Document:

Exhibit 4.2

    

     

    

    DESCRIPTION OF CAPITAL STOCK

    

    

    The following is a description of each class of securities of Pure Cycle Corporation (“Pure Cycle” or the “Company”) that is registered under Section 12 of the Securities Exchange Act of 1934, as
      amended, and does not purport to be complete.  For a complete description of the terms and provisions of such securities, refer to our articles of incorporation and our bylaws, which are incorporated by reference herein to Appendix B and Appendix C,
      respectively, to the Company’s Proxy Statement on Schedule 14A filed on December 14, 2007, with the Securities and Exchange Commission.  This summary is qualified in its entirety by reference to these documents.

    

    

    Our authorized capital stock consists of:

    

    

    
      
        	

              	•	
                40,000,000 shares of common stock, par value 1/3 of $.01 per share, of which 23,826,598 shares were issued and outstanding as of November 8, 2019; and

              

      

    

    
      
        	

              	•	
                25,000,000 shares of preferred stock, par value $.001 per share, of which 432,513 shares of Series B Preferred Stock were issued and outstanding as of November 8, 2019.

              

      

    

    

    

    Common Stock

    

    

    Quorum and Voting Rights.  Each share of common stock is entitled to one vote in the election of directors and on all matters as to which holders of common
      stock are entitled to vote.  Holders of not less than a majority of the shares entitled to vote at any meeting of shareholders constitute a quorum unless otherwise required by law.  Except with respect to the election of directors or as otherwise
      required by law or the articles of incorporation, a proposal is approved if the number of votes cast in favor of the proposal exceeds the number of votes cast against the proposal.  Meetings of our shareholders may be called on no fewer than 10 days
      nor more than 60 days’ notice.

    

    

    Election of Directors.  Directors hold office until the next annual meeting of shareholders.  Directors are elected by a plurality of the shares present in
      person or represented by proxy at the meeting and entitled to vote on the election of directors.  Cumulative voting is not permitted.

    

    

    Dividend and Liquidation Rights.  Each share of common stock has an equal and ratable right to receive dividends when declared by our board of directors out
      of assets legally available for that purpose and subject to our dividend obligations to holders of any preferred stock then outstanding.  We currently do not expect to pay any dividends on our common stock.

    

    

    In the event of a liquidation, dissolution or winding up, the holders of our common stock are entitled to share equally and ratably in the assets available for distribution after payment of all
      liabilities, subject to any prior rights of any holders of preferred stock outstanding at that time.

    

    

    Preemptive, Conversion or Redemption Rights.  The holders of common stock have no preemptive, subscription, conversion or redemption rights, and are not
      subject to further calls or assessments.

    

    

    Other Provisions.  All outstanding shares of our common stock are, and all shares of common stock that may be issued under this prospectus will be, fully paid
      and non-assessable.

    

    

    Transfer Agent and Registrar.  The transfer agent and registrar for our common stock is Broadridge Corporate Issuer Solutions, Inc., Attn: IWS, 1155 Long
      Island Avenue, Edgewood, NY 11717, telephone: 1-877-830-4932.

    

    

    Preferred Stock

    

    

    Our articles of incorporation authorize our board of directors to establish one or more series of preferred stock.  With respect to any series of preferred stock, our board of directors is authorized
      to determine the preferences, limitations and relative rights of that series.  The relevant prospectus supplement will describe the terms of any preferred stock offered.  These terms may include:

    

    

    
      
        	

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                the aggregate number of shares offered and the offering price;

              

      

    

    
      
        	

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                the dividend rate of the series, the conditions and dates upon which such dividends will be payable, the relation which such dividends will bear to the dividends payable on any other class or classes of stock, and whether such
                  dividends will be cumulative or noncumulative;

              

      

    

    
      
        	

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                whether and upon what terms the shares will be redeemable;

              

      

    

    
      
        	

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                the extent, if any, to which holders of shares of the series will have preemptive rights;

              

      

    

    
      
        	

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                the terms and amount of any sinking fund provided for the purchase or redemption of the shares of the series;

              

      

    

    

    

    
      
        

        

        

      

      
        

    

