Document:

EX-10.3

 Exhibit 10.3 

TaylorMorrison 
 December 28,
2012 
 Darrell Sherman 
 c/o TaylorMorrison Inc. 

4900 N. Scottsdale Road, Suite 2000 
 Scottsdale, AZ 85251 

 

	 	Re:	Amendment to Employment Agreement 

 Dear Darrell: 

This letter confirms your acceptance of a clarifying change to that certain Employment Agreement, by and between you and Taylor Morrison Inc.
(the “Company”), dated as of February 1, 2011 (your “Employment Agreement”), which is designed to avoid adverse tax consequences that could otherwise arise absent this amendment. 

Notwithstanding anything to the contrary in your Employment Agreement or otherwise, the payment schedule for any severance due under your
Employment Agreement shall run from the date of your termination from employment; provided, that: (i) the “Separation Agreement and Release of Claims” required to be signed by you under your Employment Agreement in order to receive
any severance payments and benefits thereunder must, within 55 days following the date of termination of employment be executed by you, delivered to the Company and become irrevocable in accordance with its terms; (ii) no severance payment will
be made to you pursuant to your Employment Agreement until the first regular payroll date following the date on which the condition described in clause (i) is satisfied; and (iii) any severance payments that would have otherwise been paid
to you between the date of termination of employment and such payroll date shall be paid to you on such payroll date. 
 All other terms and
conditions of your Employment Agreement remain the same and arc unaffected by this letter. Except as specifically provided herein, this letter shall not constitute a waiver, amendment or modification of any term or condition of your employment and
the provisions of your Employment Agreement shall remain in full force and effect. 
 Please indicate your acceptance of this amendment to
your Employment Agreement by signing and returning a copy of this letter, to Katy Owen, no later than December 31, 2012. 
  

	
	Sincerely,
	
	 /s/ Sheryl Palmer

	Sheryl Palmer
	President and Chief Executive Officer

  

	
	Agreed to and Accepted by:
	
	 /s/ Darrell Sherman

	Darrell Sherman

 Date: 12-31-12 

 TaylorMorrison 

EMPLOYMENT AGREEMENT 
 THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made by and between the Executive and the Company to be effective as of February 1, 2011 subject to the terms and conditions herein. 

 

	1.	Employee 

 Darrell Sherman (the “Executive”) 

 

	2.	Employer 

 Taylor Morrison, Inc. (“the Company,” a term
which for the purposes of this Agreement includes Taylor Wimpey PLC and all affiliates or subsidiaries thereof) with its principal place of business and corporate office located in Phoenix, Arizona. 

 

	3.	Terms of Employment 

 The Executive was first employed by the Company on
June 15, 2009 and Executive remains in the employ of the Company. This Agreement shall be deemed effective as of February 1, 2011 and shall continue for Executive’s employment unless Executive is terminated pursuant to Section 12
of this Agreement. 
  

	4.	Position and Duties 

 The Executive is serving as Vice President and General
Counsel and is responsible for overseeing the management and operations for the Legal function for North America and Executive shall continue to serve in such capacity under the terms of this Agreement. Additionally, Executive will have the duties,
responsibilities and authority assigned by the President/CEO and/or Board of Directors. The Executive currently reports to the President/CEO of Taylor Morrison, Inc. The Executive shall carry out assigned duties in good faith and in the best
interests of the Company, consistent with the policies and business strategies of the Company. Executive agrees to faithfully perform at all times the duties assigned to Executive to the best of Executive’s ability, experience and talents and
to devote to Company all of Executive’s undivided working time, attention and efforts. During employment with Company, Executive agrees not to hold employment, ownership, directorship or any interest whatsoever in any competing business, entity
or enterprise. Executive’s duties include reasonable business travel, either as necessary to meet the job or as directed by Company. 

  
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	5.	Conditions of Employment 

 Executive agrees to the terms and conditions contained
in this Agreement, the Company’s employee handbook, and other Company policies as they may be changed by Company in its sole discretion from time to time. 
  

	6.	Salary 

 The Executive’s current base salary shall be per annum, paid
bi-weekly on regularly scheduled payroll dates. The Executive’s base salary shall be reviewed annually at the end of each calendar year and may be adjusted by the Company in accordance with the Company’s compensation policies, overall
financial condition and other business factors. 
  

	7.	Conflicts of Interest 

 Executive agrees to avoid actual or potential
conflicts of interest with Company’s business. In this regard, Executive agrees (1) not to solicit, offer, or accept any gifts, gratuities, bribes, or other financial benefit in excess of $100.00 from actual or prospective customers,
vendors, suppliers, or competitors; and (2) not to have, either directly or indirectly through Executive’s family, financial interests in competing or supplying companies which could affect Executive’s duties to Company. When issues
of potential conflict arise, Executive agrees to immediately discuss them with Company’s President/CEO. 
  

