Document:

EX-10.6

 Exhibit 10.6 

 
  

 
 STOCKHOLDERS AGREEMENT

 BY AND AMONG 
 TAYLOR MORRISON HOME CORPORATION 
 AND 

THE STOCKHOLDERS PARTY HERETO 
 DATED AS OF [            ], 2013 

 
  

 

 TABLE OF CONTENTS 

 

							
	 Article I DEFINITIONS
	  	 	2	  
			
	 Section 1.1
	 	 Definitions.
	  	 	2	  
			
	 Section 1.2
	 	 Other Interpretive Provisions.
	  	 	5	  
		
	 Article II REPRESENTATIONS AND WARRANTIES
	  	 	6	  
			
	 Section 2.1
	 	Existence; Authority; Enforceability.	  	 	6	  
			
	 Section 2.2
	 	 Absence of Conflicts.
	  	 	6	  
			
	 Section 2.3
	 	 Consents.
	  	 	6	  
		
	 Article III GOVERNANCE
	  	 	7	  
			
	 Section 3.1
	 	 The Board.
	  	 	7	  
			
	 Section 3.2
	 	 Voting Agreement.
	  	 	10	  
			
	 Section 3.3
	 	 The Boards of Directors of U.S. Parent and Canadian Parent.
	  	 	10	  
			
	 Section 3.4
	 	 Company and Partnership Activities; Approvals.
	  	 	10	  
			
	 Section 3.5
	 	 Subsidiaries of the Company.
	  	 	12	  
		
	 Article IV GENERAL PROVISIONS
	  	 	12	  
			
	 Section 4.1
	 	 Company Charter and Company Bylaws.
	  	 	12	  
			
	 Section 4.2
	 	 Freedom to Pursue Opportunities.
	  	 	12	  
			
	 Section 4.3
	 	 Assignment; Benefit.
	  	 	13	  
			
	 Section 4.4
	 	 Termination.
	  	 	13	  
			
	 Section 4.5
	 	 Limits on Transfer or Issuance of Class B Common Stock.
	  	 	13	  
			
	 Section 4.6
	 	 Severability.
	  	 	14	  
			
	 Section 4.7
	 	 Entire Agreement; Amendment.
	  	 	14	  
			
	 Section 4.8
	 	 Counterparts.
	  	 	14	  
			
	 Section 4.9
	 	 Notices.
	  	 	14	  
			
	 Section 4.10
	 	 Governing Law.
	  	 	17	  
			
	 Section 4.11
	 	 Jurisdiction.
	  	 	17	  
			
	 Section 4.12
	 	 Waiver of Jury Trial.
	  	 	17	  
			
	 Section 4.13
	 	 Specific Performance.
	  	 	17	  
			
	 Section 4.14
	 	 Subsequent Acquisition of Shares.
	  	 	18	  

  
 i 

 This STOCKHOLDERS AGREEMENT (as it may be amended from time to time in accordance with the
terms hereof, the “Agreement”), dated as of [            ], 2013, is made by and among: 
 i. Taylor Morrison Home Corporation, a Delaware corporation (the “Company”); 
 ii. TPG TMM Holdings II, L.P., a Cayman Islands limited partnership (together with its Affiliates, “TPG” or the “TPG Investor”); 

iii. OCM TMM Holdings II, L.P., a Cayman Islands limited partnership (together with its Affiliates, “Oaktree” or the
“Oaktree Investor”); 
 iv. JHI Holding Limited Partnership, a British Columbia limited partnership (together
with its Affiliates, “JHI” or the “JHI Investor”); and 
 v. such other Persons who from time
to time become party hereto by executing a counterpart signature page hereof and are designated by the Board (as defined below) as “Other Stockholders” (the “Other Stockholders” and, together with the TPG Investor, the
Oaktree Investor and the JHI Investor, the “Stockholders”). 
 For purposes of this Agreement, each of TPG and
Oaktree is a “Principal Sponsor”, and each of TPG, Oaktree and JHI is an “Investor”. 

RECITALS 

WHEREAS, on July 13, 2011, TMM Holdings (G.P.) Inc., TMM Holdings Limited Partnership (the “Partnership”), and
certain stockholders party thereto entered into a Stockholders Agreement (the “Prior Agreement”); 
 WHEREAS,
pursuant to a Reorganization Agreement dated [            ], 2013, the Company, the Partnership, the Investors and certain other Persons have effected a series of reorganization
transactions (collectively, the “Reorganization Transactions”); 
 WHEREAS, after giving effect to the
Reorganization Transactions, the Principal Sponsors own limited partnership interests in TMM Holdings II Limited Partnership (“New TMM Units”) and shares of the Company’s Class B common stock, par value $0.00001 per share (the
“Class B Common Stock”), which, subject to certain restrictions, are exchangeable from time to time at the option of the holder thereof for shares of the Company’s Class A common stock, par value $0.00001 per share (the
“Class A Common Stock” and, together with the Class B Common Stock, the “Common Stock”) pursuant to an Exchange Agreement dated [            ], 2013;

 WHEREAS, on the date hereof, the Company has priced an initial public offering of shares of its Class A Common Stock
(the “IPO”) pursuant to an Underwriting Agreement dated [            ], 2013 (the “Underwriting Agreement”); 

  
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 WHEREAS, on the date hereof, the Prior Agreement is being terminated by the parties thereto;
and 
 WHEREAS, the parties hereto desire to provide for certain governance rights and other matters, and to set forth the
respective rights and obligations of the Stockholders following the IPO. 
 NOW, THEREFORE, in consideration of the foregoing
and the mutual promises, covenants and agreements of the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS 
 Section 1.1 Definitions. As used in this Agreement, the following terms shall have the following meanings: 

“90-Day Unaffiliated Director” has the meaning set forth in Section 3.1(a). 

“Affiliate” means, with respect to any specified Person, (a) any Person that directly or indirectly through one or
more intermediaries controls, or is controlled by, or is under common control with, such specified Person or (b) in the event that the specified Person is a natural Person, a Member of the Immediate Family of such Person; provided that
the Company, the Partnership, U.S. Parent, Canadian Parent and each of their respective subsidiaries shall not be deemed to be Affiliates of the TPG Investor, Oaktree Investor or JHI Investor. As used in this definition, the term “control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Agreement” has the meaning set forth in the Preamble. 

“Board” means the board of directors of the Company. 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by
law to be closed in the City of New York. 
 “Canadian Parent” means Monarch Communities Inc., a British
Columbia corporation. 
 “Canadian Parent Governance Agreement” means the Canadian Parent Governance Agreement,
dated as of the date hereof, by and among the Company, the Partnership, Canadian Parent and the other parties thereto. 

“Chief Executive Officer” means the chief executive officer of the Company then in office. 

  
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 “Class A Common Stock” has the meaning set forth in the Recitals.

 “Class A Units” means, collectively, the Class A-T Units of TPG TMM Holdings II, L.P. and the
Class A-O Units of Oaktree TMM Holdings II, L.P. 
 “Class B Common Stock” has the meaning set forth in
the Recitals. 
 “Class J Units” means, collectively, the Class J1-T Units, Class J2-T Units and Class J3-T
Units of TPG TMM Holdings II, L.P. and the Class J1-O Units, Class J2-O Units and Class J3-O Units of Oaktree TMM Holdings II, L.P. 
 “Closing” means the closing of the IPO. 
 “Code”
means the U.S. Internal Revenue Code of 1986, as amended. Any reference to a section of the Code shall include a reference to any successor provision thereto. 
 “Common Stock” has the meaning set forth in the Recitals. 

“Company” has the meaning set forth in the Preamble. 

“Company Bylaws” means the bylaws of the Company in effect on the date hereof, as may be amended from time to time.

