THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

D.R. Horton, Inc. (DHI)

12/14/2005 Proxy Information On the effective date of the 1998 merger between D.R. Horton and Continental Homes Holding Corp., Bradley S. Anderson, a former director of Continental, was elected a director of D.R. Horton. In connection with the merger, D.R. Horton agreed to indemnify Mr. Anderson, along with the other former Continental directors, in connection with their prior service as directors or executive officers of Continental. 12/10/2004 Proxy Information D.R. Horton has agreed to indemnify each of its directors and executive officers to provide them with the maximum indemnification allowed under its Certificate of Incorporation and applicable law with respect to their positions as officers or directors of D.R. Horton and its subsidiaries. In connection with the merger between D.R. Horton and Schuler Homes, D.R. Horton agreed to indemnify Mr. James K. Schuler, a retired director and current officer of D.R. Horton and a former director and officer of Schuler Homes, along with the other former directors and officers of Schuler Homes, and to provide directorsÕ and officersÕ liability insurance in connection with their prior service as directors or officers of Schuler Homes. On the effective date of the merger between D.R. Horton and Continental Homes Holding Corp., Bradley S. Anderson, a former director of Continental, was elected a director of D.R. Horton. In connection with the merger, D.R. Horton agreed to indemnify Mr. Anderson, along with the other former Continental directors, and continue directorsÕ and officersÕ liability insurance in connection with their prior service as directors or executive officers of Continental. Employment Arrangements. In connection with the merger of D.R. Horton and Schuler Homes, D.R. Horton entered into an employment agreement with James K. Schuler. Mr. SchulerÕs agreement has a term ending on March 31, 2005. However, either Mr. Schuler or D.R. Horton may terminate Mr. SchulerÕs employment for any reason. Mr. Schuler became a director and senior vice president of D.R. Horton and a region president. Mr. Schuler retired from the D.R. Horton board of directors in November 2003, but has continued as a senior vice president of the Company and President of the CompanyÕs West Region. Mr. SchulerÕs annual base salary is $300,000. Mr. SchulerÕs employment agreement provides that for periods after March 31, 2003, Mr. Schuler is entitled to a bonus of .75% of the pre-tax income for each 12-month period attributable to the CompanyÕs West Region, which resulted in Mr. Schuler earning a bonus of $1,847,264 during fiscal 2004. Mr. Schuler is also eligible to participate in benefit plans and programs, other than incentive bonus plans, generally available to similarly situated officers of D.R. Horton.

For the 2004 fiscal year, for his services as a division president, Scott J. Stone, who is a retired director, earned a salary of $160,000 and a bonus of $1,039,992. For his services as a division president, Rick L. Horton, the son of retired director Richard L. Horton, earned a salary of $160,000 and a bonus of $959,571. For his services as a division president, Michael T. Jones, the son-in-law of retired director James K. Schuler, earned a salary of $200,000 and a bonus of $846,669. The bonuses earned by these individuals are consistent with the D.R. HortonÕs incentive bonus program. This program generally affords division presidents the opportunity to earn bonuses based on a percentage of their divisionsÕ pre-tax income which increases to the extent the divisions achieve targeted performance measures. Messrs. Stone, Rick Horton and Jones also received a contribution to their deferred compensation accounts equal to 10% of their base salary. This contribution is made for all division presidents with a full year of service.

Cynthia Wilburn, the daughter of retired director Richard L. Horton, is a branch manager for D.R. HortonÕs mortgage subsidiary and earned $202,272 in salary, bonus and commission in the past fiscal year, and her husband, John Scott Wilburn, is a city manager and he earned $119,560 in fiscal 2004. Richard Watts, the son-in-law of retired director Richard L. Horton, is a development coordinator for D.R. Horton and earned $171,613 in the past fiscal year. Michael Bulin, the son-in-law of retired director Terrill J. Horton, is a sales agent and earned $101,449 in the past fiscal year. The compensation earned by these individuals is generally consistent with the compensation of other D.R. Horton employees in similar positions.

Donald R. Horton is the brother of Terrill J. Horton and the nephew of Richard L. Horton, each of whom is a retired director.

Donald R. Horton was President and Chief Executive Officer of D.R. Horton, Inc. from July 1991 until November 1998.

12/12/2003 Proxy Information

Donald R. Horton is the brother of Terrill J. Horton and the nephew of Richard L. Horton.

DirectorsÕ and OfficersÕ Indemnification and Insurance. D.R. Horton has agreed to indemnify each of its directors and executive officers to provide them with the maximum indemnification allowed under its Certificate of Incorporation and applicable law with respect to their positions as officers or directors of D.R. Horton and its subsidiaries.

The merger agreement between D.R. Horton and Schuler Homes requires D.R. Horton to keep in effect, for at least six years, directorsÕ and officersÕ liability insurance policies (through the continuation or endorsement of Schuler HomesÕ existing policy or the purchase of a Ōtail-endĶ rider permitted by such policy) having the same coverage and containing terms and conditions no less advantageous to the persons covered by the policies in effect immediately prior to the closing of the merger. D.R. Horton will not, however, be required to pay more than 200% of the annual premium paid relating to the year in which the merger agreement was executed. If D.R. Horton is not able to maintain the required insurance for that amount, it is required to purchase as much coverage as it can obtain for that amount.

