Document:

Second Agreement to Modifiy Loan Agreement

EXHIBIT 10.17 
 
[California Bank Trust LOGO] 
 
SECOND AGREEMENT TO MODIFY LOAN AGREEMENT 
PROMISSORY NOTE AND DEED OF TRUST 
 
THIS SECOND AGREEMENT TO MODIFY LOAN AGREEMENT, PROMISSORY NOTE AND DEED OF TRUST (“Agreement”), dated as of December 13, 2002,
by and between WILLIAM LYON HOMES, INC., a California corporation (“Borrower”), and CALIFORNIA BANK & TRUST, a California banking corporation (“Lender”), with reference to the following facts: 
 
RECITALS 
 
A. Borrower originally agreed to borrow a sum not to exceed
Forty Million Dollars ($40,000,000.00) (“Loan”) from Lender for the purpose of providing Borrower with funding for the acquisition and development of residential lots, the construction of existing and future residential home projects, and
the issuance of letters of credit for the payment of costs incurred or associated with said projects. The terms and conditions of the Loan are more particularly set forth in that certain Revolving Line of Credit Loan Agreement (Borrowing Base) dated
as of September 21, 2000, by and between Borrower and Lender (as the same has been or may be amended or modified from time to time, Loan Agreement”). All capitalized terms not specifically defined herein shall have the meanings given to such
terms in the Loan Agreement. 
 
B. The Loan is
evidenced by an Amended and Restated Construction Loan Promissory Note dated as of September 18, 2002, given by Borrower to Lender (as the same has been and may be amended from time to time, “Current Note”). 
 
C. The Loan is secured by, among other things, the “Deed
of Trust” (as defined in the Loan Agreement). 
 
D. This Agreement, the Current Note and the other documents evidencing or relating to the Loan collectively shall be referred to as the “Loan Documents.” 
 
E. Borrower has requested that Lender modify the Loan by, among other things, increasing (i) the maximum
amount of the Loan, (ii) the maximum “Commitment Amount” (as defined in the Loan Agreement), and (iii) the face amount of the Current Note, from Forty Million Dollars ($40,000,000.00) to Fifty Million Dollars ($50,000,000.00) (“New
Commitment Amount”). 
 
F. Lender is willing
to consent to the modifications to the Loan Documents set forth herein and in those certain amendments to deeds of trust of even date herewith executed by Borrower and Lender modifying each Deed of Trust (collectively, “Recorded
Amendments”), subject to the conditions set forth below. The date on which all Recorded Amendments are recorded in the applicable official records for the applicable counties shall be referred to as the “Modification Closing Date.”

 
TERMS AND CONDITIONS 
 
NOW, THEREFORE, in consideration of the foregoing premises and
other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

 
1. Recitals.
The preamble, recitals and any exhibits hereto are hereby incorporated into this Agreement. 
 
2. Increase in the Loan Amount. 
 
2.1. Increase in the Maximum Commitment Amount. From and after the Modification Closing Date, the maximum amount of the Loan and the maximum Commitment Amount are hereby increased from the current
amount of Forty Million Dollars ($40,000,000.00) to the New Commitment Amount of Fifty Million Dollars ($50,000,000.00). All references in the Loan Documents to the maximum amount of Loan and maximum Commitment Amount shall be revised to refer to
the New Commitment Amount set forth herein. 
 
2.2.
Increase in the Amount of the Current Note. As a result of the increase in the amount of the Loan and the maximum Commitment Amount, the face amount of the Current Note shall be increased from the present amount of Forty Million Dollars
($40,000,000.00) to the New Commitment Amount of Fifty Million Dollars ($50,000,000.00) (“New Note Amount”). All references in the Loan Documents to the face amount of the Current Note shall be revised to refer to the New Note Amount set
forth herein. 
 
2.3. Amendment and Restatement of
the Current Note. Borrower shall execute and deliver to Lender a Second Amended and Restated Promissory Note of even date herewith (the Current Note, as amended by said document, shall hereafter be referred to as the “Note”) evidencing the
increase in the amount of the Loan and the maximum Commitment Amount as described herein. All references in the Loan Documents to the Current Note shall be revised to refer to the Note, as amended and restated. 
 