 “Company Charter” means the certificate of incorporation of the Company in effect on the date hereof, as may
be amended from time to time. 
 “Company Shares” means (i) all shares of Common Stock that are not then
subject to vesting (including shares that were at one time subject to vesting to the extent they have vested), (ii) all shares of Common Stock issuable upon exercise, conversion or exchange of any option, warrant or convertible security that
are not then subject to vesting (including shares that were at one time subject to vesting to the extent they have vested) (without double counting shares of Class A Common Stock issuable upon an exchange of shares of Class B Common Stock
together with New TMM Units) and (iii) all shares of Common Stock directly or indirectly issued or issuable with respect to the securities referred to in clauses (i) or (ii) above by way of unit or stock dividend or unit or stock
split, or in connection with a combination of units or shares, recapitalization, merger, consolidation or other reorganization. 

“Debt Threshold” means an amount equal to $50.0 million. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor thereto, and any rules and
regulations promulgated thereunder, all as the same shall be in effect from time to time. 
 “Fund Indemnitors”
has the meaning set forth in Section 3.1(i). 
 “Indemnitee” has the meaning set forth in
Section 3.1(i). 
 “Investor” has the meaning set forth in the Preamble. 

  
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 “IPO” has the meaning set forth in the Recitals. 

“JHI” or “JHI Investor” has the meaning set forth in the Preamble. 

“JHI Director” has the meaning set forth in Section 3.1(a). 

“Loan Threshold” means an amount equal to $50.0 million. 

“Majority in Interest” means, with respect to the Stockholders or any subset thereof, Stockholders who beneficially own
a majority of Company Shares held by the Stockholders or such subset of Stockholders, as applicable. 
 “Member of the
Immediate Family” means, with respect to an individual, (a) each parent, spouse (but not including a former spouse or a spouse from whom such individual is legally separated) or child (including those adopted) of such individual and
(b) each trustee, solely in his or her capacity as trustee and so long as such trustee is reasonably satisfactory to the Company, for a trust naming only one or more of the Persons listed in sub-clause (a) as beneficiaries. 

“Necessary Action” means, with respect to a specified result, all actions necessary to cause such result, including
(i) voting or providing a written consent or proxy with respect to the Company Shares, (ii) causing the adoption of stockholders’ resolutions and amendments to the organizational documents of the Company, (iii) executing
agreements and instruments, and (iv) making, or causing to be made, with governmental, administrative or regulatory authorities, all filings, registrations or similar actions that are required to achieve such result. 

“Oaktree” or “Oaktree Investor” has the meaning set forth in the Preamble. 

“Oaktree Directors” has the meaning set forth in Section 3.1(a). 

“Other Stockholders” has the meaning set forth in the Preamble. 

“Partnership” has the meaning set forth in the Preamble. 

“Person” means any individual, partnership, limited liability company, corporation, trust, association, estate,
unincorporated organization or government or any agency or political subdivision thereof. 
 “Principal
Sponsor” has the meaning set forth in the Preamble. 
 “Principal Sponsor Minimum” means, with respect
to a Principal Sponsor, a number of shares of Common Stock equal to at least 50% of the outstanding shares of Common Stock owned by such Principal Sponsor as of the closing of all of the transactions contemplated by the Underwriting Agreement and
the Put/Call Agreement, or, if no such closing occurs prior to June 30, 2013, the Closing. 
 “Purchase
Consideration Threshold” means an amount equal to $50.0 million. 

  
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 “Put/Call Agreement” means the Put/Call Agreement, dated as of the date
hereof, by and among TPG, Oaktree, TMM Holdings II Limited Partnership and the Company. 
 “Representatives”
means, with respect to any Person, any of such Person’s officers, directors, employees, agents, attorneys, accountants, actuaries, consultants or financial advisors or other Person associated with, or acting on behalf of, such Person.

 “Requisite Investor Approval” means (a) for so long as each Principal Sponsor holds at least the
Principal Sponsor Minimum, the approval of a majority of the Board, including in each case at least one director designated by each Principal Sponsor; and (b) to the extent only one Principal Sponsor holds the Principal Sponsor Minimum, the
approval of a majority of the Board, including in each case at least one director designated by such Principal Sponsor. At such time as neither Principal Sponsor holds at least the Principal Sponsor Minimum, any action requiring “Requisite
Investor Approval” shall be determined by the Company or the Board in accordance with applicable law. 
 “Sale
Consideration Threshold” means an amount equal to $50.0 million. 
 “Securities Act” means the
Securities Act of 1933, as amended, and any successor thereto, and any rules and regulations promulgated thereunder, all as the same shall be in effect from time to time. 
 “Stockholders” has the meaning set forth in the Preamble. 

“TMM Companies” means the Partnership, TMM Holdings II Limited Partnership, TMM Holdings II GP, ULC and TMM Holdings
(G.P.) ULC. 
 “TPG” or “TPG Investor” has the meaning set forth in the Preamble. 

“TPG Directors” has the meaning set forth in Section 3.1(a). 

“Transfer” means, with respect to any Company Shares, any interest therein, or any other securities or equity interests,
a direct or indirect transfer, sale, exchange, assignment, pledge, hypothecation or other encumbrance or other disposition thereof, including the grant of an option or other right, whether directly or indirectly, whether voluntarily, involuntarily
or by operation of law; and “Transferred”, “Transferee” and “Transferor” shall each have a correlative meaning. 
 “Unaffiliated Director” has the meaning set forth in Section 3.1(a). 
 “Underwriting Agreement” has the meaning set forth in the Recitals. 
 “U.S. Parent” means Taylor Morrison Holdings, Inc., a Delaware corporation. 
 “U.S. Parent Governance Agreement” means the U.S. Parent Governance Agreement, dated as of the date hereof, by and among the Company, the Partnership, U.S. Parent and the other parties
thereto. 

  
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 Section 1.2 Other Interpretive Provisions. (a) The meanings
of defined terms are equally applicable to the singular and plural forms of the defined terms. 
 (b) The words
“hereof,” “herein,” “hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement; and any subsection and section references are to this
Agreement unless otherwise specified. 
 (c) The term “including” is not limiting and means “including
without limitation.” 
 (d) The captions and headings of this Agreement are for convenience of reference only and shall
not affect the interpretation of this Agreement. 
 (e) Whenever the context requires, any pronouns used herein shall include
the corresponding masculine, feminine or neuter forms. 
 ARTICLE II 

REPRESENTATIONS AND WARRANTIES 
 Each of the parties to this Agreement hereby represents and warrants to each other party to this Agreement that as of the date such party executes this Agreement: 

Section 2.1 Existence; Authority; Enforceability. Such party has the power and authority to enter into this
Agreement and to carry out its obligations hereunder. Such party is duly organized and validly existing under the laws of its jurisdiction of organization, and the execution of this Agreement, and the consummation of the transactions contemplated
herein, have been authorized by all necessary action on the part of its board of directors (or equivalent) and shareholders (or other holders of equity interests), if required, and no other act or proceeding on its part is necessary to authorize the
execution of this Agreement or the consummation of any of the transactions contemplated hereby. This Agreement has been duly executed by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

 Section 2.2 Absence of Conflicts. The execution and delivery by such party of this Agreement and
the performance of its obligations hereunder does not and will not (a) conflict with, or result in the breach of any provision of the constitutive documents of such party, (b) result in any violation, breach, conflict, default or an event
of default (or an event which with notice, lapse of time, or both, would constitute a default or an event of default), or give rise to any right of acceleration or termination or any additional payment obligation, under the terms of any contract,
agreement or permit to which such party is a party or by which such party’s assets or operations are bound or affected, or (c) violate any law applicable to such party. 

