1988 EMPLOYEE STOCK PLAN
(as amended and restated on October 2, 2008)
SECTION 1. Purpose. The purpose of the KB Home 1988 Employee Stock Plan (the “Plan”) is to promote
the success of KB Home, formerly Kaufman and Broad Home Corporation (the “Company”) by providing a
method whereby key employees of the Company and its subsidiaries and certain other individuals 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 is an amendment and
restatement of the KB Home 1988 Employee Stock Plan, which amendment and restatement shall be effective as
of October 2, 2008 (the “Amendment Date”).
SECTION 2. Definitions. As used in this Plan, the following terms shall have the indicated meanings:
(a) Amendment Date: Amendment Date shall have the meaning set forth in Section 1 hereof.
(b) Award: An award of restricted shares under Section 7 and, except for purposes of Section 7, a Stock
Unit Award granted pursuant to Section 8.
(c) Board: The Board of Directors of the Company.
(d) Code: The Internal Revenue Code of 1986, as amended from time to time. All references to the Code or
any section thereof shall include the Treasury Regulations and other Department of Treasury guidance issued
(e) Committee: The Personnel, Compensation and Stock Option Committee of the Board
(f) Company: KB Home and its Subsidiaries.
(g) Effective Date: Effective Date shall have the meaning set forth in Section 13(a) hereof.
(h) Lapsing Formula: With reference to a particular Award under Section 7, a formula or schedule, and such
other conditions as may be imposed, determined by the Committee and set forth in a Stock Restriction
Agreement, as a basis for establishing the number of sh