Document:

Agreement for the Ninth Modification of Deeds of Trust and Other Loan Instrument

 Exhibit 10.1 
 William Lyon Homes, Inc. 
 Loan No. 906-0100 
 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 This Agreement
for Ninth Modification of Deeds of Trust and Other Loan Instruments (this “Ninth Modification”) is made as of October 31, 2006 by and between WILLIAM LYON HOMES, INC., a California corporation (“Borrower”) and GUARANTY BANK,
a federal savings bank organized and existing under the laws of the United States (formerly known as “Guaranty Federal Bank, F.S.B.”) (“Lender”), and effective upon recordation of the Ninth Memorandum (as defined below) against
each Deed of Trust (as defined below) encumbering each Property, subject to Section 2 of this Ninth Modification, with reference to the following facts: 
 A. Borrower and Lender entered into a Master Loan Agreement (the “Loan Agreement”) dated August 31, 2000, which provides for a loan of FIFTY-FIVE MILLION DOLLARS ($55,000,000.00) (the “Original
Loan Amount”) to Borrower on the terms and conditions specified therein. The Loan is evidenced and secured by a revolving promissory note and other loan instruments (collectively, the “Loan Instruments”). The Loan Instruments, each
executed by Lender and Borrower, were modified by: 
  

	 	(i)	that certain Agreement for First Modification of Deeds of Trust and Other Loan Instruments dated June 8, 2001 (“First Modification”); 

  

	 	(ii)	that certain Agreement For Second Modification of Deeds of Trust and Other Loan Instruments dated July 23, 2001 (“Second Modification”); 

  

	 	(iii)	that certain Agreement for Third Modification of Deeds of Trust and Other Loan Instruments dated December 19, 2001 (“Third Modification”); 

 

	 	(iv)	that certain Agreement for Fourth Modification of Deeds of Trust and Other Loan Instruments dated May 29, 2002 (“Fourth Modification”); 

  

	 	(v)	that certain Agreement for Fifth Modification of Deeds of Trust and Other Loan Instruments dated June 6, 2003 (“Fifth Modification”); 

  

	 	(vi)	that certain Agreement for Sixth Modification of Deeds of Trust and Other Loan Instruments dated November 14, 2003 (“Sixth Modification”); 

 

	 	(vii)	that certain Agreement for Seventh Modification of Deeds of Trust and Other Loan Instruments dated October 6, 2004 (“Seventh Modification”); and

  

	 	(viii)	that certain Agreement for Eighth Modification of Deeds of Trust and Other Loan Instruments dated October 14, 2005 (“Eighth Modification”). 

Pursuant to the terms and provisions of the First Modification, the Original Loan Amount was increased, as evidenced by a certain Amended and Restated
Revolving Promissory Note executed by Borrower for the benefit of lender and dated June 8, 2001 to the maximum principal amount of SIXTY-FIVE MILLION DOLLARS ($65,000,000.00). Pursuant to the terms and provisions of the Fourth Modification, the
Loan was increased, as evidenced by a certain Amended and Restated Revolving Promissory Note executed by Borrower for the benefit of Lender and dated May 29, 2002 to the maximum principal amount of SEVENTY-FIVE MILLION DOLLARS ($75,000,000.00).
Pursuant to the terms and provisions of the Sixth Modification, the Loan was increased, as evidenced by a certain Third Amended and Restated Revolving Promissory Note executed by Borrower for the benefit of Lender and dated November 14, 2003 to
the maximum principal amount of ONE HUNDRED TWENTY-FIVE MILLION DOLLARS ($125,000,000.00) (the “Loan”). Pursuant to the terms and provisions of the Eighth Modification, the Loan was decreased, as evidenced by a certain Fourth Amended and
Restated Revolving Promissory Note executed by Borrower for the benefit of Lender and dated October 14, 2005 to the maximum principal amount of NINETY MILLION DOLLARS ($90,000,000.00). Upon full execution, this Ninth Modification shall
constitute one of the Loan Instruments. All defined terms used in this Ninth Modification shall have the meanings ascribed to them in the Loan Agreement unless the context requires otherwise. 
  

 1 

 B. At Borrower’s request, Lender has agreed to modify one or more of the Loan Instruments, as herein
provided. 
 NOW, THEREFORE, in consideration of the premises and mutual agreements herein, the parties hereby agree as follows: 

1. Modifications. The Loan Instruments specified in Exhibit “A” attached hereto and incorporated herein by this reference are
modified as set forth therein, effective upon timely satisfaction of the conditions set forth in Section 2 below. As used in this Ninth Modification and the attached Exhibit “A,” the term “Deeds of Trust” refers to the
Construction Deeds of Trust (With Security Agreement, Fixture Filing and Assignment of Rents and Leases) each executed by Borrower for the benefit of Lender: 
 as modified by the First Modification and evidenced by the Memorandums of First Modification of Deeds of Trust and Other Loan Instruments
dated June 8, 2001 and recorded in the Official Records of: 
  

