Document:

Exhibit 10.17 

 

Certain
portions of this document have been omitted pursuant to Item 601(b)(10) of Regulation S-K and, where applicable, have been
marked with “[***]” to indicate where omissions have been made. The marked information has been omitted because it
is (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

[Note:
Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K.] 

 

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

This
FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of May 15, 2020 (this “Amendment”), is made and entered into
by and among LANDSEA HOMES- WAB 2 LLC, a Delaware limited liability company (the “Borrower”), WESTERN
ALLIANCE BANK, an Arizona corporation (“WAB”), as Administrative Agent (in such capacity, the “Administrative
Agent”), the lenders party to the Credit Agreement, and the other Loan Parties as of the date hereof.

 

RECITALS:

 

WHEREAS,
reference is made to the Credit Agreement dated as of January 15, 2020 (as amended, supplemented or otherwise modified to the
date hereof, the “Credit Agreement”), by and among the Borrower, the lenders from time to time party thereto
and the Administrative Agent;

 

WHEREAS,
it is intended that (a) the Borrower will obtain the Incremental Commitments (as defined below) and (b) the proceeds of the
borrowings under the Incremental Commitments will be used (i) by Borrower and its Subsidiaries as provided in the Credit
Agreement and (ii) to pay fees and expenses incurred in connection with the
foregoing (the transactions described in this paragraph, collectively, the “Transactions”);

 

WHEREAS,
subject to the terms and conditions of the Credit Agreement, and pursuant to Section 2.13 of the Credit Agreement, the
Borrower has requested that (a) WAB provide additional Commitments for Revolving Loans in the aggregate principal amount of $
10,000,000 (such transaction, the “Revolving Commitment Increase”), and (b) the Credit Agreement be amended
in the manner provided for herein; and

 

WHEREAS,
WAB is willing to increase its Commitment to the Borrower on the Incremental Amendment Effective Date (as defined below), and
the parties hereto wish to amend the Credit Agreement on the terms and subject to the conditions set forth herein and in the Credit
Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION
1. Defined Terms; Interpretation; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

 

SECTION
2. Incremental Loans. WAB (also referred to herein as ” Incremental Lender”) will increase its Commitment
to Borrower to make Revolving Loans, in each case from and after the Incremental Amendment Effective Date in U.S. Dollars in an
aggregate principal amount equal to the amount under the heading “Incremental Commitment” set forth opposite
such Lender’s name on Schedule I attached hereto (each, an “Incremental Commitment” and, collectively,
the “Incremental Commitments”), on the terms set forth herein and in the Credit Agreement (as amended hereby),
and subject to the conditions set forth herein. The Incremental Commitment shall be deemed to be a “Commitment” and
“Incremental Commitment” as each such term is defined in the Credit Agreement (as amended hereby) for all purposes
of the Loan Documents having terms and provisions identical to those applicable to the Commitments outstanding immediately prior
to the Incremental Amendment Effective Date (the “Existing Revolving Commitments”).

     

     

    

SECTION
3. Amendments to Credit Agreement; Other Agreements.

 

(a)
 Amendments to Credit Agreement. The Credit Agreement is hereby modified as follows:

 

(i)    The
definition of “Applicable MAA Percentage” is hereby amended in its entirety and restated to provide as follows:

 

“Applicable
MAA Percentage” means [***]

 

(ii)   Section
3.4(b) of the Credit Agreement is amended in its entirety and restated to provide as follows:

 

“(b)
Lot Limit; Reductions in Lot Limit. At all times, the aggregate Maximum Allowed Advance with respect to all Lots included
in the Borrowing Base will not at any one time exceed the lesser of (i) 50% of the total Maximum Allowed Advances of the Eligible
Assets in the Borrowing Base, or (ii) 50% of the Commitments of the Lenders. The total aggregate number of A&D Lots and Finished
Lots included in the Borrowing Base for any Approved Subdivision will not exceed the Lot Limit for such Subdivision, and any of
such Lots in excess of the Lot Limit will not be Eligible Assets. In Land Development Subdivisions, and for so long as such Subdivision
remains a Land Development Subdivision, (i) at the end of the ninth calendar month after the initial Lot Eligibility Date for
any Lot in such Subdivision, the Lot Limit for such Subdivision will reduce by 10% and (ii) as of the last day of each third month
thereafter, the Lot Limit for such Subdivision will reduce by an additional 10% from the original Lot Limit for such Subdivision
(e.g., only 90% of the Lots may be Eligible Assets after the ninth month, only 80% of the Lots may be Eligible Assets after the
12th month, and only 70% of the Lots may be Eligible Assets after the 15th month). Administrative Agent may determine which Lots
are excluded from being classified as Eligible Assets due to the Lot Limit being exceeded.”

 

(b)  Side
Letter. The parties agree the Side Letter dated January 15, 2020, by Administrative Agent, Borrower and Guarantors is terminated,
and accordingly, the Margin Values of the Eligible Assets from and after the date hereof will be determined in accordance with
the Credit Agreement.

 

(c)  Marketside
II Subdivision. With respect to the Subdivision known as “Marketside II”, Borrower has requested that Administrative
Agent and Lenders permit Real Estate Inventory in such Subdivision be classified as Eligible Assets, notwithstanding the fact
that such property is encumbered by (1) a deed of trust dated November 6, 2018, for the benefit of DMB White Tank, LLC, and recorded
in the official records of Maricopa County, Arizona as instrument no. 20180826779, and (2) a deed of trust dated December 27,
2019, for the benefit of VMS72 Holdings, LLC, and recorded in Maricopa County, Arizona as Instrument No. 20191056060 (such deeds
of trust, individually and collectively, the “Marketside Deed of Trust”). The parties acknowledge the Marketside
Deeds of Trust are not Permitted Exceptions (as defined in the Credit Agreement), however, Administrative Agent and Lenders have
agreed to permit such Real Estate Inventory in the “Marketside II” project to be Eligible Assets, subject to all other

    2

     

    

terms,
conditions and limitations in the Credit Agreement, provided that the following additional terms, limitations, requirements and
conditions will apply with respect to the Marketside II Subdivision:

