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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000950134-09-007112.txt : 20090407
<SEC-HEADER>0000950134-09-007112.hdr.sgml : 20090407
<ACCEPTANCE-DATETIME>20090407170420
ACCESSION NUMBER:		0000950134-09-007112
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090402
ITEM INFORMATION:		Material Modifications to Rights of Security Holders
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090407
DATE AS OF CHANGE:		20090407

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KB HOME
		CENTRAL INDEX KEY:			0000795266
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				953666267
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09195
		FILM NUMBER:		09738133

	BUSINESS ADDRESS:	
		STREET 1:		10990 WILSHIRE BLVD
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90024
		BUSINESS PHONE:		3102314000

	MAIL ADDRESS:	
		STREET 1:		10990 WILSHIRE BLVD
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90024

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KAUFMAN & BROAD HOME CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v52053e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15 (d)&nbsp;of the Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>
Date of Report: April&nbsp;2, 2009<BR>
(Date of earliest event reported)</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>KB HOME</B>
</DIV>

<DIV align="center" style="font-size: 10pt">
<B>(Exact name of registrant as specified in charter)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-9195</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>95-3666267</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commision File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>10990 Wilshire Boulevard, Los Angeles, California</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>90024</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>Registrant&#146;s telephone number, including area code: (310)&nbsp;231-4000</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>Not Applicable</B><BR>

(Former name or former address, if changed since last report)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</TD>
</TR>
</TABLE>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>



















<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<!--TOC-->
<!--/TOC-->






<!-- link1 "Item&nbsp;3.03 Material Modification to Rights of Security Holders" -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;3.03</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Material Modification to Rights of Security Holders</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a) <I>Approval of Amendment to Restated Certificate of Incorporation</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;2, 2009, at the 2009 Annual Meeting of Stockholders of KB Home (the &#147;Company&#148;), the
stockholders of the Company adopted an amendment to the Company&#146;s Restated Certificate of
Incorporation to help protect the tax benefits of the Company&#146;s net operating losses. Adoption of
the amendment was proposed to stockholders in the Company&#146;s proxy statement for the Annual Meeting.
The amendment contains provisions that generally restrict direct and indirect transfers of the
Company&#146;s common stock if such transfers would affect the percentage of stock that a five-percent
or greater stockholder is deemed to own. The amendment also includes a mechanism to block the
impact of such transfers while allowing purchasers to receive their money back from the restricted
purchases. The foregoing description of the amendment does not purport to be complete and is
qualified in its entirety by reference to the Restated Certificate of Incorporation of the Company,
as amended, which is attached as Exhibit&nbsp;3.1 and is incorporated by reference herein.</DIV>

<!-- link1 "Item&nbsp;5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers" -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(e) <I>Adoption of Annual Incentive Plan for Executive Officers</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On April&nbsp;2, 2009, at the Company&#146;s 2009 Annual Meeting of Stockholders, the stockholders of the
Company also approved an Annual Incentive Plan for Executive Officers (the &#147;Plan&#148;) that enables the
Company to pay performance-based cash incentives to the Company&#146;s executive officers that could
qualify for tax deductibility under Section 162(m) of the Internal Revenue Code. Among other
things, the Plan contains a list of performance measures and targets that may be used for awards
and a limit on benefits that may paid under the Plan to any executive officer in any fiscal year.
The foregoing description of the Plan does not purport to be complete and is qualified in its
entirety by reference to the Plan, which is attached as Exhibit&nbsp;10.1 and is incorporated by
reference herein.</DIV>

<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d) <I>Exhibits</I></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restated Certificate of Incorporation, as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.51*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">KB Home Annual Incentive Plan for Executive Officers, filed as Attachment C to the Company&#146;s
Proxy Statement on Schedule&nbsp;14A for the 2009 Annual Meeting of Stockholders, is incorporated
by reference herein.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Management contract or compensatory plan or arrangement in which executive officers are eligible
to participate.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "SIGNATURE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report
to be signed on its behalf by the undersigned hereunto duly authorized.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: April&nbsp;7, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">KB Home<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Wendy C. Shiba&nbsp;
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Wendy C. Shiba&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President, General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "EXHIBIT INDEX" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center">Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restated Certificate of Incorporation, as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.51*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">KB Home Annual Incentive Plan for Executive Officers, filed
as Attachment C to the Company&#146;s Proxy Statement on
Schedule&nbsp;14A for the 2009 Annual Meeting of Stockholders,
is incorporated by reference herein.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Management contract or compensatory plan or arrangement in which executive officers are eligible
to participate.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.4
<SEQUENCE>2
<FILENAME>v52053exv3w4.htm
<DESCRIPTION>EX-3.4
<TEXT>
<HTML>
<HEAD>
<TITLE>exv3w4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->


<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><b><U>Exhibit 3.4</U></b>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">RESTATED CERTIFICATE OF INCORPORATION
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">OF
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">KB HOME
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">* * * * * *
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KB HOME, originally incorporated in the State of Delaware as Kaufman and Broad
Capital Corporation on August&nbsp;31, 1981, hereby restates its Amended Certificate of
Incorporation in accordance with Section&nbsp;245 of the General Corporation Law of the
State of Delaware. As permitted by Section&nbsp;245, this Restated Certificate of
Incorporation was adopted by the Board of Directors without a vote of the
stockholders. This Restated Certificate of Incorporation only restates and integrates
and does not further amend the provisions of KB HOME&#146;s Amended Certificate of
Incorporation as heretofore amended or supplemented, and no discrepancy exists between
those provisions and the provisions of this Restated Certificate of Incorporation
(hereinafter called this &#147;Certificate of Incorporation&#148; or this &#147;Restated Certificate
of Incorporation&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: The name of the corporation (hereinafter called the
&#147;Corporation&#148;) is KB HOME.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: The address of the registered office of the Corporation in the State of
Delaware is 2711 Centerville Road, Suite&nbsp;400, City of Wilmington, County of New
Castle, Delaware. The name of its registered agent at such address is Prentice-Hall
Corporation System, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: The purpose of the Corporation is to engage in any lawful act or activity
for which corporations may now or hereafter be organized under the General Corporation
Law of the State of Delaware.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The total number of shares of stock which the Corporation
shall have authority to issue is 325,000,000 consisting of 290,000,000 shares of
Common Stock, par value $1.00 per share (the &#147;Common Stock&#148;), 25,000,000