	8.	Contributions. 

 Executive agrees not to offer or provide the
contribution of labor, materials, or inventory for charity, civil, social, or community use or service, outside the normal course of day to day operating practices, without the prior written approval of the President/CEO. 

 

	9.	Benefits 

 The Executive shall be eligible to participate in the following
incentive compensation, retirement and benefits plans as such plans may exist from time to time and any replacements or variations thereof (collectively, the “Compensation and Benefits Plans”) which are offered to similarly situated
executives: 
  

	 	9.1	The Company’s Annual Bonus Program; 

  

	 	9.2	The Company’s Nonelective Bonus Deferral Program; 

  

	 	9.3	The Company’s Long-term Incentive Plan; 

  

	 	9.4	The Company’s Employee Stock Purchase Plan; 

  

	 	9.5	The Company’s Non-Qualified Management Deferred Compensation Plan; 

  

	 	9.6	The Company’s 401(k) and Cash Balance Retirement Plans; and 

  
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	 	9.7	The Company’s Employees’ Welfare Benefit Plans 

 Nothing in this Agreement shall
obligate the Company to continue the Compensation and Benefit Plans, or to continue them in their current forms. The Company may terminate, modify or amend the Compensation and Benefit Plans at any time or from time to time in accordance with the
terms and provisions of such plans and applicable law. 
  

	10.	Business Expense Reimbursement 

 The Company shall reimburse the Executive for
reasonable business-related expenses properly and reasonably incurred by the Executive in connection with the performance of the Executive’s duties, subject to such expenses being properly claimed and substantiated in accordance with Company
policies in force from time to time. 
  

	11.	Vacation and Holidays 

 The Executive shall be entitled to paid vacation
and paid holidays in accordance with Company policies in force from time to time. 
  

	12.	Termination of Employment 

  

	 	12.1	The Company may terminate the Executive’s employment by giving written notice of termination to the Executive at any time, with or without “Good Cause” (as defined below). 

 

	 	12.2	The Executive may voluntarily terminate employment at any time, with or without cause, by giving 60 days written notice of termination to the Company. 

 

	 	12.3	If the Company terminates the Executive’s employment without Good Cause, the Executive shall be entitled to be paid the following subject to certain conditions: 

a) An amount equal to the Executive’s current base salary at the time of termination as a “Severance Payment” if the Executive
executes and returns the Company’s “Separation Agreement and General Release.” The Severance Payment shall be paid in 26 equal installments, commencing on the first regular payroll date which occurs after the effective date of
termination in accordance with the Company’s payroll schedule and occurring after (and only if) the Executive has executed and returned the Company’s then current “Separation Agreement and General Release.” 

b) In addition to the Severance Payment, the Company shall pay the applicable COBRA premiums for Executive and eligible dependents enrolled (if
any) in any then existing Welfare Benefit Plans which are group health plans (the “COBRA” Benefit”), commencing on the effective date of termination through the earlier of (i) one year from the date of termination or
(ii) the date that EMPLOYEE becomes eligible for health insurance coverage under another group health insurance program, if the Executive has executed and returned the Company’s “Separation Agreement and General Release.”
Executive agrees to promptly notify the COMPANY in writing if the Executive becomes eligible for health insurance coverage under another group health insurance program. 

  
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 c) Notwithstanding the fact that the Executive may not be employed by the Company on the date
that the Executive would otherwise be eligible to receive the Executive’s annual bonus payment under the Company’s Annual Bonus Program for the performance period(s) prior to the effective date of termination, the Company will include the
Executive in the Annual Bonus Program and calculate a bonus payout pursuant to the Annual Bonus Program plan matrix which will then be prorated based on the number of days that the Executive was employed by the Company in the applicable performance
period(s). Any bonus payment described herein will be made to the Executive on the date that the Company pays other employees under the Annual Bonus Program. 

In the event that the financial targets identified in the Executive’s Annual Bonus Program plan have not been formalized or are unable to
be determined, the Executive’s overall Annual Bonus Plan Attainment as a percent of the Executive’s Annual Bonus Opportunity will be calculated for each of the prior three completed or annualized partially completed performance periods the
Executive was employed by the Company, then averaged to establish a Projected Annual Bonus Plan Attainment Percentage. If Executive does not have three years of bonus history, the Projected Annual Bonus Plan Attainment Percentage will be equal to
the Taylor Morrison NA Corporate bonus percentage attained for same three year period. The Executive’s current Annual Bonus Plan Opportunity will be multiplied by the Projected Annual Bonus Plan Attainment Percentage to calculate a bonus payout
which will then be prorated based on the number of days that the Executive was employed by the Company in the applicable performance period. 

Issuance of this negotiated bonus payment to which Executive otherwise would not be entitled requires that the Executive execute and return the
“Separation Agreement and General Release” described herein. 
 d) Any unpaid salary for time worked and accrued vacation pay shall
be paid promptly after the Executive’s termination of employment. 
  

