KAUFMAN AND BROAD HOME CORPORATION
DIRECTORS' LEGACY PROGRAM

1. PURPOSE OF THE PROGRAM

The Kaufman and Broad Home Corporation Director's Charitable Award Program (the "Program") allows each eligible Director of Kaufman and Broad Home Corporation (the "Company") to recommend that the Company make a donation of up to$500,000 to the eligible tax-exempt organization (s) (the "Donee (s)") selected by the Director, with the donation to be made in the Director's name in ten equal annual installments, with the first installment to be made as soon as is practicable after the Director's death. The purpose of the Program is to recognize the interest of the Company and its Directors in supporting worthy educational institutions and other charitable organizations.

2. ELIGIBILITY

All persons who were serving as Directors of the Company as of January 1, 1995, shall be eligible to participate in the Program. All Directors who join the Company's Board of Directors after that date shall be immediately eligible to participate in the Program upon election to the Board. However, the Nominating Committee of the Board of Directors may, in its good faith discretion, deny participation to a Director if it determines that it would not be in the Company's best interest for the Director to participate, whether due to excessive cost or other circumstances.

3. RECOMMENDATION OF DONATION

When a Director becomes eligible to participate in the Program, he or she shall make a written recommendation to the Company, on a form approved by the Company for this purpose, designating the Donee (s) which he or she intends to be the recipient (s) of the Company donation to be made on his or her behalf. A Director may revise or revoke any such recommendation prior to this or her death by singing a new recommendation form and submitting it to the Company.

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