AMENDMENT NO. 1 TO TERM LOAN AGREEMENT
This Amendment No. 1 to Term Loan Agreement (this "Amendment") is entered into with reference to the Term
Loan Agreement dated as of January 7, 1999 among Kaufman and Broad Home Corporation ("Borrower"), the
Banks party thereto, Credit Lyonnais Los Angeles Branch, as Syndication Agent, The First National Bank of
Chicago, as Documentation Agent, Union Bank of California, N.A., as Co-Agent, and Bank of America
National Trust and Savings Association, as Administrative Agent (the "Loan Agreement"). Capitalized terms used
but not defined herein are used with the meanings set forth for those terms in the Loan Agreement.
Borrower and the Administrative Agent, acting with the consent of the Majority Banks pursuant to Section 11.2
of the Loan Agreement, agree as follows:
1. Section 1.1. Section 1.1 of the Loan Agreement is hereby amended to revise the following definition to read as
"Consolidated Leverage Ratio" means, as of any date of determination, the ratio of (a) Consolidated Total
Indebtedness on that date to (b) [Consolidated Tangible Net Worth on that date minus the amount, if any, by
which the portion of Shareholder's Equity of Borrower and its Consolidated Subsidiaries attributable to
Borrower's equity interest in the Shareholder's Equity of all Joint Ventures (other than (i) KBMHG, (ii) any
Subsidiary of KBMHG engaged solely in development of multi-family housing and related businesses, and (iii)
any Consolidated Joint Venture) exceeds $30,000,000].
2. Section 1.1. Section 1.1 of the Loan Agreement is amended to add the following new definitions:
"Consolidated Joint Venture" means, as of any date of determination, a Joint Venture that is consolidated in the
financial statements of Borrower and its Subsidiaries as of such date.
"Specified Entities" means, collectively, (a) any Foreign Subsidiary, (b) any Financial Subsidiary (other than a
Trust Issuer) and (c) any Person that is not a wholly-owned Sub