3. Amendment to Definitions in Loan Agreement. 
 
3.1. Commitment Amount. The definition of “Commitment
Amount” set forth in the Loan Agreement shall be replaced with the following: 
 
“Commitment Amount” means (a) during the Initial Line Term, the sum of Fifty Million Dollars ($50,000,000.00), and (b) during the Reduction Period, beginning upon the last day of the first
Calendar Quarter following the Initial Line Maturity Date, and on or prior to the last day of each Calendar Quarter thereafter during the Reduction Period, the Commitment Amount shall be reduced in the minimum amount of Six Million Two Hundred Fifty
Thousand Dollars ($6,250,000.00) (each, “Reduced Commitment Amount”): 
 

	  Date

	     	  Reduced Commitment Amount

	  Initial Line Maturity Date
	     	  $50,000,000.00

	  First Calendar Quarter
	     	  $43,750,000.00

	  Second Calendar Quarter
	     	  $37,500,000.00

	  Third Calendar Quarter
	     	  $31,250,000.00

	  Fourth Calendar Quarter
	     	  $25,000,000.00

	  Fifth Calendar Quarter
	     	  $18,750,000.00

	  Sixth Calendar Quarter
	     	  $12,500,000.00

	  Seventh Calendar Quarter
	     	  $  6,250,000.00

	  Eighth Calendar Quarter
	     	  $                  0.00

 

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3.2. Deed of
Trust. The definition of Deed of Trust shall be replaced with the following: 
 
“Deed of Trust” shall mean, for each Qualified Project entered into the Borrowing Base, a Construction Deed of Trust, Assignment of Leases and Rents and Security Agreement (Including Fixture
Filing) executed by Borrower, as trustor, to Title Company, as trustee, and naming Lender as beneficiary, creating a first lien on the Property, the Improvements, and all other buildings, fixtures and improvements now or hereafter owned or acquired
by Borrower and situated thereon, and all rights and easements appurtenant thereto. Each Deed of Trust shall secure indebtedness in the Commitment Amount. Upon the closing of the Loan on the Initial Closing Date, a separate Deed of Trust shall
encumber all of the Property in each of the Existing Projects that will be added to the Loan. Upon the entry of each Qualified Project into the Borrowing Base, a separate Deed of Trust shall encumber all of the Lots in the applicable Future Project.
All Lots in a Qualified Project shall be subject to a Tentative Map or a Final Map, and Lender shall have no obligation to make any Advances of Hard Costs for the construction of any Homes in said Qualified Project, unless and until Lender receives
evidence satisfactory to Lender in its discretion of the recording of the Final Map for said Qualified Project. If, with Lender’s prior approval, Entitled Land, Lots Under Development, Developed Lots, Spec Homes (including Model Homes) and
Presold Homes for a Qualified Project are added into the Borrowing Base, the Deed of Trust for said Qualified Project shall be amended to secure such property in the form reasonably required by Lender, and Borrower shall pay all costs and expenses
incurred by Lender in connection with encumbering all of said property with the applicable Deed of Trust, including without limitation the payment of title insurance and endorsement costs, closing and recording fees, legal fees and all other related
charges. For purposes of this Agreement, all such deeds of trust and amendments thereto securing the Loan shall be referred to individually and collectively in the singular as the “Deed of Trust.” 
 
3.3. Maximum Aggregate Loan Allocation(s). The definition of
Maximum Aggregate Loan Allocation(s) shall be replaced with the following: 
 
“Maximum Aggregate Loan Allocation(s)” shall mean each and every one of the following: 
 
(a) With respect to all Qualified Projects included in the Borrowing Base (collectively or individually “Geographic
Concentration Limitation”): 
 
(1) The aggregate Loan Allocations for all Lots and/or Homes for Qualified Projects (whether Advances have been made and/or have been committed but have not yet advanced) located in the State of Arizona shall not exceed the sum of
Fifteen Million Dollars ($15,000,000.00); and/or 
 
(2) The aggregate Loan Allocations for all Lots and/or Homes for Qualified Projects (whether Advances have been made and/or have been committed but have not yet advanced) located in the State of Nevada shall not exceed the
sum of Fifteen Million Dollars ($15,000,000.00). 
 
(b) With respect to all Lots to be included in the Borrowing Base, the aggregate Loan Allocations for all Entitled Land, Lots Under Development 

 

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and Developed Lots for all Qualified Projects (whether Advances have been made and/or have been committed but have not yet advanced) shall
not exceed the sum of Twenty Million Dollars ($20,000,000.00) (“Lot Concentration Limitation”). 
 