    
    
      
        	

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                whether or not the shares of the series will be convertible into or exchangeable for shares of any other class or classes of stock, and, if provision is made for conversion or exchange, the times, prices, rates, adjustments and other
                  terms and conditions of such conversion or exchange;

              

      

    

    
      
        	

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                the voting rights, if any, to which the holders of shares of the series will be entitled;

              

      

    

    
      
        	

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                the restrictions, if any, on the issue or reissue of any additional shares of preferred stock of that series;

              

      

    

    
      
        	

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                the rights of the holders of the shares of the series upon the dissolution, liquidation, or winding up of the Company;

              

      

    

    
      
        	

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                any restriction on alienability of shares of the series, or any provision discriminating against any existing or prospective holder of such shares as a result of such holder owning a substantial amount of shares of such series;

              

      

    

    
      
        	

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                any restriction on the repurchase or redemption of shares by us while there is any arrearage in the payment of dividends or sinking fund installments; and

              

      

    

    
      
        	

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                any other preferences, privileges and powers and relative, participating, optional or other special rights and qualifications, limitations or restrictions of such series, as the board of directors may deem advisable and as shall not be
                  inconsistent with the provisions of the articles of incorporation and permitted by the laws of the State of Colorado.

              

      

    

    

    

    Because the board of directors has the power to determine the preferences, limitations and relative rights of each series of preferred stock, it may provide the holders of any series of preferred
      stock with rights senior to the rights of the holders of the common stock.

    

    

    Series B Preferred Stock

    

    

    The rights of our Series B Preferred Stock are tied to certain water rights we own.  We own or control approximately 26,985 acre feet of tributary surface water, non-tributary groundwater and not
      non-tributary groundwater, and approximately 26,000 acre feet of adjudicated reservoir sites that we refer to as our “Rangeview Water Supply.”  This water is located at the “Lowry Range,” which is owned by the Colorado State Board of Land
      Commissioners (the “Land Board”).  Of the total water comprising our Rangeview Water Supply, we own 11,650 acre feet of water we can “export” from the Lowry Range to supply water to nearby communities (this portion of the Rangeview Water Supply is
      referred to as our “Export Water”), which consists of 10,000 acre feet of groundwater and 1,650 acre feet of average yield surface water, pending completion by the Land Board of documentation related to the exercise of our right to substitute 1,650
      acre feet of our groundwater for a comparable amount of surface water.

    

    

    Liquidation Rights.  Upon any voluntary or involuntary liquidation, dissolution or winding up of Pure Cycle, the holders of shares of Series B Preferred Stock
      will be entitled to be paid, before any distribution or payment is made upon any other equity securities of Pure Cycle, $1.00 per share less an amount equal to all dividends paid thereon.

    

    

    Dividends.  Holders of the Series B Preferred Stock are entitled to receive dividends, when and as declared by our board of directors, in a total amount of
      $1.00 per share.  The Series B Preferred Stock will only earn and accrue dividends when we receive proceeds from the marketing, sale or other disposition of the Export Water or our interest in the Export Water in an amount greater than $36,026,232. 
      Dividends are required to be paid when we receive such proceeds.  Until all accrued dividends on the Series B Preferred Stock have been paid, we may not declare or pay dividends on the common stock.

    

    

    Redemption.  The Series B Preferred Stock is redeemable for cash at our option at a redemption price equal to $1.00 per share less an amount equal to all
      dividends paid thereon.  The Series B Preferred Stock may not be redeemed using proceeds from the sale of Export Water unless it would be permissible under the articles of incorporation to use such assets to pay a dividend on the Series B Preferred
      Stock.  We may redeem the Series B Preferred Stock in lieu of payment of dividends thereon.  Holders of Series B Preferred Stock do not have any right to require us to redeem any or all shares of the Series B Preferred Stock.