shares of Special Common Stock, par value $1.00 per share (the &#147;Special
Common Stock&#148;) and 10,000,000 shares of Preferred Stock, par value $1.00 per
share (the &#147;Preferred Stock&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (1)&nbsp;Except as otherwise provided by this section (b), the
powers, preferences and dividend and other rights of the shares of Common Stock
and Special Common Stock shall be identical in all respects.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Subject to the rights of the holders of Preferred Stock, and subject to any other
provisions of this Certificate of Incorporation, holders of Common Stock and Special Common Stock
shall be entitled to receive such dividends and other distributions in cash, stock of any
corporation other than the Corporation or property of the Corporation as may be declared thereon by
the Board of Directors from time to time out of assets or funds of the Corporation legally
available therefor and shall share equally on a per share basis in all such dividends and other
distributions. In the case of dividends or other distributions payable in stock of the Corporation
other than Preferred Stock, including distributions pursuant to stock splits or divisions of stock
of the Corporation other than Preferred Stock which occur after the initial issuance of shares of
Special Common Stock by the Corporation, only shares of Common Stock shall be paid or distributed
with respect to Common Stock and only shares of Special Common Stock shall be paid or distributed
with respect to Special Common Stock in each case in an amount per share equal to the amount per
share paid or distributed with respect to the Common Stock or the Special Common Stock, as the case
may be. In the case of any combination or reclassification of the Common Stock or Special Common
Stock, the shares of each class shall be combined or reclassified so that the number of shares of
such class outstanding immediately following such combination or reclassification shall bear the
same relationship to the number of shares of such class outstanding immediately prior to such
combination or reclassification as the number of shares of the other class outstanding immediately
following such combination or reclassification bears to the number of shares of such other class
outstanding immediately prior to such combination or reclassification.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)(A) At every meeting of the stockholders every holder of Common Stock shall be
entitled to one vote in person or by proxy for each share of Common Stock standing in his or her
name on the transfer books of the Corporation, and every holder of Special Common Stock shall be
entitled to one-tenth of one vote in person or by proxy for each share of Special Common Stock
standing in his or her name on the transfer books of the Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The provisions of this Certificate of Incorporation
shall not be modified, revised, altered or amended, repealed or rescinded in whole or in part,
without the approval of a majority of votes entitled to be cast by the holders of the Common Stock
and the Special Common Stock, voting together as a single class; <U>provided,</U> <U>however,</U> that
with respect to any proposed amendment to this Certificate of Incorporation which would alter or
change the powers, preferences, relative voting power or dividend or other rights of the shares of
Common Stock or Special Common Stock so as to affect them adversely, the approval of a majority of
votes entitled to be cast by the holders of the class affected by the proposed amendment, voting
separately as a class, shall be obtained in addition to the approval of a majority of the votes
entitled to be cast by the holders of the Common Stock and the Special Common Stock voting together
as a single class as hereinbefore provided.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;Every reference in this Certificate of Incorporation
to a majority or other proportion of shares of stock shall refer to such majority or
other proportion of the votes to which such shares of stock are entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;Except as may be otherwise required by law or by
this Article&nbsp;Fourth, the holders of Common Stock and Special Common Stock
shall vote together as a single class, subject to any voting rights which may be
granted to holders of Preferred Stock, on all matters submitted to a vote of the
holders of Common Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;In the event of any dissolution, partial or complete
liquidation or winding up of the affairs of the Corporation, whether voluntary or involuntary,
after payment in full of the amounts required to be paid to the holders of Preferred Stock, the
remaining assets and funds of the Corporation shall be divided among and paid ratably to the
holders of Common Stock and Special Common Stock as a single class. For the purposes of this
paragraph 4, the voluntary sale, conveyance, lease, exchange or transfer (for cash, shares of
stock, securities or other consideration) of all or substantially all of the assets of the
Corporation or a consolidation or merger of the Corporation with one or more other corporations
(whether or not the Corporation is the corporation surviving such consolidation or merger) shall
not be deemed to be a liquidation, dissolution or winding up, voluntary or involuntary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;In case of any reorganization or any consolidation of the
Corporation with one or more other corporations or a merger of the Corporation
with another corporation, each holder of a share of Common Stock shall be
entitled to receive with respect to such share the same kind and amount of shares
of stock and other securities and property (including cash) receivable upon such
reorganization, consolidation or merger by a holder of a share of Special Common
Stock and each holder of a share of Special Common Stock shall be entitled to
receive with respect to such share the same kind and amount of shares of stock
and other securities and property (including cash) receivable upon such
reorganization, consolidation or merger by a holder of a share of Common Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)(A) Subject to the terms and conditions of this paragraph 6, each share of Special
Common Stock shall be convertible at the option of the holder thereof into one fully paid and
nonassessable share of Common Stock if (i)&nbsp;the Corporation shall make an offer to holders of Common
Stock to purchase shares of Common Stock for cash or a combination of cash and other securities or
property or to exchange shares of Common Stock for other securities of the Corporation or (ii)&nbsp;any
other person shall make an offer to all holders of Common Stock to purchase shares of Common Stock
for cash or a combination of cash and other securities or property. The Corporation covenants to
give prompt notice in writing to all holders of Special Common Stock of any offer referred to in
the foregoing clauses (i)&nbsp;and (ii). The Special Common Stock shall be convertible under this
paragraph 6 solely for the purpose of enabling such shares to be tendered pursuant to such offer as
long as such offer shall remain in
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">effect and shall not be terminated, rescinded or completed. Notwithstanding the foregoing, each
share of Special Common Stock converted into a share of Common Stock pursuant to this paragraph 6
and not purchased pursuant to such offer prior to the termination, recission or completion thereof
shall automatically be reconverted into Special Common Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Special Common Stock shall be convertible in
accordance with the terms of this paragraph 6 at the office of any transfer agent
for the Special Common Stock and at such other place or places, if any, as the
Board of Directors of the Corporation may designate or, if the Board of Directors
shall fail to so designate, the principal office of the Corporation (attention of the
Secretary of the Corporation). Upon conversion, the Corporation shall make no
payment or adjustment on account of dividends accrued or in arrears on Special
Common Stock surrendered for conversion or on account of any dividends on the
Common Stock issuable on such conversion. Before any holder of Special
Common Stock shall be entitled to convert the same into Common Stock, such
holder shall surrender the certificate or certificates for such Special Common
Stock at the office of said transfer agent (or other place as provided above), which
certificate or certificates, if the Corporation shall so request, shall be duly
endorsed to the Corporation or in blank or accompanied by proper instruments of
transfer to the Corporation or in blank (such endorsements or instruments of
transfer to be in form satisfactory to the Corporation), and shall give written
notice to the Corporation at said office that such holder elects to convert such
Special Common Stock in accordance with the terms of this paragraph 6 and such
holder shall state in writing therein the name or names of the person or persons
making the offer entitling such holder to convert his Special Common Stock.
