaa)      
“Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to Section
424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or any Affiliate.

 

    	 	25Exhibit 101

		
			Exhibit 10.1
		

		
			FIRST MODIFICATION AGREEMENT
		

		
			This FIRST MODIFICATION AGREEMENT (this “Agreement”) is made as of July 31, 2015, by and among (i) CENTURY COMMUNITIES, INC., a Delaware corporation (“Borrower”), (ii) the undersigned Guarantors, (iii) the undersigned Lenders, and (iv) TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent (“Administrative Agent”). 
		

		
			W I T N E S S E T H :
		

		
			WHEREAS, Administrative Agent, Borrower and Lenders are parties to that certain Credit Agreement (the “Credit Agreement”), dated October 21, 2014, established a revolving line of credit in the maximum principal sum of $120,000,000.00 (the “Credit Facility”); and
		

		
			WHEREAS, Borrower desires to increase the Credit Facility Amount from $120,000,000.00 to $200,000,000.00, pursuant to Section 2.10 of the Credit Agreement; and 
		

		
			WHEREAS, Borrower asked each Lender to increase its respective Commitment, and each Lender is willing to increase its Commitment, subject to the terms and conditions of this Agreement; and 
		

		
			WHEREAS, Borrower asked Bank of America, N.A. to become a Lender, and Bank of America, N.A. is willing to become a Lender, and make a Commitment of up to $35,000,000.00, subject to the terms and conditions of this Agreement; and
		

		
			WHEREAS, Administrative Agent, Borrower, the undersigned Guarantors, and the undersigned Lenders now propose to increase the Commitments and to modify certain of the terms and provisions of the Credit Agreement and the other related documents executed by Borrower or third parties pertaining to, evidencing or securing the Credit Facility (collectively, the “Loan Documents”).
		

		
			NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Administrative Agent, Borrower, the undersigned Guarantors, and the undersigned Lenders hereby agree as follows:
		

			
	
			
				 1.
			Definitions.  All terms used herein with initial capital letters, but not defined herein, shall have the meanings specified in the Credit Agreement.

			
	
			
				 2.
			Joinder of Bank of America, N.A.  Bank of America, N.A. agrees to assume, and does hereby assume, the obligations of a Lender under the Credit Agreement.  Bank of America, N.A. agrees to abide by and be bound by all of the terms of the Credit Agreement applicable to Lenders.  Accordingly, the Credit Agreement is hereby amended such that any and all references to the “Lenders” shall be deemed to refer to Bank of America, N.A., as well as each of the parties that have previously been included within the meaning of such term. 

		 

 

			
	
			
				 3.
			Credit Facility Amount.  Pursuant to Section 2.10 of the Credit Agreement, the Credit Facility Amount is hereby increased from $120,000,000.00 to $200,000,000.00.  The Increase Effective Date, as such term is used in Section 2.10(d) of the Credit Agreement, is the date of this Agreement.

			
	
			
				 4.
			Commitments and Applicable Percentages.  As a result of the increase in the Credit Facility Amount, and the addition of Bank of America, N.A. as a Lender, Schedule 2.1 of the Credit Agreement is hereby revised and replaced in its entirety with Schedule 2.1 attached hereto, and Lenders’ respective Commitments and Applicable Percentages are revised as set forth therein.

			
	
			
				 5.
			Increase Fee.  As consideration for the increase in the Credit Facility Amount, contemporaneously with the execution and delivery of this Agreement, Borrower shall pay to Administrative Agent, a non-refundable fee as described in Section 2.10(e) of the Credit Agreement, which fee shall be distributed among Lenders in accordance with the Credit Agreement. 

			
	
			
				 6.
			Additional Notes.  To evidence the increase in the Credit Facility Amount, contemporaneously with the execution and delivery of this Agreement, Borrower shall execute and deliver the following promissory notes, which promissory notes shall (i) be dated of even date with this Agreement, (ii) be substantially in the form of Exhibit E attached to the Credit Agreement, (iii) each be considered a Note, as defined in the Credit Agreement, in addition to all other Notes previously executed by Borrower in connection with the Credit Agreement: 

			
	
			
				 (a)
			Note in the principal sum of $35,000,000.00, payable to the order of Bank of America, N.A.;

			
	
			
				 (b)
			Note in the principal sum of $10,000,000.00, payable to the order of Fifth Third Bank;

			
	
			
				 (c)
			Note in the principal sum of $10,000,000.00, payable to the order of Texas Capital Bank, National Association;

			
	
			
				 (d)
			Note in the principal sum of $10,000,000.00, payable to the order of Vectra Bank Colorado, NA, a National Banking Association;

			
	
			
				 (e)
			Note in the principal sum of $7,500,000.00, payable to the order of JPMorgan Chase Bank, N.A.;

			
	
			
				 (f)
			Note in the principal sum of $5,000,000.00, payable to the order of Bank Midwest, a division of NBH Bank, N.A.; and

			
	
			
				 (g)
			Note in the principal sum of $2,500,000.00, payable to the order of Deutsche Bank AG New York Branch.

