Document:

Third Amendment to Borrowing Base Revolving Line of Credit Agreement

 Exhibit 10.57 
 THIRD AMENDMENT TO BORROWING BASE 
 REVOLVING LINE OF CREDIT AGREEMENT 

This Third Amendment to Borrowing Base Revolving Line of Credit Agreement (“Amendment”) is entered into to as of January 23,
2008 between WILLIAM LYON HOMES, INC., a California corporation (“Borrower”) and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”), formerly referenced as Agent for Wachovia Financial
Services, Inc., a North Carolina corporation, which Amendment is consented to by Guarantor WILLIAM LYON HOMES, a Delaware corporation (“Guarantor”). 
 RECITALS: 
 A. Borrower has received a revolving line of credit from Lender in the maximum
commitment amount of $50,000,000.00 (the “Loan”) for the acquisition and development of Approved Subdivisions pursuant to the terms of that certain Borrowing Base Revolving Line of Credit Agreement dated as of February 14,
2006, between Borrower and Lender, and as amended by that certain First Amendment to Borrowing Base Revolving Line of Credit Agreement dated as of September 29, 2006, and as further amended by that certain Second Amendment to Borrowing Base
Revolving Line of Credit Agreement dated as of March 30, 2007, (as the same may be further amended, modified, extended, renewed, restated or supplemented from time to time, the “Loan Agreement”) and as further evidenced by that
certain Amended and Restated Borrowing Base Secured Promissory Note executed by Borrower and payable to the order of Lender (as amended, restated and otherwise modified from time to time, the “Note”). All capitalized terms used
herein and not otherwise defined shall have the meanings given to such terms in the Loan Agreement.  
 B. The Loan is secured by,
among other things, duly recorded Construction Deeds of Trust and Fixture Filing (With Assignment of Rents and Security Agreement), duly filed UCC-1 Financing Statements naming Borrower as Debtor and Lender as Secured Party, and such certain other
assignments (collectively, as amended, restated and otherwise modified from time to time, the “Security Documents”). 
 C.
Guarantor has executed certain documents in favor of Lender in connection with the Loan, including that certain Payment and Completion Guaranty Agreement (together with any other documents executed by any Guarantor in favor of Lender in connection
with the Loan, each as may be amended, restated and otherwise modified from time to time, the “Guarantor Documents”). 
 D.
The Note, the Security Documents, the Guaranty Documents, and all other agreements, documents, and instruments evidencing, securing, or otherwise relating to the Loan, as may be amended, modified, extended or restated from time to time, are
sometimes referred to individually and collectively as the “Loan Documents”. Hereinafter, the Loan Documents shall mean such documents as modified in this Amendment. 
 E. The parties desire to modify the Loan Agreement and the Loan Documents as set forth below. 

 AGREEMENT: 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. ACCURACY OF RECITALS. 
 Borrower and Lender acknowledge the accuracy of the recitals. 

2. MODIFICATION OF THE LOAN AGREEMENT AND LOAN DOCUMENTS. 
 2.1 The definition of “Commitment Amount” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety to provide as follows: 
 “Commitment Amount” means THIRTY MILLION AND NO/100THS DOLLARS ($30,000,000.00) subject to such decreases thereof pursuant to
Section 2.1(e); provided, however, upon the occurrence of a Term Out Date pursuant to Section 2.1(h), the Commitment Amount shall be deemed to be that amount which is equal to the aggregate amount of Outstanding Loan Borrowings as of such
Term Out Date. 
 2.2 Section 1.1 of the Agreement is hereby amended by deleting the definition of “Facility Increase”.

 2.3 The definition of “Interest Rate” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety
to provide as follows: 
 “Interest Rate” means, at the election of Borrower in connection with any Advance Request pursuant to
Section 2.2(a) (and otherwise subject to the provisions of Section 2.3 and Section 3 of the Note), either: 
 (a) The LIBOR
Rate plus (i) 2.30% if the Leverage Ratio is less than or equal to 3.25 or (ii) 2.50% if the Leverage Ratio is greater than 3.25, which combined figure shall be rounded upwards to the nearest one-eighth percent (.125%), with such interest
rate being adjusted from time to time as of each Interest Rate Adjustment Date (“LIBOR Based Rate”) or 
 (b) The Prime Rate plus
(i) 0.30% if the Leverage Ratio is less than or equal to 3.25 or (ii) 0.50% if the Leverage Ratio is greater than 3.25, which combined figure shall be rounded upwards to the nearest one-eighth percent (.125%), with such interest rate being
adjusted from time to time as and when the Prime Rate is adjusted (“Prime Based Rate”). 
 Borrower may not elect to convert or
otherwise change the Interest Rate except in connection with an Advance Request. Interest shall accrue on the entire outstanding balance of the Loan at the Interest Rate selected by Borrower until such time as Borrower elects to convert such
Interest Rate to the other available Interest Rate (i.e., LIBOR Based Rate or Prime 

  