 

(i)    Not
later than May 29, 2020, Borrower will cause the Cash Collateral Conditions to be satisfied;

 

(ii)   Until
the Cash Collateral Conditions are satisfied, if any Eligible Assets in the Borrowing Base are located within the “Marketside
II” Subdivision, the total Asset Value of the Borrowing Base will be reduced by [***];

 

(iii)  Once
the Cash Collateral Conditions are satisfied, the balance of the funds in the Cash Collateral Account (the “Minimum Balance”)
must be no less than (1) the number of Lots and Units in the Marketside II Subdivision that are Eligible Collateral, multiplied
by (2) [***]. If no Event of Default is continuing and the balance in the Cash Collateral Account exceeds the Minimum Balance,
upon request by Borrower, Administrative Agent will release the excess amount in the Cash Collateral Account to Borrower concurrently
with making a Revolving Loan to Borrower, provided such funds will not be released more frequently than monthly. Funds held in
the Cash Collateral Account will count towards Parent’s compliance with the minimum deposit requirements in Section 7.13(b)
of the Credit Agreement. Upon the release of the Marketside Deeds of Trust from all Eligible Collateral in the Marketside II Subdivision,
and provided no Event of Default is continuing, the funds in the Cash Collateral Account will be released to Borrower; and

 

(iv)  If
any default occurs with respect to any obligation secured by any Marketside Deeds of Trust, or any beneficiary or secured party
with respect to any Marketside Deed of Trust commences the enforcement of any remedies pursuant to a Marketside Deed of Trust,
then the Real Estate Inventory subject to such Marketside Deed of Trust will no longer constitute an Eligible Asset.

 

“Cash
Collateral Conditions” means that (1) Borrower has established a deposit account (the “Cash Collateral
Account ”) with Western Alliance Bank and deposited into such account funds in the amount of at least [***]; and (2)
Borrower has executed and delivered to Administrative Agent a cash collateral security agreement in form and substance
acceptable to Administrative Agent, granting Administrative Agent a security interest in the Cash Collateral Account and all
money held in such account.

 

SECTION
4. Conditions Precedent to Incremental Loans. This Amendment, and Incremental Lender’s obligation to provide the
Incremental Commitments pursuant to this Amendment, shall become effective as of the date on which the following conditions precedent
are satisfied (such date, the “Incremental Amendment Effective Date”):

 

(a)  The
Administrative Agent shall have received from the Borrower, each other Loan Party and Incremental Lender a counterpart of this
Amendment duly executed and delivered on behalf of such party and a fully executed consent and reaffirmation of the Intercompany
Subordination Agreement, by the parties thereto, in form and substance acceptable to Administrative Agent.

 

(b)
The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders
(including, without limitation, the

    3

     

    

Incremental
Lender) and dated the Incremental Amendment Effective Date) of counsel for the Loan Parties in form and substance reasonably satisfactory
to the Administrative Agent.

 

(c)  The
Administrative Agent shall have received a certificate of Borrower, dated the Incremental Amendment Effective Date and in form
and substance reasonably satisfactory to the Administrative Agent, executed by any Responsible Officer of Borrower, including
or attaching (i) copies of resolutions of the board of directors and/or similar governing bodies of Borrower approving and authorizing
the execution, delivery and performance of the Loan Documents to which it is a party, certified as of the Incremental Amendment
Effective Date by a secretary, an assistant secretary or a Responsible Officer of Borrower as being in full force and effect without
modification or amendment, and (ii) the documents or certifications, as applicable, referred to in paragraph (d) of this Section,
or otherwise certifying such documents provided to Administrative Agent in connection with the closing of the Credit Agreement
or subsequent Subsidiary Guarantees by Subsidiary Guarantors (as applicable) remain in full force and effect, and without amendment
or modification.

 

(d)  The
Administrative Agent shall have received (i) as to each Loan Party, either (x) a copy of each certificate or articles of
incorporation or organization or other applicable constitutive documents of such Loan Party certified, to the extent
applicable, as of a recent date by the applicable Governmental Authority or (y) written certification by such Loan
Party’s secretary, assistant secretary or other Responsible Officer that such Loan Party’s certificate or
articles of incorporation or organization or other applicable constitutive documents most recently certified and delivered to
the Administrative Agent prior to the Incremental Amendment Effective Date pursuant to the Loan Documents remain in full
force and effect on the Incremental Amendment Effective Date without modification or amendment since such original delivery,
(ii) as to each Loan Party, either (x) signature and incumbency certificates of the
Responsible Officers of such Loan Party executing the Loan Documents to which it is a party or (y) written certification by
such Loan Party’s secretary, assistant secretary or other Responsible Officer that such Loan Party’s signature
and incumbency certificates most recently delivered to the Administrative Agent prior to the Incremental Amendment Effective
Date pursuant to the Loan Documents remain true and correct as of the Incremental Amendment Effective Date, and (iii) a
certificate of existence or good standing (to the extent such concept exists) from the applicable Governmental Authority of
each Loan Party’s jurisdiction of incorporation, organization or formation as of a reasonably recent date.

 

(e)  The
Administrative Agent shall have received for Incremental Lender, that shall have requested a promissory note, a duly completed
and executed promissory note for Incremental Lender.

 

(f)  The
Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Incremental Amendment Effective
Date, including reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of
counsel) required to be reimbursed or paid by any Loan Party.

 

(g)  The
Administrative Agent shall have received such other documents and agreements as required by Administrative Agent in connection
with this Amendment.

 

(h)  The
Administrative Agent shall have received such UCC search results, title reports, title policies, and title insurance endorsements
as Administrative Agent shall require.

    4

     

    

(i)  The
Administrative Agent and Incremental Lender shall have received, at least three Business Days prior to the Incremental Amendment
Effective Date, all documentation and other information about the Borrower and the other Loan Parties as shall have been requested
prior to the Incremental Amendment Effective Date by the Administrative Agent or such Incremental Lender that they shall have
reasonably determined is required by regulatory authorities under applicable “know your customer” and anti-money laundering
rules and regulations, including without limitation the USA PATRIOT Act.