			
	
			
				 7.
			Additional Requests for Increase.  The option to increase the Commitments set forth in Section 2.10(a) of the Credit Agreement was fully exercised pursuant to Section 3 of this Agreement, and is therefore extinguished and of no further force or effect.  From and after the 
		

		 

 

			date of this Agreement, provided there exists no Default, upon notice to Administrative Agent (which shall promptly notify Lenders), Borrower may from time to time, request an additional increase in the Credit Facility Amount and the aggregate Commitments by an amount (for all such requests) not exceeding $100,000,000; provided that (i) any such request for an increase shall be in a minimum amount of $20,000,000, and (ii) Borrower may make a maximum of three such requests.  At the time of sending such notice, Borrower (in consultation with Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to Lenders).  Any such request for an increase pursuant to this paragraph shall be subject to the terms and conditions set forth in Section 2.10(b) through (f) of the Credit Agreement.

			
	
			
				 8.
			Extension of the Maturity Date.  Pursuant to Section 2.11 of the Credit Agreement, the Maturity Date, as set forth in Section 1.1 of the Credit Agreement, is hereby extended from October 21, 2017, to October 21, 2018, or such earlier date on which the Commitment of each Lender terminates as provided in the Credit Agreement; subject to extension pursuant to Section 2.11 of the Credit Agreement; provided,  however, that, if such date is not a Business Day, the Maturity Date shall be the next succeeding Business Day.  This Agreement shall be deemed to be an Extension Option Agreement.  The Extension Option Agreement Date, as such term is used in Section 2.11 of the Credit Agreement, is the date of this Agreement.

			
	
			
				 9.
			Extension Fee.  As consideration for the extension of the Maturity Date, contemporaneously with the execution and delivery of this Agreement, Borrower shall pay to Administrative Agent, a non-refundable Extension Fee as described in Section 2.11(a) of the Credit Agreement, which fee shall be distributed among Lenders in accordance with the Credit Agreement.

			
	
			
				 10.
			Fee Letter.  Borrower and Texas Capital Bank, National Association, entered into that certain Fee Letter, dated July 14, 2015 (the “2015 Fee Letter”), which 2015 Fee Letter supplements the Fee Letter described in the Credit Agreement.  Borrower agrees to pay to Administrative Agent and Arranger, for the account of Administrative Agent, Arranger and each Lender, as applicable, fees, in the amounts and on the dates set forth in the Fee Letter, as supplemented by the 2015 Fee Letter.

			
	
			
				 11.
			Letters of Credit.  

			
	
			
				 (a)
			Section 2.2(a)(ii) of the Credit Agreement is hereby revised and replaced in entirety as follows:

		
			(ii) L/C Issuer shall not issue any Letter of Credit, or permit the renewal of any Letter of Credit, if:
		

		
			(A) the initial expiry date of the requested Letter of Credit would occur more than twenty-four (24) months after the date of issuance, unless Required Lenders have approved such expiry date; or
		

		

		

		 

 

		(B) the Letter of Credit would automatically renew for a period in excess of twelve (12) months, unless Required Lenders have approved such Letter of Credit; or  
		

		
			(C) the Letter of Credit would automatically renew without providing L/C Issuer with an opportunity to prevent each and every renewal; or 
		

		
			(D) the expiry date of the requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all Lenders have approved such expiry date.
		

			
	
			
				 (b)
			The following language is hereby added to the Credit Agreement as Section 2.2(a)(vii): 

		
			Once a Letter of Credit has been issued, Lenders shall be deemed to have authorized (but may not require) L/C Issuer to permit the renewal of such Letter of Credit at any time to an expiry date not later than the earlier of (i) twelve (12) months from the date of such renewal, or (ii) the Letter of Credit Expiration Date.
		

