KAUFMAN AND BROAD HOME CORPORATION
1999 INCENTIVE PLAN
SECTION 1. PURPOSE. The purpose of the 1999 Incentive Plan (the "Plan") is to promote the success of
Kaufman and Broad Home Corporation (the "Company") by providing a method whereby a broad category of
non-executive employees of the Company and its subsidiaries and other eligible participants may be encouraged
to invest in the Common Stock, $1.00 par value, of the Company ("Common Stock"), increase their proprietary
interest in its business, remain in the employ of the Company or its subsidiaries, and increase their personal
interests in the continued success and progress of the Company. The Plan provides for the grant of Options that
are not intended to satisfy the requirements for treatment as Incentive Stock Options as defined under Section
422 of the Code, as well as for certain other "Awards," as defined below.
SECTION 2. DEFINITIONS. As used in this Plan, the following terms shall have the indicated meanings:
(a) AWARD: An award under this Plan of a Performance Stock Award, Restricted Stock Award, or Stock Unit
(b) BOARD: The board of directors of Kaufman and Broad Home Corporation.
(c) CODE: The Internal Revenue Code of 1986, as amended.
(d) COMMITTEE: The Committee specified in Section 3(a) of this Plan.
(e) COMPANY: Kaufman and Broad Home Corporation and its Subsidiaries.
(f) EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.
(g) LIMITED STOCK APPRECIATION RIGHT: A right granted pursuant to Section 6(b) to receive cash in
certain circumstances with respect to a related Option.
(h) OPTION: An Option is a right granted under Section 6(a) to purchase a number of shares of Common Stock
at such exercise price, at such times, and on such other terms and conditions as are specified in or determined
pursuant to the document(s) evidencing the Award.
(i) PARTICIPANT: An individual eligible under Section 5(a) to participate in this Plan.
(j) PERFORMANCE OBJECTIVES: With reference to a parti