Document:

Exhibit 10.31

 

AMENDMENT NO. 4 TO 
 RECEIVABLES SALE AGREEMENT

 

THIS AMENDMENT NO. 4 TO RECEIVABLES SALE AGREEMENT (this “Amendment”) is dated as of October 18, 2018 (the “Effective Date”), by and among:

 

(a)                                 KAPSTONE KRAFT PAPER CORPORATION, a Delaware corporation, KAPSTONE CONTAINER CORPORATION, a Georgia corporation, LONGVIEW FIBRE PAPER AND PACKAGING, INC., a Washington corporation, KAPSTONE CHARLESTON KRAFT LLC, a Delaware limited liability company, and VICTORY PACKAGING, L.P., a Texas limited partnership (each, an “Originator” and, collectively, the “Originators”),

 

(b)                                 KAPSTONE PAPER AND PACKAGING CORPORATION, a Delaware corporation, as servicer (the “Servicer”), and

 

(c)                                  KAPSTONE RECEIVABLES, LLC, a Delaware limited liability company (the “Buyer”).

 

Capitalized terms used, but not defined, herein shall have the meanings given to such terms in the Sale Agreement defined below.

 

W I T N E S S E T H:

 

WHEREAS, the Originators, the Servicer and the Buyer have entered into that certain Receivables Sale Agreement dated as of September 26, 2014 (as amended, modified or restated from time to time, the “Sale Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Sale Agreement as hereinafter provided;

 

NOW, THEREFORE, in consideration of the premises and the other mutual covenants contained herein, the parties hereto agree as follows:

 

SECTION 1.                              Amendment.

 

1.1.                            The definition in Exhibit I to the Sale Agreement of the following defined term is hereby amended and restated in its entirety to read as follows:

 

“Excluded Receivable” means  (a) any API Receivable, (b) any Receivable denominated in any currency other than U.S. Dollars, and (c) any Receivables as to which the Obligor is a Specified Obligor (as defined in the Fee Letter) that has been sold into a supply chain financing program that arise at least five (5) Business Days after the date on which written notice is delivered by any Originator or the Buyer to the Administrative Agent and the Purchasers that such Receivables will be included in a supply chain financing program and certifying that all such Receivables created in the calendar month then most recently ended represent less than 5% of total Eligible Receivables; provided, however, that any Receivables as to which the Obligor is a Specified Obligor that arise at least five (5) Business Days after the date on which written notice is delivered by any Originator or the Buyer to the Administrative Agent and the

 

1

 

Purchasers that such Receivables are no longer included in a supply chain financing program and certifying that all such Receivables created in the calendar month then most recently ended represent less than 5% of total Eligible Receivables will not be “Excluded Receivables.”

 

For the avoidance of doubt, any Receivable as to which the Obligor is a Specified Obligor that has been sold into a supply chain financing program prior to the date of this Amendment is an Excluded Receivable.

 

SECTION 2.                            Representations and Warranties of the Originators. Each of the Originators represents and warrants to the Buyer that, after giving effect to the provisions of Section 1 above, all representations and warranties of such Originator set forth in Section 2.1 of the Sale Agreement are true and correct with respect to such Originator on and as of the date hereof; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct with respect to such Originator as of such earlier date.  All representations and warranties made hereunder shall be deemed to have been made by the Originators under the Sale Agreement on the date hereof.

 

SECTION 3.                            Effect of Amendment.  Except as specifically amended hereby, the Sale Agreement and all exhibits and schedules attached thereto shall remain in full force and effect.  This Amendment shall not constitute a novation of the Sale Agreement, but shall constitute an amendment to the Sale Agreement and the exhibits attached thereto to the extent set forth herein.

 

SECTION 4.                            Binding Effect.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns.

 

SECTION 5.                            Effectiveness. This Amendment shall become effective on the Effective Date subject to the prior or contemporaneous satisfaction of each of the following conditions precedent:

 

5.1.                            The Administrative Agent shall have received counterparts of this Amendment, duly executed by each of the parties hereto and consented to by each of the Purchasers in the space provided below; and

 

5.2.                            Each of the representations and warranties contained in Article II of the Sale Agreement shall be true and correct in all material respects, it being understood that the foregoing materiality qualifier shall not apply to any representation that itself contains a materiality threshold.

 

SECTION 6.                            Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York without regard to conflict of laws principles (other than section 5-1401 of the New York General Obligations law).