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Based Rate); provided that the applicable Interest Rate shall be the Default Rate at any time an Event of Default has occurred and is continuing. In the
event no such Interest Rate election is made by Borrower, the Interest Rate shall be deemed to be the LIBOR Based Rate. 
 2.4 The definition
of “Maturity Date” in Section 1.1 of the Loan Agreement is hereby amended by deleting the reference therein to “February 14, 2008” and inserting in place thereof “May 14, 2008”. 
 2.5 Section 2.1(d) is hereby amended and restated in its entirety to provide as follows: [Intentionally Omitted]. 
 2.6 Section 2.5 of the Loan Agreement is hereby amended by inserting the following new subsection (d): 
 (d) Unused Commitment Fee. In addition, commencing as of January 1, 2008 and continuing thereafter until the Commitment has been terminated
and the Loan paid in full, Borrower agrees to pay Lender a quarterly Unused Commitment Fee for each quarterly period that the Average Quarterly Outstandings is less than fifty percent (50%) of the Commitment Amount then in effect. As used
herein, the term “Unused Commitment Fee” means that amount which is equal to the result of multiplying: (i) the difference between the Commitment Amount in effect during the applicable period and the Average Quarterly
Outstandings for that same period by (ii) 0.15%. As used herein the term “Average Quarterly Outstanding” means, for each quarter (or portion thereof), the aggregate amount of the daily amount of outstanding Advances during the
applicable period divided by the actual number of days in that period. Each Unused Commitment Fee shall be calculated by Lender with each such calculation being deemed conclusive absent manifest error. Each Unused Commitment Fee shall be due and
payable in arrears within ten (10) days after the end of each quarterly period; provided that any such Unused Commitment Fee, whether for the full quarterly period or any portion thereof, shall become immediately due and payable on the earlier
of the Maturity Date or the occurrence of an Event of Default; provided, however, Unused Commitment Fees shall continue to accrue and be due and payable during the existence of any such Event of Default. 
 2.7 Sections 7.1 and 7.2 of the Loan Agreement are hereby amended and restated in their entirety to provide as follows: 
 7.1 Minimum Tangible Net Worth Covenant. WLH will maintain at all times, on a consolidating basis, a minimum Tangible Net Worth equal to or
greater than $175,000,000.00. 
 7.2 Leverage Ratio. WLH will maintain at all times, on a consolidating basis, a ratio of
(a) Total Liabilities to (b) Tangible Net 

  

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Worth that is equal to or less than 5.00 to 1. As used herein, the term “Total Liabilities” shall mean the book value of WLH’s assets
less (i) Tangible Net Worth, (ii) “off-balance sheet” liabilities complying with the Financial Accounting Standards For Financial Interpretation No. 46 and (iii) minority interests in WLH consolidated entities, all as
determined in accordance with GAAP. 
 2.8 Effective Date of Modifications. The modifications to the financial covenants set forth in
Section 2.7 above shall be deemed to be effective as of December 31, 2007 and applicable to the 2007 fourth quarter and year end reporting and financial covenant requirements of WLH. All other modifications set forth in this Section 2
shall be deemed to be effective as of January 23, 2008, the date of this Amendment. 
 3. RATIFICATION OF LOAN DOCUMENTS AND
COLLATERAL. 
 The Loan Documents are ratified and affirmed by Borrower and will remain in full force and effect as modified herein, and
as those Loan Documents may have been amended, restated or otherwise modified. Any property or rights to or interest in property granted as security in the Loan Documents will remain as security for the Loan and the obligations of Borrower in the
Loan Documents. Each reference in any Loan Document to any other Loan Document will be a reference to such Loan Document as modified by this Amendment or as otherwise restated, amended or modified. 
 4. REPRESENTATIONS AND WARRANTIES. 
 Borrower represents and warrants to Lender: 
 4.1 To the best of its knowledge, no Event of Default under the Loan Agreement, as
modified herein, or any other Loan Document, as those Loan Documents may have been amended, restated or otherwise modified, has occurred and is continuing. 
 4.2 There has been no Material Adverse Change as of the date hereof. 
 4.3 Each and all representations and
warranties of Borrower in the Loan Documents, as such Loan Documents may have been amended, restated or otherwise modified, are accurate on the date hereof in all material respects. 
 4.4 Borrower has no claims, counterclaims, defenses, or set-offs with respect to the Loan Documents as modified by this Amendment or otherwise amended,
restated or modified. 
 4.5 The Loan Documents, as modified by this Amendment or as otherwise amended, restated or modified, are the legal,
valid, and binding obligation of Borrower, enforceable against Borrower in accordance with their terms. 
 4.6 Borrower is validly existing
under the laws of the state of its formation and has the requisite power and authority to execute and deliver this Amendment and to perform the Loan Documents, as modified herein or as otherwise amended, restated or modified. Each of 

  