 

(j)  Upon
the effectiveness of this Amendment and both immediately before and immediately after giving effect to this Amendment, no Default
or Event of Default shall exist.

 

(k) The
representations and warranties in Section 5 of this Amendment shall be true and correct in all material respects.

 

The
Administrative Agent shall notify the Borrower and the Lenders of the Incremental Amendment Effective Date, and such notice shall
be conclusive and binding.

 

SECTION
5. Representations and Warranties. In order to induce the Lenders, Incremental Lender and the Administrative Agent to enter
into this Amendment and to induce the Incremental Lender to provide the Incremental Commitments hereunder, the Borrower hereby
represents and warrants to the Lenders, Incremental Lender and the Administrative Agent on and as of the Incremental Amendment
Effective Date that:

 

(a)  Existence,
Qualification and Power. The Borrower and each Loan Party (i) is duly organized or formed, validly existing and, as applicable,
in good standing under the Laws of the jurisdiction of its incorporation or organization, (ii) has all requisite power and authority
and all requisite governmental licenses, authorizations, consents and approvals to (x) own or lease its assets and carry on its
business and (y) execute, deliver and perform its obligations under the Amendment and the other Loan Documents to which it is
a party, and (iii) is duly qualified and is licensed and, as applicable, in good standing under the laws of each jurisdiction
where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except
to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Change.

 

(b)  Authorization;
No Contravention. The execution, delivery and performance by the Borrower of the Amendment and each Loan Document to
which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will
not (i) contravene the terms of its certificate or articles of incorporation or
organization or other applicable constitutive documents, (ii) conflict with or result in any breach or contravention of, or
the creation of any Lien under, or require any payment to be made under (x) any material contractual obligation to which the
Borrower is a party or affecting the Borrower or the properties of the Borrower or any Subsidiary or (y) any material order,
injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or any Subsidiary or its
property is subject or (c) violate any law in any material respect.

 

(c)  Governmental
Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance
by, or enforcement against, the Borrower of this Amendment or any other Loan

    5

     

    

Document,
except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made
and in full force and effect.

 

(d)  Execution
and Delivery; Binding Effect. This Amendment has been, and each other Loan Document, when delivered hereunder, will have been,
duly executed and delivered by the Loan Parties party thereto. This Amendment constitutes, and each other Loan Document when so
delivered will constitute, a legal, valid and binding obligation of each Loan Party party thereto, enforceable against each such
Loan Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of equity.

 

(e)  Credit
Agreement Representations and Warranties. The representations and warranties of the Borrower and the other Loan Parties set
forth in the Credit Agreement or in any other Loan Document are true and correct in all material respects (or, in the case of
any such representation or warranty already qualified by materiality, in all respects) on and as of the Incremental Amendment
Effective Date (or, in the case of any such representation or warranty expressly stated to have been made as of a specific date,
as of such specific date).

 

SECTION
6. Reaffirmation of Guarantees and Security Interests. Each Loan Party hereby acknowledges its receipt of a copy of this
Amendment and its review of the terms and conditions hereof and consents to the terms and conditions of this Amendment and the
transactions contemplated thereby, including the extension of credit in the form of the Incremental Commitments. Each Loan Party
hereby (a) affirms and confirms its guarantees, pledges, grants and other undertakings under the Credit Agreement and the other
Loan Documents to which it is a party, (b) agrees that (i) each Loan Document to which it is a party shall continue to be in full
force and effect and (ii) all guarantees, pledges, grants and other undertakings thereunder shall continue to be in full force
and effect and shall accrue to the benefit of the Administrative Agent and Lenders, and (c) acknowledges that from and after the
date hereof, all Incremental Commitments and Revolving Loans under the Credit Agreement from time to time outstanding shall be
deemed to be Borrower Obligations.

 

SECTION
7. Miscellaneous.

 

(a)  Release.
Each Loan Party fully, finally, and forever releases and discharges Administrative Agent, Lenders and their 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 such Loan Party has or in the future may
have, whether known or unknown, (i) in respect of the Loan, the Loan Documents, or the actions or omissions of Administrative
Agent or Lenders in respect of the Loan or the Loan Documents and (ii) arising from events occurring prior to the date of this
Amendment.

 

(b)  Recordation
of the Incremental Loans. Upon execution and delivery hereof, the Administrative Agent will record in the Register the Incremental
Commitments made by the Incremental Lender.

 

(c)  Amendment,
Modification and Waiver. This Amendment may not be amended and no provision hereof may be waived except pursuant to a writing
signed by each of the parties hereto.

    6

     

    

(d)  Entire
Agreement. This Amendment, the Credit Agreement (as amended hereby) and the other Loan Documents constitute the entire
agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and
understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

(e)  Governing
Law. This Amendment and any claims controversy, dispute or cause of action (whether in contract or tort or otherwise) based
upon, arising out of or relating to this Amendment and the transactions contemplated hereby shall be governed by, and construed
in accordance with, the laws of the State of Arizona.

 

(f)  Jurisdiction.
The Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation
or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative
Agent, any Lender, or any Related Party of the foregoing in any way relating to this Amendment, the Credit Agreement or any other
Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of Arizona sitting
in Maricopa County, and of the United States District Court of the District of Arizona, and any appellate court from any thereof,
and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all
claims in respect of any such action, litigation or proceeding may be heard and determined in such Arizona State court or, to
the fullest extent permitted by applicable Law, in such federal court. Each of the parties hereto agrees that a final judgment
in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that the
Administrative Agent, any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other
Loan Document against Borrower or its properties in the courts of any jurisdiction.

 

(g)  Waiver
of Venue. The Borrower and each other Loan Party irrevocably and unconditionally waives, to the fullest extent permitted
by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising
out of or relating to this Amendment or any other Loan Document in any court referred to in paragraph (e) of this Section. Each
of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

(h)  Service
of Process. Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 10.1
of the Credit Agreement. Nothing in this Amendment or any other Loan Document will affect the right of any party hereto to serve
process in any other manner permitted by Applicable Law.