In addition to the requirement to keep directorsÕ and officersÕ insurance in place as described above, D.R. Horton agreed after the effective time of the merger to indemnify, to the fullest extent permitted under applicable law and its Certificate of Incorporation and Bylaws, each then present and former director and officer of Schuler Homes against claims, costs or expenses arising out of or pertaining to any acts or omissions or alleged acts or omissions by them in their capacities as officers or directors of Schuler Homes. For claims against such officers and directors of Schuler Homes, D.R. HortonÕs indemnity obligation may not exceed the extent of Schuler HomesÕ indemnity obligation to the officers and directors under its certificate of incorporation and bylaws.

Mr. Schuler was a director and officer of Schuler Homes and as a result is covered by this directorsÕ and officersÕ insurance policy maintained by D.R. Horton and the indemnification of the Schuler Homes former officers and directors.

On the effective date of the merger between D.R. Horton and Continental Homes Holding Corp., Bradley S. Anderson, a former director of Continental, was elected a director of D.R. Horton. In connection with the merger, D.R. Horton agreed to indemnify Mr. Anderson, along with the other former Continental directors, and continue directorsÕ and officersÕ liability insurance in connection with their prior service as directors or executive officers of Continental.

Richard Beckwitt is the owner and a principal of EVP Capital, L.P., a general partner of Encore Venture Partners II (Texas), L.P., a venture capital affiliate through which D.R. Horton, Inc. invests in technology start-up and emerging growth companies

Employment Arrangements. In connection with the merger of D.R. Horton and Schuler Homes, D.R. Horton entered into an employment agreement with James K. Schuler. Mr. SchulerÕs agreement has a term ending on March 31, 2005. However, either Mr. Schuler or D.R. Horton may terminate Mr. SchulerÕs employment for any reason. Mr. Schuler became a director and senior vice president of D.R. Horton and a region president. Mr. Schuler retired from the D.R. Horton board of directors in November 2003, but will continue on as a senior vice president of the Company and President of the CompanyÕs West Region. Mr. SchulerÕs annual base salary is $300,000. Mr. SchulerÕs employment agreement provides that during the period commencing on April 1, 2002 and ending on March 31, 2003, Mr. Schuler is entitled to a bonus of .75% of the pre-tax income for each 12-month period attributable to the former Schuler region which resulted in Mr. Schuler receiving a bonus of $1,365,101 for that period. For periods after March 31, 2003, Mr. Schuler is entitled to a bonus of .75% of the pre-tax income for each 12-month period attributable to the CompanyÕs West Region. Mr. Schuler is also eligible to participate in benefit plans and programs, other than incentive bonus plans, generally available to similarly situated officers of D.R. Horton. For the past fiscal year, for his services as a division president, Scott J. Stone, who is a retired director, earned a salary of $160,000 and a bonus of $1,039,992. For his services as a division president, Rick L. Horton, the son of retired director Richard L. Horton, earned a salary of $160,000 and a bonus of $948,457. For his services as a division president, Michael T. Jones, the son-in-law of retired director James K. Schuler, earned a salary of $200,000 and a bonus of $399,292. The bonuses earned by these individuals are consistent with the D.R. HortonÕs incentive bonus program. This program generally affords division presidents the opportunity to earn bonuses based on a percentage of their divisionsÕ pre-tax income which increases to the extent the divisions achieve targeted performance measures. Messrs. Stone, Rick Horton and Jones also received a contribution to their deferred compensation accounts equal to 10% of their base salary. This contribution is made for all division presidents with a full year of service.

Cynthia Wilburn, the daughter of retired director Richard L. Horton, is a branch manager for D.R. HortonÕs mortgage subsidiary and earned $445,808 in salary, bonus and commission in the past fiscal year. Richard Watts, the son-in-law of retired director Richard L. Horton, is a development coordinator for D.R. Horton and earned $177,529 in the past fiscal year. Michael Bulin, the son-in-law of retired director Terrill J. Horton, is a sales agent and earned $161,830 in the past fiscal year. The compensation earned by these individuals is generally consistent with the compensation of other D.R. Horton employees in similar positions.

Compensation Committee Interlocks and Insider Participation

During the 2003 fiscal year, D.R. HortonÕs Compensation Committee was composed of Richard I. Galland, Francine I. Neff and Bradley S. Anderson. At the beginning of the 2004 fiscal year, the Compensation Committee set the base salaries and performance-based bonus goals of Messrs. Donald Horton and Tomnitz. The Executive Committee, with Mr. Fuller abstaining, established bonuses and salaries for Mr. Fuller, Ms. Dwyer and Mr. Wheat. Mr. Wheat was promoted to Executive Vice President and Chief Financial Officer on October 1, 2003.