The Corporation will, as soon as practicable after such deposit of a certificate or
certificates for Special Common Stock accompanied by the written notice and the
statement above prescribed, issue and deliver at the office of said transfer agent
(or other place as provided above) to the person for whose account such Special
Common Stock was so surrendered, or to his nominee or nominees, a certificate
or certificates for the number of shares of Common Stock to which he shall be
entitled as aforesaid, provided that until such certificate or certificates shall be
transferred to the person or persons identified in the statement above prescribed or
the nominee or nominees of such person, such certificate or certificates shall bear
a legend substantially to the effect of the last sentence of the foregoing
subparagraph (A). Subject to the provisions of subparagraph (D)&nbsp;of this
paragraph 6, such conversion shall be deemed to have been made as of the date of
such surrender of the Special Common Stock to be converted; and the person or
persons entitled to receive the Common Stock issuable upon conversion of such
Special Common Stock shall be treated for all purposes as the record holder or
holders of such Common Stock on such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;The issuance of certificates for shares of Common
Stock upon conversion of shares of Special Common Stock shall be made without charge for any stamp
or other similar tax in respect of such issuance. However, if any such certificate is to be issued
in a name other than that of the holder of the
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">share or shares of Special Common Stock converted, the person or persons requesting the issuance
thereof shall pay to the Corporation the amount of any tax which may be payable in respect of any
transfer involved in such issuance or shall establish to the satisfaction of the Corporation that
such tax has been paid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;The Corporation shall not be required to convert
Special Common Stock, and no surrender of Special Common Stock shall be
effective for that purpose, while the stock transfer books of the Corporation are
closed for any purpose; but the surrender of Special Common Stock for
conversion during any period while such books are so closed shall be deemed
effective for conversion immediately upon the reopening of such books, as if the
conversion had been made on the date such Special Common Stock was
surrendered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;The Corporation will at all times reserve and keep
available, solely for the purpose of issue upon conversion of the outstanding
 shares of Special Common Stock, such number of shares of Common Stock as
shall be issuable upon the conversion of all such outstanding shares, provided that
nothing contained herein shall be construed to preclude the Corporation from
satisfying its obligations in respect of the conversion of the outstanding shares of
Special Common Stock by delivery of shares of Common Stock which are held in
the treasury of the Corporation. The Corporation covenants that all shares of
Common Stock which shall be issued upon conversion of the shares of Special
Common Stock, will, upon issue, be fully paid and nonassessable and not entitled
to any preemptive rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Preferred Stock may be issued from time to time in one or more series with such
distinctive designations as may be stated in the resolution or resolutions providing for the issue
of such stock from time to time adopted by the Board of Directors. The resolution or resolutions
providing for the issue of shares of a particular series shall fix, subject to applicable laws and
provisions of this Article&nbsp;FOURTH, the designation, rights, preferences and limitations of the
shares of each such series. The authority of the Board of Directors in respect to each series shall
include, but not limited to, determination of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the consideration for which such Preferred Stock shall be issued;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the number of shares constituting such series,
including the authority to increase or decrease such number, and the distinctive designation of
such series;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the dividend rate of the shares of such series,
whether the dividends shall be cumulative and, if so, the date from which they shall be cumulative,
and the relative rights of priority, if any, of payment of dividends on shares of such series;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the right, if any, of the Corporation to redeem shares of such series and the
terms and conditions of such redemption;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;the rights of the shares in case of a voluntary or involuntary liquidation,
dissolution or winding up of the Corporation, and the relative rights of priority, if any, of
payment of shares of such series;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;the obligation, if any, of the Corporation to retire
shares of such series pursuant to a retirement or sinking fund or funds of a similar nature or
otherwise and the terms and conditions of such obligations;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;the terms and conditions, if any, upon which shares of such series shall be
convertible into or exchangeable for shares of stock of any other class or classes, including the
price or prices or the rate or rates of conversion of exchange and the terms of adjustment, if any;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;the voting rights and requirements, if any, of the shares of such series, in
addition to any voting rights required by law; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;any other rights, preferences or limitations of shares of such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No holder of any of the shares of any class or series of stock or of options,
warrants or other rights to purchase shares of any class or series of stock or other securities of
the Corporation shall have any preemptive right to purchase or subscribe for any unissued stock or
security of any class or series or any additional shares of any class or series to be issued by
reason of increase in the authorized capital stock of the Corporation of any class or series,
bonds, certificates of indebtedness, debentures or other securities convertible into or
exchangeable for stock of the Corporation of any class or series. However, any such unissued stock,
additional authorized issue of shares of any class or series of stock or securities convertible
into or exchangeable for stock or carrying any right to purchase stock, may be issued and disposed
of pursuant to resolution of the Board of Directors to such Persons, whether such holders or
others, and upon such terms as may be deemed advisable by the Board of Directors in the exercise of
its sole discretion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The business and affairs of the Corporation shall be