(c) With respect to all Spec Homes to be included in the Borrowing Base (“Spec Home Concentration Limitation”):

 
(1) For all Qualified Projects
financed hereunder, the aggregate Loan Allocations for all Spec Homes for all said Projects (whether Advances have been made and/or have been committed but have not yet advanced) shall not exceed the sum of Twelve Million Dollars ($12,000,000.00);
and/or 
 
(2) For each and every
Qualified Project financed hereunder, the total number of Spec Homes shall not exceed the lesser of (A) four (4) months’ appraised absorption for each said Project, or (B) four (4) months’ actual absorption for the subject Project, as
determined by Lender from time to time based upon the actual prior six-month Home sales average for said Project. 
 
4. Amendment to Deed of Trust. Each Deed of Trust shall be amended to secure the obligations under the Note and the other Loan Documents,
as amended herein. 
 
5. Conditions Precedent. In
no event shall Lender have any obligation to close this transaction unless and until all of the following conditions are satisfied: 
 
5.1. No Defaults. There shall be no: (a) uncured, material default hereunder or under the Loan Documents, (b) continuing representation,
covenant or warranty hereunder or under the Loan Documents that is false or misleading in any manner, and (c) event currently existing which, with the passage of time, will result in a material default or the falsity of any continuing
representation, covenant or warranty hereunder or under the Loan Documents. 
 
5.2. No Financial Change. There has been no material adverse change in Borrower’s, financial condition since the closing of the Loan. 
 
5.3. Payment Of Lender’s Costs. Borrower shall pay all of Lender’s costs and expenses incurred in
connection with the documentation and closing of the modifications to the Loan Documents described herein, including without limitation all attorneys’ fees and other closing fees and costs. 
 
5.4. Title Endorsement. Issuance to Lender of a CLTA Form
110.10 endorsement (or any substantially equivalent endorsement(s) as reasonably approved by Lender) to each ALTA Lender’s Title Policy for each Deed of Trust in form satisfactory to Lender and insuring the continued first lien priority of the
Deed of Trust, except for such exceptions as may be approved by Lender in its sole discretion. 
 
5.5. Additional Documents. Lender shall have received all additional documents executed by Borrower, as required by Lender in connection with this Agreement, including, without limitation, the Note and
all Recorded Amendments. 
 
6. Representations and
Warranties. Borrower hereby represents and warrants to Lender as follows: 
 
6.1. No Default. No default or event of default under any of the Loan Documents has occurred that remains uncured, and no event has occurred which, with the giving of notice or the 

 

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passage of time, or both, would constitute a default or an event of default under any of the Loan Documents. 
 
6.2. Representations and Warranties. As of the date hereof,
all of the warranties and representations contained in all of the Loan Documents remain true, correct, complete and accurate. 
 
6.3. No Claims or Defenses. As of the date hereof, neither Borrower nor its managing member has any claims against Lender nor defenses to
the enforcement of any of the Loan Documents in accordance with their respective terms, as amended by this Agreement. 
 
6.4. Financial Covenants. Borrower acknowledges and agrees that the financial covenants contained in the Loan Documents are in full force
and effect and shall be monitored by Lender based on the financial reports to be provided under the Loan Agreement. 
 
6.5. Satisfaction of Conditions. All of the conditions precedent set forth above have been fully satisfied. 
 
7. Further Assurances. Borrower agrees to perform such other
and further acts, and to execute such additional documents, agreements, notices or financing statements, as Lender deems necessary or desirable from time to time to create, preserve, continue, perfect, validate or carry out any of Lender’s
rights under this Agreement and the other Loan Documents. 
 
8. Integration. All rights, remedies, powers and interest provided for Lender herein are in addition to the rights, remedies, powers and interests provided for Lender in the Loan Documents, the terms and provisions of which are
incorporated herein by this reference and made a part hereof. If and to the extent any term or provision hereof is inconsistent with any term or provision of the Loan Documents, the term or provision of this Agreement shall prevail. 
 
9. Entire Agreement; Amendments. This Agreement and the other
Loan Documents contain the entire agreement between Borrower and Lender with respect to the Loan Documents, and all prior negotiations, commitments, understandings and agreements are superseded by this Agreement and the Loan Documents. No amendment,
modification, supplement, extension, termination or waiver of any provision of this Agreement, any Loan Document, or any other agreement executed in connection with any of the foregoing shall be effective unless in writing and signed by Lender and
Borrower, and then only in the specific instance and for the specific purpose given. 
 