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the certificates and resolutions previously delivered to Lender in connection with the Loan continue to be true and accurate in all material respects, have
not been rescinded, revoked, terminated, limited, restricted or otherwise modified and continue in full force and effect. The execution and delivery of this Amendment and the performance of the Loan Documents, as modified herein or as otherwise
amended, restated or modified, have been duly authorized by all requisite action by or on behalf of Borrower and all other requisite persons. This Amendment has been duly executed and delivered on behalf of Borrower. 
 5. COVENANTS. 
 Borrower covenants
with Lender that Borrower shall execute, deliver, and provide to Lender such additional agreements, documents, and instruments as reasonably required by Lender to effectuate the intent of this Amendment. 
 6. RELEASE. 
 Borrower represents and
warrants that Borrower has no claims, counterclaims, defenses, or offsets with respect to the enforcement by Lender against Borrower of the Loan or the Loan Documents. Borrower further fully, finally and forever releases and discharges Lender and
its respective successors, assigns, directors, officers, employees, agents, and representatives from any and all actions, causes of action, claims, debts, demands, liabilities, obligations, and suits, of whatever kind or nature in law or equity that
it has or in the future may have, whether known or unknown, with respect to the Loan and the Loan Documents or the actions or omissions of Lender in respect thereof to the extent such claims, counterclaims, defenses or offsets arose from events
occurring prior to the date of this Agreement. It is the intention of Borrower that the above release shall be effective as a full and final release of each and every matter specifically and generally referred to in this paragraph. Borrower
acknowledges and represents that it has been advised by independent legal counsel with respect to the agreements contained herein and with respect to the provisions of California Civil Code Section 1542, which provides as follows: “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.” Borrower, being aware of said code section, expressly waives any and all rights it may have thereunder, as well as under any other statute or common law principle of similar effect, with respect to any of the matters released herein.
The Agreement shall act as a release of all included claims, rights and causes of action, whether such claims are currently known, unknown, foreseen or unforeseen and regardless of any present lack of knowledge as to such claims. Borrower
understands and acknowledges the significance and consequence of this waiver of California Civil Code Section 1542, and hereby assumes full responsibility for any injuries, damages, losses or liabilities released herein. 
 7. CONDITIONS PRECEDENT TO THIS AMENDMENT. 
 This Amendment shall become effective and binding on Lender only upon satisfaction, as determined by Lender in its sole and absolute discretion, of the following conditions precedent: 
  

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 7.1 No Event of Default. No Event of Default, Unmatured Event of Default or Material Adverse
Change shall have occurred and be continuing as of the date of this Amendment. 
 7.2 No Mechanics’ Lien and/or Labor Claims against
the Land. Borrower shall provide evidence to Lender, in a form and manner satisfactory to Lender in its sole and absolute discretion, that, there are no mechanic lien claims, labor claims or other claims for service or goods that could result in
a lien or encumbrance against the Land (as that term is defined in the Loan Agreement). 
 7.3 Execution and Delivery of Amendment.
Borrower shall have delivered to Lender a fully executed original of this Amendment and the attached Consent and Agreement. Lender has executed and delivered a fully executed copy of this Amendment to Borrower. 
 7.4 Payment of Extension Fee. Borrower shall pay to Lender an earned in full upon receipt, non-refundable extension fee equal to 0.125% of the
Commitment Amount (i.e., $37,500.00). 
 7.5 Payment of Lender Costs. Borrower shall have paid, in immediately available funds to
Lender all of Lender’s fees, costs and charges incurred by Lender in connection herewith, including without limitation reasonable attorneys’ fees and costs. 
 7.6 Other Documents and Information. Borrower shall have delivered to Lender such other documents and information as Lender may reasonably require as a condition of the effectiveness of this Amendment.

 8. ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. 
 The Loan Documents, as modified herein, and as otherwise amended, restated or modified, contain the entire understanding and agreement of Borrower in
respect of the subject matter thereto and supersedes all prior representations, warranties, agreements, arrangements, and understandings. No provision of such Loan Documents may be further changed, discharged, supplemented, terminated, or waived
except in a writing signed by Lender and Borrower. 
 9. BINDING EFFECT. 
 The Loan Documents as modified herein are binding upon, and inure to the benefit of Borrower and Lender and their respective successors and assigns.

 10. CHOICE OF LAW. 
 This Amendment and the attached Consent is governed by and construed in accordance with the laws of the State of California, without giving effect to conflicts of law principles. 
 11. COUNTERPART EXECUTION. 
  

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 This Amendment and the attached Consent may be executed in one or more counterparts, each of which is
deemed an original and all of which together constitute one and the same document. Signature pages may be detached from the counterparts and attached to a single copy of this Amendment and the attached Consent to physically form one document.

 [Signature Page Follows] 

 DATED as of the date first above stated. 
 BORROWER: 
 WILLIAM LYON HOMES, INC., 
 a California corporation 
 By: /s/ Michael D. Grubbs 
 Name: Michael D. Grubbs 
 Its: Senior Vice President  
 By: /s/ Richard S. Robinson 
 Name: Richard S. Robinson 
 Its: Senior Vice President 
 [Signature Pages Continue on Following Page] 

 LENDER: 
 WACHOVIA BANK, NATIONAL 
 ASSOCIATION, a national banking 
 association 
 By: /s/ Kurt
Huisman                         
 Name: Kurt
Huisman                         
 Its: Vice
President                             
 [End of Signature Pages – Consent and Agreement of Guarantor Follows] 
  