    

    

    Voting Rights.  Holders of Series B Preferred Stock generally will have no voting rights except as required by law.  Certain changes to the terms of the
      Series B Preferred Stock that would be materially adverse to the rights of holders of the Series B Preferred Stock cannot be made without the approval of the holders of a at least 66-2/3% of the outstanding Series B Preferred Stock voting separately
      as a class.  These changes requiring approval consist of the following:

    

    

    
      
        	

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                altering or changing terms, preferences or privileges of Series B Preferred Stock; and

              

      

    

    
      
        	

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                authorizing a new security ranking senior to the Series B Preferred Stock as to dividend or liquidation rights.

              

      

    

    

    

    In addition, when dividends on the Series B Preferred Stock have accrued but have not been declared by our board of directors, the holders of the Series B Preferred Stock will be entitled to vote
      with the holders of common stock at any meeting of shareholders held during the period such dividends remain in arrears.  Each share of Series B Preferred Stock will have one vote when voting with the common stock.

     

    

    
      
        

        

        

      

      2

      
        

    

    Anti-Takeover Provisions of Governing Documents

    

    

    Our bylaws require that shareholders give advance notice of proposals to be presented at meetings of shareholders, including director nominations.  The date by which notice must be given to be
      considered timely is set forth in our most recent definitive proxy statement filed with the Securities and Exchange Commission.

    

    

    Our board of directors can at any time under our articles of incorporation and without shareholder approval issue one or more new series of preferred stock.  In some cases, the issuance of preferred
      stock without shareholder approval could discourage or make more difficult attempts to take control of Pure Cycle through a merger, tender offer, proxy contest or otherwise.  Preferred stock with special voting rights or other features issued to
      persons favoring management could stop a takeover by preventing the person trying to take control of our company from acquiring the voting shares necessary to take control.

    

    

    

  

  3Exhibit 10.19

  

   

  

  
    THIRTEENTH AMENDMENT TO

    CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE

    

    

    (Sky Ranch)

      

    

    THIS THIRTEENTH AMENDMENT TO CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE (this "Amendment") is made as of August 9, 2018 ("Effective Date"), by and between PCY HOLDINGS, LLC, a Colorado limited liability company ("Seller"), and RICHMOND AMERICAN HOMES OF
        COLORADO, INC., a Delaware corporation ("Purchaser"). Seller and Purchaser may be referred to collectively as the "Parties."

     

    R E C I T A L S

     

    A.          Seller and Purchaser previously entered into a Contract for Purchase and Sale of Real Estate effectively dated
        June 27, 2017 (as amended, the "Contract") for approximately 190 platted single-family detached residential lots in the Sky Ranch
      master planned residential community in the County of Arapahoe, State of Colorado.

     

    B.           Purchaser and Seller now desire to amend the terms and conditions of the Contract as set forth below.  Capitalized

      terms used but not otherwise defined in this Amendment will have the same meanings given to such terms in the Contract.

     

    A G R E E M E N T

     

    NOW, THEREFORE, in consideration of the mutual covenants contained in this Amendment and for other good and valuable consideration, the receipt and sufficiency of which are
      hereby acknowledged, Purchaser and Seller hereby agree as follows:

     

    1.            Recitals.  The recitals set forth above are true and correct and are incorporated herein in their entirety by this reference.

     

    2.            Final Plat.  In accordance with Section 5(a)(iv) of the Contract, Seller has obtained Final Approval of the Final Plat, which was recorded in the real property records of
      Arapahoe County, Colorado on July 20, 2018, at Reception No. D8071296.

     

    3.            Legal Description of Lots.  The Contract is hereby amended to set forth the legal description of those Lots, as that term is defined in the Contract, included in the approved
      Final Plat and described on Exhibit A, attached hereto and incorporated herein by this reference.

     

    4.           Construction.  Each of the parties acknowledges that they, and their respective counsel, substantially participated in the negotiation,
      drafting and editing of this Amendment. Accordingly, the Parties agree that the provisions of this Amendment shall not be construed or interpreted for or against any Party hereto based on authorship.

     

    5.           Authority.  Each Party represents and warrants that is has the power and authority to execute this Amendment and that there are no third party approvals required to execute this
      amendment or to comply with the terms or provisions contained herein.

     

    
      

      
        

    

    6.            Headings.  The Section headings used herein shall have absolutely no legal significance and are used solely for convenience of reference.