10. Governing Law. The Loan Documents shall be governed by, and construed and enforced in accordance with, the internal laws of the State of California, without regard to its conflict of laws
principles. 
 
11. Section Headings. The section
headings of this Agreement are included for convenience only, and shall not affect the construction or interpretation of any provision of this Agreement. 
 
12. Attorneys’ Fees. If any action or other proceeding is brought to interpret or enforce any provision of this Agreement, the
prevailing party shall be entitled to recover attorneys’ fees and expenses. 
 
13. Binding Effect. This Agreement and the other Loan Documents shall be binding upon, and shall inure to the benefit of, Borrower and Lender and their respective successors and assigns, or heirs and
personal representatives, as applicable, subject to any provision of the Loan Documents restricting transfers of the Property. 
 

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14. Severability of Provisions. No provision of this Agreement or any other Loan Document
that is held to be inoperative, unenforceable and invalid shall affect the remaining provisions, and this and all provisions of this Agreement and the Loan Documents are hereby declared to be severable. 
 
15. Miscellaneous. No reference to this Agreement is necessary
in any instrument or document at any time referring to the Loan Documents. A reference to the Loan Documents shall be deemed a reference to such document as modified hereby. 
 
16. No Commitment. The furnishing of this Agreement and other modification documents shall in no way be
construed as a commitment by Lender to modify, amend, extend or otherwise alter the Loan Documents. Lender shall be under no obligation to close the transaction evidenced by this Agreement unless this Agreement and all related documents are returned
to Lender fully executed by Borrower, and unless this Agreement is actually executed by Lender and delivered to Borrower. 
 
17. No Other Amendments. Except as expressly amended herein, the Loan Agreement, and all of the other Loan Documents remain unmodified and
in full force and effect. 
 
18. Counterparts. This
Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which, when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the
same instrument. 
 
[The balance of this page is
intentionally left blank.] 
 

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IN WITNESS
WHEREOF, this Agreement has been executed by Borrower and Lender as of the date first above written. 
 

	  BORROWER:
   
  WILLIAM LYON HOMES, INC.,
  a California corporation

	
	  By:
	  	  /s/    RICHARD S.
ROBINSON        

	  	  	  Richard S. Robinson
  Senior Vice President

	
	  By:
	  	  /s/    MICHAEL D.
GRUBBS        

	  	  	  Michael D. Grubbs
  Senior Vice President

	
	  LENDER:
   
  CALIFORNIA BANK & TRUST,
  a California banking corporation

	
	  By:
	  	  /s/    ERIN
JOHNSON        

	  	  	  Erin Johnson
  Vice President

 

7The Presley Companies Retirement Plan

 
EXHIBIT 10.27

 
THE PRESLEY COMPANIES 
NON-QUALIFIED RETIREMENT PLAN 
FOR OUTSIDE DIRECTORS 
 
ARTICLE I 
 
INTRODUCTION

 
This Non-Qualified Retirement Plan has been
established to provide retirement income for eligible Outside Directors. This Plan shall be effective on November 12, 1992. 
 
ARTICLE II 
 
DEFINITIONS 
 
As used in this Plan, the following terms shall have the meanings set forth below: 
 
2.1    “BOARD” shall mean the
Board of Directors of The Presley Companies, a Delaware corporation. 
 
2.2    “BENEFICIARY” shall ‘mean the person designated by a Participant on the form prescribed by the Committee to receive any survivor benefit payable under the Plan. In the absence of an
effective designation, or if no named beneficiary shall survive the Participant, the beneficiary shall be the Participant’s Spouse, if surviving, or if there is no surviving Spouse, the Participant’s issue, per stirpes, or if there
are no surviving issue, the Participant’s estate. 
 
2.3    “COMMITTEE” shall mean the Executive Committee established by the Board. Any action required of the Board hereunder may be carried out by the Committee. 
 
2.4    “CORPORATION” shall mean
The Presley Companies, a Delaware corporation, or any person, firm or corporation which may hereafter succeed to the interests of The Presley Companies, a Delaware corporation, by merger, consolidation or otherwise, and which by appropriate action
shall adopt the Plan. 
 