 

SECTION 7.                            Execution in Counterparts; Severability.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.  In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

2

 

IN WITNESS WHEREOF, the parties have hereunder set their hands as of the date first above written.

 

 

	
 
    	
KAPSTONE KRAFT PAPER   CORPORATION,
    
	
 
    	
as an Originator
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAPSTONE CONTAINER CORPORATION,
    
	
 
    	
as an Originator
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LONGVIEW FIBRE PAPER AND   PACKAGING, INC., as an Originator
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAPSTONE CHARLESTON KRAFT LLC, as   an Originator
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VICTORY PACKAGING, L.P., as   an Originator
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Vice President
    

 

3

 

	
 
    	
KAPSTONE PAPER AND PACKAGING   CORPORATION, as   Servicer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAPSTONE RECEIVABLES, LLC,   as the Buyer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/Andrea Tarbox
    
	
 
    	
Name:
    	
Andrea Tarbox
    
	
 
    	
Title:
    	
Treasurer
    

 

4

 

Each of the undersigned hereby consents to the foregoing Amendment No. 4:

 

 

	
WELLS FARGO BANK, N.A.,   AS ADMINISTRATIVE AGENT AND A PURCHASER
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael J. Landry
    	
 
    
	
Name:
    	
Michael J. Landry
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PNC BANK, NATIONAL ASSOCIATION,   AS A PURCHASER
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/Michael Brown
    	
 
    
	
Name:
    	
Michael Brown
    	
 
    
	
Title:
    	
Senior Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SUMITOMO MITSUI BANKING   CORPORATION, NEW YORK BRANCH, AS A PURCHASER
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/Katsuyuki Kubo
    	
 
    
	
Name:
    	
Katsuyuki Kubo
    	
 
    
	
Title:
    	
Managing Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
COÖPERATIEVE RABOBANK, U.A.,   NEW YORK BRANCH, AS A PURCHASER
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Christopher Lew
    	
 
    
	
Name:
    	
Christopher Lew
    	
 
    
	
Title:
    	
Executive Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/Thomas McNamara
    	
 
    
	
Name:
    	
Thomas McNamara
    	
 
    
	
Title:
    	
Executive Director
    	
 
    

 

5Exhibit

EXHIBIT 10.1

LENDER ACKNOWLEDGEMENT AGREEMENT

THIS LENDER ACKNOWLEDGEMENT AGREEMENT dated as of October 18, 2018 (this “Agreement”) is by and among LGI Homes, Inc., a Delaware corporation (the “Borrower”), Wells Fargo Bank, National Association, as an Increasing Lender (as defined below) and as Administrative Agent (the “Administrative Agent”), Fifth Third Bank, U.S. Bank National Association d/b/a Housing Capital Company, Bank of America, N.A., BMO Harris Bank N.A., Compass Bank, Flagstar Bank, FSB, Deutsche Bank AG New York Branch, ZB, N.A. dba Amegy Bank, Associated Bank, National Association, Academy Bank, N.A., and Sunflower Bank, N.A. (individually, and collectively, as the context may suggest or require, the “Increasing Lender”).  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided in the Credit Agreement referenced herein.

W I T N E S S E T H

WHEREAS, pursuant to that certain Third Amended and Restated Credit Agreement dated as of May 25, 2018, as amended by that certain First Amendment to Third Amended and Restated Credit Agreement dated as of June 19, 2018, and as affected by that certain Letter Agreement dated as of July 16, 2018 (as the same is hereby supplemented, and as the same has heretofore and may hereafter be amended, affected, modified, supplemented, restated, increased or extended from time to time, the “Credit Agreement”) among the Borrower, the Lenders (as defined in the Credit Agreement), the Administrative Agent, Wells Fargo Securities, LLC, as sole lead arranger and sole bookrunner, and Fifth Third Bank and U.S. Bank National Association, as documentation agents, the Lenders have agreed to provide the Borrower with a revolving credit facility;

WHEREAS, pursuant to Section 2.17 of the Credit Agreement, the Borrower has requested an increase of the Revolving Commitments (such increase in Revolving Commitments, the “Incremental Revolving Commitments”) under the Credit Agreement pursuant to this Agreement; and