	 	12.4	If the Executive voluntarily resigns or is terminated by the Company for Good Cause, the Executive shall not be entitled to the Severance Payment, COBRA Benefit or Annual Bonus Program, but shall only be entitled to be
paid any unpaid salary for time worked and accrued vacation pay through the date of termination. Such unpaid salary and accrued vacation, if any, shall be paid promptly after the Executive’s termination. 

Notwithstanding the foregoing, in the event of a Change in Control, as hereinafter defined, combined with either (a) the Executive’s
organizational level, scope of duties and responsibilities, or total compensation being materially changed, or (b) the Executive’s offices being moved more than 50 miles from their current assigned location, then the Executive may, by
written notice to the Company within 30 days of the occurrence of (a) or (b), terminate this Agreement, in which case the Executive shall receive the Severance Payment specified in 12.3(a), COBRA benefit specified in 12.3(b), and the Annual
Bonus payment specified in 12.3(c) upon execution of the Company’s “Separation Agreement and General Release”. “Change in Control” shall mean (i) the sale of all or substantially all of the assets of Taylor Morrison,
Inc. (the “Direct 

  
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Employer”), (ii) the sale of over 50% of the voting stock in the Direct Employer or any entity indirectly or directly controlling the Direct Employer, (iii) the merger of the
Direct Employer or any entity indirectly or directly controlling the Direct Employer. 
  

	 	12.5	Except as specifically set forth in this Agreement, nothing in this Agreement is intended to affect either the Company’s or the Executive’s rights and obligations under the Compensation and Benefit Plans in
the event of the Executive’s termination of employment, and the terms and provisions of the Compensation and Benefit Plans shall control in the event of the Executive’s termination. 

 

	 	12.6	The payment of any Severance Payment specified in 12.3(a), COBRA benefit specified in 12.3(b), and the Annual Bonus payment specified in 12.3(c) to the Executive upon termination of the Executive’s employment (no
matter the cause) shall be conditioned upon execution by the Executive of a general release (“Separation Agreement and General Release”), in such form as the Company may reasonably require, of any and all claims against the Company (and
their respective officers, directors and employees) arising out of or relating to the executive’s employment with the Company and/or the termination thereof. 

 

	 	12.7	The term “Good Cause” shall mean the occurrence of any of the following by the Executive: (i) Executive is convicted of, pleads guilty to, or confesses to any felony or any act of fraud, theft,
misappropriation or embezzlement; (ii) any act or omission by Executive involving malfeasance, negligence, or intentional failure in the performance of Executive’s duties to the Company and, within five (5) days after written notice
from the Company of any such act or omission, Executive has not corrected such act or omission; or (iii) Executive otherwise fails to comply with the terms of this Agreement or deviates from any written policies, directives of the Board of
Directors, employee handbook, or rules of conduct, including without limitation, the Company’s drug and alcohol and no harassment policies, as the Company may change such policies from time to time. 

 

	 	12.8	All payments made to the Executive under this Agreement and/or the Compensation and Benefit Plans are subject to applicable withholding as required by law. 

 

	 	12.9	The Executive agrees that the Company may offset any monies due or owing to the Company from the Executive against any payments due to the Executive under this Agreement or the Compensation and Benefit Plans.

  

	 	12.10	In the event that the Executive breaches any of the provisions of this Agreement, the Executive agrees that the Company, without limiting any other rights or remedies that it may have under the law, may cease making any
further payments of any type (Severance, COBRA or Annual Bonus Program) which may be due to be paid. 

  

	13.	Proprietary and Confidential Information 

 Executive acknowledges that in
the course of employment, Executive has or will have access to and obtained or will obtain knowledge of trade secrets and/or confidential information relating to the Company’s business. Confidential information means information which is
treated by the 

  
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Company as confidential and which is of value to the Company because it has not been made generally available to the public or to competitors of the Company (other than by fault of Executive),
and includes but is not limited to such information related to the Company’s methods of operation and sales, current and future development, expansion or contraction plans of the Company, information concerning personnel assignments and
personnel matters, and any other information relating to the Company’s business that is treated by the Company as confidential. Executive agrees that during employment with the Company and for a period of two (2) years following the
termination of said employment, Executive shall not, other than on behalf of the Company, divulge or make use of any confidential information of the Company directly, indirectly, personally, or on behalf of any other person, business, corporation or
entity. This covenant is not intended to and does not limit in any way Executive’s duties and obligations to the Company under statutory or case law not to disclose or make personal use of such information or any trade secret information of the
Company. 
  