 CONSENT AND AGREEMENT OF GUARANTOR 
 Guarantor hereby consents to the foregoing Third Amendment to Borrowing Base Revolving Line of Credit Agreement (“Amendment”) and agrees
to the terms and conditions thereof. Guarantor further represents, warrants and covenants to Lender as follows: 
 1. To the best of
Guarantor’s knowledge, no Event of Default has occurred and is continuing. 
 2. There has been no Material Adverse Change with respect
to Borrower or the Land. 
 3. Borrower continues to be validly existing under the laws of the state of its formation or organization and
(1) Borrower has the requisite power and authority to execute and deliver the Amendment and to perform the Loan Documents as modified by the Amendment, and (2) the Guarantor has the requisite power and authority to execute and deliver this
Consent and Agreement of Guarantor and to perform the Loan Documents to which it is a party, as those Loan Documents may have been amended, restated or otherwise modified. 
 4. Guarantor acknowledges: (i) receiving a copy of and reading the Amendment and all other Loan Documents, including any new Loan Documents and any
restatements, amendments or modifications with respect to any existing Loan Documents, (ii) the accuracy of the Recitals in the Amendment, and (iii) the continued effectiveness of the Loan Documents to which the Guarantor is a party as
those Loan Documents may have been amended, restated or otherwise modified by the Amendment or otherwise, and any other agreements, documents, or instruments securing or otherwise relating to thereto (collectively, the “Guarantor Loan
Documents”). 
 5. Guarantor consents to the modification of the Loan Documents as set forth in the Amendment, and as set forth in
any restatements, amendments or modifications with respect to any existing Loan Documents or Guarantor Documents, and as to all other matters as set forth in the Amendment and affirms and covenants to Lender that: (a) such Loan Documents and
Guarantor Loan Documents (as restated, amended or otherwise modified) continue to be the legal, valid and binding obligation of Borrower and Guarantor (as applicable), enforceable against Borrower and the Guarantor (as applicable) in accordance with
their terms, subject only to bankruptcy, insolvency, moratorium, reorganization or similar laws affecting creditors’ rights generally and by equitable principles of general application, and (b) any property or rights to or interests in
property granted as security in the Guarantor Documents shall remain as security. 
 6. Guarantor represents and warrants that Guarantor has
no claims, counterclaims, defenses, or off-sets with respect to the enforcement against Guarantor of the Guarantor Loan Documents. Guarantor further fully, finally and forever releases and discharges Lender and its successors, assigns, directors,
officers, employees, agents, and representatives from any and all actions, causes of action, claims, debts, demands, liabilities, obligations, and suits, of whatever kind or nature in law or equity that it has or in the future may have, whether
known or unknown, with respect to the Loan and the Loan Documents (including without limitation, the Guarantor 

  

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Loan Documents) or the actions or omissions of Lender in respect thereof to the extent such claims, counterclaims, defenses or off-sets arose from events
occurring prior to the date of the Amendment. It is the intention of Guarantor that the above release shall be effective as a full and final release of each and every matter specifically and generally referred to in this paragraph. Guarantor
acknowledges and represents that he has been advised by independent legal counsel with respect to the agreements contained herein and with respect to the provisions of California Civil Code Section 1542, which provides as follows: “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR.” Guarantor, being aware of said Code section, expressly waives any and all rights he may have thereunder, as well as under any other statute or common law principle of similar effect, with respect to any of the matters released herein.

 [Signature Page Follows] 
  

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 DATED as of the date of the Amendment. 
 GUARANTOR: 
 WILLIAM LYON HOMES, 
 a Delaware corporation 
 By: /s/ Michael D.
Grubbs                         
 Name: Michael D.
Grubbs                         
 Its: Senior Vice
President                         
 By: /s/ Richard S.
Robinson                      
 Name: Richard S. Robinson                      
 Its: Senior Vice
PresidentAmendment Agreement

 Exhibit 10.61 
 AMENDMENT AGREEMENT 
 This Amendment Agreement (this “Amendment
Agreement”) is entered into as of February 28, 2008, by and between WILLIAM LYON HOMES, INC., a California corporation (“Borrower”), and COMERICA BANK (“Lender”). This
Amendment Agreement is made with reference to the following facts: 
 RECITALS 
 A. Lender has made a revolving line of credit available to Borrower in the initial maximum outstanding principal amount of $50,000,000 (the
“Loan”), pursuant to the terms of that certain Revolving Line of Credit Loan Agreement (Borrowing Base Loan) dated as of March 8, 2006 (the “Loan Agreement”). Capitalized terms used in this
Amendment Agreement and not defined shall have the meanings assigned to such terms in the Loan Agreement. 
 B. Subject to the terms and
conditions contained in this Amendment Agreement, Borrower and Lender have agreed to modify the Loan Agreement and other Loan Documents as set forth herein. 
 C. As used in this Amendment Agreement, the term “Loan Documents” means the Loan Agreement, the Note, the Deeds of Trust, the other Security Documents, the Environmental Indemnity, the
Guaranty, and the other “Loan Documents” described in the Loan Agreement. This Amendment Agreement and the “Short Forms” described below shall also constitute Loan Documents. 
 AGREEMENT 
 NOW, THEREFORE,
with reference to the foregoing Recitals and information, and in consideration of the mutual covenants and agreements contained in this Amendment Agreement, and for other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Borrower and Lender agree as follows: 
 1. Recitals; Representations and Warranties. The above statement of facts set
forth in the Recitals is true and correct, and the Recitals hereby are incorporated herein as an agreement of Borrower and Lender. Borrower hereby represents and warrants to Lender that (a) no Event of Default or Unmatured Event of Default has
occurred or exists, and (b) all representations and warranties of Borrower contained in the Loan Agreement or in any of the other Loan Documents (as the Loan Agreement and such other Loan Documents are amended hereby) are true and correct as of
the date hereof. 
 2. Amendments to Loan Agreement. Borrower and Lender hereby amend the Loan Agreement as follows: 
 2.1 The definition of “Commitment Amount” set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced
with the following: 
  