	 	(a)	Orange County, California on July 20, 2001, as Instrument No. 2001-0492777; 

  

	 	(b)	San Diego County, California on July 20, 2001, as Document No. 2001-0505154; 

  

	 	(c)	San Joaquin County, California on July 24, 2001, as Document No. 2001-01116593; 

  

	 	(d)	Riverside County, California on August 6, 2001 as Instrument No. 368935; 

  

	 	(e)	San Bernardino County, California on October 16, 2001 as Instrument No. 2001-0470256; and 

  

	 	(f)	Maricopa County, Arizona on July 20, 2001, as Instrument No. 2001-0652927; 

 as modified by the Second Modification and evidenced by the Memorandums of Second Modification of Deeds of Trust and Other Loan
Instruments dated July 23, 2001 and recorded in the Official Records of: 
  

	 	(g)	Orange County, California on August 31, 2001, as Instrument No. 2001-0614957; 

  

	 	(h)	San Diego County, California on August 31, 2001, as Document No. 2001-0626061; 

  

	 	(i)	San Joaquin County, California on August 31, 2001, as Document No. 2001-01144060; 

  

	 	(j)	Riverside County, California on August 31, 2001 as Instrument No. 426142; 

  

	 	(k)	San Bernardino County, California on August 31, 2001 as Instrument No. 2001-401382; and 

  

	 	(l)	Maricopa County, Arizona on August 31, 2001, as Instrument No. 2001-0810003; 

 as modified by the Third Modification dated December 19, 2001; 
 as modified by the Fourth Modification and evidenced by the Memorandums of Fourth Modification of Deeds of Trust and Other Loan
Instruments dated May 29, 2002 and recorded in the Official Records of: 
  

	 	(m)	Orange County, California on June 19, 2002, as Instrument No. 2002-0512402; 

  

	 	(n)	San Diego County, California on June 19, 2002, as Document No. 2002-0516959; 

  

	 	(o)	San Joaquin County, California on June 19, 2002 as Document No. 2002-104493; 

  

	 	(p)	Maricopa County, Arizona on June 19, 2002 as Instrument No. 2002-0622784; 

  

	 	(q)	Stanislaus County, California on June 19, 2002 as Document No. 2002-0078803-00; and 

  

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	 	(r)	Clark County, Nevada on June 19, 2002 as Instrument No. 00696 – Book 20020619; 

 as modified by the Fifth Modification and evidenced by the Memorandums of Fifth Modification of Deeds of Trust and Other Loan Instruments
dated June 6, 2003 and recorded in the Official Records of: 
  

	 	(s)	Orange County, California on June 13, 2003, as Instrument No. 2003-000696239; 

  

	 	(t)	San Diego County, California on June 13, 2003, as Document No. 2003-0701777; 

  

	 	(u)	San Joaquin County, California on June 17, 2003 as Instrument No. 2003-131447; 

  

	 	(v)	Maricopa County, Arizona on June 13, 2003 as Instrument No. 2003-0769110; 

  

	 	(w)	Stanislaus County, California on June 17, 2003 as Instrument No. 2003-009720100; and 

  

	 	(x)	Clark County, Nevada on June 13, 2003 as Instrument No. 2003-0613-02716; 

  

	 	(y)	Riverside County, California on June 16, 2003 as Document No. 2003-438782; 

  

	 	(z)	Santa Clara County, California on June 16, 2003 as Serial No. 17110264; and 

  

	 	(aa)	Contra Costa County, California on June 16, 2003 as Series No. 280094; 

 as modified by the Sixth Modification and evidenced by the Memorandums of Sixth Modification of Deeds of Trust and Other Loan Instruments
dated November 14, 2003 and recorded in the Official Records of: 
  

	 	(bb)	Orange County, California on December 23, 2003, as Instrument No. 2003-001511002; 

  

	 	(cc)	San Diego County, California on December 23, 2003, as Document No. 2003-1502130; 

  

	 	(dd)	Riverside County, California on December 23, 2003 as Document No. 2003-998474; 

  

	 	(ee)	Santa Clara County, California on December 24, 2003 as Serial No. 17545737; and 

  

	 	(ff)	Contra Costa County, California on December 24, 2003 as Series No. 2003-615272. 