	14.	Non-Solicitation of the Customers and Suppliers 

 Executive agrees that the
Company’s relationships with its Customers and Suppliers are solely the assets and property of the Company. Executive agrees that for a period of two (2) years following termination of Executive’s employment with the Company for any
reason, Executive shall not directly or through others solicit or attempt to solicit any of the Company’s Customers and/or Suppliers for the purpose of providing products or services competitive to those offered by the Company. This restriction
applies only to those Customers and/or Suppliers with whom Executive had material contact on behalf of the Company. “Material contact” means: (i) direct personal contact with a Supplier or Customer for the purpose of, respectively,
purchasing real estate, materials or services for use by the Company or selling the Company’s real estate, products or services to Customers or (ii) any direct supervision of direct personal contacts other employees of the Company may have
with Suppliers and/or Customers. Customers and Suppliers are those Customers or Suppliers with whom Executive had material contact within one (1) year prior to the termination of Executive’s employment with the Company. The terms Customer
and Supplier shall also include prospective Customers and Suppliers of the Company. “Customers and Suppliers” does not include any of the companies listed on Exhibit A which is incorporated into this agreement. 

 

	15.	Non-Solicitation of the Company Employees 

 Executive agrees that Company has
invested substantial time and effort in assembling and training its present staff of personnel. Accordingly, Executive agrees that for a period of two (2) years from the date of termination, Executive will not directly or indirectly induce or
solicit or seek to induce or solicit on behalf of Executive or other persons or entities, any of the Company’s employees to leave employment with the Company if said employee was employed by the Company during the last six (6) months of
the Executive’s employment. 
  

	16.	Other Employment After Termination. 

 Executive acknowledges and represents that
Executive has substantial experience and knowledge such that Executive can readily obtain subsequent employment which does not violate this Agreement. Executive also agrees that Company may notify any future employer of Executive

  
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or any prospective future employer of Executive as to the existence and provisions of this Agreement and Company’s intention to enforce its rights hereunder. 

 

	17.	Notices 

 All notices and other communications given pursuant to the terms of this
Agreement shall be in writing and shall be given by personal delivery or by recognized overnight courier or certified mail: (1) to the Executive at the Executive’s address as shown in the Company’s records; or (2) the Company at
its principal office in the State of Arizona (or such other office as may be confirmed by the Company from time to time) to the attention of the Company’s President and Chief Executive Officer. 

 

	18.	Company Property 

 All equipment, computers, notebooks, documents,
memoranda, reports, photographs, files, books, correspondence, employee or other lists, calendars, card files, Rolodexes, and all other written, electronic, and graphic records affecting or relating to the business of Company and its employees,
regardless of the medium in which such information is stored, shall be and remain the sole and exclusive property of Company. Executive agrees not to remove any things or documents from Company premises at any time unless those things or documents
are necessary to those duties which the Executive must perform outside of Company premises. Executive shall not participate in any way with either the sale or the removal from Company-controlled premises of any materials, equipment, tools, labor,
computer software, corporate forms, information, data, manuals or any other Company property, without the prior written approval of the President/CEO. In the event of termination of employment with Company for any reason, Executive shall promptly
deliver to Company all equipment, computers, including laptop computers, notebooks, documents, memoranda, reports, photographs, files, books, correspondence, employee or other lists, calendars, card files, Rolodexes, and all other written,
electronic, and graphic records relating to Company’s business, which are or have been in the possession or under control of Executive. Executive shall not maintain any copy or other reproduction whatsoever of any of the items described in this
section after the termination of such employment. 
  

	19.	Arbitration 

 The parties understand and agree that any claim of any nature
whatsoever, including those arising out of or connected with Executive’s employment with Company, including but not limited to wrongful termination, breach of contract, defamation, and claims of discrimination (including age, disability, sex,
religion, national origin, race, color, etc.), harassment or retaliation whether under federal, state or local laws, regulations, or Executive Orders, common law, or in equity, shall be decided by submission to final and binding arbitration. The
arbitrator shall be a retired or former state or federal court judge. The parties further agree that the performance of Executive’s duties as contemplated by this employment agreement involves commerce. This arbitration provision shall be
governed by the Federal Arbitration Act. The arbitrator shall apply the law (including applicable filing limitations periods and exhaustion of administrative remedies) to the same extent, and with same force and effect as would an Arizona court or a
federal court sitting in Arizona. The arbitration shall be pursuant to rules and procedures hereafter adapted by Company, and failing such adoption, the Federal Rules of Civil Procedure. Judgment shall be final upon the award rendered by the
arbitrator and may be 

  
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entered in any court having jurisdiction thereof. The parties further understand and agree that actions seeking temporary injunctions are hereby excluded from arbitration and, therefore, may be
sought in a court of appropriate jurisdiction without resort to arbitration, even though resolution of the underlying claim must be submitted to arbitration. 
  