2.5    “DISABILITY” shall mean, with respect to any Participant, an illness or other incapacitation which qualifies such Participant for disability benefits under the Social Security Act or which the
Board or Committee determines precludes such Participant from fully discharging his responsibilities as a member of the Board. 
 
2.6    “DISABILITY BENEFIT ENTITLEMENT DATE” shall mean the date determined in Section 5.3. 
 
2.7    “EARLY BENEFIT ENTITLEMENT
DATE” shall mean the date determined in Section 5.2. 
 
2.8    “NORMAL BENEFIT ENTITLEMENT DATE” shall mean the date specified in Section 5.1. 

 
2.9      “OUTSIDE DIRECTOR” shall mean a member of the Board who is not currently an officer or employee of the Corporation or any of its affiliates or subsidiaries. 
 
2.10    “PARTICIPANT” shall mean
an Outside Director eligible for participation in the Plan, who has not ceased to be a Participant, as provided in Article III. 
 
2.11    “PLAN” shall mean The Presley Companies Retirement Plan for Outside Directors as it may be amended
from time to time. 
 
2.12    “PLAN YEAR” shall mean the calendar year. 
 
2.13    “SPOUSE” shall mean the person to whom the Participant was legally married for at least thirty one (31) days immediately preceding the Participant’s death.

 
ARTICLE III 
 
PARTICIPATION 
 
3.1    Eligibility.  Each
Outside Director shall become a Participant in the Plan on the first day of the month (i) in which he is first elected or appointed to membership on the Board or, (ii) if his service on the Board commences while he is employed by the Corporation or
an affiliate or subsidiary thereof, on the first day of the month in which his retirement or resignation from the Corporation or its affiliate or subsidiary occurs. An Outside Director who ceases to be a Participant for any reason other than death
or Disability prior to attaining seventy-two (72) years of age shall be entitled to receive a benefit under the Plan only if he has completed at least ten (10) years of service as an Outside Director. 
 
3.2    Duration.  An
Outside Director who becomes a Participant shall continue as a Participant until his service on the Board terminates for any reason. 
 
ARTICLE IV 
 
FUNDING 
 
4.1    General Assets.  All amounts payable to Participants or their Beneficiaries hereunder shall be
paid in cash from the general assets of the Corporation, and no special or separate fund shall be established and no segregate of assets shall be made to assure payment of such amounts. 
 
4.2    Status of Participants.  Nothing contained in the Plan, and no
action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, nor a fiduciary relationship between the Corporation and any Participant or any other person. To the extent that any person acquires a right to
receive any amount from the Corporation under the Plan, such right shall be no greater than the right of any unsecured creditor of the Corporation. 
 

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ARTICLE V

 
ENTITLEMENT TO BENEFITS 
 
5.1    Normal Benefit Entitlement
Date.  A Participant’s Normal Benefit Entitlement Date shall be the first day of the month following the date upon which the Participant has both attained age seventy-two (72) and has terminated service on the Board. 
 
5.2    Early Benefit Entitlement
Date.  A Participant’s Early Benefit Entitlement Date shall be the first day of the month following the date upon which the service of a Participant who completed at least ten (10) years of service as an Outside Director
terminates, regardless of the Participant’s age at the time of such termination. No benefit shall be payable hereunder to a Participant who has not attained age seventy-two (72), or who has not completed ten (10) years of service as an Outside
Director. 
 
5.3    Disability Benefit Entitlement Date.  A Participant’s Disability Benefit Entitlement Date shall be the first day of the month following the date upon which the Board or Committee
determines that a Disability has been incurred or such other earlier date as determined by the Board or Committee. 
 
ARTICLE VI 
 
BENEFIT AMOUNT 
 
6.1    Amount of Benefit.  The amount of the benefit payable hereunder shall be Two Thousand Dollars ($2,000,00) per month. 
 
6.2    Duration of Payments.  Monthly payments shall commence as of the
first day of the month following the day in which the Normal Benefit Entitlement Date, Disability Benefit Entitlement Date or death occurs or as soon thereafter as is administratively convenient. In the case of the Early Benefit Entitlement Date,
monthly payments shall commence as of the first day of the month following the day on which the Participant attains age sixty-five (65) or, if his Early Benefit Entitlement Date occurs after he has attained age sixty-five (65), on the first day of
the month following the Early Benefit Entitlement Date or as soon thereafter as is administratively convenient. Monthly payments shall continue for the number of months that equals the number of months in which the Outside Director was a Participant
in the Plan and maintained his status as an Outside Director. Upon death prior to the date upon which payments would cease, remaining payments shall continue to be made to the Beneficiary. 
 