  

	 	(gg)	Maricopa County, Arizona on December 29, 2003 as Instrument No. 2003-1739422; 

  

	 	(hh)	Clark County, Nevada on December 30, 2003 as Instrument No. 2003-1230-01204 

  

	 	(ii)	San Joaquin County, California on January 9, 2004 as Instrument No. 2004-003909; 

 (1) (2216) a certain Deed of Trust dated February 2, 2004 and recorded in the Official Records of Maricopa County, Arizona on
May 26, 2004 as Instrument No. 2004-0586206; 
 (2) (1132) a certain Deed of Trust dated February 9, 2004 and
recorded in the Official Records of Clark County, Nevada on February 27, 2004 as Instrument No. 2004-0227-04201; 
 (3) (1133 & 1138) a certain Deed of Trust dated March 1, 2004 and recorded in the Official Records of Contra Costa County, California on March 19, 2004 as Series No. 92735; 
 (4) (1141) a certain Deed of Trust dated April 1, 2004 and recorded in the Official Records of San Joaquin County, California on
April 14, 2004 as Instrument No. 2004-078081; 
 as modified by the Seventh Modification and evidenced by the
Memorandums of Seventh Modification of Deeds of Trust and Other Loan Instruments dated October 6, 2004 and recorded in the Official Records of: 
  

	 	(jj)	Orange County, California on October 27, 2004, as Instrument No. 2004-000969039; 

  

 3 

	 	(kk)	San Diego County, California on October 21, 2004, as Document No. 2004-0997380; 

  

	 	(ll)	Riverside County, California on October 21, 2004, as Document No. 2004-0834003; 

  

	 	(mm)	Santa Clara County, California on October 20, 2004, as Serial No. 2004-18056415; 

  

	 	(nn)	Contra Costa County, California on October 21, 2004, as Document No. 2004-0403446-00; 

  

	 	(oo)	Maricopa County, Arizona on October 21, 2004, as Instrument No. 2004-1234403; 

  

	 	(pp)	Clark County, Nevada on October 25, 2004, as Instrument No. 2004-1025-0003273; and 

  

	 	(qq)	San Joaquin County, California on November 23, 2004, as Instrument No. 2004-268811; 

 (5) (1159) a certain Deed of Trust dated October 19, 2004 and recorded in the Official Records of San Joaquin County, California on
October 29, 2004 as Instrument No. 2004-245407; 
 (6) (1162) a certain Deed of Trust dated November 3, 2004
and recorded in the Official Records of Riverside County, California on November 19, 2004 as Instrument No. 2004-0927787; 
 (7) (1161) a certain Deed of Trust dated November 8, 2004 and recorded in the Official Records of Placer County, California on December 30, 2004 as Instrument No. 2004-0175175; 
 (8) (1160) a certain Deed of Trust dated December 6, 2004 and recorded in the Official Records of Maricopa County, Arizona on
December 15, 2004 as Instrument No. 2004-1472751; 
 (9) (1163) a certain Deed of Trust dated December 22, 2004
and recorded in the Official Records of San Bernardino County, California on January 14, 2005 as Document No. 2005-0033824; 
 (10) (1174) a certain Deed of Trust dated April 1, 2005 and recorded in the Official Records of San Bernardino County, California on April 15, 2005 as Document No. 2005-0264026; 
 (11) (1179) a certain Deed of Trust dated June 29, 2005 and recorded in the Official Records of San Bernardino, County, California on
July 21, 2005 as Document No. 2005-0525091; and 
 (12) (1184) a certain Deed of Trust dated September 29, 2005
and recorded in the Official Records of San Bernardino County, California on October 14, 2005 as Document No. 2005-0769349; 
 as modified by the Eighth Modification and evidenced by the Memorandums of Eighth Modification of Deeds of Trust and Other Loan Instruments dated October 14, 2005 and recorded in the Official Records of:

  

	 	(rr)	Orange County, California on November 17, 2005, as Instrument No. 2005-000924493; 

  

	 	(ss)	Riverside County, California on November 30 2005, as Document No, 2005-0989414; 

  

	 	(tt)	Santa Clara County, California on November 23, 2005, as Document No. 18690071; 

  

	 	(uu)	Contra Costa County, California on December 23, 2005, as Document No. 2005-0491193-00; 

  

	 	(vv)	Maricopa County, Arizona on January 26, 2006 as Instrument No. 2006-0118949; 

  

	 	(ww)	Clark County, Nevada on January 18, 2006, as Instrument No. 2006-0118-0001686; 

  

	 	(xx)	San Joaquin County, California on December 14, 2005, as Instrument No. 2005-310881; 

  

 4 

	 	(yy)	Placer County, California on November 21, 2005, as Document No. 2005-0156045; and 

  

	 	(zz)	San Bernardino County, California on December 1, 2005, as Document No. 2005-0898480; 