     

    7.            Ratified and Confirmed.  The Contract, except as modified by this Amendment, is hereby ratified and confirmed and shall remain in full force and effect in accordance with its
      original terms and provisions. In the case of any conflict between the terms of this Amendment and the provisions of the Contract, the provisions of this Amendment shall control.

     

    8.           Counterparts.  This Amendment may be executed in counterparts, each of which shall be deemed to be an original, and both of which together shall be deemed to constitute one and
      the same instrument.  Each of the Parties shall be entitled to rely upon a counterpart of this Amendment executed by the other Party and sent via facsimile or e-mail transmission.

    

    

     [SIGNATURE PAGE FOLLOW]

     

    
      

      
        

      

    

    IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the Effective Date.

     

    	 	
            SELLER:

          
	 	 
	 	
            PCY HOLDINGS, LLC, a Colorado limited liability company

          
	 	 	 
	 	 	By:	
            PURE CYCLE CORPORATION, its Sole Member

          
	 	 	 
	 	 	
            By:

            

          	 /s/ Mark W. Harding

    	 	 	
            Name:

            

          	Mark W. Harding
	 	 	
            Title:

            

          	President

    

    

    	 	
            PURCHASER:

          
	 	 	 
	 	
            RICHMOND AMERICAN HOMES OF COLORADO, INC., a Delaware corporation

          
	 	 	 
	 	By:

          	
            /s/ Linda M. Purdy

          

    	 	Name:	
            Linda M. Purdy

          
	 	Title: 

          	
            Senior Vice President

          

    

    

    
      

      
        

      

    

    EXHIBIT A

    (Property Legal Description)

    

    

    LOTS 1 THROUGH 35, INCLUSIVE, BLOCK 7;

    

    

    LOTS 1 THROUGH 27, INCLUSIVE, BLOCK 8;

    

    

    LOTS 1 THROUGH 14, INCLUSIVE, BLOCK 9;

    

    

    LOTS 1 THROUGH 10, INCLUSIVE, BLOCK 10;

    

    

    LOTS 1 THROUGH 14, INCLUSIVE, BLOCK 11;

    

    

    LOTS 1 THROUGH 47, INCLUSIVE, BLOCK 18;

    

    

    LOTS 1 THROUGH 49, INCLUSIVE, BLOCK 19,

    

    

    SKY RANCH SUBDIVISION FILING NO. 1, RECORDED JULY 20, 2018 UNDER RECEPTION NO. D8071296, COUNTY OF ARAPAHOE, STATE OF COLORADO.

     

    

    
      
        

      

    

    
      
        FOURTEENTH AMENDMENT TO

        CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE

        

        

        (Sky Ranch)

          

        

        THIS FOURTEENTH AMENDMENT TO CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE (this "Amendment") is made as of March 11, 2019 ("Effective Date"), by and between PCY HOLDINGS, LLC, a Colorado limited liability company ("Seller"), and RICHMOND AMERICAN HOMES
            OF COLORADO, INC., a Delaware corporation ("Purchaser"). Seller and Purchaser may be referred to collectively as the "Parties."

         

        R E C I T A L S

         

        A.          Seller and Purchaser previously entered into a Contract for Purchase and Sale of Real Estate effectively
            dated June 27, 2017 (as amended, the "Contract") for approximately 190 platted single-family detached residential lots in the
          Sky Ranch master planned residential community in the County of Arapahoe, State of Colorado (the “Community”).

         

        B.          Seller and Purchaser have agreed to remove Lot 49 of Block 19 of the Community (the “Removed Lot”), from the Lots to be conveyed to Purchaser and to provide for Seller’s reimbursement to Purchaser of a prorata portion of the Overex payment that was made by Purchaser to Seller at the
            Takedown 1 Closing with respect to the Removed Lot.

         

        C.           Seller and Purchaser now desire to amend the terms and conditions of the Contract as set forth below.  Capitalized

          terms used but not otherwise defined in this Amendment will have the same meanings given to such terms in the Contract.