					
	 Employee Signature:
		 /s/ Darrell C. Sherman
		

  

	20.	Remedies 

 Executive agrees that should a breach of any portion of this Agreement
be asserted by Company, Company shall be entitled to cease immediately any outstanding payments due to Executive under this Agreement. Prior to ccasing any such payments, Company will provide written notice to Executive and allow Executive five
(5) calendar days from date of such notice to cure the breach. Executive also agrees that Executive’s covenants contained in this Agreement are the essence of this Agreement; that each such covenant is reasonable and necessary to protect
the business, interests and properties of Company; and that irreparable loss and damage will be suffered by Company should Executive breach any of the covenants. Therefore, Executive agrees and consents that, in addition to all the remedies provided
at law or in equity, Company shall be entitled to a temporary restraining order and temporary and permanent injunctions to prevent a breach or contemplated breach of any of the covenants. The Parties agree that all remedies available to the Parties
shall be cumulative and that the Parties shall be entitled to collect separate damages for each covenant or restriction breached. Executive acknowledges that should Executive violate any of the covenants of this Agreement, it will be difficult to
determine the resulting damages to Company and that monetary damages would not be adequate in any event. In addition to any other remedies it may have, Company shall be entitled to temporary and permanent injunctive relief without the necessity of
proving actual damage Executive shall indemnify Company for all costs, expenses, liabilities, and damages, in connection with Company’s response to any breach by Executive of any provision of this Agreement. Executive shall be liable to pay all
costs, including without limitation, reasonable attorneys’ fees, which Company may incur in enforcing, to any extent, the provisions of this Agreement, whether or not litigation is actually commenced and including litigation of any appeal taken
or defended by Company in an action to enforce this Agreement. Company may elect to seek one or more of these remedies at its sole discretion on a case-by-case basis. Failure to seek any or all remedies in one case does not restrict Company from
seeking any remedies in another situation. Such an action by Company shall not constitute a waiver of any of its rights. 
  

	21.	Miscellaneous 

  

	 	21.1	In the event any portion of this Agreement is held to be invalid, void or unenforceable by an arbitrator or a final judgment of any court of competent jurisdiction, such portion of the Agreement shall be deemed severed
and the remaining parts of this Agreement shall remain in full force and effect. The waiver by either party of any breach of any provision of the Agreement, or of the right to enforce any provision of the Agreement, shall not operate of be construed
as a waiver of any subsequent breach or right of enforcement. 

  

	 	21.2	This Agreement shall be governed and construed in accordance with the laws of the State of Arizona, and the proper venue for any dispute hereunder shall be the state or federal court (as applicable) in the county of the
Direct Employer’s principal office in the State of Arizona. 

  
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	 	21.3	This Agreement contains the entire agreement between the parties relating to its subject matter and supersedes all prior or contemporaneous agreements, understandings and representations, oral or written. No
modification or amendment to this Agreement shall be valid unless the same is in writing and signed by both parties to this Agreement. 

  

	 	21.4	This Agreement shall be binding upon and inure to the benefit of the Executive and the Company and, as applicable, their respective legal representatives, heirs, successors and assigns. 

This Agreement has been executed on the dates set forth below, effective as of February 1, 2011. 

 

					
	 Date: February 1, 2011
		THE EXECUTIVE:
		
			 /s/ Darrell C. Sherman

		
			THE COMPANY:
		
			TAYLOR MORRISON, INC.,
			a Delaware corporation
			
			By:		 /s/ Sherlyl D. Palmer

			Name:		Sherlyl D. Palmer
			Title:		President and Chief Executive Officer

  
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 Exhibit A 

Companies not included in the definition of “Customers and/or Suppliers:” 

  
 10EX-10.4

 Exhibit 10.4 

TAYLOR MORRISON HOME CORPORATION 

NON-EMPLOYEE DIRECTOR DEFERRED COMPENSATION PLAN 

Effective March 16, 2015 

This Taylor Morrison Home Corporation Non-Employee Director Deferred Compensation Plan (the “Plan”) is intended to
(i) enhance the ability of Taylor Morrison Home Corporation, a Delaware corporation (the “Company”), to attract and retain highly-qualified individuals to serve as non-employee members of the Board of Directors of the Company
(the “Board”) by providing such members the opportunity to defer all or a portion of compensation earned for their services on the Board and (ii) provide for such deferral opportunity in the form of awards under the Taylor
Morrison Home Corporation 2013 Omnibus Equity Award Plan (as may be amended from time to time, the “Equity Plan”), thereby aligning the interests of the members of the Board with those of the holders of the Company’s class A
common stock, par value $0.00001 per share (“Common Stock”) in enhancing the value of the Common Stock. 
 The Plan is
effective as of March 16, 2015 (the “Effective Date”) and permits the deferral of compensation received for services rendered after the Effective Date. This Plan applies to all such compensation and all earnings thereon, as
applicable (as defined below). 
 The Plan is intended to be, and shall be administered as, an unfunded plan for the purpose of providing
deferred compensation to members of the Board who are not also employees or officers of the Company or certain of its affiliates and, as such, is not an “employee benefit plan” within the meaning of the Employee Retirement Income Security
Act of 1974, as amended from time to time (“ERISA”). The Plan is also intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 

ARTICLE I  
 DEFINITIONS

 Capitalized terms used in this Plan shall have the meanings specified below. 

