EXHIBIT 10.32

 

AMENDMENT NO. 1 TO

CREDIT AGREEMENT

 

This Amendment No. 1 to Credit Agreement (this ”Amendment”) is entered into as
of the 27th day of January, 2004, by and among DUXFORD FINANCIAL, INC., a
California corporation (“Duxford”), and BAYPORT MORTGAGE, L.P., a California
limited partnership (“Bayport”), on the one had, and GUARANTY BANK (“Lender”)
with reference to the following facts:

 

  A.   Duxford, Bayport and Lender are parties to that certain Credit Agreement
(the “Agreement”) dated as of August 29, 2003.

 

  B.   Pursuant to Section 9.2 of the Agreement, the Agreement may be amended in
a writing signed by the applicable Borrower and Lender.

 

  C.   Borrowers and Lender desire to amend the Agreement to revise the
limitations on indebtedness set forth in Section 6.2 of the Agreement as set
forth herein.

 

  D.   Capitalized terms used but not defined herein shall have the respective
meanings ascribed to them in the Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual agreements
contained below, the parties hereby agree as follows:

 

1. Section 6.2. Section 6.2 of the Agreement is hereby amended and restated to
read in its entirety as follows:

 

“Section 6.2 Limitation on Indebtedness. No Related Person shall incur, create,
contract, assume, have outstanding, guarantee or otherwise be or become,
directly or indirectly, liable in respect of any Indebtedness or Guaranty
Obligations except:

 

(a) the Obligations;

 

(b) trade debt, equipment leases, equipment loans and liens for taxes and
assessments not yet due and payable owed in the ordinary course of business;

 

(c) Indebtedness arising under Permitted Warehouse Facilities; and

 

(d) Guaranty Obligations with respect to all obligations of William Lyon Homes,
Inc., a California corporation (“California Lyon”), respect to (i) $250,000,000
of 10¾% Senior Notes due 2013 and (ii) $150,000,000 of 7½% Senior Notes due 2014
(together, as amended, supplemented, modified or refinanced from time to time,
the “Senior Notes”), including, but not limited to, all obligations of
California Lyon under the indentures governing the Senior Notes.

 

2. Effect of Amendment. Except as expressly modified by this Amendment, the
Agreement shall continue to be and remain in full force and effect in accordance
with its

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terms. Any future reference to the Agreement shall be deemed to be a reference
to the Agreement as modified by this Amendment. The parties acknowledge that all
of the provisions of the Agreement, except as expressly provided herein, shall
remain in full force and effect in accordance with their terms. The Amendment
shall be deemed to be effective as of August 29, 2003.

 

3. Counterparts. This Amendment may be executed in two or more counterparts and
by facsimile transmission, each of which shall be deemed an original, and all of
which together shall constitute one and the same instrument.

 

4. Governing Law. This Amendment shall be construed in accordance with and
governed by the laws of the State of Texas, without regard to conflicts of law
or choice of law principles.

 

[Signature pages follow]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written.

 

BORROWERS:

      DUXFORD FINANCIAL, INC., A California Corporation             By:  

/s/  RICHARD FRANKEL

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Name:  Richard Frankel

Title:  Chairman

            By:  

/s/  MARK A. CARVER

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Name:  Mark A. Carver

Title:  President

        BAYPORT MORTGAGE, L.P., a California Limited Partnership             By:
 

Duxford Financial, Inc., a California

Corporation, its general partner

            By:  

/s/  RICHARD FRANKEL

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Name:  Richard Frankel

Title:  Chairman

            By:  

/s/  MARK A. CARVER

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Name:  Mark A. Carver

Title:  President

LENDER:

      GUARANTY BANK             By:  

/s/  JON LARSON

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Name:  Jon Larson

Title:  Senior Vice President