  
 6 

 Section 2.3 Consents. Other than as expressly required herein or
any consents which have already been obtained, no consent, waiver, approval, authorization, exemption, registration, license or declaration is required to be made or obtained by such party in connection with (a) the execution, delivery or
performance of this Agreement or (b) the consummation of any of the transactions contemplated herein. 
 ARTICLE III

 GOVERNANCE 
 Section 3.1 The Board. 
 (a) Composition of Initial Board.
Prior to Closing, the Company and the Stockholders shall take all Necessary Action to cause the Board to be comprised of ten (10) directors, (i) three (3) of whom shall be designated by TPG (each, a “TPG Director”),
(ii) three (3) of whom shall be designated by Oaktree (each, an “Oaktree Director”), (iii) one (1) of whom shall be designated by JHI (the “JHI Director”), (iv) one (1) of whom shall be
the Chief Executive Officer and (v) two (2) of whom shall be directors who meet the independence criteria set forth in Rule 10A-3 under the Exchange Act (each, an “Unaffiliated Director”). Within ninety (90) days of
the effectiveness of this Agreement, the Company and the Stockholders shall take all Necessary Action to cause the Board to increase in size by one (1) director to eleven (11) directors and to fill such vacancy with one (1) additional
Unaffiliated Director (the “90-Day Unaffiliated Director”) who shall be appointed by a majority of the Board. The foregoing directors shall be divided into three classes of directors, each of whose members shall serve for staggered
three-year terms as follows: 
 (1) the class I directors shall include one (1) TPG Director, one
(1) Oaktree Director, the Chief Executive Officer and one (1) Unaffiliated Director; 
 (2) the class
II directors shall include one (1) TPG Director, one (1) Oaktree Director, the JHI Director and the 90-Day Unaffiliated Director; and 
 (3) the class III directors shall include one (1) TPG Director, one (1) Oaktree Director and (1) one Unaffiliated Director. 
 The initial term of the class I directors shall expire immediately following the Company’s 2014 annual meeting of stockholders at which directors are elected. The initial term of the class II
directors shall expire immediately following the Company’s 2015 annual meeting of stockholders at which directors are elected. The initial term of the class III directors shall expire immediately following the Company’s 2016 annual meeting
at which directors are elected. 

  
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For the avoidance of doubt, this Section 3.1(a) is applicable solely to the initial composition of the Board and shall have no further force or effect after the 90-Day Unaffiliated Director
is appointed to the Board (except that (i) a director shall remain a member of the class of directors to which he or she was assigned in accordance with this Section 3.1(a) and (ii) the initial terms of each class of directors shall
expire as set forth in this Section 3.1(a)). 
 (b) Principal Sponsor Representation. For so long as a Principal
Sponsor holds a number of shares of Common Stock representing at least the percentage of shares of Common Stock held by such Principal Sponsor as of the closing of all of the transactions contemplated by the Underwriting Agreement and the Put/Call
Agreement (or, if no such closing occurs prior to June 30, 2013, the Closing) shown below, there shall be included in the slate of nominees recommended by the Board for election as directors at each applicable annual or special meeting of
shareholders at which directors are to be elected that number of individuals designated by such Principal Sponsor (each, a “Principal Sponsor Designee”) that, if elected, will result in such Principal Sponsor having the number of
directors serving on the Board that is shown below. 
  

			
	 Percent
	  	 Number of Directors

	50% or greater	  	3
	Less than 50% but greater than or equal to 10%	  	2
	Less than 10% but greater than or equal to 5%	  	1

 Upon any decrease in the number of directors that a Principal Sponsor is entitled to designate for election to the Board,
such Principal Sponsor shall take all Necessary Action to cause the appropriate number of Principal Sponsor Designees to offer to tender resignation. If such resignation is then accepted by the Board, the Company and the Stockholders shall cause the
authorized size of the Board to be reduced accordingly unless the Company with Requisite Investor Approval determines not to reduce the authorized size of the Board. 
 (c) JHI Representation. For so long as the Principal Sponsors in the aggregate own at least fifty percent (50%) of the number of shares of Common Stock held by the Principal Sponsors as of the
closing of all of the transactions contemplated by the Underwriting Agreement and the Put/Call Agreement (or, if no such closing occurs prior to June 30, 2013, the Closing) and JHI owns at least fifty percent (50%) in the aggregate of the
Class A Units and at least fifty percent (50%) in the aggregate of the Class J Units that JHI holds as of such time, there shall be included in the slate of nominees recommended by the Board for election as directors at each applicable
annual or special meeting of shareholders at which directors are to be elected that number of individuals designated by JHI (each, a “JHI Designee”) that, if elected, will result in there being one (1) JHI Director serving on
the Board. Upon any decrease in the number of directors that JHI is entitled to designate for election to the Board, JHI shall take all Necessary Action to cause the JHI Designee to offer to tender resignation. If such resignation is accepted by the
Board, then the Company and the Stockholders shall cause the authorized size of the Board to be reduced accordingly unless the Company with Requisite Investor Approval determines not to reduce the authorized size of the Board. 

(d) CEO Representation. Subject to the last sentence of Section 3.1(e), if the term of the Chief Executive Officer as a
director on the Board is to expire in conjunction with 

  
 8 

 
any annual or special meeting of shareholders at which directors are to be elected, the Chief Executive Officer shall be included in the slate of nominees recommended by the Board for election.

 (e) Vacancies. Except as provided in Sections 3.1(b) and 3.1(c), (i) each Investor shall have the exclusive right
to remove its designees from the Board, and the Company and the Principal Sponsors shall take all Necessary Action to cause the removal of any such designee at the request of the designating Investor and (ii) each Investor shall have the
exclusive right to designate for election to the Board directors to fill vacancies created by reason of death, removal or resignation of its designees to the Board, and the Company and the Principal Sponsors shall take all Necessary Action to cause
any such vacancies to be filled by replacement directors designated by such designating Investor as promptly as reasonably practicable; provided, that, for the avoidance of doubt and notwithstanding anything to the contrary in this paragraph,
no Investor shall have the right to designate a replacement director, and the Company and the Principal Sponsors shall not be required to take any action to cause any vacancy to be filled by any such designee, to the extent that election or
appointment of such designee to the Board would result in a number of directors designated by such Investor in excess of the number of directors that such Investor is then entitled to designate for membership on the Board pursuant to
Section 3.1(b) or Section 3.1(c), as applicable. If the Chief Executive Officer resigns or is terminated for any reason, the Company, the Chief Executive Officer and the Principal Sponsors shall take all Necessary Action to remove the
Chief Executive Officer from the Board and fill such vacancy with the next Chief Executive Officer in office. 
 (f)
Additional Unaffiliated Directors. For so long as any Principal Sponsor has the right to designate at least one (1) director for nomination under this Agreement, the Company will take all Necessary Action to ensure that the number of
directors serving on the Board shall not exceed eleven (11); provided, that the number of directors may be increased if necessary to satisfy the requirements of applicable laws and stock exchange regulations. 

(g) Committees. Subject to applicable laws and stock exchange regulations, each Principal Sponsor shall have the right to have a
representative appointed to serve on each committee of the Board for so long as such Principal Sponsor has the right to designate at least one (1) director for election to the Board. Subject to applicable laws and stock exchange regulations,
each Principal Sponsor shall have the right to have a representative appointed as an observer to any committee of the Board to which such Principal Sponsor (i) does not elect to have a representative appointed or (ii) is prohibited by
applicable laws or stock exchange regulations from having a representative appointed, in each case for so long as such Principal Sponsor has the right to designate at least one (1) director for nomination under this Agreement. 

(h) Reimbursement of Expenses. The Company shall reimburse each TPG Director, Oaktree Director, JHI Director, Principal Sponsor
Designee and JHI Designee for all reasonable and documented out-of-pocket expenses incurred in connection with such director’s or designee’s participation in the meetings of the Board or any committee of the Board, including reasonable
travel, lodging and meal expenses. 
 (i) D&O Insurance; Indemnification Priority. The Company shall obtain customary
director and officer indemnity insurance on commercially reasonable terms. The 

  
 9 

 
Company hereby acknowledges that any director, officer or other indemnified person covered by any such indemnity insurance policy (any such Person, an “Indemnitee”) may have
certain rights to indemnification, advancement of expenses and/or insurance provided by TPG, Oaktree or one or more of their respective Affiliates (collectively, the “Fund Indemnitors”). The Company hereby (i) agrees that the
Company and any Company subsidiary that provides indemnity shall be the indemnitor of first resort (i.e., its or their obligations to an Indemnitee shall be primary and any obligation of any Fund Indemnitor to advance expenses or to provide
indemnification for the same expenses or liabilities incurred by Indemnitee shall be secondary), and (ii) irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution,
subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of an Indemnitee with respect to any claim for which such Indemnitee has sought
indemnification from the Company, as the case may be, shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such
Indemnitee against the Company. 
 Section 3.2 Voting Agreement. Each Principal Sponsor agrees to
cast all votes to which such Principal Sponsor is entitled in respect of its Company Shares, whether at any annual or special meeting, by written consent or otherwise, so as to cause to be elected to the Board those individuals designated in
accordance with Section 3.1(a)-(f) and to otherwise effect the intent of this Article III. 