         

        A G R E E M E N T

         

        NOW, THEREFORE, in consideration of the mutual covenants contained in this Amendment and for other good and valuable consideration, the receipt and sufficiency of which are
          hereby acknowledged, Purchaser and Seller hereby agree as follows:

         

        1.            Recitals.  The recitals set forth above are true and correct and are incorporated herein in their entirety by this reference.

         

        2.           Legal Description of Lots.  The Removed Lot is hereby deleted from the Property and Exhibit A to the 13th Amendment which sets forth the legal description of the Lots is hereby amended in its entirety and replaced with Exhibit A attached hereto and incorporated herein by this
          reference.

         

        3.           Construction.  Each of the parties acknowledges that they, and their respective counsel, substantially participated in the
          negotiation, drafting and editing of this Amendment. Accordingly, the Parties agree that the provisions of this Amendment shall not be construed or interpreted for or against any Party hereto based on authorship.

         

        
          
            

        

        4.            Authority.  Each Party represents and warrants that is has the power and authority to execute this Amendment and that there are no third party approvals required to execute
          this amendment or to comply with the terms or provisions contained herein.

         

        5.            Headings.  The Section headings used herein shall have absolutely no legal significance and are used solely for convenience of reference.

         

        6.            Ratified and Confirmed.  The Contract, except as modified by this Amendment, is hereby ratified and confirmed and shall remain in full force and effect in accordance with
          its original terms and provisions. In the case of any conflict between the terms of this Amendment and the provisions of the Contract, the provisions of this Amendment shall control.

         

        7.           Counterparts.  This Amendment may be executed in counterparts, each of which shall be deemed to be an original, and both of which together shall be deemed to constitute one
          and the same instrument.  Each of the Parties shall be entitled to rely upon a counterpart of this Amendment executed by the other Party and sent via facsimile or e-mail transmission.

         

        [SIGNATURE PAGE FOLLOW]

         

        
          
            

        

        IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the Effective Date.

         

        	 	
                SELLER:

              
	 	 
	 	
                PCY HOLDINGS, LLC, a Colorado limited liability company

              
	 	 	 
	 	

              	By:	
                PURE CYCLE CORPORATION, its Sole Member

              
	 	 	 
	 	 	
                By:

                

              	/s/ Mark W. Harding

        	 	 	
                Name:

                

              	Mark W. Harding
	 	 	
                Title:

                

              	President

        

        

        	 	
                PURCHASER:

              
	 	 	 
	 	
                RICHMOND AMERICAN HOMES OF COLORADO, INC., a Delaware corporation

              
	 	 	 
	 	By: 

              	
                /s/ Linda M. Purdy

              

        	 	Name: 

              	
                Linda M. Purdy

              
	 	Title: 

              	
                Senior Vice President

              

        

        

        
          
            

        

        EXHIBIT A

        (Property Legal Description)

        

        

        LOTS 1 THROUGH 35, INCLUSIVE, BLOCK 7;

        

        

        LOTS 1 THROUGH 27, INCLUSIVE, BLOCK 8;

        

        

        LOTS 1 THROUGH 14, INCLUSIVE, BLOCK 9;

        

        

        LOTS 1 THROUGH 10, INCLUSIVE, BLOCK 10;

        

        

        LOTS 1 THROUGH 14, INCLUSIVE, BLOCK 11;

        

        

        LOTS 1 THROUGH 47, INCLUSIVE, BLOCK 18;

        

        

        LOTS 1 THROUGH 48, INCLUSIVE, BLOCK 19,

        

        

        SKY RANCH SUBDIVISION FILING NO. 1, RECORDED JULY 20, 2018 UNDER RECEPTION NO. D8071296, COUNTY OF ARAPAHOE, STATE OF COLORADO.

         

        

         

      

    

    
      
        

    

    
      
        FIFTEENTH AMENDMENT TO

        CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE

        

        

        (Sky Ranch)

        

        

        THIS FIFTEENTH AMENDMENT TO CONTRACT FOR PURCHASE AND
            SALE OF REAL ESTATE (this "Amendment") is made as of September 26, 2019 ("Effective Date"), by and between PCY HOLDINGS, LLC, a Colorado limited liability company ("Seller"),
            and RICHMOND AMERICAN HOMES OF COLORADO, INC., a Delaware corporation ("Purchaser").  Seller and Purchaser may be referred to collectively as the "Parties" and individually as, a "Party".