			
	
			
				 12.
			Tangible Net Worth.  Section 9.3 of the Credit Agreement is hereby revised and replaced in entirety as follows:

		
			Borrower shall not permit, as of the last day of any fiscal quarter, Tangible Net Worth for Borrower and its Subsidiaries, on a consolidated basis, to be less than the sum of (a) $261,037,000, plus (b) 50% of the net proceeds of any issuances of stock or other equity interests of any Obligated Party (other than to another Obligated Party) after the Closing Date, plus (c) beginning with the fiscal quarter ending June 30, 2015, 50% of the amount of net income of Borrower and its subsidiaries, on a consolidated basis (but without deduction for any net loss), for each fiscal quarter ending after March 31, 2015.
		

			
	
			
				 13.
			Borrowing Base Report.  The form of Borrowing Base Report attached to the Credit Agreement as Exhibit B, is hereby revised and replaced in its entirety with the form of Borrowing Base Report attached hereto as Exhibit B.

			
	
			
				 14.
			Compliance Certificate.  The form of Compliance Certificate attached to the Credit Agreement as Exhibit C, is hereby revised and replaced in its entirety with the form of Compliance Certificate attached hereto as Exhibit C.

		 

 

			
	
			
				 15.
			Bond Indenture.  Borrower represents and warrants to Administrative Agent and Lenders that (a) Borrower is not in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Borrower of its obligations under the terms and provisions of the Bond Indenture, and (b) the transactions contemplated by this Agreement will not violate the terms and conditions of the Bond Indenture.

			
	
			
				 16.
			Resolutions.  Contemporaneously with the execution and delivery of this Agreement, Borrower shall deliver to Administrative Agent, a copy of resolutions duly adopted by Borrower, approving the transactions contemplated by this Agreement, and certified by an officer of Borrower to be a true and correct. 

			
	
			
				 17.
			Acknowledgment by Borrower.  Except as otherwise specified herein, the terms and provisions hereof shall in no manner impair, limit, restrict or otherwise affect the obligations of Borrower or any third party to Administrative Agent and Lenders, as evidenced by the Loan Documents.  Borrower hereby acknowledges, agrees and represents that (i) Borrower is indebted to Lenders pursuant to the terms of the Notes; (ii) there are no claims or offsets against, or defenses or counterclaims to, the terms or provisions of the Loan Documents, and the other obligations created or evidenced by the Loan Documents; (iii) Borrower has no claims, offsets, defenses or counterclaims arising from any of Administrative Agent’s or Lenders’ acts or omissions with respect to the Loan Documents or Administrative Agent’s or Lenders’ performance under the Loan Documents; (iv) the representations and warranties of Borrower contained in the Loan Documents are true and correct as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date; (v) Borrower is not in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Borrower of its obligations under the terms and provisions of the Loan Documents, and (vi) neither Administrative Agent nor Lenders are in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Administrative Agent or Lenders of their respective obligations under the terms and provisions of the Loan Documents.  To the extent Borrower now has any claims, offsets, defenses or counterclaims against Administrative Agent or Lenders or the repayment of all or a portion of the Credit Facility, whether known or unknown, fixed or contingent, same are hereby forever irrevocably waived and released in their entirety.

			
	
			
				 18.
			No Waiver of Remedies.  Except as may be expressly set forth herein, nothing contained in this Agreement shall prejudice, act as, or be deemed to be a waiver of any right or remedy available to Administrative Agent or Lenders by reason of the occurrence or existence of any fact, circumstance or event constituting a default under the Loan Documents.

			
	
			
				 19.
			Joinder of Guarantor.  By its execution hereof, each Guarantor hereby (i) acknowledges and consents to the terms and provisions hereof; (ii) ratifies and confirms the Guaranty, including all interest and costs of collection, to or for the benefit of Administrative Agent and Lenders; (iii) agrees that the Guaranty is and shall remain in full force and effect and that the terms and provisions of the Guaranty cover and pertain to the Credit Facility, Notes and other Loan Documents as modified hereby; (iv) acknowledges that there are no claims or offsets against, or defenses or counterclaims to, the terms and provisions of the Guaranty or the other obligations created and evidenced by the Guaranty; (v) certifies that the representations and 
		

		 

 

			warranties contained in the Guaranty remain true and correct representations and warranties of Guarantor as of the date hereof; and (vi) acknowledges that Administrative Agent and Lenders have satisfied and performed their covenants and obligations under the Guaranty and the other Loan Documents, and that no action or failure to act by or on behalf of, Administrative Agent or Lenders has or will give rise to any cause of action or other claim against Administrative Agent or Lenders for breach of the Guaranty or other Loan Documents or otherwise.