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 “ ‘Commitment Amount’ means (a) during the Initial Line Term, the sum of
Thirty-Five Million Dollars ($35,000,000.00), and (b) during the Reduction Period, beginning upon the last day of the first Calendar Quarter following the Initial Line Maturity Date, and on or prior to the last day of each Calendar Quarter
thereafter during the Reduction Period, the Commitment Amount shall be reduced in the minimum amount of Eight Million Seven Hundred Fifty Thousand and No/100 Dollars ($8,750,000.00) (each, “Reduced Commitment Amount”): 
  

				
	 DATE
	  	REDUCED COMMITMENT AMOUNT
	 Initial Line Maturity Date
	  	$	35,000,000.00
	 First Calendar Quarter
	  	$	26,250,000.00
	 Second Calendar Quarter
	  	$	17,500,000.00
	 Third Calendar Quarter
	  	$	8,750,000.00
	 Fourth Calendar Quarter
	  	$	0.00

 2.2 The definition of “Maximum Aggregate Borrowing Base Concentrations” set forth in
Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: 
 “ ‘Maximum
Aggregate Borrowing Base Concentration(s)’ shall mean shall mean each and every one of the following: 
 (a) With
respect to all Qualified Projects included in the Borrowing Base (collectively or individually ‘Geographic Concentration Limitation’): 
         (i) The aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for all Zoned Land, Lots and/or Homes for Qualified Projects located in the State
of Arizona shall not exceed the lesser of (1) Twelve Million Two Hundred Fifty Thousand Dollars ($12,250,000.00), or (2) thirty-five percent (35%) of the then existing Commitment Amount; and 
         (ii) The aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage
for all Zoned Land, Lots and/or Homes for Qualified Projects located in the State of Nevada shall not exceed the lesser of (1) Twelve Million Two Hundred Fifty Thousand Dollars ($12,250,000.00), or (2) thirty-five percent (35%) of the
then existing Commitment Amount. 
 (b) With respect to all Zoned Land and Lots to be included in the Borrowing Base, the
aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for all Zoned Land, Entitled Land, High End Entitled Land, Lots Under Development and High End Lots Under Development for all Qualified Projects shall not exceed the
lesser of (i) Twenty Million Dollars ($20,000,000.00), or (ii) sixty percent (60%) of the then existing Commitment Amount (‘Land Concentration Limitation’). 
  

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 (c) With respect to all Zoned Land to be included in the Borrowing Base, the aggregate
Maximum Allowed Advance multiplied by the applicable Draw Percentage for all Zoned Land for all Qualified Projects shall not exceed the lesser of (i) Five Million Dollars ($5,000,000.00), or (ii) fifteen percent (15%) of the then
existing Commitment Amount (‘Zoned Land Concentration Limitation’). 
 (d) With respect to all Entitled Land to be
included in the Borrowing Base, the aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for all Entitled Land for all Qualified Projects shall not exceed the lesser of (i) Ten Million Dollars ($10,000,000.00), or
(ii) thirty percent (30%) of the then existing Commitment Amount (‘Entitled Land Concentration Limitation’). 
 (e) With respect to all High End Entitled Land to be included in the Borrowing Base, the aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for all High End Entitled Land for all Qualified Projects shall not
exceed the lesser of (i) Seven Million Five Hundred Thousand Dollars ($7,500,000.00), or (ii) twenty-two percent (22%) of the then existing Commitment Amount (‘High End Entitled Land Concentration Limitation’). 

(f) With respect to all Lots Under Development to be included in the Borrowing Base, the aggregate Maximum Allowed Advance multiplied
by the applicable Draw Percentage for all Lots Under Development for all Qualified Projects shall not exceed the lesser of (i) Twenty Million Dollars ($20,000,000.00), or (ii) sixty percent (60%) of the then existing Commitment Amount
(‘Lots Under Development Concentration Limitation’). 
 (g) With respect to all High End Lots Under Development to
be included in the Borrowing Base, the aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for all High End Lots Under Development for all Qualified Projects shall not exceed the lesser of (i) Fifteen Million Dollars
($15,000,000.00), or (ii) forty-five percent (45%) of the then existing Commitment Amount (‘High End Lots Under Development Concentration Limitation’). 
 (h) With respect to all High End Entitled Land and High End Lots Under Development to be included in the Borrowing Base, the aggregate
Maximum Allowed Advance multiplied by the applicable Draw Percentage for all High End Entitled Land and High End Lots Under Development for all Qualified Projects shall not exceed the lesser of (i) Fifteen Million Dollars ($15,000,000.00), or
(ii) forty-five percent (45%) of the then existing Commitment Amount (‘High End Land Concentration Limitation’). 
  