managed by or under the direction of a Board of Directors consisting of not less
than three nor more than twelve directors, the exact number of directors to be
fixed in the Bylaws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;There shall be no cumulative voting in the election of
directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as provided herein or in the Corporation&#146;s Bylaws,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">or as permitted by the General Corporation Law of the State of Delaware, the directors shall be
elected at each annual meeting of stockholders. Each director so elected shall hold office until
his or her term expires and his or her successor is duly elected and qualified, or until his or her
earlier death, resignation or removal. After the annual meeting of stockholders in 2007, all
directors will be elected for a one-year term expiring at the next annual meeting of stockholders;
provided, that nothing in this paragraph (c)&nbsp;of Article&nbsp;Fifth will shorten the term of any director
elected at or prior to the annual meeting of stockholders in 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIXTH: The following provisions are inserted for the management of the business and the
conduct of the affairs of the Corporation and for the further definition of the powers of the
Corporation and of its directors and stockholders:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The directors shall have concurrent power with the
stockholders to adopt, amend or repeal the Bylaws of the Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Elections of directors need not be by written ballot unless
the Bylaws of the Corporation so provide.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the full extent permitted by the General Corporation
Law of the State of Delaware, as the same exists or may hereafter be amended, a
director of this Corporation shall not be liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director. No
amendment or repeal of this paragraph shall affect the liability of any director of
the Corporation with respect to, arising out of or related to any event that occurred
prior to such amendment or repeal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Corporation shall indemnify its directors and officers
and may indemnify any other employees or agents, in each case, to the full extent
permitted by the General Corporation Law of the State of Delaware, as the same
exists or may hereafter be amended. No amendment or repeal of this paragraph
shall affect the obligations of the Corporation to indemnify any director or officer
of the Corporation with respect to, arising out of or related to any event that
occurred prior to such amendment or repeal.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Corporation shall have power to purchase and maintain
insurance on behalf of any person who is or was a director, officer, employee or
agent of the Corporation, or is or was serving at the request of the Corporation as
a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against him and
incurred by him in any such capacity or arising out of his status as such, whether
or not the Corporation would have the power to indemnify him against any such
liability under the provisions of the General Corporation Law of the State of
Delaware, as the same exists or may hereafter be amended.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Special meetings of stockholders may be called only by the Board of Directors or the
Chairman of the Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVENTH: No action required or permitted to be taken at an Annual Meeting of stockholders or
at a special meeting of stockholders may be taken without a meeting. The power of stockholders to
consent in writing, without a meeting, to the taking of any action is expressly denied hereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EIGHTH: The Corporation shall be governed by the provisions of Section&nbsp;203 of the General
Corporation Law of the State of Delaware, as such section may be amended from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH: The Corporation reserves the right to amend this Restated Certificate of Incorporation
in any manner permitted by the General Corporation Law of the State of Delaware, as the same exists
or may hereafter be amended and all rights and powers conferred upon stockholders, directors and
officers herein are granted subject to this reservation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>said Corporation has caused this certificate to be executed by an
authorized officer on the 5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of April, 2007.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Tony Richelieu
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Tony Richelieu
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assistant Corporate Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTIFICATE OF DESIGNATION<BR>
OF<BR>
SERIES A PARTICIPATING<BR>
CUMULATIVE PREFERRED STOCK<BR>
OF<BR>
KB HOME</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Pursuant to Section&nbsp;151 of the<BR>
General Corporation Law of the<BR>
State of Delaware

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We, Jeffrey T. Mezger, President, and Wendy C. Shiba, Secretary, of KB Home
(the <I><b>&#147;Corporation&#148;</b>), </I>organized and existing under the General Corporation Law of
the State of Delaware, in accordance with the provisions of Section&nbsp;103 thereof, DO
HEREBY CERTIFY:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: Pursuant to the authority conferred upon the Board of Directors by
Article&nbsp;FOURTH of the Restated Certificate of Incorporation of the Corporation, the
Board of Directors at a meeting held on January&nbsp;22, 2009 adopted the following
resolutions authorizing the creation of a series of up to 2,900,000 shares of
Preferred Stock designated as Series&nbsp;A Participating Cumulative Preferred Stock
with such voting, dividend, liquidation and other rights, preferences and terms and
limitations substantially as set forth below, which resolutions are in full force
and effect on the date hereof:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED, that pursuant to the authority vested in the Board of Directors of
this Corporation in accordance with the provisions of its Restated Certificate of
Incorporation, a series of Preferred Stock of the Corporation be and it hereby is
created, and that the designation and amount thereof and the voting powers,
preferences and relative, participating, optional and other special rights of the
shares of such series, and the qualifications, limitations or restrictions thereof
are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.
<U>Designation and Amount</U>. There shall be a series of
Preferred Stock designated as &#147;Series&nbsp;A Participating Cumulative Preferred
Stock&#148; (the <B><I>&#147;Rights Preferred Stock&#148;</I></B><I>) </I>and the initial number of shares
constituting such series shall be 2,900,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.