			
	
			
				 20.
			Costs and Expenses.  Contemporaneously with the execution and delivery hereof, Borrower shall pay, or cause to be paid, all costs and expenses incident to the preparation, execution and recordation hereof and the consummation of the transaction contemplated hereby, including, but not limited to, reasonable fees and expenses of legal counsel to Administrative Agent.

			
	
			
				 21.
			Additional Documentation.  From time to time, Borrower shall execute or procure and deliver to Administrative Agent such other and further documents and instruments evidencing, securing or pertaining to the Credit Facility or the Loan Documents as shall be reasonably requested by Administrative Agent so as to evidence or effect the terms and provisions hereof.  Borrower shall cause to be delivered to Administrative Agent, an opinion of counsel, satisfactory to Administrative Agent, opining to (i) the validity and enforceability of this Agreement and the other Loan Documents executed on this date in connection with the transaction contemplated hereby; (ii) the authority of Borrower, and any constituents of Borrower, to execute, deliver and perform its or their respective obligations under the Loan Documents, as hereby modified; and (iii) such other matters as reasonably requested by Administrative Agent.

			
	
			
				 22.
			Effectiveness of the Loan Documents.  Except as expressly modified by the terms and provisions hereof, each of the terms and provisions of the Loan Documents are hereby ratified and shall remain in full force and effect; provided, however, that any reference in any of the Loan Documents to the Credit Facility, the amount constituting the Credit Facility, any defined terms, or to any of the other Loan Documents shall be deemed, from and after the date hereof, to refer to the Credit Facility, the amount constituting the Credit Facility, defined terms and to such other Loan Documents, as modified hereby.

			
	
			
				 23.
			Governing Law.  THE TERMS AND PROVISIONS HEREOF SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN.

			
	
			
				 24.
			Time.  Time is of the essence in the performance of the covenants contained herein and in the Loan Documents.

			
	
			
				 25.
			Binding Agreement.  This Agreement shall be binding upon the successors and assigns of the parties hereto; provided, however, the foregoing shall not be deemed or construed to (i) permit, sanction, authorize or condone the assignment of any rights, titles or interests in and to Borrower, or (ii) confer any right, title, benefit, cause of action or remedy upon any person or entity not a party hereto, which such party would not or did not otherwise possess.

		 

 

			
	
			
				 26.
			Headings.  The section headings hereof are inserted for convenience of reference only and shall in no way alter, amend, define or be used in the construction or interpretation of the text of such section.

			
	
			
				 27.
			Construction.  Whenever the context hereof so requires, reference to the singular shall include the plural and likewise, the plural shall include the singular; words denoting gender shall be construed to mean the masculine, feminine or neuter, as appropriate; and specific enumeration shall not exclude the general, but shall be construed as cumulative of the general recitation.

			
	
			
				 28.
			Severability.  If any clause or provision of this Agreement is or should ever be held to be illegal, invalid or unenforceable under any present or future law applicable to the terms hereof, then and in that event, it is the intention of the parties hereto that the remainder of this Agreement shall not be affected thereby, and that in lieu of each such clause or provision of this Agreement that is illegal, invalid or unenforceable, such clause or provision shall be judicially construed and interpreted to be as similar in substance and content to such illegal, invalid or unenforceable clause or provision, as the context thereof would reasonably suggest, so as to thereafter be legal, valid and enforceable.

			
	
			
				 29.
			Counterparts.  To facilitate execution, this Agreement may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature and acknowledgment of, or on behalf of, each party, or that the signature and acknowledgment of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single instrument.  It shall not be necessary in making proof of this Agreement to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.  Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages.

			
	
			
				 30.
			Notice of Final Agreement.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO OR THERETO.  THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO OR THERETO.  THE PROVISIONS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY BE AMENDED OR WAIVED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE RESPECTIVE PARTIES TO SUCH DOCUMENTS.

		
			[The remainder of this page is intentionally left blank.  The signature pages follow.]
		

		
			 
		

		

		

		 

 

		EXECUTED to be effective as of the date first above written.
		

		
			 
		

		
			ADMINISTRATIVE AGENT:

TEXAS CAPITAL BANK, 
NATIONAL ASSOCIATION

By:
 /s/ John L. Brimberry
Name:John L. Brimberry
Title:Senior Vice President

		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

TEXAS CAPITAL Bank, NATIONAL ASSOCIATION

By: /s/ John L. Brimberry
Name:John L. Brimberry
Title:Senior Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

BANK OF AMERICA, N.A.