 

(i)  WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD

    7

     

    

NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. WITHOUT
LIMITING THE FOREGOING WAIVER OF JURY TRIAL, SECTION 10.12 OF THE CREDIT AGREEMENT IS HEREBY INCORPORATED HEREIN BY REFERENCE.

 

(j)  Severability.
Any term or provision of this Amendment that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions of this Amendment
in any other jurisdiction. If any provision of this Amendment is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as would be enforceable.

 

(k)  Counterparts;
Integration; Effectiveness. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Amendment
and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided
in Section 5 hereof, this Amendment shall become effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the
other parties hereto. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic
(i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this
Amendment.

 

(l)  Headings.
The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

(m)  Reference
to and Effect on the Credit Agreement and the Other Loan Documents. On and after the Incremental Amendment Effective Date,
each reference in the Credit Agreement to “this Agreement”, “hereunder”, “herein” or words
of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a
reference to the Credit Agreement as amended by this Amendment. Except as specifically amended by this Amendment, the Credit Agreement
and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed and this Amendment shall
not be considered a novation. The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision
of, or operate as a waiver of any right, power or remedy of the Administrative Agent or Lender under, the Credit Agreement or
any of the other Loan Documents. This Amendment shall be deemed to be a Loan Document as defined in the Credit Agreement.

 

[SIGNATURE
PAGES FOLLOW]

    8

     

    

IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to be duly executed by their respective authorized officers as of the day and year first above written.

 

	ADMINISTRATIVE AGENT:
	 	 
	 	WESTERN
    ALLIANCE BANK, an Arizona corporation
	 	 	 	 
	 	By:	/s/ Tim R. Brackner
	 	Name: 	Tim R. Brackner
	 	Title: 	CCO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	LENDER:
	 	 
	 	WESTERN
    ALLIANCE BANK, an Arizona corporation
	 	 	 	 
	 	By:	/s/ Tim R. Brackner
	 	Name:	Tim R. Brackner
	 	Title:	CCO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	BORROWER:	 
	 	 
	 	LANDSEA
    HOMES- WAB 2 LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	LANDSEA
    HOLDINGS CORPORATION, a Delaware corporation
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	LANDSEA
    HOMES INCORPORATED, a Delaware corporation
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GARRETT
    WALKER HOMES, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	AV1,
    LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    NCC, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    MOUNTAIN VIEWS, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	BETHANY
    RANCH, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    GRAND VILLAGE, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	GWH
    NCC-71, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	GWH
    PARK FOREST, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    WEST POINTE ESTATES, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    WEST POINTE VILLAGE, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	GWH
    TRENTON PARK, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	GWH
    SUNDANCE, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    NORTHERN FARMS, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	GWH
    NCC 13 & 14, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

 

	GUARANTOR:	 
	 	 
	 	ACOMA
    COURT, LLC, an Arizona limited liability company
	 	 
	 	By:	/s/ John Ho
	 	 	John
    Ho, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	PINNACLE
    WEST HOMES M72 LLC, an Arizona limited liability company
	 	 	 	 	 
	 	By:	/s/ John Ho	 
	 	Name:	John Ho	 
	 	Title:	Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	LS-ONTARIO
    LLC, a Delaware limited liability company
	 	 	 	 	 
	 	By:	/s/ John Ho	 
	 	Name:	John Ho	 
	 	Title:	Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    SUNSET FARMS, LLC, an Arizona limited liability company
	 	 	 	 	 
	 	By:	/s/ John Ho	 
	 	Name:	John Ho	 
	 	Title:	Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	GWH
    NCC 9 & H, LLC, an Arizona limited liability company
	 	 	 	 	 
	 	By:	/s/ John Ho	 
	 	Name:	John Ho	 
	 	Title:	Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to First Amendment to Credit Agreement]Exhibit 10.18

 

Certain
portions of this document have been omitted pursuant to Item 601(b)(10) of Regulation S-K and, where applicable, have been
marked with “[***]” to indicate where omissions have been made. The marked information has been omitted because it
is (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. 

 

[Note:
Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K.] 

 

SECOND
AMENDMENT TO CREDIT AGREEMENT

 

This
SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of October 27, 2020 (this “Amendment”), is made and entered
into by and among LANDSEA HOMES- WAB 2 LLC, a Delaware limited liability company (the
“Borrower”), WESTERN ALLIANCE BANK, an Arizona corporation (“WAB”), as
Administrative Agent (in such capacity, the “Administrative Agent”), the lenders party to the Credit
Agreement, and the other Loan Parties as of the date hereof.

 

RECITALS:

 

WHEREAS,
reference is made to the Credit Agreement dated as of January 15, 2020, by and among the Borrower, the lenders from time to time
party thereto and the Administrative Agent, as amended by the First Amendment to Credit Agreement dated as of May 15, 2020 (and
as may be further amended, supplemented or otherwise modified to the date hereof, the “Credit Agreement”);

 

WHEREAS,
it is intended that (a) the Borrower will obtain the Incremental Commitments (as defined below) and (b) the proceeds of the
borrowings under the Incremental Commitments will be used (i) by Borrower and its Subsidiaries as provided in the Credit
Agreement and (ii) to pay fees and expenses incurred in connection with the foregoing (the transactions described
in this paragraph, collectively, the “Transactions”);

 

WHEREAS,
subject to the terms and conditions of the Credit Agreement, and pursuant to Section 2.13 of the Credit Agreement, the
Borrower has requested that (a) WAB provide additional Commitments for Revolving Loans in the aggregate principal amount of $
15,000,000 (such transaction, the “Revolving Commitment Increase”), and (b) the Credit Agreement be amended
in the manner provided for herein; and

 

WHEREAS,
WAB is willing to increase its Commitment to the Borrower on the Amendment Effective Date (as defined below), and the parties
hereto wish to amend the Credit Agreement on the terms and subject to the conditions set forth herein and in the Credit Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION
1. Defined Terms; Interpretation; Etc. Capitalized terms used and not defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

 

SECTION
2. Incremental Loans. WAB (also referred to herein as “Incremental Lender”) will increase its Commitment
to Borrower to make Revolving Loans, in each case from and after the Amendment Effective Date in U.S. Dollars in an aggregate
principal amount equal to the amount under the heading “Incremental Commitment” set forth opposite such Lender’s
name on Schedule I attached hereto (each, an “Incremental Commitment” and, collectively, the “Incremental
Commitments”), on the terms set forth herein and in the Credit Agreement (as amended hereby), and subject to the conditions
set forth herein. The Incremental Commitment shall be deemed to be a “Commitment” and “Incremental Commitment”
as each such term is defined in the Credit Agreement (as amended hereby) for all purposes of the Loan Documents having terms and
provisions identical to those applicable to the Commitments outstanding immediately prior to the Amendment Effective Date (the
“Existing Revolving Commitments”).