 (13) (1187 & 1188) a certain Deed of Trust dated February 2, 2006 and recorded in the Official Records of Clark County,
Nevada on March 17, 2006 as Instrument No. 2006-0317-000338. 
 2. Conditions. The modifications of Section 1 above
shall take effect only upon Borrower’s satisfaction, at its expense, of all of the following conditions not later than the date of this Ninth Modification: 
 (a) if required by Lender, delivery to Lender of one or more endorsements to the Title Policy (whether one or more) insuring the lien of
the Deeds of Trust as may be required by Lender, all in form and of content acceptable to Lender, insuring that, except as set forth in this Ninth Modification, the priority of such lien is unaffected by the modifications set forth herein and that
the Title Policy insuring the Deeds of Trust remains in full force and effect in the full amount of the Loan; 
 (b) if
required by Lender, delivery to Lender of one or more duly executed recordable memorandums of this Ninth Modification (collectively, the “Ninth Memorandum”); 
 (c) satisfaction of such other conditions as may be set forth on Exhibit “B” attached hereto and incorporated herein by this
reference, if any; and 
 (d) if the Loan has been guarantied (or indemnities given) or if there are junior liens encumbering
the property which is encumbered by the Deeds of Trust, delivery to Lender of duly executed consents to the modifications set forth in this Ninth Modification by the guarantor(s) and/or junior lienors, as applicable, as may be set forth in Exhibit
“C” attached hereto or as may be attached to the Ninth Memorandum, each incorporated herein by this reference;. 
 3.
Representations and Warranties. Borrower hereby represents and warrants that no default, event of default, breach or failure of condition has occurred, or would exist with notice or the lapse of time or both, under any of the Loan
Instruments; and all representations and warranties herein and in the other Loan Instruments are true and correct, which representations and warranties shall survive execution of this Ninth Modification. All parties who execute this Ninth
Modification and any other documents required hereunder on behalf of Borrower represent and warrant that they have full power and authority to execute and deliver such documents, and that all such documents are enforceable in accordance with their
terms. As of the date of this Ninth Modification, Borrower hereby acknowledges and agrees that it has no defenses, offsets or claims against Lender or the enforcement of the Loan Instruments and that Lender has not waived any of its rights or
remedies under any such documents. 
 4. No Impairment. Except as expressly provided herein, nothing in this Ninth Modification shall
alter or affect any provision, condition or covenant contained in the Loan Instruments or affect or impair any of Lender’s rights, powers or remedies thereunder. It is the intent of the parties hereto that the provisions of the Loan Instruments
shall continue in full force and effect except as expressly modified hereby. 
 5. Miscellaneous. This Ninth Modification and the
other Loan Instruments shall be governed by and interpreted in accordance with the laws of the State of California, except as they may be preempted by federal law. In any action brought or arising out of this Ninth Modification or the Loan
Instruments, Borrower, and, if applicable, the general partners, members and joint venturers of Borrower, hereby consent to the jurisdiction of any federal or state court having proper venue within the State of California and also consent to the
service of process by any means authorized by California or federal law. The headings used in this Ninth Modification are for convenience only and shall be disregarded in interpreting the substantive provisions of this Ninth Modification. Time is of
the essence of each term of the Loan Instruments, including this Ninth Modification. If any provision of this Ninth Modification or any of the other Loan Instruments shall be determined by a court of competent jurisdiction to be invalid, illegal or
unenforceable, that portion shall be deemed severed therefrom and the remaining parts shall remain in full force as though the invalid, illegal, or unenforceable portion had never been a part thereof. This Ninth Modification may be executed in one
or more counterparts, all of which, taken together, shall constitute one and the same Ninth Modification. 
  

 5 

 6. Integration; Interpretation. The Loan Instruments, including this Ninth Modification, contain
or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated herein and supersede all prior negotiations. The Loan Instruments shall not be modified except by written instrument executed by all
parties. Any reference to the Loan Instruments in any of the Loan Instruments includes this Ninth Modification and any amendments, renewals or extensions approved by Lender hereunder. 
  
 IN WITNESS WHEREOF, this Agreement for Ninth Modification of Deeds of Trust and Other Loan Instruments is executed as of the
date first hereinabove written. 
  

							
	LENDER:	 	 	 	 GUARANTY BANK,
 a federal savings bank
organized and existing
 under the laws of the United States

				
	 	 	 	 	By:	 	/s/    Kent Newberry
	 	 	 	 	Name:	 	Kent Newberry
	 	 	 	 	Title:	 	Vice President
			
	BORROWER:	 	 	 	 WILLIAM LYON HOMES, INC.,
 a California
corporation

				
	 	 	 	 	By:	 	/s/    Michael A. Grubbs
	 	 	 	 	Name:	 	Michael D. Grubbs
	 	 	 	 	Title:	 	 Senior Vice President and
 Chief Financial
Officer

				
	 	 	 	 	By:	 	/s/    Richard S. Robinson
	 	 	 	 	Name:	 	Richard S. Robinson
	 	 	 	 	Title:	 	Senior Vice President

  

 6 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
 EXHIBIT “A” 
 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Modifications)

  

			
	Loan Instrument Modified	 	Modification
		
	 1.      Fourth Amended and Restated
	 	
	          Revolving Promissory Note
	 	 (i)     The “Facility Maturity Date” is hereby amended to mean and refer to the date that is three
hundred sixty-four (364) days following Recordation of the Ninth Memorandum.