<U>Rank</U>. The Rights Preferred Stock shall, with respect
to dividend rights and rights on liquidation, winding up and dissolution, rank
prior to all classes of common stock of the Corporation. The Rights Preferred
Stock shall rank junior with respect to payment of dividends and on liquidation to
all other series of the Corporation&#146;s Preferred Stock outstanding on the date
hereof and to all such other series that specifically provide that they shall rank
senior to the Rights Preferred Stock. Each share of the Rights Preferred Stock
shall rank equally in all respects. All equity securities of the Corporation to
which the Rights Preferred Stock ranks or shall rank prior (whether with respect
to dividends or upon liquidation, dissolution, winding up or otherwise), including
the Common Stock, $1.00 par value per share (the <I><B>&#147;Common Stock&#148;</B></I>), and the Special
Common Stock, $1.00 par value per share, of the Corporation are collectively
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">referred
to herein as the <I><b>&#147;Junior Securities&#148;</b></I> All equity securities of the Corporation with which
the Rights Preferred Stock ranks or shall rank on a parity (whether with respect to dividends or
upon liquidation, dissolution, winding up or otherwise) are collectively referred to herein as the
<I><b>&#147;Parity Securities.&#148;</b></I>  All equity securities of the Corporation to which the Rights Preferred Stock
ranks or shall rank junior (whether with respect to dividends or upon liquidation, dissolution,
winding up or otherwise) are collectively referred to herein as the <I><b>&#147;Senior Securities.&#148;</b></I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.
<U>Dividends and Distributions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;Subject to the prior and superior rights of the holders of any Senior Securities, the
holders of shares of Rights Preferred Stock, in preference to the shares of Common Stock and any
other Junior Securities shall be entitled to receive, when, as and if declared by the Board of
Directors, out of funds at the time legally available for payment of dividends, quarterly dividends
payable in cash on March&nbsp;31, June&nbsp;30, September&nbsp;30 and December&nbsp;31 (each, a <B><I>&#147;Quarterly Dividend
Payment Date&#148;</I></B><I>) </I>in each year (unless any such day is not a business day, in which event on the next
succeeding business day), commencing on the first Quarterly Dividend Payment Date after the first
issuance of a share or fraction of a share of Rights Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to the greater of (a) $1.00 or, (b)&nbsp;subject to the provision
for adjustment hereinafter set forth, 100 times the aggregate per share amount of all cash
dividends and 100 times the aggregate per share amount (payable in kind) of all non-cash dividends
or other distributions other than a dividend payable in shares of Common Stock or a subdivision of
the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common
Stock, since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share
of Rights Preferred Stock. If the Corporation shall at any time (i)&nbsp;declare any dividend on Common
Stock payable in shares of Common Stock, (ii)&nbsp;subdivide the outstanding Common Stock, or (iii)
combine the outstanding Common Stock into a smaller number of shares, then in each such case the
amount to which holders of shares of Rights Preferred Stock were entitled immediately prior to such
event under clause (b)&nbsp;of the preceding sentence shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;The Corporation shall declare a dividend or distribution on the Rights Preferred Stock as
provided in paragraph (A)&nbsp;above immediately after it declares a dividend or distribution on the
Common Stock (other than a dividend payable in shares of Common Stock); provided that, if no
dividend or distribution shall have been declared on the Common Stock during the period between any
Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend
of $1.00 per share on the Rights Preferred Stock shall nevertheless be payable on such subsequent
Quarterly Dividend Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;Dividends shall begin to accrue and be cumulative on outstanding shares of Rights
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such
shares of Rights Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue and be cumulative from the date of issue of such shares, or unless the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the
determination of holders of shares of Rights Preferred Stock entitled to receive a quarterly
dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends
shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Dividends in
arrears may be declared and paid at any time without reference to any regular Quarterly Dividend
Payment Date. Each dividend shall be paid to the holders of record of shares of the Rights
Preferred Stock as they appear on the stock books of the Corporation on such date, not more than 60
nor less than 10&nbsp;days preceding the payment date thereof, as may be fixed by the Board of Directors
or a duly authorized committee thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;The Corporation shall not declare, pay or set apart for payment any dividend on any Junior
Securities or make any distribution in respect thereof, either directly or indirectly, in cash,
obligations or shares of the Corporation or other property (all such dividends and distributions
being hereinafter referred to as <B><I>&#147;Junior Securities Distributions&#148;</I></B><I>) </I>unless all accrued and unpaid
cumulative dividends or other dividends or distributions have been paid or declared and set apart
for payment on or in respect of the Rights Preferred Stock through the then most recent Quarterly
Dividend Payment Date. As long as any dividend on the Rights Preferred Stock is in arrears, the
Corporation shall not, and shall not permit any corporation or other entity directly or indirectly
controlled by the Corporation to, redeem, purchase or otherwise acquire for value any Junior
Securities or make any payment on account of or set apart for payment money for a sinking or other
similar fund for the purchase, redemption or other retirement of, any Junior Securities.