By:/s/ Thomas W. Nowak
Name:Thomas W. Nowak
Title:Vice President
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

FIFTH THIRD BANK 

By:/s/ Talianna Carlson Manne
Name:Talianna Carlson Manne
Title:SVP
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

VECTRA Bank colorado, NA, 
A NATIONAL BANKING ASSOCIATION

By:
/s/ Philip Trujillo
Name:Philip Trujillo
Title:Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

JPMORGAN CHASE BANK, N.A.

By:/s/ Nadeige Dang
Name:Nadeige Dang
Title:Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

DEUTSCHE bank ag new york branch

By:/s/ Michael Shannon
Name:Michael Shannon
Title:Vice President
		

		
			 
		

		
			By:/s/ Michael Winters
Name:Michael Winters
Title:Vice President
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			LENDER:

BANK MIDWEST, 
A DIVISION OF NBH BANK, N.A.

By:
/s/ Shaun T. Cox
Name:Shaun T. Cox
Title:SVP – Credit Officer
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			 
		

		
			BORROWER:

CENTURY COMMUNITIES, INC.,
a Delaware corporation

By:/s/ David Messenger
Name:David Messenger
Title:Chief Financial Officer

		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			 
		

		
			GUARANTOR:

AUGUSTA POINTE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			AVALON AT INVERNESS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			BEACON POINTE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			BLACKSTONE HOMES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		CC COMMUNITIES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CCC HOLDINGS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CCH HOMES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CENTURY AT ASH MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT BEACON POINTE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			Century at CALEY, LLC, 
a Colorado limited liability company
		

		
			
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT CANDELAS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			Century at Carousel Farms, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CENTURY AT HARVEST MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		CENTURY AT LOR, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT LOWRY, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CENTURY AT MIDTOWN, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			Century at Millennium, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			CENTURY AT MURPHY CREEK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		CENTURY AT OUTLOOK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			Century at Salisbury Heights, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CENTURY AT SOUTHSHORE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT TERRAIN, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			Century at THE GROVE, LLC, 
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		Century at vISTA RIDGE, LLC, 
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT WOLF RANCH, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			CENTURY CITY, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY COMMUNITIES OF NEVADA, LLC,  a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY COMMUNITIES OF NEVADA REALTY, LLC,  a Nevada limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			CENTURY LAND HOLDINGS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY LAND HOLDINGS II, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			Century Land Holdings of Texas, LLC,  a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY RHODES RANCH GC, LLC,
a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY TUSCANY GC, LLC,
a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		

		

		 

 

		CHERRY HILL PARK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			COTTAGES AT WILLOW PARK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CROWN HILL, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			ENCLAVE AT BOYD PONDS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			ENCLAVE AT CHERRY CREEK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		ESTATES AT CHATFIELD FARMS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			HEARTH AT OAK MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			HOMETOWN, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			LAKEVIEW FORT COLLINS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			MADISON ESTATES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		MERIDIAN RANCH, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			MONTECITO AT RIDGEGATE, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			NEIGHBORHOOD ASSOCIATIONS GROUP, LLC,  a Delaware limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			RESERVE AT HIGHPOINTE ESTATES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			RESERVE AT THE MEADOWS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		SADDLEBACK HEIGHTS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			SADDLE ROCK GOLF, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			STETSON RIDGE HOMES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			THE VISTAS AT NOR’WOOD, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			VENUE AT ARISTA, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			VERONA ESTATES, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			VILLAS AT MURPHY CREEK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			WATERSIDE AT HIGHLAND PARK, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			WILDGRASS, LLC,
a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY COMMUNITIES OF GEORGIA, LLC,  a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		

		

		 

 

		CCG CONSTRUCTORS LLC,
a Georgia limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CCG REALTY GROUP LLC,
a Georgia limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT LITTLETON VILLAGE, LLC,  a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT THE MEADOWS, LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY AT MARVELLA, LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		 
		

		
			CENTURY AT WILDGRASS, LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			CENTURY GROUP LLC,  
		

		
			a Colorado limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ David Messenger
		

		
			Name:David Messenger
Title:Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		SCHEDULE 2.1
		

		
			Commitments and Applicable Percentages
		

		
			 
		

			
					
						Lender

					
					
						Commitment

					
					
						Applicable
Percentage

				
	
					
						Texas Capital Bank, National Association

					
					
						$40,000,000.00

					
					
						20.000000000000%

				
	
					
						Bank of America, N.A.