WHEREAS, each Increasing Lender has agreed to increase its Revolving Commitment under the Credit Agreement pursuant to this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and in the Credit Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Pursuant to Section 2.17 of the Credit Agreement, each Increasing Lender has agreed, severally, but not jointly, on the terms set forth in this Agreement, to make the Incremental Revolving Commitments as set forth on Schedule I attached hereto.  After giving effect to this Agreement, the Revolving Commitment for each of the Lenders shall be as set forth on Schedule I attached hereto.  Each Increasing Lender (i) confirms that it has received a copy of the Credit Agreement, the other Loan Documents and the amendments and exhibits thereto, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; (ii) agrees (and, if it was a Lender before the effectiveness of this Agreement, confirms that it has agreed) that it has and will, independently and without reliance upon the Administrative Agent or any other Increasing Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in entering into the Credit Agreement and this Agreement, and in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes (or, if it was a Lender before the effectiveness of this Agreement, confirms that it has appointed and authorized) the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees (and, if it was a Lender before the effectiveness of this Agreement, confirms that it has agreed) that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.

2.The terms of repayment and the Applicable Margin with respect to the Incremental Revolving Commitments shall be the same as those applicable to Revolving Loans, as set forth in the Credit Agreement.

3.The Borrower hereby represents and warrants that no Trigger Event, Default or Event of Default exists as of the date set forth above and the representations and warranties made or deemed made by the Borrower and any other Loan Party in any Loan Document to which such Loan Party is a party are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) as of the date set forth above except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) on and as of such earlier date) and except for changes in factual circumstances specifically and expressly permitted under the Credit Agreement.

4.This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by facsimile transmission or by any other electronic imaging means, including, without limitation, Adobe Corporation’s Portable Document Format), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile transmission or by any other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.

5.THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

6.EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ITS RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, THE CREDIT AGREEMENT OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.

7.Conditions Precedent.  This Agreement shall become effective only upon the satisfaction of the following conditions precedent:  

(a)The Administrative Agent shall have received each of the following, each in form and substance reasonably satisfactory to the Administrative Agent:

(i)counterparts of this Agreement duly executed by the Borrower, the Administrative Agent and the Increasing Lender;

(ii)counterparts of the Consent and Reaffirmation of Guarantor attached hereto duly executed by each of the Guarantors;

(iii)a duly executed Revolving Note payable to the order of each Increasing Lender, executed by the Borrower;

(iv)an opinion of counsel to the Borrower and the Guarantors addressed to the Administrative Agent and the Lenders, dated as of the date hereof, covering such matters as reasonably requested by the Administrative Agent;

(v)a duly executed certificate for each of the Borrower and the Guarantors, dated as of the date hereof, including a certificate of incumbency and a copy of the authorizing resolution; and

(vi)a duly executed certificate for the Borrower confirming that the increase in the Revolving Commitments is permitted under Senior Notes Indebtedness and/or Senior Notes Indentures relating thereto together with supporting evidence. 

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by a duly authorized officer as of the date first above written.

	
		
	 
	BORROWER

	 
	 

	 
	LGI HOMES, INC., 

	 
	a Delaware corporation

	 
	 

	By:
	/s/ Eric T. Lipar

	Name:
	Eric T. Lipar

	Title:
	Chief Executive Officer

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	ADMINISTRATIVE AGENT

	 
	 

	 
	WELLS FARGO BANK, NATIONAL

	 
	ASSOCIATION,

	 
	as Administrative Agent

	 
	 

	By:
	/s/ Kim Renee Funches

	Name:
	Kim Renee Funches

	Title:
	Senior Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	INCREASING LENDER

	 
	 

	 
	WELLS FARGO BANK, NATIONAL

	 
	ASSOCIATION,

	 
	as an Increasing Lender

	 
	 

	By:
	/s/ Kim Renee Funches

	Name:
	Kim Renee Funches

	Title:
	Senior Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	 

	 
	 

	 
	FIFTH THIRD BANK

	 
	 

	By:
	/s/ Shane Lowe

	Name:
	Shane Lowe

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	DEUTSCHE BANK AG NEW YORK BRANCH

	 
	 

	 
	 

	By:
	/s/ Maria Guinchard

	Name:
	Maria Guinchard

	Title:
	Vice President

	 
	 

	 
	 

	By:
	/s/ Marguerite Sutton

	Name:
	Marguerite Sutton

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	COMPASS BANK

	 
	 

	 
	 

	By:
	/s/ Brock Tautenhahn

	Name:
	Brock Tautenhahn

	Title:
	Senior Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	ACADEMY BANK, N.A.