  

 7 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
 EXHIBIT “B” 
 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Other
Conditions to Modifications) 
  

	1.	Legal Fees. Borrower shall pay all legal fees and costs incurred by Lender in connection with the preparation and negotiation of this Ninth Modification.

  

	2.	Title Endorsements/Recording Fees. Borrower shall pay all title charges and recording fees and costs incurred by Lender in connection with the requirements of Paragraphs 2(a)
and 2(b) of this Ninth Modification. The Recordation of the Ninth Memorandum against each Property that is subject to a Deed of Trust. 

  

	3.	Consent of Guarantor(s). Guarantors of the Loan shall execute and deliver the attached Consent of Guarantor to Lender and the attached Consent to the Ninth Memorandum hereof
described in Paragraph 2(b) of this Ninth Modification (suitable for recording). 

  

	4.	Consent of Junior Lienholder(s). If indicated on the attached Exhibit “C” or otherwise required by Lender, Junior Lienholders shall execute and deliver the attached
Consent of Junior Lienholder and the attached Consent to the Ninth Memorandum hereof described in Paragraph 2(b) of this Ninth Modification (suitable for recording). 

  

	5.	Fees. Borrower shall pay to Lender the following non-refundable extension fees as a condition precedent to the effectiveness of this Ninth Modification, which fees shall not
be applicable to payment of principal or interest due under the Note, or otherwise, and shall be retained by Lender in all events, payable upon execution of this Ninth Modification as follows: 

  

	 	(i)	Facility Fee. THREE HUNDRED FIFTEEN THOUSAND DOLLARS ($315,000.00) for renewal of the Loan. 

  

 8 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
  
 EXHIBIT “C”

 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Consents to Modifications) 
  
 CONSENT OF GUARANTOR 
  
 The undersigned Guarantor confirms its guaranties of Borrower’s obligations to, and indemnities in favor of, Lender under the Loan Agreement and the
other Loan Instruments referenced in, and as modified by the foregoing Ninth Modification and Ninth Memorandum described therein, and consents to and accepts the foregoing modifications. 
  

							
	GUARANTOR:	 	 	 	 WILLIAM LYON HOMES,
 a Delaware
corporation

				
	 	 	 	 	By:	 	/s/ MICHAEL D. GRUBBS
	 	 	 	 	Name:	 	Michael D. Grubbs
	 	 	 	 	Title:	 	 Senior Vice President and
 Chief Financial
Officer

				
	 	 	 	 	By:	 	/s/ RICHARD S. ROBINSON
	 	 	 	 	Name:	 	Richard S. Robinson
	 	 	 	 	Title:	 	Senior Vice President

  

 9 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
  
 EXHIBIT “C”

 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Consents to Modifications) 
  
 CONSENT OF JUNIOR LIENHOLDER 
  
 The undersigned is the holder of an obligation secured by a lien (the “Junior Lienholder”) against the same property, which secures, in a senior
priority position, Borrower’s obligations to Lender under the Loan Agreement and the other Loan Instruments. The undersigned consents to and accepts the modifications set forth in the foregoing Ninth Memorandum and the Ninth Modification
described therein, and agrees that, notwithstanding such modifications, the undersigned’s lien shall be and remain junior and subordinate to the lien of Lender to secure Borrower’s obligations, as modified herein, to the extent provided in
and subject to all of the terms of the following Subordination Agreements, which Agreements remain in effect: 
  

	 	A)	Westland @ Chapman Heights: 

  

	 	(i)	(1163) dated December 22, 2004 and recorded in the Official Records of San Bernardino County, California on January 14, 2005 as Instrument No. 2005-0033826;

  

	 	(ii)	(1174) dated April 1, 2005 and record in the Official Records of San Bernardino County, California on April 15, 2005 as Instrument No. 2005-0264027;

  

	 	(iii)	(1179) dated June 29, 2005 and recorded in the Official Records of San Bernardino County, California on July 21, 2005 as Instrument No. 2005-0525093; and

  

	 	(iv)	(1184) dated September 29, 2005 and recorded in the Official Records of San Bernardino County, California on October 14, 2005 as Instrument No. 2005-0769351.