					
					
						$35,000,000.00

					
					
						17.500000000000%

				
	
					
						Fifth Third Bank

					
					
						$30,000,000.00

					
					
						15.000000000000%

				
	
					
						Vectra Bank Colorado, NA, a National Banking Association

					
					
						$30,000,000.00

					
					
						15.000000000000%

				
	
					
						JPMorgan Chase Bank, N.A.

					
					
						$25,000,000.00

					
					
						12.500000000000%

				
	
					
						Deutsche Bank AG New York Branch

					
					
						$20,000,000.00

					
					
						10.000000000000%

				
	
					
						Bank Midwest, a division of NBH Bank, N.A.

					
					
						$20,000,000.00

					
					
						10.000000000000%

				
	
					
						Total:

					
					
						$200,000,000.00

					
					
						100.000000000000%

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		EXHIBIT B
		

		
			Borrowing Base Report
		

		
			 
		

		
			[The form of Borrowing Base Report follows this cover page.]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		BORROWING BASE REPORT

		

		
			EFFECTIVE DATE: ______________ (the “Subject Month”)
ADMINISTRATIVE AGENT:Texas Capital Bank, National Association
BORROWER:Century Communities, Inc.
		

		
			 
		

		
			This Borrowing Base Report (this “Certificate”) is delivered under the Credit Agreement (the “Credit Agreement”) dated as of October 21, 2014, by and among Borrower, the Lenders from time to time party thereto and Administrative Agent. Capitalized terms used in this Certificate shall, unless otherwise indicated, have the meanings set forth in the Credit Agreement. The undersigned hereby certifies to Administrative Agent and Lenders as of the date hereof that (a) he/she is the ________________ of Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to Administrative Agent on behalf of Borrower, (b) to the best of his/her knowledge, no Default or Event of Default has occurred and is continuing, (c) a review of the activities of Borrower during the Subject Month has been made under the undersigned’s supervision with a view to determining the amount of the current Borrowing Base, (d) the Cash and Equivalents, Entitled Land, LUD, Lots, Model Houses, Pre-Sold Houses and Spec Houses included in the Borrowing Base Property as shown on the attachment, and as summarized below, meet all conditions to qualify for inclusion therein as set forth in the Credit Agreement, and all representations and warranties set forth in the Credit Agreement with respect thereto are true and correct in all material respects as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and (e) the information attached hereto and set forth below hereto is true and correct as of the last day of the Subject Month.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BORROWING BASE PROPERTY

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Cash and Equivalents (minus $25,000,000) (100% of value)

					
					
						(+)

					
					
						$____________

				
	
					
						2.

					
					
						Entitled Land (50% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						3.

					
					
						LUD (65% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						4.

					
					
						Lots (75% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						5.

					
					
						Model Houses (85% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						6.

					
					
						Pre-Sold Houses (90% of cost)

					
					
						(+)

					
					
						$____________

				
	
					
						7.

					
					
						Spec Houses (90% of cost; reduced to 75% at 18 months, and reduced to 50% at 24 months)

					
					
						(+)

					
					
						$____________

				
	
					
						8.

					
					
						Total of Lines 1 through 7:

					
					
						 

					
					
						$____________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						DEDUCTIONS

					
					
						 

					
					
						 

				
	
					
						9.

					
					
						Aggregate outstanding balance of the Notes

					
					
						(-)

					
					
						$____________

				
	
					
						10.

					
					
						Aggregate outstanding amount of Borrower’s Other Debt

					
					
						(-)

					
					
						$____________

				
	
					
						11.

					
					
						Total of Lines 9 and 10:

					
					
						 

					
					
						$____________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						12.

					
					
						TOTAL NET BORROWING AVAILABILITY
(Line 8 minus Line 11)

					
					
						 

					
					
						
$____________

				
	
					
						 

					
					
						(If result is a negative figure, this amount is due
immediately as a principal payment.)

					
					
						 

					
					
						(not to exceed
Commitment)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		

		

		 

 

		
		

			
					
						 

					
					
						BORROWING LIMITATION (2.3(a)):  Line 15 does not exceed lesser of Line 8 or Credit Facility Amount

					
					
						Yes

					
					
						No

				
	
					
						13.

					
					
						Aggregate outstanding balance of the Notes

					
					
						(+)

					
					
						$____________

				
	
					
						14.

					
					
						L/C Obligations

					
					
						(+)

					
					
						$____________

				
	
					
						15.

					
					
						Total of Lines 13 and 14:

					
					
						 

					
					
						$____________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						16.