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 (i) With respect to all Spec Homes to be included in the Borrowing Base, for each and
every Qualified Project financed hereunder, the total number of Spec Homes shall not exceed the lesser of (i) twenty-five (25) Spec Homes, (ii) five (5) months’ appraised absorption for the applicable Project, or
(iii) five (5) months’ actual absorption for the applicable Project, as determined by Lender from time to time based upon the actual prior six-month Home sales average for the applicable Project (‘Spec Home Concentration
Limitation’). 
 (j) With respect to all High End Spec Homes to be included in the Borrowing Base, for each and every
Qualified Project financed hereunder, the total number of High End Spec Homes shall not exceed the lesser of (i) fifteen (15) High End Spec Homes, (ii) four (4) months’ appraised absorption for the applicable Project, or
(iii) four (4) months’ actual absorption for the applicable Project, as determined by Lender from time to time based upon the actual prior six-month Home sales average for the applicable Project (‘High End Spec Home Concentration
Limitation’). 
 (k) With respect to all Model Homes or High End Model Homes to be included in the Borrowing Base, for
each and every Qualified Project financed hereunder, the total number of Model Homes or High End Model Homes, as applicable, shall not exceed five (5) (‘Model Home Concentration Limitation’). 
 (l) With respect to any one Qualified Project, the aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for such
Qualified Project shall not exceed Twenty-five Million Dollars ($25,000,000.00). 
 (m) With respect to all attached
condominium Homes for all Qualified Projects other than the Qualified Projects commonly known as ‘Promenade North’ in San Diego, California and ‘Cambridge Lane’ in Tustin, California, the aggregate Maximum Allowed Advance
multiplied by the applicable Draw Percentage for all such attached condominium Homes shall not exceed the lesser of (i) Fifteen Million Dollars ($15,000,000.00), or (ii) forty-five percent (45%) of the then existing Commitment Amount.

 (n) With respect to all attached condominium Homes in those Qualified Projects commonly known as ‘Promenade
North’ in San Diego, California and ‘Cambridge Lane’ in Tustin, California, the aggregate Maximum Allowed Advance multiplied by the applicable Draw Percentage for all such attached condominium Homes (i) for each such Qualified
Project shall not exceed the lesser of (A) Fifteen Million Dollars ($15,000,000.00), or (B) forty-five percent (45%) of the then existing Commitment Amount, and (ii) for both such Qualified Projects in the aggregate shall not
exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000.00), or (B) seventy-two percent (72%) of the then existing Commitment Amount. 
 (o) With respect to all High End Homes to be included in the Borrowing Base, the aggregate Maximum Allowed Advance multiplied by the

  

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applicable Draw Percentage for all such High End Homes shall not exceed the lesser or (i) Twenty Million Dollars ($20,000,000.00), or (ii) sixty
percent (60%) of the then existing Commitment Amount.” 
 2.3 The subheadings entitled “ENTITLED LAND”, “LOTS UNDER
DEVELOPMENT” and “HIGH END LOTS UNDER DEVELOPMENT” within the definition of “Maximum Allowed Advance” set forth in Section 1.1 of the Loan Agreement are hereby deleted in their entirety and replaced with the following
new subheadings: 
  

	 	“–	ENTITLED LAND: The sum of all Advances for Entitled Land shall not exceed the lesser of (i) sixty-five percent (65%) of Total Project Costs, or (ii) fifty percent
(50%) of the Appraised Value for Entitled Land, subject to Lender’s approval.” 

  

	 	“–	LOTS UNDER DEVELOPMENT: The sum of all Advances for Lots Under Development shall not exceed the lesser of (i) eighty percent (80%) of Total Project Costs, or
(ii) sixty-five percent (65%) of the Bulk Finished Lot Value for Lots Under Development, subject to Lender’s approval.” 

  

	 	“–	HIGH END LOTS UNDER DEVELOPMENT: The sum of all Advances for High End Lots Under Development shall not exceed the lesser of (i) seventy-five percent (75%) of Total Project
Costs, or (ii) sixty-five percent (65%) of the Bulk Finished Lot Value for High End Lots Under Development, subject to Lender’s approval.” 

 2.4 In Section 2.12(a) of the Loan Agreement, the current reference to “Fifty Million and No/100 Dollars ($50,000,000.00)” is hereby
deleted and replaced with “Thirty-Five Million and No/100 Dollars ($35,000,000.00)”. 
 2.5 Section 6.15 of the Loan Agreement
is hereby deleted in its entirety and replaced with the following: 
 “6.15 FINANCIAL COVENANTS. Financial covenants described in this
Section 6.15, together with all other financial covenants and restrictions set forth in this Agreement, shall be monitored quarterly by Lender upon receipt of the financial statements to be provided hereunder. 
  