         

        R E C I T A L S

         

        A.          Seller and Purchaser previously entered into a Contract for Purchase and Sale of Real Estate effectively dated June 27, 2017 (as amended, the "Contract") for approximately 190 platted single-family detached residential lots (the "Lots") in the Sky Ranch master planned residential community in the County of
              Arapahoe ("County"), State of Colorado (the "Community").

         

        B.         Seller and Purchaser are also parties to that certain Lot Development Agreement, dated August 9, 2018 (the "LDA"), which identifies the rights and obligations of the parties thereto with
              respect to, among other things, the Wet Utilities and the Dry Utilities (each as defined therein) which are required for the Lots.

         

        C.          The Contract anticipates that the Lots will be acquired by Purchaser at two (2) closings, defined in the Contract as the First Closing and the Second Closing.

         

        D.          The First Closing for one hundred (100) Lots occurred on August 9, 2018.

         

        E.           The Second Closing, at which Seller shall convey and Purchaser shall acquire the remaining ninety-five (95) Lots (the "Takedown 2 Lots") is scheduled to occur on the Effective Date
              hereof.

         

        F.           The Parties desire to amend the Contract to reflect the revised legal description for the Takedown 2 Lots resulting from the replat of Lots 42 and 47 of Block 18, Sky Ranch Subdivision Filing No. 1, recorded in the County Records (as
              defined in the Contract) on July 20, 2018 at Reception No. D8071296 ("Filing No. 1").

         

        G.          The Parties hereby confirm that the Wet Utilities applicable to the Takedown 2 Lots are Substantially Complete (as defined in the LDA) and that Purchaser shall be obligated to pay at the Second Closing, in addition to all other sums due
              at the Second Closing, that portion of the Deferred Purchase Price which becomes applicable, under the LDA, to the Wet Utilities.

         

        H.          Seller and Purchaser now desire to amend the terms and conditions of the Contract as set forth below.  Capitalized terms used but not otherwise defined in this Amendment will have the same meanings given
              to such terms in the Contract.

         

        
          

          
            

        

        A G R E E M E N T

         

        NOW, THEREFORE, in consideration of the mutual covenants contained in this Amendment and for other good and valuable
          consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller hereby agree as follows:

         

        1.           Recitals.  The recitals set
              forth above are true and correct and are incorporated herein in their entirety by this reference.

         

        2.           Legal Description of Lots.          Exhibit

              A to the 14th Amendment which sets forth the legal description of the Lots is hereby deleted in its entirety and replaced with Exhibit

                  A attached hereto and incorporated herein by this reference.

        

        

        2.          Legal Description of the
                Takedown 2 Lots.  The legal description of the Takedown 2 Lots is hereby amended and all references to the Takedown 2 Lots shall hereafter refer to those Lots legally described on Exhibit B
              attached hereto and incorporated herein by this reference.

         

        3.         Substantial Completion of the Wet
                Utilities.  The Parties hereto acknowledge and agree that, as of the Effective Date, Seller has Substantially Completed, or caused to be Substantially Completed, the Wet Utilities for all Takedown 2 Lots and further agree that all
              conditions related to Purchaser's obligation to pay that portion of the Deferred Purchase Price due upon such Substantial Completion of the Wet Utilities have been satisfied.

         

        4.           Payment of Purchase Price;
                Second Closing.  At the Second Closing, Purchaser shall: (i) pay in Good Funds (as defined in the Contract) the Initial Purchase Price ($15,000), plus the applicable Escalator and one-half (1/2) of the Deferred Purchase Price ($27,000)
              plus the applicable Escalator for each of the Takedown 2 Lots for a total of $4,103,142, which includes the applicable Escalator; and (ii) deliver to Escrow Holder a letter of credit in the amount of $2,693,250.00, which includes the
              estimated Escalator pursuant to the provisions of Section 5.(c)(iv) of the Contract, to secure Purchaser's obligation to pay Seller the remaining portion of the Deferred Purchase Price upon Substantial Completion of the Dry Utilities for the
              Takedown 2 Lots (the "Letter of Credit"), subject to the terms and conditions of that certain Amended and Restated Escrow Agreement of even date herewith with respect to the letter of credit and
              the Dry Utilities, which shall be executed simultaneously herewith.