					
					
						SPEC HOUSE SUBLIMIT (2.3(h)): The number of Spec Houses in the Borrowing Base does not exceed 50% of the total number of all Houses owned by Borrower (provided, however, the limit will seasonally increase to 60% from 02/01 to 05/31 of each year)

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						____________________  ÷  ___________________  =  
# of Spec Houses in BB        Total # of all Houses

					
					
						 

					
					
						___________%

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						17.

					
					
						COMPLETED SPEC HOUSE SUBLIMIT (2.3(i)): 
The number of Completed Spec Houses in the Borrowing Base does not exceed 25% of the total number of all Houses owned by Borrower

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						________________________  ÷  ________________________  =  
# of Comp. Spec Houses in BB    Total # of all Houses

					
					
						___________%

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						18.

					
					
						RISK ASSETS: Maximum Credit Amount

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Max. Credit Amount of all Land (Line 2): $____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Max. Credit Amount of all LUD (Line 3): $____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Max. Credit Amount of all Lots (Line 4):  $____________

					
					
						Total

					
					
						$__________

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						19.

					
					
						RISK ASSETS SUBLIMIT (2.3(j)): 
Revolving Credit Exposure to Risk Assets does not exceed 125% of Tangible Net Worth

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						A. Max. Credit Amount of all Risk Assets: (Line 18)          $_______

					
					
						 

				
	
					
						 

					
					
						B. Max. Credit Amount of all Assets (Line 8):                    $_______

					
					
						 

				
	
					
						 

					
					
						             A ÷ B = __________%    (X%)

					
					
						 

					
					
						 

				
	
					
						 

					
					
						C. Total Revolving Credit Exposure (Line 15):                    $_______

					
					
						 

				
	
					
						 

					
					
						D. Revolving Credit Exposure to Risk Assets:  C x X% =   $________

					
					
						 

				
	
					
						 

					
					
						E. Tangible Net Worth: $_____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						F. Tangible Net Worth x 125% = $_____________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						        If D does not exceed F, then “Yes;” otherwise, “No.”

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						*

					
					
						If the Cash and Equivalents ending balances per the Borrowing Base Report do not reconcile to the back-up reports provided, please provide an attached reconciliation explaining the discrepancies.

				

		

		

		 

 

		
		

		
			IN WITNESS WHEREOF, the undersigned has executed this Certificate as of _________________________, ______.
		

		
			 
		

		
			RESPONSIBLE OFFICER:

Name:David Messenger
Title: Chief Financial Officer
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			[Attach a schedule of Borrowing Base Property.]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		EXHIBIT C
		

		
			Compliance Certificate
		

		
			 
		

		
			[The form of Compliance Certificate follows this cover page.]
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		
		

		 

 

		COMPLIANCE CERTIFICATE
		

		
			FOR MONTH/QUARTER/YEAR  ENDED _________________ (the “Subject Period”)
ADMINISTRATIVE AGENT:Texas Capital Bank, National Association
BORROWER:Century Communities, Inc.
		

		
			
This Compliance Certificate (this “Certificate”) is delivered under the Credit Agreement (the “Credit Agreement”) dated as of October 21, 2014, by and among Borrower, the Lenders from time to time party thereto and Administrative Agent.  Capitalized terms used in this Certificate shall, unless otherwise indicated, have the meanings set forth in the Credit Agreement.  The undersigned hereby certifies to Administrative Agent and Lender as of the date hereof that:  (a) he is the ____________________________ of Borrower, and that, as such, he is authorized to execute and deliver this Certificate to Administrative Agent on behalf of Borrower; (b) he has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under his supervision, a detailed review of the transactions and condition (financial or otherwise) of Borrower during the Subject Period; (c) during the Subject Period, to the best of his knowledge, Borrower performed and observed each covenant and condition of the Loan Documents applicable to it and no Default or Event of Default currently exists or has occurred which has not been cured or waived by Required Lenders or all Lenders, as required by the Loan Documents; (d) the representations and warranties of Borrower contained in Article 6 of the Credit Agreement, and any representations and warranties of Borrower that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Certificate, the representations and warranties contained in Section 6.2 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Section 7.1 of the Credit Agreement, including the statements in connection with which this Certificate is delivered; (e) the financial statements of Borrower attached to this Certificate were prepared in accordance with GAAP, and present, on a consolidated basis, fairly and accurately the financial condition and results of operations of Borrower and its Subsidiaries as of the end of and for the Subject Period; (f) the financial covenant analyses and information set forth below are true and accurate on and as of the date of this Certificate; and (g) the status of compliance by Borrower with certain covenants of the Credit Agreement at the end of the Subject Period is as set forth below:
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						In Compliance as of
End of Subject Period
(Please Indicate)

				
	
					
						1.

