PERFORMANCE-BASED INCENTIVE PLAN FOR SENIOR MANAGEMENT
(as amended and restated on October 2, 2008)
SECTION 1. Purpose. The purposes of the KB Home Performance-Based Incentive Plan for Senior
Management (the “Plan”) are to promote the interests of KB Home and its stockholders by (i) attracting and
retaining exceptional executive personnel and other key employees of the Company and its Affiliates, as defined
below; (ii) motivating such employees by means of performance-related incentives to achieve long-range
performance goals; (iii) enabling such employees to participate in the long-term growth and financial success of
the Company; and (iv) qualifying compensation paid under the Plan for deductibility under Section 162(m) of the
Internal Revenue Code of 1986, as amended. The Plan is an amendment and restatement of the Kaufman and
Broad Home Corporation Performance-Based Incentive Plan for Senior Management which shall be effective as
of October 2, 2008 (the “Amendment Date”).
SECTION 2. Definitions. As used in the Plan, the following terms shall have the meanings set forth below:
“Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled by the Company and (ii) any entity
in which the Company has a significant equity interest, in either case as determined by the Committee.
“Amendment Date” shall have the meaning set forth in Section 1 hereof.
“Award” shall mean any Performance-Based Bonus opportunity granted under the Plan, as well as any
Option, Stock Appreciation Right, award of Restricted Stock, or Other Stock-Based Award granted under the
Plan or granted in payment or settlement of a Performance-Based Bonus.
“Award Agreement” shall mean any written agreement, contract, or other instrument or document (which may
include, if so designated by the Committee, an Employment Agreement, as defined herein) evidencing any
Award, which may, but need not, be executed or acknowledged by a Participant.