Section 3.3 The Boards of Directors of U.S. Parent and Canadian Parent. The Company shall take all Necessary
Action to cause the composition of the board of directors of U.S. Parent and the board of directors of Canadian Parent to be identical at all times to that of the Board; provided, that, notwithstanding anything to the contrary set forth in
this Section 3.3, in the event that a Principal Sponsor Designee or JHI Designee is not elected to the Board at the applicable annual or special meeting of shareholders at which such nominee is up for election (or re-election) to the Board
pursuant to the terms of this Agreement, the Company shall take all Necessary Action to cause such Principal Sponsor Designee or JHI Designee to be appointed or elected to the board of directors of U.S. Parent and the board of directors of Canadian
Parent in place of a director who was not on the slate of nominees recommended by the Board at the time of the annual or special meeting of shareholders at which he or she was not elected (or re-elected) to the Board; provided,
further, that the Company shall take all Necessary Action to fill any vacancy caused by the removal or resignation of any such Principal Sponsor Designee or JHI Designee with a replacement director designated by the applicable Principal
Sponsor or JHI, as applicable, unless the election or appointment of such a replacement would result in a number of directors designated by such Investor in excess of the number of directors that such Investor is then entitled to designate for
membership on the Board pursuant to Section 3.1(b) or Section 3.1(c), as applicable. 

  
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 Section 3.4 Company and Partnership Activities; Approvals. The
Company shall not take, and shall cause TMM Holdings II Limited Partnership and the Partnership not to take, any actions that would cause TMM Holdings II Limited Partnership or the Partnership to conduct any activities other than stewardship over
the investments of the Partnership in U.S. Parent and Canadian Parent. The Company shall not conduct any business or operations other than those of a holding company, the sole direct subsidiaries of which are TMM Holdings II Limited Partnership and
TMM Holdings II GP, ULC. The Company shall be permitted, among other things, to maintain its legal existence, including by incurring fees, costs and expenses relating to such maintenance, to participate in tax, accounting and other administrative
matters as a member of a consolidated group with TMM Holdings II Limited Partnership and its subsidiaries, to make public offerings of any securities (subject to the paragraphs below), to register its securities under applicable securities laws and
maintain public listing of its securities, to incur expenses relating to overhead and general operations, to provide indemnification to officers, directors, consultants and agents, and to perform activities incidental to those enumerated in this
sentence. The Company shall take all Necessary Action to cause (i) TMM Holdings II GP, ULC to conduct no activities other than acting as general partner of TMM Holdings II Limited Partnership and (ii) TMM Holdings (G.P.) ULC to conduct no
activities other than acting as general partner of the Partnership. In furtherance of the foregoing, the Company shall not take, and shall cause the TMM Companies not to take, any of the following actions without prior Requisite Investor Approval:

  

	 	i.	Any transactions or series of related transactions (i) in which any Person or Persons (other than TPG Investors or Oaktree Investors) acquires in excess of 50% of
the then outstanding shares of any class of capital stock (or equivalent) of the Company, any TMM Company, U.S. Parent or Canadian Parent (whether by merger, consolidation, sale or transfer of partnership interests, tender offer, exchange offer,
reorganization, recapitalization or otherwise) or (ii) following which any Person or Persons (other than TPG Investors, Oaktree Investors or the Company) have the direct or indirect power to elect a majority of the members of the board of
directors (or equivalent) of the Company, any TMM Company, U.S. Parent or Canadian Parent; 

  

	 	ii.	Any transaction or series of related transactions involving the sale, lease, exchange or other disposal by the Company or any TMM Company of any of their respective
assets for consideration having a fair market value (as reasonably determined by the Board) in excess of the Sale Consideration Threshold; 

  

	 	iii.	Any transaction or series of related transactions involving the purchase, rent, license, exchange or other acquisition by the Company or any TMM Company of any assets
(including securities) for consideration having a fair market value (as reasonably determined by the Board) in excess of the Purchase Consideration Threshold; 

  
 11 

	 	iv.	The hiring or termination of the Chief Executive Officer; 

  

	 	v.	(A) any incurrence of indebtedness by the Company or any TMM Company if, after taking into account the incurrence of such indebtedness, the aggregate outstanding
indebtedness of the Company and the TMM Companies would exceed the Debt Threshold, or (B) the making of any loan, advance or capital contribution to any Person (other than a TMM Company, U.S. Parent or Canadian Parent) by the Company or any TMM
Company in excess of the Loan Threshold; 

  

	 	vi.	Any authorization or issuance of equity securities of the Company or its direct or indirect subsidiaries other than (A) pursuant to any equity incentive plans or
arrangements of U.S. Parent, Canadian Parent and their respective subsidiaries that have been approved by “Requisite Investor Approval” (as such term is defined in the U.S. Parent Governance Agreement and the Canadian Parent Governance
Agreement, respectively) or (B) upon an exchange of shares of Class B Common Stock together with New TMM Units for shares of Class A Common Stock; or 

 

	 	vii.	Any increase or decrease in the size of the Board other than in accordance with Section 3.1. 

Each of TPG and Oaktree acknowledges and agrees that Requisite Investor Approval has been obtained with respect to all actions taken and
transactions undertaken on the date hereof in connection with the IPO. Each Investor agrees to cast all votes to which such holder is entitled in respect of its Company Shares, whether at any annual or special meeting, by written consent or
otherwise, against any action that otherwise requires Requisite Investor Approval but for which Requisite Investor Approval has not been obtained. 
 Section 3.5 Unless permitted with Requisite Investor Approval, the Company shall not have any direct subsidiaries other than TMM Holdings II Limited Partnership and TMM Holdings II GP, ULC nor shall
it directly own any equity interests or other debt or equity investments in any other Person (other than its own treasury stock). Unless otherwise permitted following receipt of Requisite Investor Approval, the Company shall take all Necessary
Action to cause TMM Holdings II GP, ULC not to have any direct subsidiaries other than TMM Holdings II Limited Partnership and not to directly own any equity interests or other debt or equity investments in any other Person (other than its own
treasury stock). 

  
 12 

 ARTICLE IV 
 GENERAL PROVISIONS 
 Section 4.1 Company Charter and
Company Bylaws. 
 (a) The provisions of this Agreement shall be controlling if any such provisions or the operation thereof
conflict with the provisions of the Company Charter or the Company Bylaws. The Company and the Principal Sponsors agree to take all Necessary Action to amend the Company Charter and Company Bylaws so as to avoid any conflict with the provisions
hereof. 
 (b) Any amendment to the Company Bylaws shall only be effective if approved by Requisite Investor Approval or such
shareholder approval as is set forth in the Company Bylaws. 
 Section 4.2 Freedom to Pursue
Opportunities. The parties expressly acknowledge and agree that: (i) each Investor, each Representative of an Investor and each director or officer of the Company, the Partnership or any TMM Company that is an Affiliate or designee of an
Investor (each, an “Investor Designee”) has the right to, and has no duty (contractual or otherwise) not to, (x) directly or indirectly engage in the same or similar business activities or lines of business as the Company, the
Partnership or any TMM Company, including those deemed to be competing with the Company, the Partnership or any TMM Company, or (y) directly or indirectly do business with any client, customer or supplier of the Company, the Partnership or any
TMM Company; and (ii) in the event that an Investor, any Representative of a Principal Sponsor or any Investor Designee acquires knowledge of a potential transaction or matter that may be a corporate opportunity for the Company, the Partnership
or any TMM Company, such Investor, Representative or Investor Designee shall have no duty (contractual or otherwise) to communicate or present such corporate opportunity to the Company, the Partnership, any TMM Company or any of their respective
Affiliates, and, notwithstanding any provision of this Agreement to the contrary, shall not be liable to the Company, the Partnership, any TMM Company or any of their respective Affiliates, subsidiaries, stockholders or other equity holders for
breach of any duty (contractual or otherwise) by reason of the fact that such Investor, Representative or Investor Designee, directly or indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another Person, or does
not present such opportunity to the Company, TMM Holdings II Limited Partnership, the Partnership or any of their respective Affiliates. For the avoidance of doubt, the provisions of this Section 4.2 shall have independent effect with respect
to, and shall not be construed as being in lieu of or otherwise limiting, any separate obligations of any Person under any agreement between the Company and/or the Partnership, including any agreement related to noncompetition, nonsolicitation,
confidentiality or other restrictions on the activities or operations of such Person. 