1.1 “Annual Deferral Amount” means the portion of a Participant’s Director Payments that a Participant elects to be
deferred. 
 1.2 “Annual Equity Award” means the component of an Eligible Director’s annual compensation package that
consists of an equity award granted pursuant to the Equity Plan. 
 1.3 “Cash Compensation” means any cash compensation
earned by an Eligible Director in respect of such Eligible Director’s services as a member of the Board, including, but not limited to, retainers (whether annual, semi-annual or otherwise), board meeting fees, committee meeting fees and
committee chairman fees. 

 1.4 “Change in Control” has the meaning ascribed to such term in the Equity
Plan, but only if such transaction is also a change in the ownership or effective control of a corporation or a change in the ownership of a substantial portion of the assets of a corporation within the meaning of U.S. Treas. Regs.
Section 1.409A-3(i)(5). 
 1.5 “Committee” means the Board or any subcommittee of its members that has been appointed
by the Board, which subcommittee may be the Compensation Committee. 
 1.6 “Compensation Committee” means the Compensation
Committee of the Board. 
 1.7 “Deferral Election Form” means the election form attached hereto as Annex A or any
election form approved by the Board. 
 1.8 “Deferred Stock Units” means the right to receive one share of Common Stock,
credited to a Participant’s Account in connection with an Annual Deferral Amount under the Plan. 
 1.9 “Director”
means a member of the Board. 
 1.10 “Director Payments” means, with respect to any Eligible Director, such Eligible
Director’s Cash Compensation and Annual Equity Award. 
 1.11 “Eligible Director” means a Director who is not an
employee or officer of the Company, TMM Holdings II Limited Partnership, TMM Holdings Limited Partnership, Taylor Morrison Holdings, Inc. or any of its subsidiaries during any years of service covered by the election made on the Deferral Election
Form. 
 1.12 “Fair Market Value” has the meaning ascribed to such term in the Equity Plan. 

1.13 “Grant Date” means the date of grant of an Annual Equity Award. 

1.14 “Participant” means any Eligible Director who becomes a Participant in this Plan in accordance with Article II. 

1.15 “Plan Year” means each calendar year. 

ARTICLE II  
 ELIGIBILITY
FOR PARTICIPATION 
 2.1 Eligibility of Directors. Each Eligible Director is eligible to participate in the Plan. 

2.2 Participation. An Eligible Director shall automatically become a Participant by electing to make a deferral of Director Payments in
accordance with Article III. 

  
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 ARTICLE III  

ELECTIONS 
 3.1
Elections to Defer Director Payments. Elections to defer Director Payments must be made in writing, pursuant to a Deferral Election Form, and otherwise comply with this Article III. 

(a) Timing of Election  

(1) Cash Compensation Component. A Participant may elect to defer any Cash Compensation on or prior to December 31 of the Plan
Year that is prior to the Plan Year during which the services that give rise to the right to receive the Cash Compensation are rendered (such date, the “Cash Election Date”). 

(2) Annual Equity Award Component. For any Annual Equity Award with a vesting schedule that requires the Eligible Director to remain
as a member of the Board for not less than 12 months after the Grant Date in order to vest in such award, a Participant may elect to defer such Annual Equity Award at any time prior to the Grant Date (the “Long-Vest Equity Election
Date”). For any other Annual Equity Award, a Participant may elect to defer such Annual Equity Award on or prior to December 31 of the Plan Year that is prior to the Plan Year in which the Grant Date occurs (the “Short-Vest
Equity Election Date”). 
 (3) Special Rule. Notwithstanding the provisions of Section 3.1(a)(1) or (2), a Participant
who has not previously been eligible to participate in another elective deferred compensation plan that would be treated as the same type of plan as the Plan for purposes of Section 409A may make an initial deferral election under the Plan in
accordance with Section 3.1(a)(1) and/or (2), as applicable, within 30 calendar days after first becoming eligible to participate under the Plan; provided, that, in such event, such deferral elections shall apply only to Director Payments that
are due for services rendered after the date of such election. 
 (b) Amount Eligible for Deferral. An Eligible Director may elect to
defer up to 100% of such Eligible Director’s Director Payments; provided, that, if an election will apply to an Annual Equity Award, such election must apply to the full Annual Equity Award. The Committee may change the amount that may be
deferred in respect of any Plan Year at any time, or from time to time. 
 (c) Timing of Distributions. The timing of distributions
of the Annual Deferral Amount shall be the earlier of (i) a Change in Control and (ii) the date that is 30 days after the Participant’s separation from membership on the Board (as long as such separation is also a “separation
from service” within the meaning of Section 409A of the Code and the regulations promulgated thereunder) or, if the Participant is a “specified employee” within the meaning of Section 409A at the time of separation, then on
the date that is six months following such date of separation (or a later date required under Section 409A of the Code) (such events described in (i) and (ii) the “Default Distribution Events”); provided, that each
Participant may elect to designate a date of distribution 