     

     

    

  SECTION
3. Amendments to Credit Agreement; Other Agreements.

 

(a) 
The following amendments are made to the Credit Agreement:

 

(i)     
The following definitions are hereby added to Section 1.1 of the Credit Agreement:

 

“Subdivision
Escrow Agreement” means, for any Subdivision, an escrow agreement among the Project Owner, Administrative Agent and
the escrow agent for retail closings of Units in such Subdivision, in form and substance reasonably acceptable to Administrative
Agent.

 

(ii)   
The following definitions in Section 1.1 of the Credit Agreement are hereby amended to provide as follows:

 

“Maturity
Date” means January 15, 2024, as such date may be extended pursuant to Section 2.7(a).

 

 (iii)  
The following provision is hereby added to the Credit Agreement as Section 6.4(i):

 

(i)   
Escrow Instructions. With respect to each Approved Subdivision, if required by Administrative Agent, Borrower will, and
will cause the escrow agent engaged to provide escrow services for retail sales of Units to, execute a Subdivision Escrow Agreement
with respect to such Subdivision.

 

(b)   
Centerra Subdivision. With respect to the Subdivision known as “Centerra”, Borrower has requested that Administrative
Agent and Lenders permit Real Estate Inventory in such Subdivision be classified as Eligible Assets, notwithstanding the fact
that such property is encumbered by one or more deeds of trust by Pinnacle West Homes Centerra LLC, for the benefit of Flying
V. Land Partners, LLC (such deeds of trust, individually and collectively, the “Centerra Deeds of Trust”).
The parties acknowledge the Centerra Deeds of Trust are not Permitted Exceptions (as defined in the Credit Agreement), however,
Administrative Agent and Lenders have agreed to permit such Real Estate Inventory in the “Centerra” project to be
Eligible Assets, subject to all other terms, conditions and limitations in the Credit Agreement, provided that the following additional
terms, limitations, requirements and conditions will apply with respect to the Centerra Subdivision:

 

(i)    
Not later than October 28, 2020, Borrower will cause the Centerra Cash Collateral Conditions to be satisfied;

 

(ii)   
Until the Centerra Cash Collateral Conditions are satisfied, if any Eligible Assets in the Borrowing Base are located within the
“Centerra” Subdivision, the total Asset Value of the Borrowing Base will be reduced by [***];

 

(iii)  
Once the Centerra Cash Collateral Conditions are satisfied, the balance of the funds in the Centerra Cash Collateral Account (the
“Minimum Centerra Balance”) must be no less than (1) the number of Lots and Units in the Centerra Subdivision
that are Eligible Collateral, multiplied by (2) [***]. Calculation of the Minimum Centerra Balance will be made without including
any other funds designated as cash collateral for obligations of Borrower owed to Administrative Agent and Lenders. If no Event
of Default is continuing and the

    2

     

    

balance
in the Centerra Cash Collateral Account exceeds the Minimum Balance, upon request by Borrower, Administrative Agent will release
the excess amount in the Centerra Cash Collateral Account to Borrower concurrently with making a Revolving Loan to Borrower, provided
such funds will not be released more frequently than monthly. Funds held in the Centerra Cash Collateral Account will count towards
Parent’s compliance with the minimum deposit requirements in Section 7.13(b) of the Credit Agreement. Upon the release of
the Centerra Deeds of Trust from all Eligible Collateral in the Centerra Subdivision, and provided no Event of Default is continuing,
the funds in the Centerra Cash Collateral Account will be released to Borrower; and

 

(iv) 
If any default occurs with respect to any obligation secured by any Centerra Deed of Trust, or any beneficiary or secured party
with respect to any Centerra Deed of Trust commences the enforcement of any remedies pursuant to a Centerra Deed of Trust, then
the Real Estate Inventory subject to such Centerra Deed of Trust will no longer constitute an Eligible Asset.

 

“Centerra
Cash Collateral Conditions” means that (1) Borrower has established a deposit account (the “Centerra Cash
Collateral Account”) with Western Alliance Bank and deposited into such account funds in the amount of at least
[***]; and (2) Borrower has executed and delivered to Administrative Agent a Cash Collateral security agreement in form and
substance acceptable to Administrative Agent, granting Administrative Agent a security interest in the Cash Collateral
Account and all money held in such account.

 

(c)   
Destiny Subdivision. With respect to the Subdivision known as “Destiny”, Borrower has requested that Administrative
Agent and Lenders permit Real Estate Inventory in such Subdivision be classified as Eligible Assets, notwithstanding the fact
that such property is encumbered by one or more Deeds of Trust by Pinnacle West Homes Destiny LLC, for the benefit of V68 Holdings,
LLC (such deeds of trust, individually and collectively, the “Destiny Deeds of Trust”). The parties acknowledge
the Destiny Deeds of Trust are not Permitted Exceptions (as defined in the Credit Agreement), however, Administrative Agent and
Lenders have agreed to permit such Real Estate Inventory in the “Destiny” project to be Eligible Assets, subject to
all other terms, conditions and limitations in the Credit Agreement, provided that the following additional terms, limitations,
requirements and conditions will apply with respect to the Destiny Subdivision:

 

(i)    
Not later than October 28, 2020, Borrower will cause the Destiny Cash Collateral Conditions to be satisfied;

 

(ii)   
Until the Destiny Cash Collateral Conditions are satisfied, if any Eligible Assets in the Borrowing Base are located within the
“Destiny” Subdivision, the total Asset Value of the Borrowing Base will be reduced by [***];