  
 13 

 Section 4.3 Assignment; Benefit. 

(a) The rights and obligations hereunder shall not be assignable without the prior written consent of the other parties hereto. Any
attempted assignment of rights or obligations in violation of this Section 4.3 shall be null and void. 
 (b) This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective successors and permitted assigns, and there shall be no third-party beneficiaries to this Agreement other than the Indemnitees and the Fund
Indemnitors under Section 3.1(i), and the Investors, their Representatives and the Investor Designees under Section 4.2. 
 Section 4.4 Termination. If not otherwise stipulated, this Agreement shall terminate automatically (without any action by any party hereto) as to each Stockholder as of the later of
(i) when such Stockholder no longer owns any shares of Common Stock, or (ii) when such Stockholder no longer has the right to nominate any directors to the Board pursuant to Article III hereof. 

Section 4.5 Limits on Transfer or Issuance of Class B Common Stock. The parties each acknowledge and agree
that no shares of Class B Common Stock may be Transferred or issued unless a corresponding number of New TMM Units are Transferred or issued therewith (including any transfers or issuances of shares of Class B Common Stock held in treasury or
otherwise, by the Company or any of its subsidiaries) and that the Company will not register any Transfers of shares of Class B Common Stock that do not satisfy this Section 4.5. 

Section 4.6 Severability. In the event that any provision of this Agreement shall be invalid, illegal or
unenforceable such provision shall be construed by limiting it so as to be valid, legal and enforceable to the maximum extent provided by law and the validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby. 
 Section 4.7 Entire Agreement; Amendment. 

(a) This Agreement (together with the U.S. Parent Governance Agreement and the Canadian Parent Governance Agreement) sets forth the
entire understanding and agreement between the parties with respect to the transactions contemplated herein and supersedes and replaces any prior understanding, agreement or statement of intent, in each case written or oral, of any kind and every
nature with respect hereto. This Agreement or any 

  
 14 

 
provision hereof may only be amended, modified or waived, in whole or in part, at any time by an instrument in writing signed by each of the Principal Sponsors with respect to which this
Agreement is not terminated; provided that (i) the prior written consent of any Investor shall be required for any amendment, modification or waiver that would have a disproportionate adverse effect in any material respect on the rights
of such Investor relative to the other Investors and (ii) the prior written consent of the holders of the Majority in Interest of the Company Shares then held by the Other Stockholders shall be required for any amendment, modification or waiver
that would have a disproportionate and adverse effect in any material respect on the rights of Other Stockholders under this Agreement relative to the Investors. 
 (b) No waiver of any breach of any of the terms of this Agreement shall be effective unless such waiver is expressly made in writing and executed and delivered by the party against whom such waiver is
claimed. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. Except as otherwise expressly
provided herein, no failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single
or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 

Section 4.8 Counterparts. This Agreement may be executed in any number of separate counterparts each of which
when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement. Counterpart signature pages to this Agreement may be delivered by facsimile or electronic delivery (i.e., by email of a
PDF signature page) and each such counterpart signature page will constitute an original for all purposes. 

Section 4.9 Notices. Unless otherwise specified herein, all notices, consents, approvals, reports,
designations, requests, waivers, elections and other communications authorized or required to be given pursuant to this Agreement shall be in writing and shall be given, made or delivered by personal hand-delivery, by facsimile transmission, by
electronic mail, by mailing the same in a sealed envelope, registered first-class mail, postage prepaid, return receipt requested, or by air courier guaranteeing overnight delivery (and such notice shall be deemed to have been duly given, made or
delivered (a) on the date received, if delivered by personal hand delivery, (b) on the date received, if delivered by facsimile transmission, by electronic mail or by registered first-class mail prior to 5:00 p.m. prevailing local time on
a Business Day, or if delivered after 5:00 p.m. prevailing local time on a Business Day or on other than a Business Day, on the first Business Day thereafter and (c) two (2) Business Days after being sent by air courier guaranteeing
overnight delivery), at the following addresses (or at such other address as shall be specified by like notice): 
 if to the
Company to: 
  

			
	 Taylor Morrison Home Corporation
 4900 North Scottsdale Road, Suite 2000
 Scottsdale, AZ 85251

	Attention:	  	Darrell Sherman,
		  	Vice President and General Counsel
	Facsimile:	  	(866) 390-2612
	E-mail:	  	dsherman@taylormorrison.com

  
 15 

			
	
	with a copy (which shall not constitute notice) to:
	
	 Paul, Weiss, Rifkind, Wharton & Garrison LLP
 1285 Avenue of the Americas
 New York, NY 10019-6064

	Attention:	  	John C. Kennedy
		  	Lawrence G. Wee
	Facsimile:	  	(212) 757-3990
	E-mail:	  	jkennedy@paulweiss.com
		  	lwee@paulweiss.com

 if to the TPG Investor, to: 

 

			
	 TPG Global, LLC

301 Commerce Street, Suite 3300
 Fort Worth, TX
76102

	Attention:	  	Ronald Cami
	Facsimile:	  	(415) 743-1501
	E-mail:	  	rcami@tpg.com
	
	with a copy (which shall not constitute notice) to:

  

			
	 Ropes & Gray LLP
 The Prudential Tower
 800 Boylston Street
 Boston, MA 02199

	Attention:	  	Alfred O. Rose
		  	Julie H. Jones
	Facsimile:	  	(617) 951-7050
	E-mail:	  	alfred.rose@ropesgray.com
		  	julie.jones@ropesgray.com

 if to the Oaktree Investor: 

 

			
	 Oaktree Capital Management, L.P.
 333 South Grand Ave., 28th Floor
 Los Angeles, CA 90071

	Attention:	  	Kenneth Liang
	Facsimile:	  	(213) 830-6293
	E-mail:	  	kliang@oaktreecapital.com

  
 16 

			
	with a copy (which shall not constitute notice) to:
	
	 Debevoise & Plimpton LLP
 919 Third Avenue
 New York, NY 10022

	Attention:	  	George E.B. Maguire
		  	Jasmine Ball
	Facsimile:	  	(212) 909-6836
	E-mail:	  	gebmaguire@debevoise.com
		  	jball@debevoise.com

 if to the JHI Investor, to: 

 

			
	 JHI Holding Limited Partnership
 c/o JHI Advisory Inc.
 Suite 3260 - 666 Burrard Street

Vancouver, British Columbia
 Canada V6C
2X8

	Attention:	  	G. Gail Edwards
	Facsimile:	  	(604) 648-6685
	E-mail:	  	gedwards@jhinvest.com
	
	with a copy (which shall not constitute notice) to:
	
	 McCarthy Tétrault LLP
 1300 – 777 Dunsmuir Street
 Vancouver, British Columbia

Canada V7Y 1K2

	Attention:	  	Cameron Belsher
	Facsimile:	  	(604) 622-5674
	E-mail:	  	cbelsher@mccarthy.ca

 Section 4.10 Governing Law. THIS AGREEMENT AND ANY RELATED DISPUTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. 
 Section 4.11
Jurisdiction. ANY ACTION OR PROCEEDING AGAINST THE PARTIES RELATING IN ANY WAY TO THIS AGREEMENT MAY BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF DELAWARE OR (TO THE EXTENT SUBJECT MATTER JURISDICTION EXISTS THEREFORE) THE UNITED
STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, AND THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF BOTH SUCH COURTS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING. ANY ACTIONS OR PROCEEDINGS TO ENFORCE A JUDGMENT ISSUED BY ONE OF THE
FOREGOING COURTS MAY BE ENFORCED IN ANY JURISDICTION. 