  

											
	JUNIOR LIENHOLDER:	 	 	 	 HEARTHSTONE MULTI-ASSET ENTITY A. L.P., a
 California limited partnership

				
	 	 	 	 	By:	 	 MSIII GP, LLC,
 a California limited
partnership

	 	 	 	 	Its:	 	General Partner
					
	 	 	 	 	 	 	By:	 	 Hearthstone, Inc.,
 a California
corporation

	 	 	 	 	 	 	Its:	 	Manager
						
	 	 	 	 	 	 	 	 	By:	 	/s/ TRACY T. CARVER
	 	 	 	 	 	 	 	 	Name:	 	Tracy T. Carver
	 	 	 	 	 	 	 	 	Title:	 	Senior Vice President

  

 10 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
  
 EXHIBIT “C”

 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Consents to Modifications) 
  
 CONSENT OF JUNIOR LIENHOLDER 
  
 The undersigned is the holder of an obligation secured by a lien (the “Junior Lienholder”) against the same property, which secures, in a senior
priority position, Borrower’s obligations to Lender under the Loan Agreement and the other Loan Instruments. The undersigned consents to and accepts the modifications set forth in the foregoing Ninth Memorandum and the Ninth Modification
described therein, and agrees that, notwithstanding such modifications, the undersigned’s lien shall be and remain junior and subordinate to the lien of Lender to secure Borrower’s obligations, as modified herein, to the extent provided in
and subject to all of the terms of the following Subordination Agreements, which Agreements remain in effect: 
  

	 	A)	Westland @ Chapman Heights: 

  

	 	(i)	(1163) dated December 22, 2004 and recorded in the Official Records of San Bernardino County, California on January 14, 2005 as Instrument No. 2005-0033827;

  

	 	(ii)	(1174) dated April 1, 2005 and recorded in the Official Records of San Bernardino County, California on April 15, 2005 as Instrument No. 2005-0264028;

  

	 	(iii)	(1179) dated June 29, 2005 and recorded in the Official Records of San Bernardino County, California on July 21, 2005 as Instrument No. 2005-0525092; and

  

	 	(iv)	(1184) dated September 29, 2005 and recorded in the Official Records of San Bernardino County, California on October 14, 2005 as Instrument No. 2005-0769350.

  

									
	JUNIOR LIENHOLDER:	 	 	 	 CHAPMAN HEIGHTS, L.P.,
 a Washington limited
partnership

				
	 	 	 	 	By:	 	 CSW DEVELOPMENT & CONSTRUCTION
 COMPANY (fka Communities Southwest
 Development & Construction Company),
 a Washington corporation

	 	 	 	 	Its:	 	General Partner
					
	 	 	 	 	 	 	By:	 	/s/    Illegible
	 	 	 	 	 	 	Its:	 	C.F.O.
					
	 	 	 	 	 	 	By:	 	/s/    Illegible
	 	 	 	 	 	 	Its:	 	C.F.O.

  

 11 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
  
 EXHIBIT “C”

 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Consents to Modifications) 
  
 CONSENT OF JUNIOR LIENHOLDER 
  
 The undersigned is the holder of an obligation secured by a lien (the “Junior Lienholder”) against the same property, which secures, in a senior
priority position (subject to all of the terms of the following Subordination and Intercreditor Agreement between Lender and Junior Lienholder), Borrower’s obligations to Lender under the Loan Agreement and the other Loan Instruments. The
undersigned consents to and accepts the modifications set forth in the foregoing Ninth Memorandum and the Ninth Modification described therein, and agrees that, notwithstanding such modifications, the undersigned’s lien shall be and remain
junior and subordinate to the lien of Lender to secure Borrower’s obligations, as modified herein, to the extent provided in and subject to all of the terms of the following Subordination Agreement, which Agreement remains in effect:

  

	 	A)	Whitney Ranch: (1161) dated November 8, 2004 and recorded in the Official Records of Placer County, California on December 30, 2004 as Instrument No
2004-0175176. 

  

							
			
	JUNIOR LIENHOLDER:	 	 	 	 SUNSET RANCHOS INVESTORS, LLC,
 a Delaware limited liability company, dba
 Whitney Ranch Associates

				
	 	 	 	 	By:	 	/s/    Kyle W. Masters
	 	 	 	 	Name:	 	        Kyle W. Masters
	 	 	 	 	Its:	 	Authorized Representative
				
	 	 	 	 	By:	 	/s/    Scott L. Cox
	 	 	 	 	Name:	 	        Scott L. Cox
	 	 	 	 	Its:	 	Authorized Representative

  

 12 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
  
 EXHIBIT “C”

 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Consents to Modifications) 
  
 CONSENT OF JUNIOR LIENHOLDER 
  
 The undersigned is the holder of an obligation secured by a lien (the “Junior Lienholder”) against the same property, which secures, in a senior
priority position, Borrower’s obligations to Lender under the Loan Agreement and the other Loan Instruments. The undersigned consents to and accepts the modifications set forth in the foregoing Ninth Memorandum and the Ninth Modification
described therein, and agrees that, notwithstanding such modifications, the undersigned’s lien shall be and remain junior and subordinate to the lien of Lender to secure Borrower’s obligations, as modified herein, to the extent provided in
and subject to all of the terms of the following Subordination and Intercreditor Agreement, which Agreement remains in effect: 
  

	 	A)	Bayside: (1133 & 1138) dated March 1, 2004 and recorded in the Official Records of Contra Costa County, California on March 19, 2004 as Series No 92736.