 

(iii)  
Once the Destiny Cash Collateral Conditions are satisfied, the balance of the funds in the Destiny Cash Collateral Account
(the “Minimum Destiny Balance”) must be no less than (1) the number of Lots and Units in the Destiny
Subdivision that are Eligible Collateral, multiplied by (2)  [***]. Calculation of the Minimum Destiny Balance will be
made without including any other funds designated as cash collateral for obligations of Borrower owed to Administrative Agent
and Lenders. If no Event of Default is continuing and the balance in the Destiny Cash Collateral Account exceeds the Minimum
Balance, upon request by Borrower, Administrative Agent will release the excess amount in the Destiny Cash

    3

     

    

Collateral
Account to Borrower concurrently with making a Revolving Loan to Borrower, provided such funds will not be released more frequently
than monthly. Funds held in the Destiny Cash Collateral Account will count towards Parent’s compliance with the minimum
deposit requirements in Section 7.13(b) of the Credit Agreement. Upon the release of the Destiny Deeds of Trust from all Eligible
Collateral in the Destiny Subdivision, and provided no Event of Default is continuing, the funds in the Destiny Cash Collateral
Account will be released to Borrower; and

 

(iv) 
If any default occurs with respect to any obligation secured by any Destiny Deed of Trust, or any beneficiary or secured party
with respect to any Destiny Deed of Trust commences the enforcement of any remedies pursuant to a Destiny Deed of Trust, then
the Real Estate Inventory subject to such Destiny Deed of Trust will no longer constitute an Eligible Asset.

 

“Destiny
Cash Collateral Conditions” means that (1) Borrower has established a deposit account (the “Destiny Cash
Collateral Account”) with Western Alliance Bank and deposited into such account funds in the amount of at least
[***]; and (2) Borrower has executed and delivered to Administrative Agent a Cash Collateral security agreement in form and
substance acceptable to Administrative Agent, granting Administrative Agent a security interest in the Cash Collateral
Account and all money held in such account.

 

(d)   
Post-Closing Requirement. Not later than 45 days after the date of this Amendment, Borrower will obtain ALTA Owners Title
Insurance Policies in form and substance and with an insurance amount reasonably acceptable to Administrative Agent, and insuring
(i) Pinnacle West Homes Centerra, LLC, an Arizona limited liability company, is the owner of the fee simple interest in the Real
Estate Inventory commonly referred to as the “Centerra” Subdivision, subject only to Permitted Exceptions and the
Centerra Deeds of Trust, and (ii) Pinnacle West Homes Destiny, LLC, an Arizona limited liability company, is the owner of the
fee simple interest in the Real Estate Inventory commonly referred to as the “Destiny” Subdivision, subject only to
Permitted Exceptions and the Destiny Deeds of Trust.

 

SECTION
4. Conditions Precedent to Incremental Loans. This Amendment, and Incremental Lender’s obligation to provide the
Incremental Commitments pursuant to this Amendment, shall become effective as of the date on which the following conditions precedent
are satisfied (such date, the “Amendment Effective Date”):

 

(a)   
The loan commitment by Western Alliance Bank made pursuant to the Master Revolving Line of Credit Agreement (Revolving Construction
Loan Facility – Residential) dated October 19, 2018 by Western Alliance Bank, as lender, and Pinnacle West Homes E48 LLC,
an Arizona limited liability company, Pinnacle West Homes Encanta LLC, an Arizona limited liability company, Pinnacle West Homes
And Development, LLC, an Arizona limited liability company; Pinnacle West Homes Destiny LLC, an Arizona limited liability company;
and Pinnacle West Homes Centerra LLC, an Arizona limited liability company, shall have been canceled and all amounts owing with
respect to such credit agreement shall have been repaid in full.

 

(b)   
The Administrative Agent shall have received from the Borrower, each other Loan Party and Incremental Lender a counterpart of
this Amendment duly executed and delivered on behalf of such party and a fully executed consent and reaffirmation of the Intercompany

    4

     

    

Subordination
Agreement, by the parties thereto, in form and substance acceptable to Administrative Agent.

 

(c)   
The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders
(including, without limitation, the Incremental Lender) and dated the Amendment Effective Date) of counsel for the Loan Parties
in form and substance reasonably satisfactory to the Administrative Agent.

 

(d)   
The Administrative Agent shall have received a certificate of Borrower, dated the Amendment Effective Date and in form and
substance reasonably satisfactory to the Administrative Agent, executed by any Responsible Officer of Borrower, including or
attaching (i) copies of resolutions of the board of directors and/or similar governing bodies of Borrower
approving and authorizing the execution, delivery and performance of the Loan Documents to which it is a party, certified as
of the Amendment Effective Date by a secretary, an assistant secretary or a Responsible Officer of Borrower as being in full
force and effect without modification or amendment, and (ii) the documents or certifications, as applicable, referred to in
paragraph (d) of this Section, or otherwise certifying such documents provided to Administrative Agent in connection with the
closing of the Credit Agreement or subsequent Subsidiary Guarantees by Subsidiary Guarantors (as applicable) remain in full
force and effect, and without amendment or modification.

 

(e)   
The Administrative Agent shall have received (i) as to each Loan Party, either (x) a copy of each certificate or articles of
incorporation or organization or other applicable constitutive documents of such Loan Party certified, to the extent
applicable, as of a recent date by the applicable Governmental Authority or (y) written certification by such Loan
Party’s secretary, assistant secretary or other Responsible Officer that such Loan Party’s certificate or articles
of incorporation or organization or other applicable constitutive documents most recently certified and delivered to the
Administrative Agent prior to the Amendment Effective Date pursuant to the Loan Documents remain in full force and effect on
the Amendment Effective Date without modification or amendment since such original delivery, (ii) as to each Loan Party,
either (x) signature and incumbency certificates of the Responsible Officers of such Loan Party executing
the Loan Documents to which it is a party or (y) written certification by such Loan Party’s secretary, assistant
secretary or other Responsible Officer that such Loan Party’s signature and incumbency certificates most recently
delivered to the Administrative Agent prior to the Amendment Effective Date pursuant to the Loan Documents remain true and
correct as of the Amendment Effective Date, and (iii) a certificate of existence or good standing (to the extent such concept
exists) from the applicable Governmental Authority of each Loan Party’s jurisdiction of incorporation, organization or
formation as of a reasonably recent date.