  
 17 

 Section 4.12 Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED
BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTY HERETO WAIVES, AND COVENANTS THAT SUCH PARTY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM OR PROCEEDING
ARISING OUT OF THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH THE DEALINGS OF ANY SHAREHOLDER OR THE GENERAL PARTNER IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN
CONTRACT, TORT OR OTHERWISE. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 4.12 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH IT IS RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 4.12 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

Section 4.13 Specific Performance. It is hereby agreed and acknowledged that it will be impossible to measure
in money the damages that would be suffered if the parties fail to comply with any of the obligations herein imposed on them by this Agreement and that, in the event of any such failure, an aggrieved party will be irreparably damaged and will not
have an adequate remedy at law. Any such party shall therefore be entitled (in addition to any other remedy to which such party may be entitled at law or in equity) to injunctive relief, including specific performance, to enforce such obligations,
without the posting of any bond, and if any action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. 

Section 4.14 Subsequent Acquisition of Shares. Any equity securities of the Company acquired subsequent to the
date hereof by a Stockholder shall be subject to the terms and conditions of this Agreement. 
 [Signature pages follow]

  
 18 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year
first above written. 
  

			
	TAYLOR MORRISON HOME CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

  

[Signature Page to Stockholders Agreement] 

 
					
	TPG TMM HOLDINGS II, L.P.
		
	By:	 	  

		 	Name:	 	Ronald Cami
		 	Title:	 	

  

[Signature Page to Stockholders Agreement] 

 
			
	OCM TMM HOLDINGS II, L.P.
		
	By:	 	  

		 	Name:
		 	Title:

  

[Signature Page to Stockholders Agreement] 

 
			
	JHI HOLDING LIMITED PARTNERSHIP
		
	By:	 	  

		 	Name:
		 	Title:

  

[Signature Page to Stockholders Agreement] 

 
	
	Solely with respect to Section 3.1(e):
	
	Sheryl Palmer
	
	  

  

[Signature Page to Stockholders Agreement]EX-10.7

 Exhibit 10.7 
 PUT/CALL AGREEMENT 
 This PUT/CALL AGREEMENT (this
“Agreement”) is entered into as of [            ], 2013 by and between Taylor Morrison Home Corporation, a Delaware corporation (the “Company”) and each of
the entities identified on Schedule 1 hereto (each a “Seller” and collectively, the “Sellers”). 
 Background 
 A. Each Seller (i) owns in aggregate
[            ] common units (the “Common Units”) of TMM Holdings II Limited Partnership, formed under the laws of the Cayman Islands, and
[            ] shares of the Company’s Class B common stock, $0.00001 par value per share (the “Class B Common Stock”), and (ii) desires to have the option to
require the Company to purchase from such Seller [            ] of such Seller’s Common Units and a corresponding number of the shares of Class B Common Stock (each such Common Unit
together with its corresponding share of Class B Common Stock to be purchased, a “Purchased Interest” of such Seller) at the price and upon the terms and conditions set forth in this Agreement; 

B. The Company desires to have the option to require each Seller to transfer such Seller’s Purchased Interests to the Company at the
price and upon the terms and conditions set forth in this Agreement; 
 C. The Company is conducting an initial public offering
(the “IPO”) of shares of its Class A Common Stock (the “Underwritten Shares”) pursuant to an Underwriting Agreement, dated [    ], 2013 (the “Underwriting Agreement”);

 D. If the Sellers elect to exercise their Put Option or Additional Put Option (in each case, as defined below) or the Company
elects to exercise its Call Option or Additional Call Option (in each case, as defined below), the Company intends to use a portion of the proceeds received from the IPO to complete such purchase; and 

E. The board of directors of the Company or a sub-committee thereof has approved the transactions contemplated by this Agreement for
purposes of Rule 16b-3 under the Securities Exchange Act of 1934 (the “Exchange Act”), which approval is intended to exempt each issuance to a Seller who may be deemed an officer or director of the Company, including a
“director by deputization,” from Section 16(b) of the Exchange Act. 
 THEREFORE, in consideration of the mutual
covenants herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows: 
 Agreement 
 1. Put/Call. 

(a) Seller Option to Put. Each Seller shall have the option to require the Company to purchase from each Seller all but not less
than all of such Seller’s Purchased Interests on the terms and conditions described in this Agreement (such Seller’s “Put Option”). Each Seller may exercise such Seller’s Put Option one time on or after April [15],
2013, by delivering written notice of its exercise to the Company (a “Put Option Notice”). In addition, in the event the underwriters named in the Underwriting Agreement purchase Optional Securities (as defined in the Underwriting
Agreement), each Seller shall have the option to require the Company to purchase a number of additional Common Units and a corresponding number of shares of Class B Common Stock in an amount equal to 50% of the number of such Optional Securities
purchased on an as converted basis (such Seller’s option, such Seller’s “Additional Put Option” and each such Common Unit together with its corresponding share of Class B Common Stock to be purchased, the
“Additional Purchased Interests” of such Seller). The Sellers may exercise the Additional Put Option in whole and only once with respect to each purchase of Optional Securities by the underwriters on or after the later of April
[15], 2013 and the applicable Optional Closing Date (as defined in the Underwriting Agreement), by delivering written notice of its exercise to the Company (the “Additional Put Option Notice”). The obligations of the Company to
purchase the Purchased Interests from any Seller pursuant to such Seller’s Put Option shall be subject to the following conditions, the satisfaction of which shall be determined by a special committee of the Board of Directors of the Company
comprised solely of independent directors (the “Special Committee”): (i) the consummation of the IPO prior to the Closing (as defined below) (ii) the representations and warranties in this Agreement of such Seller shall be
true and correct in all material respects as of the Closing, (iii) such Seller shall have complied in all material respects with all of the covenants required to be performed by such Seller pursuant to this Agreement on or prior to the Closing
and (iv) since the date hereof, there will not have occurred any event, change, fact, condition, circumstance or occurrence that, when considered either individually or in the aggregate together with all other adverse events, changes, facts,
conditions, circumstances or occurrences, has had or would reasonably be expected to have a material adverse effect on (A) the business, operations, results of operations, properties, assets or condition (financial or otherwise) of the Company,
TMM Holdings II Limited Partnership and its subsidiaries, taken as a whole, or (B) the ability of the Company and the Sellers to consummate the transactions contemplated by this Agreement (a “Material Adverse Effect”). The
obligations of the Company to purchase Additional Purchased Interests from any Seller pursuant to such Seller’s Additional Put Option shall be subject to the following conditions, the satisfaction of which shall be determined by the Special

 
Committee: (i) the consummation of the IPO and the applicable sale of the Optional Securities to the underwriters prior to the applicable Additional Closing (as defined below) (ii) the
representations and warranties in this Agreement of such Seller shall be true and correct in all material respects as of the applicable Additional Closing, (iii) such Seller shall have complied in all material respects with all of the covenants
required to be performed by such Seller pursuant to this Agreement on or prior to the applicable Additional Closing and (iv) since the date hereof, there will not have occurred any Material Adverse Effect. If not previously exercised, the Put
Option will expire on June 30, 2013 or at the date and time the Call Option is exercised. If not previously exercised, the Additional Put Option with respect to any Additional Purchased Interests will expire on June 30, 2013 or at the date
and time the Additional Call Option is exercised with respect to such Additional Purchased Interests. 
 (b) Company Option
to Call. The Company, as determined by the Special Committee, shall have the option to require each Seller to transfer all but not less than all of such Seller’s Purchased Interests to the Company on the terms and conditions described in
this Agreement (the “Call Option”). The Company, as determined by the Special Committee, may exercise the Call Option on or after April [15], 2013, by delivering written notice of its exercise to such Seller (a “Call Option
Notice”). The obligations of each Seller to transfer the Purchased Interests to the Company pursuant to the Call Option shall not be subject to any conditions. If not previously exercised, the Call Option will expire on June 30, 2013
or at the date and time the Put Option is exercised. In addition, the Company, as determined by the Special Committee, shall have the option to require each Seller to transfer such Seller’s Additional Purchased Interests to the Company on the
terms and conditions described in this Agreement (the “Additional Call Option”). The Company, as determined by the Special Committee, may exercise the Additional Call Option on or after the later of April [15], 2013 and the Optional
Closing Date, by delivering written notice of its exercise to each Seller (an “Additional Call Option Notice”). The obligations of the Sellers to transfer Additional Purchased Interests to the Company pursuant to the Additional Call
Option shall not be subject to any conditions. If not previously exercised, the Additional Call Option with respect to any Additional Purchased Interests will expire on June 30, 2013 or at the date and time the Additional Put Option is
exercised in full. The Additional Call Option may not be exercised with respect to any Additional Purchased Interests with respect to which the Additional Put Option has been exercised. 