					
					
						Financial Statements and Reports

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(a)

					
					
						Provide annual audited FYE financial statements within 90 days after the last day of each fiscal year.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(b)

					
					
						Provide quarterly financial statements within 45 days after the last day of each fiscal quarter.

					
					
						Yes

					
					
						No

				

		 

 

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(c)

					
					
						Provide monthly Borrowing Base Report within 30 days after the last day of each month.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(d)

					
					
						Provide a quarterly Compliance Certificate within 45 days after the last day of each fiscal quarter.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(e)

					
					
						Provide monthly Inventory and Sales Status Report within 30 days after the last day of each month.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						(f)

					
					
						Provide annual projections at least 90 days prior to the start of each fiscal year

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2.

					
					
						Real Estate Subsidiaries
None, except as listed on Schedule 6.13, or that have executed a Guaranty.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3.

					
					
						Debt
None, except Debt permitted by Section 8.1 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						4.

					
					
						Liens
None, except Liens permitted by Section 8.2 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						5.

					
					
						Acquisitions and Mergers
None, except those permitted by Section 8.3 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						6.

					
					
						Dividends and Stock Repurchase
None, except as permitted by Section 8.4 of the Credit Agreement.
(if applicable, Dollar amount during Subject Period:  $_____)

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						7.

					
					
						Loans and Investments
None, except those permitted by Section 8.5 of the Credit Agreement.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						8.

					
					
						Issuance of Equity
None, except issuances permitted by Section 8.6 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						9.

					
					
						Affiliate Transactions
None, except transactions permitted by Section 8.7 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		 

 

			
					
						10.

					
					
						Dispositions of Assets
None, except dispositions permitted by Section 8.8 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						11.

					
					
						Sale and Leaseback Transactions 
None, except transactions permitted by Section 8.9 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						12.

					
					
						Prepayment of Debt
None, except prepayments permitted by Section 8.10 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						13.

					
					
						Changes in Nature of Business
None, except changes permitted by Section 8.11 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						14.

					
					
						Environmental Protection
No activity likely to cause violations of Environmental Laws or create any Environmental Liabilities.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						15.

					
					
						Changes in Fiscal Year; Accounting Practices
None, except transactions permitted by Section 8.13 of the Credit
Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						16.

					
					
						No Negative Pledge
None, except those permitted by Section 8.14 of the Credit Agreement.

					
					
						
Yes

					
					
						
No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						17.

					
					
						Leverage Ratio
Maximum of 1.50 to 1.00 at end of Subject Period
(Defined as Debt divided by TNW).

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						_____________   ÷   _______________   =   ____________
DebtTNW

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						18.

					
					
						Interest Coverage Ratio

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						Minimum of 1.50 to 1.00 at end of Subject Period (Defined as EBITDA divided
by Cash Interest Expense; calculated on a rolling 4 quarter basis).

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						_____________   ÷   _______________   =   ____________
EBITDAInterest Expense

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		 

 

			
					
						19.

					
					
						Tangible Net Worth (TNW)
Minimum of $_________ at end of Subject Period (defined as
(a) $261,037,000 plus (b) 50% of net proceeds of equity issuances
plus (c) beginning with the quarter ending June 30, 2015, the sum of 50% of the amount of net income (without deduction for net loss) for each fiscal quarter after the Closing Date.

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Equity Issuances:  $____________ X 50% = $___________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Net Income:$____________ X 50% = $___________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						$261,037,000 + ____________ + ___________ = ___________
  50% of Equity      Net Income
  Issuances       after Closing Date

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Tangible Net Worth: $__________

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						20.

					
					
						Liquidity
Minimum of $25,000,000 at end of Subject Period 

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						________   +  ______________  -  __________  =   ___________
Cash           Available to Draw   Accts. Payable    Liquidity

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						21.

					
					
						Risk Asset Ratio
Maximum of 1.25 to 1.00 at end of Subject Period
(Defined as Risk Assets divided by Tangible Net Worth).

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						________   +  ______________  +  __________  =   ___________
Land           LUD                          Lots                     Risk Assets

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						_____________   ÷   _______________   =   ____________
Risk AssetsTNW

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		

		

		 

 

		
		

		
			IN WITNESS WHEREOF, the undersigned has executed this Certificate as of _________________, _______.
		

		
			 
		

		
			RESPONSIBLE OFFICER:

Name: David Messenger
Title: Chief Financial Officer

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