 

(f)   
The Administrative Agent shall have received for Incremental Lender, that shall have requested a promissory note, a duly completed
and executed promissory note for Incremental Lender.

 

(g)   
The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Amendment Effective
Date, including reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements of
counsel) required to be reimbursed or paid by any Loan Party.

 

(h)   
The Administrative Agent shall have received an extension fee in the amount provided in the Fee Letter.

    5

     

    

(i)     
The Administrative Agent shall have received such other documents and agreements as required by Administrative Agent in connection
with this Amendment.

 

(j)     
The Administrative Agent shall have received such UCC search results, title reports, title policies, and title insurance endorsements
as Administrative Agent shall require.

 

(k)     The Administrative Agent and Incremental Lender shall have received, at least three Business Days prior to the Amendment Effective
Date, all documentation and other information about the Borrower and the other Loan Parties as shall have been requested prior
to the Amendment Effective Date by the Administrative Agent or such Incremental Lender that they shall have reasonably determined
is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations,
including without limitation the USA PATRIOT Act.

 

(l)     
Upon the effectiveness of this Amendment and both immediately before and immediately after giving effect to this Amendment, no
Default or Event of Default shall exist.

 

(m)   
The representations and warranties in Section 5 of this Amendment shall be true and correct in all material respects.

 

The
Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date, and such notice shall be conclusive
and binding.

 

SECTION
5. Representations and Warranties. In order to induce the Lenders, Incremental Lender and the Administrative Agent to enter
into this Amendment and to induce the Incremental Lender to provide the Incremental Commitments hereunder, the Borrower hereby
represents and warrants to the Lenders, Incremental Lender and the Administrative Agent on and as of the Amendment Effective Date
that:

 

(a)   
Existence, Qualification and Power. The Borrower and each Loan Party (i) is duly organized or formed, validly existing
and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (ii) has all requisite
power and authority and all requisite governmental licenses, authorizations, consents and approvals to (x) own or lease its assets
and carry on its business and (y) execute, deliver and perform its obligations under the Amendment and the other Loan Documents
to which it is a party, and (iii) is duly qualified and is licensed and, as applicable, in good standing under the laws of each
jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification
or license, except to the extent that failure to do so could not reasonably be expected to result in a Material Adverse Change.

 

(b)    Authorization;
No Contravention. The execution, delivery and performance by the Borrower of the Amendment and each Loan Document to
which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will
not (i) contravene the terms of its certificate or articles of incorporation or organization or other applicable
constitutive documents, (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or
require any payment to be made under (x) any material contractual obligation to which the Borrower is a party or affecting
the Borrower or the properties of the Borrower or any Subsidiary or (y) any material order, injunction, writ or decree of any
Governmental Authority or any arbitral award to which the Borrower or any Subsidiary or its property is subject or (c)
violate any law in any material respect.

    6

     

    

(c)    Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice
to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution,
delivery or performance by, or enforcement against, the Borrower of this Amendment or any other Loan Document, except for such
approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in full force
and effect.

 

(d)   
Execution and Delivery; Binding Effect. This Amendment has been, and each other Loan Document, when delivered hereunder,
will have been, duly executed and delivered by the Loan Parties party thereto. This Amendment constitutes, and each other Loan
Document when so delivered will constitute, a legal, valid and binding obligation of each Loan Party party thereto, enforceable
against each such Loan Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of
equity.

 

(e)   
Credit Agreement Representations and Warranties. The representations and warranties of the Borrower and the other Loan
Parties set forth in the Credit Agreement or in any other Loan Document are true and correct in all material respects (or, in
the case of any such representation or warranty already qualified by materiality, in all respects) on and as of the Amendment
Effective Date (or, in the case of any such representation or warranty expressly stated to have been made as of a specific date,
as of such specific date).

 

SECTION
6. Reaffirmation of Guarantees and Security Interests. Each Loan Party hereby acknowledges its receipt of a copy of this
Amendment and its review of the terms and conditions hereof and consents to the terms and conditions of this Amendment and the
transactions contemplated thereby, including the extension of credit in the form of the Incremental Commitments. Each Loan Party
hereby (a) affirms and confirms its guarantees, pledges, grants and other undertakings under the Credit Agreement and the other
Loan Documents to which it is a party, (b) agrees that (i) each Loan Document to which it is a party shall continue to be in full
force and effect and (ii) all guarantees, pledges, grants and other undertakings thereunder shall continue to be in full force
and effect and shall accrue to the benefit of the Administrative Agent and Lenders, and (c) acknowledges that from and after the
date hereof, all Incremental Commitments and Revolving Loans under the Credit Agreement from time to time outstanding shall be
deemed to be Borrower Obligations.

 

SECTION
7. Miscellaneous.

 

(a)   
Release. Each Loan Party fully, finally, and forever releases and discharges Administrative Agent, Lenders and their 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 such Loan Party has or in the
future may have, whether known or unknown, (i) in respect of the Loan, the Loan Documents, or the actions or omissions of Administrative
Agent or Lenders in respect of the Loan or the Loan Documents and (ii) arising from events occurring prior to the date of this
Amendment.

 

(b)     Recordation of the Incremental Loans. Upon execution and delivery hereof, the Administrative Agent will record in the Register
the Incremental Commitments made by the Incremental Lender.

    7

     

    

(c)  
Amendment, Modification and Waiver. This Amendment may not be amended and no provision hereof may be waived except pursuant
to a writing signed by each of the parties hereto.

 

(d)   
Entire Agreement. This Amendment, the Credit Agreement (as amended hereby) and the other Loan Documents constitute
the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements
and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

(e)   
Governing Law. This Amendment and any claims controversy, dispute or cause of action (whether in contract or tort or otherwise)
based upon, arising out of or relating to this Amendment and the transactions contemplated hereby shall be governed by, and construed
in accordance with, the laws of the State of Arizona.