(c) At the Closing and each Additional Closing, subject to the satisfaction of the conditions and to the terms set forth in paragraphs
1(a) and 1(b) above, each Seller, severally and not jointly, hereby agrees to transfer, assign, sell, convey and deliver to the Company 100% of its right, title and interest in and to all of such Seller’s Purchased Interests or the designated
number of such Seller’s Additional Purchased Interests, as applicable, and the Company hereby agrees to purchase all of such Seller’s Purchased Interests or the designated number of such Seller’s Additional Purchased Interests, as
applicable, at a purchase price per Purchased Interest equal to the per share price at which the Company sells the Underwritten Shares to the underwriters in the IPO (the “Per Share Purchase Price”). 

(d) The closing of the Put Option (subject to satisfaction or waiver of the applicable conditions precedent) or Call Option and the
transfer of the Purchased Interests from the Sellers to the Company (the “Closing”) shall take place at the offices of the Company on or after April [15], 2013 promptly after receipt of the Put Option Notice or Call Option Notice,
or at such other time and place as may be agreed upon by the Company and the Sellers. The closing of each Additional Put Option (subject to satisfaction or waiver of the applicable conditions precedent) or Additional Call Option and the
transfer of the Additional Purchased Interests from the Sellers to the Company (each, an “Additional Closing”) shall take place at the offices of the Company from time to time on or after the later of April [15], 2013 and the
Optional Closing Date promptly after receipt of the Additional Put Option Notice or Additional Call Option Notice, or at such other time and place as may be agreed upon by the Company and the Sellers. At the Closing and each Additional Closing, each
Seller shall deliver to the Company or as instructed by the Company duly executed transfer powers relating to all of such Seller’s Purchased Interests or the designated number of such Seller’s Additional Purchased Interests, as applicable,
and the Company agrees to deliver to each Seller against delivery of such transfer powers the Applicable Purchase Price by wire transfer of immediately available funds to the account(s) specified in writing by such Seller. “Applicable
Purchase Price” means, with respect to any Seller, the product of (x) the Per Share Purchase Price and (y) the aggregate number of Purchased Interests or Additional Purchased Interests, as applicable, being sold by such Seller
pursuant to the terms of this Agreement at the Closing or Additional Closing, as applicable. 
 2. Company
Representations. In connection with the transactions contemplated hereby, the Company represents and warrants to the Sellers as of the date hereof that: 
 (a) The Company is a corporation duly organized and validly existing under the laws of the State of Delaware. The Company has the requisite corporate power and authority to execute, deliver and perform
its obligations under this Agreement and to consummate the transactions contemplated hereby. 
 (b) This Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency,
reorganization or other laws affecting enforcement of creditors’ rights or by general equitable principles. 
 (c) The
execution, delivery and performance by the Company of this Agreement and the consummation of the transactions herein contemplated will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any 

  
 2 

 
of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject,
(ii) violate any provision of the certificate of incorporation or by-laws, or other organizational documents, as applicable, of the Company or its subsidiaries or (iii) violate any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its subsidiaries or any of their properties; in the case of each such clause, after giving effect to any consents, approvals, authorizations, orders, registrations,
qualifications, waivers and amendments as will have been obtained or made as of the date of this Agreement, except, in the case of clauses (i) and (iii), as would not reasonably be expected to have a Material Adverse Effect; and no consent,
approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for the execution, delivery and performance by the Company of its obligations under this Agreement, including the
consummation by the Company of the transactions contemplated by this Agreement, except where the failure to obtain or make any such consent, approval, authorization, order, registration or qualification would not reasonably be expected to have a
Material Adverse Effect. 
 3. Representations of the Sellers. In connection with the transactions contemplated hereby,
each of the Sellers severally and not jointly represents and warrants to the Company as of the date hereof and covenants and agrees that: 
 (a) Such Seller is duly organized and existing under the laws of its jurisdiction of organization. 
 (b) All consents, approvals, authorizations and orders necessary for the execution and delivery by such Seller of this Agreement and for the sale and delivery of the Purchased Interests and Additional
Purchased Interests to be sold by such Seller hereunder, have been obtained; and such Seller has authority to enter into this Agreement, and as of the applicable Closing or Additional Closing will have, full right, power and authority to sell,
assign, transfer and deliver the Purchased Interests or Additional Purchased Interests, as applicable, to be sold by such Seller hereunder at such Closing or Additional Closing, except for such consents, approvals, authorizations and orders as would
not impair in any material respect the consummation of the Sellers’ obligations hereunder. 
 (c) This Agreement has been
duly authorized, executed and delivered by such Seller and constitutes a valid and binding agreement of such Seller, enforceable in accordance with its terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency,
reorganization or other laws affecting enforcement of creditors’ rights or by general equitable principles. 
 (d) The sale
of the Purchased Interests and Additional Purchased Interests to be sold by such Seller hereunder and the compliance by such Seller with all of the provisions of this Agreement and the consummation of the transactions contemplated herein
(i) does not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any statute, indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which such Seller is a party or by which such Seller is bound or to which any of the property or assets of such Seller is subject as of the date hereof and as of the Closing or the applicable Additional Closing, (ii) nor will such action result
in any violation of the provisions of (x) any organizational or similar documents pursuant to which such Seller was formed (to the extent such Seller is not an individual) or (y) any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over such Seller or the property of such Seller; except in the case of clause (i) or clause (ii)(y), for such conflicts, breaches, violations or defaults as would not impair in any material
respect the consummation of such Seller’s obligations hereunder. 
 (e) As of the date hereof and immediately prior to the
delivery of the Purchased Interests to the Company at the Closing or the delivery of Additional Purchased Interests to the Company at the applicable Additional Closing, such Seller holds good and valid title to the Purchased Interests or Additional
Purchased Interests to be sold at the Closing or such Additional Closing, as applicable, or a securities entitlement in respect thereof, and holds, and will hold until delivered to the Company, such Purchased Interests or Additional Purchased
Interests, as applicable, free and clear of all liens, encumbrances, equities or claims; and, upon delivery of such Purchased Interests and Additional Purchased Interests, as applicable, (including by crediting to a securities account of the
Company) and payment therefor pursuant hereto, assuming that the Company has no notice of any adverse claims within the meaning of Section 8-105 of the New York Uniform Commercial Code as in effect in the State of New York from time to time
(the “UCC”), the Company will acquire good and valid title to such Purchased Interests and Additional Purchased Interests, as applicable, free and clear of all liens, encumbrances, equities or claims, as well as a valid security
entitlement (within the meaning of Section 8-102(a)(17) of the UCC) to such Purchased Interests or Additional Purchased Interests purchased by the Company, and no action (whether framed in conversion, replevin, constructive trust, equitable
lien or other theory) based on an adverse claim (within the meaning of Section 8-105 of the UCC) to such security entitlement may be asserted against the Company. 
 (f) Such Seller (either alone or together with its advisors) has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of transfer of the
Purchased Interests and the Additional Purchased Interests. Such Seller has had the opportunity to ask questions and receive answers concerning the terms and conditions of the transfer of the Purchased Interests and Additional Purchased Interests
and has had full access to such other information concerning the Purchased Interests, Additional Purchased Interests and the Company as it has requested. Such Seller has received all information that it believes is necessary or appropriate in
connection with the transfer of the Purchased Interests and Additional Purchased Interests. Such Seller is an informed and sophisticated party and has engaged, to the extent such Seller deems appropriate, expert advisors experienced in the
evaluation of transactions of the type contemplated hereby. Such Seller acknowledges that such Seller has not relied upon any express or implied representations or warranties of any nature made by or on behalf of the Company, whether or not any such
representations, warranties or statements were made in writing or orally, except as expressly set forth for the benefit of such Seller in this Agreement. 