Notwithstanding the foregoing, this Section&nbsp;3(D) shall not prohibit the payment or declaration and
setting aside of a dividend payable solely in shares of Junior Securities or a redemption, purchase
or acquisition of Junior Securities solely with shares of Junior Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;The corporation shall not declare, pay or set apart for payment by the Corporation any
full dividend on any Parity Securities for any period unless and until all accrued and unpaid
cumulative dividends have been or contemporaneously are declared and paid or declared and a sum set
apart sufficient for such payment on the Rights Preferred Stock through the then most recent
Quarterly Dividend Payment Date. If any dividend is not paid in full upon the shares of the Rights
Preferred Stock, the Corporation shall not declare, pay or set apart for payment any dividend on
any Parity Securities or make any distribution in respect thereof, either directly or indirectly,
in cash, obligations or shares of the Corporation or other property (all such dividends and
distributions being hereinafter referred to as <B><I>&#147;Parity Securities Distributions&#148;</I></B><I>) </I>unless dividends
and distributions are declared and paid on the Exchangeable Preferred Stock pro rata with any
Parity Securities Distribution declared and paid on any Parity Securities so that the amount of
dividends and distributions declared and paid per share of the Rights Preferred Stock and such
Parity Securities shall in all cases bear to each other the same ratio that accrued dividends per
share on the Rights Preferred Stock and the Parity Securities bear to each other. Any dividend or
distribution paid on the shares of Rights Preferred Stock shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;Except as otherwise provided in Section&nbsp;3(D), as long as any dividend on the Rights
Preferred Stock is in arrears, the Corporation shall not, and shall not permit any corporation or
other entity directly or indirectly controlled by the Corporation to, redeem, purchase or otherwise
acquire for value any Rights Preferred Stock or Parity Securities or make
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">any payment on account of or set apart for payment money for a sinking or other similar fund for
the purchase, redemption or other retirement of, any Rights Preferred Stock or Parity Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;No interest, or sum of money in lieu of interest, shall be payable in respect of any
dividend payment or any other payment in respect of the Rights Preferred Stock or any Parity
Securities which may be in arrears.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>No Redemption.</U> The shares of Rights Preferred Stock shall not
be redeemable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Liquidation or Dissolution.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, the holders of Rights Preferred Stock then outstanding shall be entitled to receive an
aggregate amount per share, subject to the provision for adjustment hereinafter set forth and
subject to any greater amount as may be provided in Section&nbsp;5(B) hereof, equal to 100 times the
aggregate amount to be distributed per share to holders of Common Stock. If the Corporation shall
at any time declare or pay any dividend on Common Stock payable in shares of Common Stock, or
effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to
which holders of shares of Rights Preferred Stock were entitled immediately prior to such event
under the preceding sentence shall be adjusted by multiplying such amount by a fraction the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event. After the payment to the holders of shares of the Rights Preferred
Stock of the full preferential amounts provided for in this Section&nbsp;5(A) and in Section&nbsp;5(B), the
holders of the Rights Preferred Stock as such shall have no right or claim to any of the remaining
assets of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;Before any payment shall be made to the holders of any Junior Securities, in the event of
any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders
of Rights Preferred Stock then outstanding shall be entitled to be paid out of the assets of the
Corporation available for distribution to its stockholders, an amount equal to $100.00 per share
(plus an amount equal to unpaid cumulative dividends thereon accrued to the date of liquidation,
dissolution or winding up, whether or not declared and whether or not such date is a regular
quarterly dividend payment date), without interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;A merger or consolidation of the Corporation with or into any other corporation or a
voluntary sale, exchange, transfer or conveyance of all or any part of the assets of the
Corporation (which shall not in fact result in the liquidation of the Corporation and the
distribution of assets to stockholders) shall not be deemed to be a voluntary or involuntary
liquidation or dissolution or winding up of the Corporation within the meaning of this Section&nbsp;5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;If the assets of the Corporation available for distribution to the holders of shares of
the Rights Preferred Stock upon any dissolution, liquidation or winding up of the Corporation,
whether voluntary or involuntary, shall be insufficient to pay in full all amounts to which such
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">holders are entitled pursuant to Sections&nbsp;5(A) and 5(B) above, no such distribution shall be made
on account of any Parity Securities upon such dissolution, liquidation or winding up unless amounts
shall be paid on account of the shares of Rights Preferred Stock pro rata in proportion to the full
amounts to which holders of all the Rights Preferred Stock and such Parity Securities are
respectively entitled upon such dissolution, liquidation or winding up.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>No Sinking Fund.</U> The shares of Rights Preferred Stock shall not
be subject to the operation of a purchase, retirement or sinking fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Voting Rights.</U> In addition to any other voting rights required by
law, the holders of shares of Rights Preferred Stock shall have the following voting rights:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;Subject to the provision for adjustment set forth in this Section&nbsp;7(A), holders of Rights
Preferred Stock shall be entitled to 100 votes per share with respect to all matters submitted to a
vote of the holders of the Common Stock as well as with any other class or series of stock of the
Corporation then having the right to vote with the Common Stock concerning any matter being voted
upon by holders of the Common Stock. If the Corporation shall at any time (i)&nbsp;declare any dividend
on Common Stock payable in shares of Common Stock, (ii)&nbsp;subdivide the outstanding Common Stock, or
(iii)&nbsp;combine the outstanding Common Stock into a smaller number of shares, then in each such case
the number of votes per share to which holders of shares of Rights Preferred Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of shares of Rights Preferred Stock, holders of shares of Common Stock and holders of
shares of such other series or class of stock shall vote together as one class except as provided
in this Section&nbsp;7 and the Certificate of Incorporation of the Corporation and as provided by law.