  

									
	JUNIOR LIENHOLDER:	 	 	 	 LEWIS-HERCULES, LLC,
 a Delaware limited
liability company

				
	 	 	 	 	By:	 	 LEWIS OPERATING CORP.,
 a California
corporation

	 	 	 	 	Its:	 	Sole Manager
					
	 	 	 	 	 	 	By:	 	/s/ JOHN M. GOODMAN
	 	 	 	 	 	 	Name:	 	John M. Goodman
	 	 	 	 	 	 	Title:	 	SR VP / CFO / CEO
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	Title:	 	 

  

 13 

 William Lyon Homes, Inc. 
 Loan No. 906-0100 
  
 EXHIBIT “C”

 AGREEMENT FOR NINTH MODIFICATION OF DEEDS OF TRUST AND OTHER LOAN INSTRUMENTS 
 (Consents to Modifications) 
  
 CONSENT OF JUNIOR LIENHOLDER 
  
 The undersigned is the holder of an obligation secured by a lien (the “Junior Lienholder”) against the same property, which secures, in a senior
priority position, Borrower’s obligations to Lender under the Loan Agreement and the other Loan Instruments. The undersigned consents to and accepts the modifications set forth in the foregoing Ninth Memorandum and the Ninth Modification
described therein, and agrees that, notwithstanding such modifications, the undersigned’s lien shall be and remain junior and subordinate to the lien of Lender to secure Borrower’s obligations, as modified herein, to the extent provided in
and subject to all of the terms of the following Subordination and Intercreditor Agreement, which Agreement remains in effect: 
  

	 	A)	Copper Canyon Ranch: (2216) dated May 17, 2004 and recorded in the Official Records of Maricopa County, Arizona on May 26, 2004 as Instrument No 2004-0586207.

  

							
	JUNIOR LIENHOLDER:	 	 	 	 WILLIAM LYON SOUTHWEST, INC.,
 an Arizona
corporation dba WILLIAM LYON HOMES

				
	 	 	 	 	By:	 	/s/ RICHARD S. ROBINSON
	 	 	 	 	Name:	 	Richard S. Robinson
	 	 	 	 	Title:	 	Senior Vice President
				
	 	 	 	 	By:	 	/s/ MICHAEL D. GRUBBS
	 	 	 	 	Name:	 	Michael D. Grubbs
	 	 	 	 	Title:	 	 Senior Vice President and
 Chief Financial
Officer

  

 14Letter Agreement between the Company and Robert H. McNabb

 EXHIBIT 10.1 
 September 29, 2006 
 PERSONAL AND CONFIDENTIAL 
 Mr. Robert McNabb 
 10919 Wickline Drive 
 Houston, TX 77024 
  

	Re	Employment Agreement dated as of October 1, 2003 between Korn/Ferry International (“Company” or “Korn/Ferry”) and Robert McNabb (“Employment
Agreement”) 

 Dear Bob, 
 This letter serves
to formalize the modifications to which we have agreed regarding your continuing employment relationship with the firm, including your future compensation and benefits, and the amendment of certain terms and conditions of your Employment Agreement
referenced above. Unless otherwise defined in this letter agreement, all capitalized terms used in this letter agreement shall have the meanings specified in the Employment Agreement. 
 Term 
 Section 2 of the Employment Agreement is superseded in its entirety to provide that the initial term of
your employment began on October 1, 2003 and will automatically expire on September 30, 2009 (such period being referred to herein as the “Initial Term”); provided, however, that the Company shall have the option to renew the
Initial Term for a successive three (3) year period ending on September 30, 2012 (the “Renewal Term”), by delivering written notice of exercise of this option at least ninety (90) days prior to the expiration of the Initial
Term (“Option Notice”). If for any reason whatsoever the Company does not give you an Option Notice at least ninety (90) days prior to the end of the Initial Term, then your employment shall terminate as of the end of the Initial
Term. A termination of your employment at the end of the Initial Term by reason of the Company’s failure to give you an Option Notice at least ninety (90) days prior to the expiration of the Initial Term shall constitute a termination by
reason of a “failure to renew” for purposes of the Employment Agreement and this letter agreement. The date on which your employment terminates, either by reason of a failure to renew by the Company or for any of the other reasons set
forth in Section 6 of the Employment Agreement, as amended by this letter agreement, or by reason of the expiration of the Initial Term (if an Option Notice is not given) or by reason of the expiration of the Renewal Term (if an Option Notice
is given), or otherwise, shall sometimes be referred to in this letter agreement as the “Termination Date.” The word “term” or “Term” as used in the Employment Agreement and this letter agreement shall mean the period
commencing on October 1, 2003 and ending on the Termination Date. 
 During the Initial Term, you will continue to hold the position as Chief Executive
Officer of Futurestep, and Executive Vice President of the Company. During the Initial Term and the Renewal Term, you will continue to report to the Chairman and Chief Executive Officer of the Company. During the Initial Term and the Renewal Term,
you will continue to receive the same salary and incentive set forth in the Agreement. 
  

