CHANGE IN CONTROL SEVERANCE PLAN
KB HOME, a Delaware corporation (the "Company"), has adopted this Change in Control Severance Plan (the
"Plan"), effective as of October 4, 2001, for the benefit of certain key employees of the Company.
The purposes of the Plan are as follows:
(1) To reinforce and encourage the continued attention and dedication of members of the Company's
management to their assigned duties without the distraction arising from the possibility of a change in control of
(2) To enable and encourage the Company's management to focus their attention on obtaining the best possible
deal for the Company's shareholders and to make an independent evaluation of all possible transactions, without
being diverted by their personal concerns regarding the possible impact of various transactions on the security of
their jobs and benefits; and
(3) To provide severance benefits to any Participant (as defined below) who incurs a termination of employment
under the circumstances described herein within a certain period following a Change in Control (as defined
1. DEFINED TERMS. For purposes of the Plan, the following terms shall have the meanings indicated below:
(A) "Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.
(B) "Affiliate" shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Act.
(C) "Board" shall mean the Board of Directors of the Company.
(D) "Cause" shall mean (i) acts of fraud or misappropriation committed by the Participant and intended to result in
substantial personal enrichment at the expense of the Company or (ii) repeated violations by the Participant of the
Participant's obligations to the Company which are demonstrably willful and deliberate and which result in
material injury to the Company; provided that, in each case, the Participant has received written notice of the
described activity, has been afforded a period of 20 days to cure or correct the activ