Shares of the Rights Preferred Stock shall at no time be entitled, as a series, class or otherwise,
to cumulate their votes in the election of directors or be entitled to any additional, other or
special or restrictive voting rights of any kind whatsoever, except as provided in this Section&nbsp;7
and as provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;If at any time cumulative dividends on the outstanding shares of Rights Preferred Stock
shall be accrued and unpaid in an aggregate amount per share equal to or exceeding six quarterly
dividends thereon, then the number of directors constituting the Board of Directors without further
action shall be increased by two, and the holders of shares of Rights Preferred Stock voting
separately as a class together with holders of all other shares of Preferred Stock of the
Corporation that are either Senior Securities or Parity Securities and that have substantially
similar voting rights with respect to the election of directors which have fully vested by the
terms of such stock as a result of the occurrence of substantially similar or greater arrearages of
dividends (such other series of Preferred Stock being herein referred to as <B><I>&#147;Other Voting Preferred
Stock&#148;</I></B><I>), </I>shall thereupon have the right (exercisable only at the time, in the manner and subject to
the conditions and during the period hereinafter stated) to elect two members of the Board of
Directors, the remaining directors to be elected by the class or classes of stock entitled to vote
therefor, including the Rights Preferred Stock, at each meeting of stockholders held for the
purpose of electing directors. Each share of Rights Preferred Stock and Other Voting
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Preferred Stock shall have one vote per share with respect to the election of directors pursuant to
this Section&nbsp;7(B).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;Whenever the voting right described in Section&nbsp;7(B) shall have vested, such right may be
exercised initially either at a special meeting of the holders of Rights Preferred Stock and Other
Voting Preferred Stock, called as hereinafter provided, or at any annual meeting of stockholders
held for the purpose of electing directors, and thereafter at such annual meetings. Such voting
right shall continue until such time as all accrued dividends on the Rights Preferred Stock shall
have been paid in full at which time such voting right of the holders of Rights Preferred Stock
shall terminate, subject to revesting in the event of each and every subsequent failure of the
Corporation of the character described in Section&nbsp;7(B).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;At any time when the voting right described in Section&nbsp;7(B) shall have vested in the
holders of Rights Preferred Stock and if such right shall not already have been exercised in full
by Other Voting Preferred Stock, a proper officer of the Corporation shall, upon the written
request of any holder of record of Rights Preferred Stock then outstanding, addressed to the
Secretary of the Corporation, call a special meeting of holders of Rights Preferred Stock and
holders of Other Voting Preferred Stock. Such meeting shall be held at the earliest practicable
date upon the notice required for annual meetings of stockholders at the place for holding annual
meetings of stockholders of the Corporation or, if none, at a place designated by the Secretary of
the Corporation. If such meeting shall not be called by the proper officer of the Corporation
within 30&nbsp;days after the personal service of such written request upon the Secretary of the
Corporation, or within 30&nbsp;days after mailing the same within the United States, by registered mail,
addressed to the Secretary of the Corporation at its principal office (such mailing to be evidenced
by the registry receipt issued by the postal authorities), then the holders of record of 10% of the
shares of Rights Preferred Stock then outstanding may designate in writing any holder of such stock
to call such meeting at the expense of the Corporation, and such meeting may be called by such
person so designated upon the notice required for annual meetings of stockholders and shall be held
at the same place as is elsewhere provided in this Section&nbsp;7(D). Any holder of Rights Preferred
Stock which would be entitled to vote at such meeting shall have access to the stock books of the
Corporation for the purpose of causing a meeting of holders of shares of Rights Preferred Stock and
Other Voting Preferred Stock to be called pursuant to the provisions of this Section&nbsp;7(D).
Notwithstanding the provisions of this Section&nbsp;7(D), however, no such special meeting shall be
called during a period within 90&nbsp;days immediately preceding the date fixed for the next annual
meeting of stockholders. Holders of Rights Preferred Stock shall be entitled to receive notice of,
participate in and vote at any meeting of holders of Other Voting Preferred Stock with respect to
the election of directors to the same extent as provided in Sections&nbsp;7(B) through 7(G).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;At any meeting held for the purpose of electing directors at which the holders of Rights
Preferred Stock shall have the right, voting together as a class with holders of shares of Other
Voting Preferred Stock, to elect directors as provided in Section&nbsp;7(B), the presence in person or
by proxy of the holders of at least 10% of the then outstanding aggregate number of shares of
Rights Preferred Stock and Other Voting Preferred Stock shall be required and be sufficient to
constitute a quorum of such class for the election of directors by such class. At any such meeting
or adjournment thereof (i)&nbsp;the absence of a quorum of the holders of shares of Rights Preferred
Stock and Other Voting Preferred Stock shall not prevent the election of
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">directors other than those to be elected by the holders of stock of such class and the absence of a
quorum or quorums of the holders of capital stock entitled to elect such other directors shall not
prevent the election of directors to be elected by the holders of shares of Rights Preferred Stock
and, if applicable, Other Voting Preferred Stock and (ii)&nbsp;in the absence of a quorum of the holders
of any class of stock entitled to vote for the election of directors, a majority of the holders
present in person or by proxy of such class shall have the power to adjourn the meeting for the
election of directors which the holders of such class are entitled to elect, from time to time,
without notice (except as required by law) other than announcement at the meeting, until a quorum
shall be present.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;The term of office of all directors elected by the holders of shares of Rights Preferred
Stock and Other Voting Preferred Stock pursuant to Section&nbsp;7(B) or such substantially similar
provisions of Other Voting Preferred Stock who are in office at any time when the voting right
described in Section&nbsp;7(B) is vested in the holders of Rights Preferred Stock shall terminate upon
the election of their successors at any meeting of holders of Rights Preferred Stock and, if
applicable, Other Voting Preferred Stock for the purpose of electing directors. Except to the
extent otherwise provided by the terms of the Other Voting Preferred Stock, upon any termination of
such voting rights in accordance with <BR>Section&nbsp;7(C), the term of office of all directors elected
pursuant to Section&nbsp;7(B) then in office shall thereupon terminate and upon such termination the
number of directors constituting the Board of Directors shall, without further action, be reduced
by two, subject always to the increase of the number of directors pursuant to Section&nbsp;7(B) in case
of the future right of the holders of Rights Preferred Stock to elect directors as provided
therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;In case of any vacancy occurring among the directors elected pursuant to Section&nbsp;7(B), the
remaining director who shall have been so elected may appoint a successor to hold office for the
unexpired term of the director whose place shall be vacant. If both directors so elected shall
cease to serve as directors before their terms shall expire, the holders of shares of Rights
Preferred Stock and shares of any Other Voting Preferred Stock then outstanding may, at a special
meeting of the holders called as provided above, elect successors to hold office for the unexpired
terms of such directors whose places shall be vacant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Consolidation, Merger, etc.</U> In case the Corporation shall enter into
any consolidation, merger, combination or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or securities, cash and/or any other property, then in