ARTICLE VII 
 
SUSPENSION OF BENEFITS 
 
7.1    Resumption of Board Membership.  If a retired Outside Director returns to membership on the
Board, the benefits payable 
 

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to him under the Plan shall
cease for so long as he continues to be a member of the Board. Upon subsequent retirement, the Outside Director’s annual benefit under the Plan shall be redetermined pursuant to Article VI above, on the basis of the payment terms then in
effect; however, no month of service as an Outside Director shall be counted more than once. 
 
7.2    Status as Employee.  If a retired Outside Director becomes an employee of the Corporation or any of its subsidiaries or affiliates, the benefit payable to
him under the Plan shall cease for so long as he remains an employee thereof. Upon subsequent termination of employment, payment of the Outside Director’s annual benefit under the Plan shall be resumed in the same monthly amount as in effect
prior to such period of employment; however, no month of service as an Outside Director shall be counted more than once. 
 
7.3    Status as Consultant.  If a retired Outside Director is engaged by the Corporation or by any
of its subsidiaries or affiliates to render services as a consultant or in a consulting capacity, and not as an employee, benefit payments hereunder shall not be terminated or otherwise affected by the rendering of such services. 
 
ARTICLE VIII 
 
MISCELLANEOUS 
 
8.1    Right to Amend or
Terminate.  The Board reserves the right at any time, from time to time, to modify, suspend, amend, or terminate the Plan in whole or in part; provided, however, that no such amendment or termination shall adversely affect the rights
of any Participant or Beneficiary under the Plan who at such time is receiving benefits, or of any member of the Board who has nine (9) or more years of Board membership. 
 
8.2    Board Member Relationships.  Nothing contained herein shall be
deemed to give any Board member the right to be continued as a member of the Board, to modify or affect the terms of Board membership or to interfere with the right of shareholders of the Corporation to elect members of the Board. 
 
8.3    Nonalienation of
Benefits.  To the extent permitted by law, no amount payable under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, garnishment, pledge or encumbrance. Any attempt to anticipate,
alienate, sell, transfer, assign, attach, pledge or encumber the same shall be void, and no amount payable under the Plan shall be in any manner liable to or subject to the debts, contracts, liabilities, engagements or torts of any Participant or
Beneficiary. 
 
8.4    Payments to Minors and Incompetents.  If a Participant or any other person entitled to receive any benefit hereunder is deemed by the Committee or is adjudged to be legally incapable of
giving valid receipt and discharge for such benefit, or is a minor, 
 

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such benefit shall be paid to
such person(s) as the Committee may designate or to a duly appointed guardian. Any such payment shall be in complete discharge of the liability of the Plan to the Participant or any such other person. 
 
8.5      Required
Information.  Each Participant shall file with the Committee such pertinent information concerning himself, his Spouse, children or other dependents or any other person as the Committee may specify, and no Participant, Spouse,
Beneficiary or other person shall have any rights or be entitled to any benefits under the Plan unless such information is filed by or with respect to him. 
 
8.6      Missing Persons.  If the Committee cannot ascertain the whereabouts of any person
to whom a payment is due under the Plan, and if, after five years from the date such payment is due, a notice of such payment due is mailed to the last known address of such person, as shown on the records of the Committee, and within three months
after such mailing such person has not made written claim therefor, the Committee, if it so elects, may direct that such payment and all remaining payments otherwise due to such person be permanently cancelled. 
 
8.7      Gender and
Number.  Wherever used herein, the masculine gender shall include the feminine gender and the singular shall include the plural, unless the context indicates otherwise. 
 
8.8      Interpretation.  The Board and the Committee shall
have responsibility for the administration and interpretation of the Plan, including determination of the amount of benefits payable in the event of a dispute. Any determination or interpretation of the Board or Committee with respect to the Plan
shall be final, binding and conclusive on all persons. 
 
8.9      Withholding.  The Corporation shall withhold from any benefits payable under the Plan all federal, state, local or other taxes as shall be required pursuant to any law or
governmental regulation or ruling. 
 
8.10    Governing Law.  The provisions of the Plan shall be governed by and construed in accordance with the laws of the State of California. 
 

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