 

(f)   
Jurisdiction. The Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any
action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise,
against the Administrative Agent, any Lender, or any Related Party of the foregoing in any way relating to this Amendment, the
Credit Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts
of the State of Arizona sitting in Maricopa County, and of the United States District Court of the District of Arizona, and any
appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of
such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in
such Arizona State court or, to the fullest extent permitted by applicable Law, in such federal court. Each of the parties hereto
agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall
affect any right that the Administrative Agent, any Lender may otherwise have to bring any action or proceeding relating to this
Agreement or any other Loan Document against Borrower or its properties in the courts of any jurisdiction.

 

(g)   
Waiver of Venue. The Borrower and each other Loan Party irrevocably and unconditionally waives, to the fullest extent
permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding
arising out of or relating to this Amendment or any other Loan Document in any court referred to in paragraph (e) of this Section.
Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

(h)   
Service of Process. Each party hereto irrevocably consents to service of process in the manner provided for notices in
Section 10.1 of the Credit Agreement. Nothing in this Amendment or any other Loan Document will affect the right of any party
hereto to serve process in any other manner permitted by Applicable Law.

 

(i)    
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT

    8

     

    

OR
THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
WITHOUT LIMITING THE FOREGOING WAIVER OF JURY TRIAL, SECTION 10.12 OF THE CREDIT AGREEMENT IS HEREBY INCORPORATED HEREIN BY REFERENCE.

 

(j)    
Severability. Any term or provision of this Amendment that is invalid or unenforceable in any jurisdiction shall, as to
that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions
of this Amendment in any other jurisdiction. If any provision of this Amendment is so broad as to be unenforceable, the provision
shall be interpreted to be only so broad as would be enforceable.

 

(k)   
Counterparts; Integration; Effectiveness. This Amendment may be executed in counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute
a single contract. This Amendment and the other Loan Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject
matter hereof. Except as provided in Section 5 hereof, this Amendment shall become effective when it shall have been executed
by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together,
bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Amendment
by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually
executed counterpart of this Amendment.

 

(l)     
Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect
the meaning hereof.

 

(m)   
Reference to and Effect on the Credit Agreement and the Other Loan Documents. On and after the Amendment Effective Date,
each reference in the Credit Agreement to “this Agreement”, “hereunder”, “herein” or words
of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a
reference to the Credit Agreement as amended by this Amendment. Except as specifically amended by this Amendment, the Credit Agreement
and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed and this Amendment shall
not be considered a novation. The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision
of, or operate as a waiver of any right, power or remedy of the Administrative Agent or Lender under, the Credit Agreement or
any of the other Loan Documents. This Amendment shall be deemed to be a Loan Document as defined in the Credit Agreement.

 

[SIGNATURE
PAGES FOLLOW]

    9

     

    

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as
of the day and year first above written.

 

	ADMINISTRATIVE AGENT:	 
	 	 
	 	WESTERN ALLIANCE BANK, an
    Arizona
	 	corporation
	 	 	 	 	 
	 	By:	 	/s/ John
    Eldean	 
	 	Name:	JOHN ELDEAN	 
	 	Title:	SVP	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Second Amendment to Credit Agreement]

     

     

    

	LENDER:	 
	 	 
	 	WESTERN ALLIANCE BANK, an
    Arizona
	 	corporation
	 	 	 	 	 
	 	By:	 	/s/ John
    Eldean	 
	 	Name:	JOHN ELDEAN	 
	 	Title:	SVP	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Second Amendment to Credit Agreement]

     

     

    
	BORROWER:	 
	 	 
	 	LANDSEA HOMES- WAB 2 LLC, a
    Delaware limited
	 	liability company
	 	 	 	 	 
	 	By:	 	/s/ Bart
    Beasley 	 
	 		Bart
    Beasley, Senior Vice President	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Second Amendment to Credit Agreement]

     

     

    

	GUARANTOR:	 
	 	 
	 	LANDSEA HOLDINGS CORPORATION,
    a 
	 	Delaware corporation
	 	 	 	 	 
	 	By:	 	/s/ John
    Ho 	 
	 		John Ho, Chief
    Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Second Amendment to Credit Agreement]

     

     

    

GUARANTORS:

 

	 	LANDSEA
    HOMES INCORPORATED, a Delaware corporation

GARRETT WALKER HOMES, LLC, an Arizona limited liability company
	 	AV1,
    LLC, an Arizona limited liability company
	 	GWH
    NCC, LLC, an Arizona limited liability company
	 	GWH
    MOUNTAIN VIEWS, LLC, an Arizona limited liability company
	 	BETHANY
    RANCH, LLC, an Arizona limited liability company

GWH GRAND VILLAGE, LLC, an Arizona limited liability company

GWH
    NCC-71, LLC, an Arizona limited liability company
	 	GWH
    PARK FOREST, LLC, an Arizona limited liability company

GWH WEST POINTE ESTATES, LLC, an Arizona limited liability
    company
	 	GWH
    WEST POINTE VILLAGE, LLC, an Arizona limited liability company
	 	GWH
    TRENTON PARK, LLC, an Arizona limited liability company

GWH SUNDANCE, LLC, an Arizona limited liability company

GWH NORTHERN FARMS, LLC, an Arizona limited liability company
	 	GWH
    NCC 13 & 14, LLC, an Arizona limited liability company

ACOMA COURT, LLC, an Arizona limited liability company

PINNACLE WEST HOMES M72 LLC, an Arizona limited liability company
	 	GWH
    SUNSET FARMS, LLC, an Arizona limited liability company

GWH NCC 9 & 11, LLC, an Arizona limited liability company

GWH SUNRISE, LLC, an Arizona limited liability company

PINNACLE WEST HOMES CENTERRA, LLC, an Arizona limited
    liability company
	 	PINNACLE
    WEST HOMES DESTINY, LLC, an Arizona limited liability company
	 	 	 
	 	By:	/s/ Bart Beasley
	 	 	Bart
    Beasley, Senior Vice President

 

 

 

 

 

 

[Signature
Page to Second Amendment to Credit Agreement]

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