  
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other than the Default Distribution Events which, if such date occurs before the Default Distribution Events shall be the distribution date and such date may be (x) with respect to an Annual
Equity Award, no earlier than September 1 of the calendar year following the year in which the Annual Equity Award vests; provided, however, that if an Annual Equity Award vests following September 1 in a calendar year, then the
distribution date with respect to such Annual Equity Award can be no earlier than the one-year anniversary of the vesting date applicable to such Annual Equity Award, or (y) with respect to Cash Compensation, September 1 of the calendar
year that is more than one year after the Plan Year with respect to which the Cash Compensation was earned. Any such election by a Participant shall be set forth in the Deferral Election Form. 

3.2 Application and Revocability of Election. Except as permitted by this Section 3.2, elections shall become irrevocable as of
the Cash Election Date, the Long-Vest Election Date or the Short-Vest Election Date, as applicable. An election as to time and form of payment made with respect to any Director Payments in a Plan Year shall remain in effect with respect to all such
Director Payments in future Plan Years unless and until a new written Deferral Election Form is submitted. Any such new Deferral Election Form shall only be applicable with respect Cash Compensation and Annual Equity Awards with respect to which the
Cash Election Date or the Long-Vest Election Date or Short-Vest Election Date have not already passed. 
 3.3 Subsequent Changes in Time
of Distributions. A Participant may delay the timing of a previously-scheduled distribution only if such Participant submits a written subsequent deferral election meeting all of the following requirements: (i) the subsequent deferral
election shall not take effect until at least 12 months after the date on which it is made; (ii) the election must be made at least 12 months prior to the date the distribution is scheduled to be made; and (iii) the subsequent deferral
election must delay the distribution for at least five years from the date the distribution would otherwise have been made. 
 ARTICLE IV
 
 DEFERRAL ACCOUNTS 

4.1 Accounts. An account shall be established and maintained for each Participant under the Plan. The account shall be sub-allocated as
a recordkeeping matter and for accounting convenience to identify years of participation (“Annual Subaccounts”). No actual amounts credited to any account or subaccount shall be required to be segregated. It is intended that the
amount credited to each Annual Subaccount shall be considered a separate amount of nonqualified deferred compensation under Section 409A of the Code, even if the deferral occurred pursuant to a single Deferral Election Form that remained in
effect as contemplated hereunder for several Plan Years. Accounts may also be sub-allocated to reflect deferrals of Cash Compensation or Annual Equity Awards, and any earnings, distributions or dividends in respect of such account. 

4.2 Crediting of Accounts. The portion of a Participant’s Annual Deferral Amount that consists of Annual Equity Awards shall be
credited to the 

  
 4 

 
Participant’s account on the Grant Date in the form of a number of Deferred Stock Units equal to the number of shares of Common Stock that are subject to the Annual Equity Award, subject to
adjustment as described in the Equity Plan. The portion of a Participant’s Annual Deferral Amount that consists of Cash Compensation shall be credited to the Participant’s account on the date on which such Cash Compensation would otherwise
have been paid to the Participant, in the form of a number of Deferred Stock Units equal to the quotient of the amount of such Cash Compensation, divided by the Fair Market Value of one share of Common Stock on the date credited. If the result of
the quotient contemplated by the preceding sentence would be a fractional amount, then such fractional amount shall be credited in the form of a fraction and aggregated with any other fractional Deferred Stock Units on the date of distribution. If
any fractional Deferred Stock Units remain in an account on the date of distribution, such fractional Deferred Stock Units shall be settled in the form of cash. The Deferred Stock Units so credited shall be granted under and subject to the terms of
the Equity Plan and pursuant to a Deferred Stock Unit Agreement substantially in the form of Annex B. The Deferred Stock Units shall be subject to adjustment, and shall be eligible to receive dividend equivalents as contemplated by the Equity
Plan. 
 ARTICLE V  

VESTING 
 Those Deferred
Stock Units, and earnings or dividend equivalents thereon, that are credited to a Participant’s account in respect of the portion of a Participant’s Annual Deferral Amount (i) that was attributable to Cash Compensation, shall at all
times be 100% vested or (ii) that was attributable to Annual Equity Awards, shall vest or be forfeited on the same terms and conditions as would have applied to the Annual Equity Award. 