         

        5.           Construction. 

              Each of the Parties acknowledges that they, and their respective counsel, substantially participated in the negotiation, drafting and editing of this Amendment.  Accordingly, the Parties agree that the provisions of this Amendment shall not
              be construed or interpreted for or against any Party hereto based on authorship.

         

        6.           Authority.  Each Party
              represents and warrants that is has the power and authority to execute this Amendment and that there are no third party approvals required to execute this amendment or to comply with the terms or provisions contained herein.

         

        7.           Headings.  The Section
              headings used herein shall have absolutely no legal significance and are used solely for convenience of reference.

         

        
          

          2

          
            

        

        8.           Ratified and Confirmed. 
              The Contract, except as modified by this Amendment, is hereby ratified and confirmed and shall remain in full force and effect in accordance with its original terms and provisions.  In the case of any
                conflict between the terms of this Amendment and the provisions of the Contract, the provisions of this Amendment shall control.

         

        9.           Counterparts.  This
              Amendment may be executed in counterparts, each of which shall be deemed to be an original, and both of which together shall be deemed to constitute one and the same instrument.  Each of the Parties shall be entitled to rely upon a
              counterpart of this Amendment executed by the other Party and sent via facsimile or e-mail transmission.

         

        [SIGNATURE PAGE FOLLOW]

         

        
          

          3

          
            

          

        

        IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the Effective Date.

         

        	 	
                SELLER:

              
	 	 
	 	
                PCY HOLDINGS, LLC, a Colorado limited liability company

              
	 	 	 
	 	

              	By:	
                PURE CYCLE CORPORATION, its Sole Member

              
	 	 	 
	 	 	
                By:

                

              	/s/ Mark W. Harding

        	 	 	
                Name:

                

              	Mark W. Harding
	 	 	
                Title:

                

              	President

        

        

        	 	
                PURCHASER:

              
	 	

              	 
	 	
                RICHMOND AMERICAN HOMES OF COLORADO, INC., a Delaware corporation

              
	 	 	 
	 	By:

              	
                /s/ Matt Hengel

              

        	 	Name:	
                Matt Hengel

              
	 	Title:	
                Senior Vice President

              

         

        

        
          

          4

          
            

          

        

        EXHIBIT A

        (Description of the Lots)

        

        

        Lots 1 through 35, inclusive, Block 7;

        Lots 1 through 27, inclusive, Block 8;

        Lots 1 through 14, inclusive, Block 9;

        Lots 1 through 10, inclusive, Block 10;

        Lots 1 through 14, inclusive, Block 11;

        Lots 1 through 41, inclusive,  and Lots 43 through 46 inclusive, Block 18;

        Lots 1 through 48, inclusive, Block 19;

        SKY RANCH SUBDIVISION FILING NO. 1,

        COUNTY OF ARAPAHOE, STATE OF COLORADO

        

        

        AND

        

        

        Lots 1 and 2, Block 1,

        SKY RANCH SUBDIVSIION FILNG NO 2,

        COUNTY OF ARAPAHOE, STATE OF COLORADO

         

        

        
          

          5

          
            

          

        

        EXHIBIT B

        (Description of Takedown 2 Lots)

        

        

        LOTS 1 THROUGH 41, INCLUSIVE, BLOCK 18;

        

        

        LOTS 43 THROUGH 46, INCLUSIVE, BLOCK 18;

        

        

        LOTS 1 THROUGH 48, INCLUSIVE, BLOCK 19;

        

        

        SKY RANCH SUBDIVISION FILING NO. 1,

        COUNTY OF ARAPAHOE, STATE OF COLORADO,

        

        

        AND

        

        

        LOTS 1 AND 2, BLOCK 1

        

        

        SKY RANCH SUBDIVISION FILING NO. 2,

        COUNTY OF ARAPAHOE, STATE OF COLORADO.

         

        

         

        

         6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]