 1 

 Changes to Termination and Severance Provisions 
 We have also agreed to the following changes to Section 6 of the Employment Agreement: (i) in addition to the benefit of one times your Base Salary referred to in Section 6(d)(II)(2), you shall be paid
one times your then annual target cash bonus if your employment is terminated by the Company without Cause during the Term pursuant to Section 6(d)(II)(i) or your employment is terminated by reason of the Company’s failure to renew
pursuant to Section 6(d)(II)(ii)); (ii) the clause “at any time before Executive reaches the age of 65” in Section 6(d)(II)(ii) is hereby deleted; (iii) the proviso contained in Section 6(d)(II)(3) limiting your
and your dependent’s participation in the Company’s group health plans to 12 months instead of 18 months if your employment is terminated by reason of a failure to renew is hereby deleted; and (iv) subparagraph (4) of
Section 6(d)(II) is hereby deleted and subparagraph (E) of Section 6(h)(4) is hereby deleted; and (v) the definition of “Good Reason” contained in Section 6(h)(4)(A) is replaced in full by the following:
Executive’s duties at Futurestep are materially reduced below that of a senior executive, and Executive is not given a “comparable position” (as this term is defined below) at Futurestep or the Company. 
 Notwithstanding anything contained in the Employment Agreement to the contrary, you understand that the Company may, during the Renewal Term, change (including reduce or
eliminate) your titles and roles, including asking you to step down as CEO of Futurestep, which you hereby agree to do when so asked, without such changes giving you the right to terminate your employment or otherwise constituting a constructive
termination by the Company and without you being entitled to any severance or similar payments by reason of such changes; provided, however, that in such event you will stay involved with Futurestep in a “comparable position” (as defined
below) or have a “comparable position” in the Company. For purpose of this letter agreement, the term “comparable position” will mean a position with: (a) at least the same base salary and incentive targets and incentive
potential as your salary and incentive at the time of any such change in your titles and roles; (b) membership on the Global Operating Committee (and its successors and equivalents); (c) direct reporting to the Chief Executive Officer of
the Company, and (d) substantially equivalent management or executive responsibilities as Executive had at the time of any such change in titles and roles. 
 Moreover, in lieu of the vesting acceleration provided for in Section 6(d)(II)(4) of the Employment Agreement, if your employment is terminated by the Company without Cause or by reason of a failure to renew pursuant to
Section 6(d)(II), then all unvested outstanding stock options and other equity-type incentives held by you at the time of such termination that would have vested during the 12 months following the date of such termination will automatically
vest as of the date of such termination. 
 All severance benefits will, of course, be contingent upon your execution of the Company’s standard form of
severance and release agreement. 
 Should you terminate your employment prior to the Expiration Date (except for your resignation for Good Reason pursuant
to Section 6(e)(ii)), the Company will be released from all of its obligations from that time forward and you shall only be entitled to receive your Accrued Compensation. Moreover, if an Option Notice is given, you understand that on
termination of your employment upon expiration of the Renewal Period, you will not be entitled to any severance amounts or similar payments or benefits of any kind. 
 In addition, the following provision is added to Section 9 of the Employment Agreement: “In addition, Executive agrees that during the Term, and for the one year period immediately subsequent to the
Termination Date, he will not, directly or indirectly (as an employee, independent contractor, owner, principal, agent, partner, consultant or otherwise), either alone or with others, work or render services in, or advise, supervise or consult with
any person, firm or entity engaged in, the middle management recruitment and/or recruitment procurement outsourcing business, market or industries, either for himself, or for or on behalf of, any other person, firm or entity. The foregoing shall not
be binding upon the Executive in the event of a termination of the Executive’s employment pursuant to Section 6(d)(II) or Section 6(e)(i). The foregoing shall also not prohibit the Executive from rendering services for entities whose
primary lines of business are not in the middle-management recruitment or middle-management recruitment procurement business.” 
  

 2 

 To the extent there are any inconsistencies between this letter agreement and your Employment Agreement, the provisions
of this letter agreement shall govern and control. Except as otherwise expressly provided in this letter agreement, your Employment Agreement remains unmodified and in full force and effect. 
  

 3 

 Please indicate your acceptance of this letter agreement by signing and dating a copy of this letter agreement in the
spaces provided below and returning such signed and dated copy to me. 
  

	
	Sincerely,
	
	/s/ Gary Burnison
	Gary Burnison, Chief Operating Officer

  

					
	ACCEPTED AND AGREED TO:	 		 	
			
	/s/ Robert McNabb	 		 	October 2, 2006
	Robert McNabb	 		 	Date of Signature

  

 4

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