	 
	 

	 
	 

	By:
	/s/ Jason Hilpipre

	Name:
	Jason Hilpipre

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	FLAGSTAR BANK, FSB

	 
	 

	 
	 

	By:
	/s/ Jerry C. Schillaci

	Name:
	Jerry C. Schillaci

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	ZB, N.A. DBA AMEGY BANK

	 
	 

	 
	 

	By:
	/s/ Eric Wojner

	Name:
	Eric Wojner

	Title:
	Senior Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	SUNFLOWER BANK, N.A.

	 
	 

	 
	 

	By:
	/s/ Todd Wherry

	Name:
	Todd Wherry

	Title:
	Senior Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	ASSOCIATED BANK, NATIONAL

	 
	ASSOCIATION, a national banking association

	 
	 

	By:
	/s/ Andrew Roberts

	Name:
	Andrew Roberts

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	U.S. BANK NATIONAL ASSOCIATION d/b/a

	 
	HOUSING CAPITAL COMPANY

	 
	 

	 
	 

	By:
	/s/ Alyssa Pratka

	Name:
	Alyssa Pratka

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	BMO HARRIS BANK N.A.

	 
	 

	 
	 

	By:
	/s/ Michael M. Mattick

	Name:
	Michael M. Mattick

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

	
		
	 
	BANK OF AMERICA, N.A.

	 
	 

	 
	 

	By:
	/s/ Michael J. Kauffman

	Name:
	Michael J. Kauffman

	Title:
	Vice President

[Signature Page - Lender Acknowledgement Agreement]

SCHEDULE I

COMMITMENTS
(After giving effect to this Agreement)

	
				
	LENDER
	INCREASE ALLOCATION
	COMMITMENT
	PRO-RATA SHARE

	WELLS FARGO BANK, NATIONAL ASSOCIATION
	$7,850,000.00
	$63,050,000.00
	12.61%

	FIFTH THIRD BANK
	$7,850,000.00
	$63,050,000.00
	12.61%

	U.S. BANK NATIONAL ASSOCIATION D/B/A HOUSING CAPITAL COMPANY
	$6,600,000.00
	$51,600,000.00
	10.32%

	BANK OF AMERICA, N.A.
	$4,350,000.00
	$34,350,000.00
	6.87%

	BBVA COMPASS
	$4,350,000.00
	$34,350,000.00
	6.87%

	BMO HARRIS BANK N.A. 
	$4,350,000.00
	$34,350,000.00
	6.87%

	FLAGSTAR BANK, FSB
	$4,350,000.00
	$34,350,000.00
	6.87%

	TEXAS CAPITAL BANK, NATIONAL ASSOCIATION
	$—
	$30,000,000.00
	6%

	DEUTSCHE BANK AG
NEW YORK BRANCH
	$3,000,000.00
	$30,000,000.00
	6%

	ZB, N.A. DBA AMEGY BANK.
	$3,500,000.00
	$27,500,000.00
	5.5%

	CADENCE BANK, N.A.
	$—
	$18,000,000.00
	3.6%

	CHANG HWA COMMERCIAL BANK, LTD., New York Branch
	$—
	$15,000,000.00
	3%

	ASSOCIATED BANK, NATIONAL ASSOCIATION
	$1,300,000.00
	$13,300,000.00
	2.66%

	BANK OF TAIWAN, NEW YORK BRANCH
	$—
	$12,000,000.00
	2.4%

	TAIWAN COOPERATIVE BANK, LTD., acting through its Los Angeles Branch
	$—
	$12,000,000.00
	2.4%

	TAIWAN BUSINESS BANK, LOS ANGELES BRANCH
	$—
	$11,250,000.00
	2.25%

	ACADEMY BANK, N.A.
	$1,250,000.00
	$8,600,000.00
	1.72%

	SUNFLOWER BANK, N.A.
	$1,250,000.00
	$7,250,000.00
	1.45%

	TOTALS
	$50,000,000.00
	$500,000,000.00
	100%

CONSENT AND REAFFIRMATION 

Each of the undersigned (individually and collectively, “Guarantor”) (a) acknowledges receipt of the foregoing Lender Acknowledgement Agreement (the “Agreement”), (b) consents to the execution and delivery of the Agreement, and (c) reaffirms all of its obligations and covenants under the (i) Third Amended and Restated Subsidiary Guaranty (as defined in the Credit Agreement defined in the Agreement), (ii) Third Amended and Restated Hazardous Materials Indemnity Agreement (as defined in the Credit Agreement defined in the Agreement), and (iii) each of the other Loan Documents (as defined in the Credit Agreement defined in the Agreement) to which it is a party, and agrees that none of its obligations and covenants shall be reduced or limited by the execution and delivery of the Agreement. 