ARTICLE VI  

DISTRIBUTIONS 

Distributions in respect of Deferred Stock Units credited to accounts shall be made on the earliest of (i) a Change in Control,
(ii) the date that is 30 days after the Participant’s separation from membership on the Board (as long as such separation is also a “separation from service” within the meaning of Section 409A of the Code and the regulations
promulgated thereunder) or, if the Participant is a “specified employee” within the meaning of Section 409A at the time of separation, then on the date that is six months following such date of separation (or a later date required
under Section 409A of the Code) and (iii) the date elected by a Participant in a Deferral Election Form duly submitted under the Plan. Distributions shall be made in the form of shares of Common Stock, on a one-for-one basis, and any
fractional shares after accumulation as described in Article IV, shall be settled in cash, where such cash amount is determined based upon the Fair Market Value of one share of Common Stock on the applicable distribution date. If any distribution
date contemplated by this Article VI is not a business day, then the distribution date, and valuation date for purposes of determining Fair Market Value, shall be the immediately subsequent business day. 

  
 5 

 ARTICLE VII  

ADMINISTRATION 
 The Plan
shall be administered by the Board, which may delegate its duties and powers in whole or in part as it deems appropriate. The Board is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan,
and to make any other determinations that it deems necessary or desirable for the administration of the Plan, and may delegate such authority, as it deems appropriate. The Board may correct any defect or supply any omission or reconcile any
inconsistency in the Plan in the manner and to the extent the Board deems necessary or desirable. Any decision of the Board in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion
and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors). 

ARTICLE VIII  

MISCELLANEOUS 
 8.1
Unsecured General Creditor. Participants and their beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interest in any specific property or assets of the Company. No assets of the Company shall be
held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan. Any and all of the Company’s assets shall be, and remain, the general unpledged, unrestricted assets of the Company. The Company’s
obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in the future, and the rights of the Participants and their beneficiaries, heirs, successors, and assigns shall be no greater than those
of unsecured general creditors. It is the intention of the Company that this Plan be unfunded for purposes of the Code and for purposes of Title I of ERISA. 

8.2 Restriction Against Assignment. The Company shall pay all amounts payable hereunder only to the person or persons designated by the
Plan and not to any other person or corporation. No part of a Participant’s Accounts shall be liable for the debts, contracts, or engagements of any Participant, his or her beneficiary, or successors in interest, nor shall a Participant’s
Accounts be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits
or payments hereunder in any manner whatsoever. 
 8.3 Withholding. The Company or its subsidiaries shall have the right to reduce
any payment (or compensation) by the amount of any required tax withholding due in respect of such compensation. 
 8.4 Adjustments Upon
Certain Events. Deferred Stock Units credited to accounts under the Plan shall be subject to adjustment as Other Stock-Based Awards under the Equity Plan. 

  
 6 

 8.5 Amendment, Modification, Suspension or Termination. The Committee may amend, modify,
suspend or terminate the Plan or any portion thereof at any time; provided, that except as provided for herein, that any such amendment, modification, suspension or termination that would materially and adversely affect the rights of any Participant
shall not to that extent be effective without the consent of the affected Participant. 
 8.6 Governing Law. Except to extent
preempted by Federal law, this Plan shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware without giving effect to the conflict of laws
provisions thereof that would cause the laws of another jurisdiction to apply. 
 8.7 Receipt or Release. Any payment to a
Participant or the Participant’s beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims against the Committee and the Company and its affiliates. The Committee may require
such Participant or beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect. 
 8.8
Limitation of Rights and Service Relationship; No Uniformity of Treatment. Neither the establishment of the Plan nor any modification thereof, nor the creating of any fund or account, nor the payment of any benefits shall be construed as
giving to any Participant, or beneficiary or other person any legal or equitable right against the Company or its subsidiaries except as provided in the Plan; and in no event shall the terms of service relationship of any Participant be modified or
in any way be affected by the provisions of the Plan. There is no obligation for uniformity of treatment of Participants or holders of Accounts. The terms and conditions of the Plan and the Board’s determinations and interpretations with
respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated). 
 8.9
Headings. Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof. 

8.10 Section 409A. It is intended that the Plan comply with Section 409A of the Code so as to prevent the inclusion in gross
income of any Deferred Stock Units credited to an account in a taxable year that is prior to the taxable year or years in which such amounts are otherwise actually distributed or made available to a Participant. All provisions of the Plan shall be
construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. If the Committee determines that any amounts payable hereunder may be taxable to a Participant under
Section 409A, the Company may (i) adopt such amendments to the Plan and appropriate policies and procedures, including amendments and policies with retroactive effect, that the Committee determines necessary or appropriate to preserve the
intended tax treatment of the benefits provided by the Plan and/or (ii) take such other actions as the Committee determines necessary or appropriate to avoid or limit the imposition of an additional tax under Section 409A; provided, that
neither the Company 

  
 7 

 
nor any of its subsidiaries nor any other person or entity shall have any liability to a Participant or beneficiary with respect to the tax imposed by Section 409A. 

*        *        *       
 * 

  
 8 

 Annex A 

Deferral Election Form 

[omitted] 

 Annex B 

Form of Deferred Stock Units Agreement 

[omitted]

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