  
 3 

 4. Termination. This Agreement shall automatically terminate and be of no further
force and effect (a) with respect to the Purchased Interests, in the event that neither the Put Option nor the Call Option has been exercised as set forth in Sections 1(a) or 1(b) on or prior to June 30, 2013; and (b) with respect to
any Additional Purchased Interests, in the event that neither the Additional Put Option nor the Additional Call Option applicable to such Additional Purchased Interests has been exercised as set forth in Sections 1(a) or 1(b) on or prior to
June 30, 2013. 
 5. Notices. All notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement will be in writing and will be deemed to have been given when delivered personally, mailed by certified or registered mail, return receipt requested and postage prepaid, or sent via a nationally recognized
overnight courier, or sent via facsimile to the recipient. Such notices, demands and other communications will be sent to the address indicated below: 
 To the Sellers: 
 At the address listed for each Seller on Schedule
1 hereto. 
 To the Company: 
 Taylor Morrison Home Corporation 
 4900 North Scottsdale Road,
Suite 2000 
 Scottsdale, AZ 85251 

			
	Attention:	  	Darrell Sherman,
		  	Vice President and General Counsel
	Facsimile:	  	(866) 390-2612
	E-mail:	  	dsherman@taylormorrison.com

 with a copy (which shall not constitute notice) to: 

Paul, Weiss, Rifkind, Wharton & Garrison LLP 

1285 Avenue of the Americas 
 New York, NY 10019-6064 

			
	Attention:	  	John C. Kennedy
		  	Lawrence G. Wee
	Facsimile:	  	(212) 757-3990
	E-mail:	  	 jkennedy@paulweiss.com

lwee@paulweiss.com

 or such other address or to the attention of such other person as the recipient party shall have specified by prior
written notice to the sending party. 
 6. Miscellaneous. 

(a) Survival of Representations and Warranties. All representations and warranties and covenants contained herein or made in
writing by any party in connection herewith shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 
 (b) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is
held to be invalid, illegal, or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality, or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement
will be reformed, construed, and enforced in such jurisdiction as if such invalid, illegal, or unenforceable provision had never been contained herein. 
 (c) Complete Agreement. This Agreement and any other agreements ancillary thereto and executed and delivered on the date hereof embody the complete agreement and understanding between the parties
and supersede and preempt any prior understandings, agreements, or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 

(d) Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of
which taken together constitute one and the same agreement. 

  
 4 

 (e) Assignment; Successors and Assigns. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned, in whole or in part, by any of the parties without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement shall bind and inure to the benefit of and be
enforceable by the Sellers and the Company and their respective successors and permitted assigns. Any purported assignment not permitted under this paragraph shall be null and void. 

(f) No Third Party Beneficiaries or Other Rights. This Agreement is for the sole benefit of the parties and their successors and
permitted assigns and nothing herein express or implied shall give or shall be construed to confer any legal or equitable rights or remedies to any person other than the parties to this Agreement and such successors and permitted assigns.

 (g) Governing Law; Jurisdiction. This Agreement and all disputes arising out of or related to this Agreement (whether
in contract, tort or otherwise) will be governed by and construed in accordance with the laws of the State of Delaware. EACH OF THE PARTIES TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATED TO THIS AGREEMENT. Each of the parties (i) irrevocably submits to the personal jurisdiction of any state or federal court sitting in Wilmington, Delaware, as well as to the jurisdiction of all courts to which an appeal may be
taken from such courts, in any suit, action or proceeding relating to or arising out of, under or in connection with this Agreement, (ii) agrees that all claims in respect of such suit, action or proceeding, whether arising under contract, tort
or otherwise, shall be brought, heard and determined exclusively in the Delaware Court of Chancery (provided that, in the event that subject matter jurisdiction is unavailable in that court, then all such claims shall be brought, heard and
determined exclusively in any other state or federal court sitting in Wilmington, Delaware), (iii) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court, and
(iv) agrees not to bring any action or proceeding relating to or arising out of, under or in connection with this Agreement or the Company’s business or affairs in any other court, tribunal, forum or proceeding. Each of the parties waives
any defense of inconvenient forum to the maintenance of any action or proceeding brought in accordance with this paragraph. Each of the parties agrees that service of any process, summons, notice or document by U.S. registered mail to its address
set forth herein shall be effective service of process for any action, suit or proceeding brought against it in accordance with this paragraph, provided that nothing in the foregoing sentence shall affect the right of any party to serve legal
process in any other manner permitted by law. 
 (h) Mutuality of Drafting. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provision of the Agreement. 
 (i) Remedies. The parties
hereto agree and acknowledge that money damages will not be an adequate remedy for any breach of the provisions of this Agreement, that any breach of the provisions of this Agreement shall cause the other parties irreparable harm, and that any party
may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance or other injunctive relief in order to enforce, or prevent any violations of, the provisions of
this Agreement. 
 (j) Amendment and Waiver. The provisions of this Agreement may be amended, modified or waived only
with the prior written consent of the Company and each of the Sellers; provided, that this Agreement may not be amended in a manner that is adverse to any Seller without such Seller’s prior written consent. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement, nor shall any waiver constitute a continuing waiver. Moreover, no failure by any party to insist upon strict performance of any of
the provisions of this Agreement or to exercise any right or remedy arising out of a breach thereof shall constitute a waiver of any other provisions or any other breaches of this Agreement. 

(k) Further Assurances. Each of the Company and the Sellers shall execute and deliver such additional documents and instruments
and shall take such further action as may be necessary or appropriate to effectuate fully the provisions of this Agreement. 

[Signatures appear on following page.] 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have executed this Put/Call Agreement
as of the date first written above. 
  

			
	Company:
	
	TAYLOR MORRISON HOME CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Put/Call Agreement] 

  

			
	Sellers:
	
	TPG TMM HOLDINGS II, L.P.
		
	By:	 	  

		 	Name:
		 	Title:
	
	OCM TMM HOLDINGS II, L.P.
		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to Put/Call Agreement] 

 Schedule 1 

 

			
	 Entity
	  	 Address

		
	TPG TMM HOLDINGS II, L.P.	  	 TPG Global, LLC
 301
Commerce Street, Suite 3300
 Fort Worth, TX 76102
 Attention: Ronald Cami
 Facsimile: (415) 743-1501

E-mail: rcami@tpg.com
  
 with a copy (which shall not constitute notice) to:
  
 Ropes & Gray LLP
 The Prudential Tower
 800 Boylston Street
 Boston, Massachusetts 02199

Attention:   Alfred O. Rose
 Julie H. Jones
 Facsimile: (617) 951-7050
 E-mail:  alfred.rose@ropesgray.com

     julie.jones@ropesgray.com

		
	OCM TMM HOLDINGS II, L.P.	  	 Oaktree Capital Management, L.P.
 333 South Grand Ave., 28th Floor
 Los Angeles, CA 90071

Attention: Kenneth Liang
 Facsimile: (213)
830-6293
 E-mail: kliang@oaktreecapital.com
  

with a copy (which shall not constitute notice) to:
  

Debevoise & Plimpton LLP
 919 Third
Avenue
 New York, NY 10022

Attention:   George E.B. Maguire
 Jasmine Ball
 Facsimile: (212) 909-6836
 E-mail:  gebmaguire@debevoise.com

     jball@debevoise.com

 [Schedule 1 to Put/Call Agreement]

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