The Guarantor hereby represents and warrants to Administrative Agent that: (a) the Guarantor has duly executed, delivered and authorized this Consent and Reaffirmation (this “Consent”); (b) the Guarantor has obtained all necessary consents, if any, required in connection with the execution, delivery and performance of this Consent and the transactions contemplated hereby; (c) the execution, delivery and performance of this Consent and the transactions contemplated hereby do not violate the Guarantor’s organizational documents, if any, or any contract to which is a party, and (d) no Event of Default or event, omission or failure of condition which would constitute a Default after notice or passage of time, or both exists under any of the Loan Documents to which it is a party and that all representations and warranties in the Loan Documents to which it is a party are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) as of the date hereof except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) on and as of such earlier date) and except for changes in factual circumstances specifically and expressly permitted under the Credit Agreement.

Delivery of an executed counterpart of this consent via facsimile, telecopy, or other electronic method of transmission pursuant to which the signature of Guarantor can be seen (including, without limitation, Adobe Corporation’s Portable Document Format) shall have the same force and effect as the delivery of an original executed counterpart of this consent.  Guarantor’s delivery of an executed counterpart of this consent by facsimile or other electronic method of transmission shall be made in conjunction with Guarantor’s delivery of an original executed counterpart, but Guarantor’s failure to deliver said original executed counterpart shall not affect the validity, enforceability, or binding effect of this consent.

[Remainder of Page Intentionally Left Blank]

Dated as of October 18, 2018:

GUARANTORS:

LGI HOMES-TEXAS, LLC
LGI HOMES AZ CONSTRUCTION, LLC
LGI HOMES - E SAN ANTONIO, LLC
LGI HOMES - ARIZONA, LLC
LGI HOMES - FLORIDA, LLC
LGI HOMES - GEORGIA, LLC
LGI CROWLEY LAND PARTNERS, LLC
LGI HOMES CORPORATE, LLC
LGI HOMES SERVICES, LLC,
LGI HOMES AZ SALES, LLC
LGI HOMES - NEW MEXICO, LLC
LGI HOMES NM CONSTRUCTION, LLC
LUCKEY RANCH PARTNERS, LLC
LGI HOMES - COLORADO, LLC
LGI HOMES - NC, LLC
LGI HOMES - SC, LLC
LGI HOMES - TENNESSEE, LLC
LGI HOMES - WASHINGTON, LLC
LGI HOMES - OREGON, LLC
LGI HOMES - ALABAMA, LLC
LGI HOMES - MINNESOTA, LLC
LGI HOMES - OKLAHOMA, LLC
LGI LIVING, LLC
LGI HOMES - CALIFORNIA, LLC
LGI HOMES - MARYLAND, LLC
LGI HOMES - VIRGINIA, LLC
LGI HOMES - WEST VIRGINIA, LLC
LGI HOMES - WISCONSIN, LLC
LGI LEASING, LLC

	
		
	By:
	LGI Homes Group, LLC,

	 
	its Manager

	 
	 

	By:
	/s/ Eric T. Lipar

	Name:
	Eric T. Lipar

	Title:
	Manager

  

[Signature Page - Consent and Reaffirmation]

	
		
	LGI HOMES - NEVADA, LLC

	 
	 

	 
	 

	By:
	/s/ Eric T. Lipar

	Name:
	Eric T. Lipar

	Title:
	Authorized Signatory

	
		
	RIVERCHASE ESTATES PARTNERS, LLC

	 
	 

	 
	 

	By:
	LGI Homes Group, LLC,

	 
	its Sole Member

	 
	 

	By:
	/s/ Eric T. Lipar

	Name:
	Eric T. Lipar

	Title:
	Manager

	
		
	LGI HOMES GROUP, LLC

	 
	 

	 
	 

	By:
	/s/ Eric T. Lipar

	Name:
	Eric T. Lipar

	Title:
	Manager

[Signature Page - Consent and Reaffirmation]

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