 -5- 

					
	 COVENANT PARTY
	  	 COVENANT TYPE
	  	 COVENANT REQUIREMENT

			
	 Guarantor
	  	Maximum Total Liabilities-to-Tangible Net Worth Ratio	  	Not in excess of (a) 5.00:1.0 from January 1, 2008 through December 31, 2008, and (b) 4.00:1.0 from and after January 1, 2009
			
	 Guarantor
	  	Minimum Tangible Net Worth	  	Not less than (a) $175,000,000 through December 31, 2008, and (b) from and after January 1, 2009, the sum of (i) $175,000,000, plus (ii) 50% of quarterly net
income after December 31, 2008
			
	 Guarantor
	  	Minimum Liquidity	  	Not less than $20,000,000, at least $10,000,000 of which must be cash on hand

 Upon the satisfaction of all of the conditions precedent set forth in Section 7 below, the effective date of
the replacement of Section 6.15 of the Loan Agreement shall be deemed to be December 31, 2007. 
 3. Amendments to Note. The
Loan, as the maximum principal amount outstanding thereunder has been reduced pursuant to this Amendment Agreement, shall be evidenced by the Note, as amended hereby. The Note shall is hereby amended so that the figure “Fifty Million and No/100
Dollars ($50,000,000.00)” set forth twice in the first paragraph on page one of the Note is hereby deleted and replaced with “Thirty-Five Million and No/100 Dollars ($35,000,000.00)”, and the figure “$50,000,000.00”
appearing in the upper left hand corner on page one of the Note is hereby deleted and replaced with “$35,000,000.00”. 
 4.
Extension of Initial Line Maturity Date. Lender has completed its annual review and hereby extends the Initial Line Maturity Date for an additional twelve (12) Calendar Months to and until April 3, 2009. Lender hereby gives notice
of such extension to Borrower in accordance with subsection 2.1.3(e) of the Loan Agreement. The “Maturity Date” of “April 3, 2009” set forth in the first paragraph on page one of the Note is hereby deleted and replaced
with “April 3, 2010”. 
 5. Security Documents. Each Deed of Trust, and all other Security Documents, shall secure, in
addition to all other indebtedness and obligations secured thereby, the payment and performance of all present and future indebtedness and obligations of Borrower under (a) this Amendment Agreement, (b) any and all amendments,
modifications, renewals and/or extensions of the Loan Agreement, regardless of whether any such amendment, modification, renewal or extension is evidenced by a new or additional instrument, document or agreement, and (c) all other Loan
Documents (other than the Guaranty and the Environmental Indemnity, the obligations under which continue to remain unsecured by each Deed of Trust), as amended by this Agreement and by the Short Forms. 
 6. Definitions. Except as provided in this Amendment Agreement, all references in the Loan Agreement and in the other Loan Documents (a) to
the Deeds of Trust shall mean the Deeds of Trust, as amended by this Amendment Agreement, (b) to the Loan shall mean the Loan, as the maximum principal amount thereof has been reduced pursuant to this Amendment 

  

 -6- 

 
Agreement, (c) to the Note shall mean the Note as amended by this Amendment Agreement, (d) to the Loan Agreement shall mean the Loan Agreement as
amended by this Amendment Agreement, (e) to the Loan Documents shall mean the Loan Documents as such term is defined in this Amendment Agreement, and (f) to any particular Loan Document shall mean such Loan Document as modified by this
Amendment Agreement or any document executed pursuant hereto. In addition, all references in the Loan Agreement and in the other Loan Documents to (i) “$50,000,000.00” or “$50,000,000”, and (ii) to “Fifty Million
and No/100 Dollars” or “Fifty Million Dollars”, are hereby changed to “$35,000,000.00” or “Thirty-Five Million and No/100 Dollars”. 
 7. Conditions Precedent. Lender’s obligation to modify the terms of the Loan Agreement and the other Loan Documents as set forth herein is subject to the satisfaction of all of the following conditions
precedent (any of which may be waived by Lender in its sole discretion): 
 7.1 Lender shall have received a fully-executed original of this
Agreement (including an original of the executed Guarantor’s Consent attached hereto). 
 7.2 Lender have received an original of each
Amendment Agreement (Short Form), each of even date herewith (collectively, the “Short Forms”), fully executed and acknowledged by Borrower and consented to by all applicable Subordinate Rights Holders. 
 7.3 The Short Forms shall have been recorded in the official records of the counties in which each Project is located in accordance with Lender’s
instructions to the Title Company, in addition to all other documents which Lender may reasonably request to be recorded. 
 7.4 Lender shall
have received such endorsements to each existing Title Policy (or commitments by the Title Company to issue the same in form acceptable to Lender) as Lender shall reasonably request to insure the validity and continuing first position liens of the
Deeds of Trust, as amended hereby, including without limitation a CLTA 110.5 endorsement (or its local equivalent). 
 7.5 Lender shall have
received a current good standing certificate of Borrower (and its managing member) issued by the applicable Secretary of State of the state of each such entity’s formation. 
 7.6 Lender shall have received a current good standing certificate of Borrower issued by each state in which each Qualified Project included in the
Borrowing Base is located. 
 7.7 No change shall have occurred in the financial condition of Borrower, Guarantor or any Project, which would
have, in Lender’s sole judgment, a material adverse effect on such Project or on Borrower’s or Guarantor’s ability to repay the Loan or otherwise perform their respective obligations under the Loan Documents as of the date hereof.

