KAUFMAN AND BROAD HOME CORPORATION
PERFORMANCE-BASED INCENTIVE PLAN FOR SENIOR MANAGEMENT
SECTION 1. Purpose. The purposes of the Kaufman and Broad Home Corporation Performance-Based
Incentive Plan for Senior Management are to promote the interests of Kaufman and Broad Home Corporation
(the "Company") 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.
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.
"Award" shall mean any Performance-Based Bonus opportunity granted under the Plan, as well as any Option,
Stock Appreciation Right, award of Restricted Stock, Restricted Stock Units 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.
"Board" shall mean the Board of Directors of the Company.
"Change of Ownership" shall be deemed to have occurred if either (1) individuals who, as of the effective date of
this Plan, constitute the Board of the Company (as of the date hereof, the "Incumbent Board") cease for any