 7.8 No condemnation or adverse zoning or usage change proceeding shall have occurred or shall have been threatened against any Project; no
Project shall have suffered any significant damage by fire or other casualty which has not been repaired; no law, regulation, 

  

 -7- 

 
ordinance, moratorium, injunctive proceeding, restriction, litigation, action, citation or similar proceeding or matter shall have been enacted, adopted, or
threatened by any governmental authority, which would have, in Lender’s judgment, a material adverse effect on Borrower or any Project as of the date hereof. 
 7.9 The representations and warranties contained in the Loan Agreement and in all other Loan Documents shall remain true and correct as of the date hereof. 
 7.10 No Event of Default or Unmatured Event of Default shall have occurred and be continuing. 
 7.11 Borrower shall have reimbursed Lender for all costs and expenses incurred by Lender in connection with the transaction contemplated by this
Amendment Agreement, including title insurance costs, recording fees, and attorneys’ fees and costs. 
 8. Non-Impairment. Except
as expressly provided herein, nothing in this Amendment Agreement shall alter or affect any provision, condition or covenant contained in the Loan Agreement or the other Loan Documents or affect or impair any rights, powers or remedies thereunder,
and the parties hereto intend that the provisions of the Loan Agreement and the other Loan Documents shall continue in full force and effect except as expressly modified hereby. 
 9. Miscellaneous. This Amendment Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of
California applicable to contracts made and performed in such state, without regard to the principles thereof regarding conflict of laws, and any applicable laws of the United States of America. The headings used in this Amendment Agreement are for
convenience only and shall be disregarded in interpreting the substantive provisions of this Amendment Agreement. If any provision of this Amendment Agreement shall be determined by a court of competent jurisdiction to be invalid, illegal or
unenforceable, that portion shall be deemed severed herefrom and the remaining parts shall remain in full force as though the invalid, illegal or unenforceable provision had never been a part hereof. As used in this Amendment Agreement, the term
“include(s)” shall mean “include(s), without limitation,” and the term “including” shall mean “including, but not limited to.” 
 10. Integration; Interpretation. The Loan Documents, including this Amendment Agreement, contain or expressly incorporate by reference the entire
agreement of the parties with respect to the matters contemplated therein, and supersede all prior negotiations. No reference to this Amendment Agreement is necessary in any instrument or document at any time referring to a Loan Document. Any
reference to a Loan Document (including in any other Loan Document) shall be deemed a reference to such document as amended hereby. 
 11.
Counterparts. This Amendment Agreement may by executed in any number of counterparts, all of which shall be considered one in the same instrument. The original, executed signature pages of exact copies of this Amendment Agreement may be
attached to one of such copies to form one document. 
  

 -8- 

 IN WITNESS WHEREOF, Borrower and Lender have executed this Amendment Agreement as of the day and year
first set forth above. 
 BORROWER: 
 WILLIAM LYON HOMES, INC., a 
 California corporation 
 By: /s/ Michael D. Grubbs 
 Name: Michael D. Grubbs 
 Title: Senior Vice President 
 By: /s/ Richard S. Robinson 
 Name: Richard S. Robinson 
 Title: Senior Vice President 
 LENDER: 
 COMERICA BANK 
 By: /s/ David Plattner 
 Name: David Plattner 
 Its: VP. Western Market 
  

 S-1 

 GUARANTOR’S CONSENT 
 WILLIAM LYON HOMES, a Delaware corporation (“Guarantor”), hereby consents to the terms, conditions and provisions of the
foregoing Amendment Agreement (“Amendment Agreement”) and the transactions contemplated by the Amendment Agreement. Guarantor hereby reaffirms the full force and effectiveness of its Guaranty dated as of March 8, 2006
(the “Guaranty”), in light of the Amendment, including without limitation all waivers, authorizations and agreements set forth therein. Guarantor hereby confirms and agrees that all references in the Guaranty to the Loan
Agreement and other Loan Documents shall hereafter be deemed references to the Loan Agreement and other Loan Documents as amended by the Amendment. In addition, Guarantor acknowledges that its obligations under the Guaranty are separate and distinct
from those of Borrower on the Loan. 
 Dated as of February 28, 2008 
 GUARANTOR: 
 WILLIAM LYON HOMES, a Delaware 
 corporation 
 By: /s/ Michael D. Grubbs 
 Name: Michael D. Grubbs 
 Title: Senior Vice President 
 By: /s/ Richard S. Robinson  
 Name: Richard S. Robinson  
 Title: Senior Vice President 
  

 CONSENT

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