any such case the shares of Rights Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share (subject to the provision for adjustment hereinafter set forth)
equal to 100 times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of Common Stock is
changed or exchanged. If the Corporation shall at any time (i)&nbsp;declare any dividend on Common Stock
payable in shares of Common Stock, (ii)&nbsp;subdivide the outstanding Common Stock, or (iii)&nbsp;combine
the outstanding Common Stock into a smaller number of shares, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of shares of Rights
Preferred Stock shall be adjusted by multiplying such amount by a fraction the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Reacquired Shares.</U> Shares of Rights Preferred Stock which have been
issued and reacquired in any manner, including shares purchased, shall be retired and cancelled
promptly after the acquisition thereof. All such shares shall upon their cancellation and upon
compliance with any applicable provisions of the laws of the State of Delaware have the status of
authorized and unissued shares of Preferred Stock of the Corporation undesignated as to series and
may be redesignated and reissued as part of any series of Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Notice of Certain Actions.</U> If the Corporation consolidates or merges
with, or transfers all or substantially all of its assets to, another corporation, and stockholders
of the Corporation must approve the transaction or there is a dissolution or liquidation of the
Corporation, then the corporation shall mail to holders of the Rights Preferred Stock a notice
stating the proposed record date or, in the case of transactions for which no record date need be
determined, the effective date. The Corporation shall mail the notice at least 10&nbsp;days before such
date. Failure to mail the notice or any defect in such notice shall not affect the validity of any
transaction referred to in this Section&nbsp;10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>No Implied Limitations.</U> Except as otherwise provided by express
provisions of this Certificate of Designation, nothing herein shall limit, by inference or
otherwise, the discretionary right of the Board of Directors to classify and reclassify and issue
any shares of Preferred Stock and to fix or alter all terms thereof to the full extent provided in
the Certificate of Incorporation of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>General Certificate of Incorporation Provisions.</U> In addition to the
above provisions with respect to the Rights Preferred Stock, such Rights Preferred Stock shall be
subject to, and shall be entitled to the benefits of, the provisions set forth in the Corporation&#146;s
Certificate of Incorporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13. <U>Amendments.</U> So long as any shares of the Rights Preferred Stock are
outstanding, the Corporation shall not without the written consent or the affirmative vote of
holders of at least a majority of the Rights Preferred Stock at the time outstanding amend or
change any terms of the Rights Preferred Stock or other provisions of the Certificate of
Incorporation (by merger or otherwise) so as to affect materially and adversely the Rights
Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;14. <U>Fractional Shares.</U> Rights Preferred Stock may be issued in fractions
of a share which shall entitle the holder, in proportion to such holder&#146;s fractional shares, to
exercise voting rights, receive dividends, participate in distributions and to have the benefit of
all other rights of holders of Rights Preferred Stock.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designation to
be signed in its name and on its behalf on this 22<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> day of January, 2009 by
an officer of the Corporation who acknowledges that this Certificate of Designation is
the act of the Corporation and that to the best of his knowledge, information and belief
and under penalties for perjury, all matters and facts contained in this Certificate of
Designation with respect to authorization and approval thereof are true in all material
respects.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">KB HOME<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                                           /s/ Jeffrey T. Mezger
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Jeffrey T. Mezger&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Attest:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top" colspan="3">/s/ Wendy C. Shiba
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wendy C. Shiba</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President, General</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counsel and Corporate Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STATE OF DELAWARE<BR>
CERTIFICATE OF AMENDMENT<BR>
OF RESTATED CERTIFICATE OF INCORPORATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Corporation organized and existing under and by virtue of the General Corporation Law
of the State of Delaware does hereby certify:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>FIRST: </B>That at a meeting of the Board of Directors of KB Home resolutions were duly
adopted setting forth a proposed amendment to the Certificate of Incorporation of said
corporation, declaring said amendment to be advisable and calling a meeting of the
stockholders of said corporation for consideration thereof. The resolutions setting forth
the proposed amendment is as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED, that in accordance with Section&nbsp;242 of the General Corporation Law
of the State of Delaware, the Board of Directors hereby declares that the
proposed amendment to the Restated Certificate of Incorporation set forth below
is advisable, and directs that it be submitted to the Corporation&#146;s stockholders
for consideration at the 2009 Annual Meeting of Stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Restated Certificate of Incorporation of the Corporation shall be amended by
making the existing Article&nbsp;Ninth a new Article&nbsp;Tenth and replacing it with the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;NINTH: The following provisions provide for certain restrictions on
transfers of Common Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Definitions. As used in this Article&nbsp;Ninth, the following capitalized terms
have the following meanings when used herein with initial capital letters (and any
references to any portions of Treasury Regulation &#167; 1.382-2T shall include any successor
provisions):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &#147;5-percent Transaction&#148; means any Transfer described in paragraph (1)
or paragraph (2)&nbsp;of section (b)&nbsp;of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &#147;5-percent Stockholder&#148; means a Person or group of Persons that is a &#147;5-percent shareholder&#148; of the Corporation pursuant to Treasury Regulation &#167;
1.382-2T(g).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) &#147;Agent&#148; has the meaning set forth in section (e)&nbsp;of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) &#147;Code&#148; means the United States Internal Revenue Code of 1986, as
amended from time to time, and the rulings issued thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) &#147;Common Stock&#148; means any interest in Common Stock that would be
treated as &#147;stock&#148; of the Corporation pursuant to Treasury Regulation &#167;
1.382-2T(f)(18).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) &#147;Corporation Security&#148; or &#147;Corporation Securities&#148; means (A)&nbsp;shares of
Common Stock, (B)&nbsp;shares of Special Common Stock, (C)&nbsp;shares of Preferred Stock
(other than
preferred stock described in Section&nbsp;1504(a)(4) of the Code), (D)&nbsp;warrants, rights,
or options
(including options within the meaning of Treasury Regulation &#167; 1.382-2T(h)(4)(v)) to
purchase
Securities of the Corporation, and (E)&nbsp;any Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) &#147;Effective Date&#148; means the date of filing of this Certificate of
Amendment of Restated Certificate of Incorporation of the Corporation with the
Secretary of
State of the State of Delaware.
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) &#147;Excess Securities&#148; has the meaning given to such term in paragraph (1)
of section (d)&nbsp;of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) &#147;Expiration Date&#148; means the earliest of (A)&nbsp;the time at which
Section&nbsp;382 of the Code or any successor statute is repealed, if the Board of Directors determines
that this Article&nbsp;Ninth is no longer necessary for the preservation of Tax Benefits, (B)&nbsp;the first
day of a taxable year of the Corporation to which the Board of Directors determines that no Tax
Benefits may be carried forward, or (C)&nbsp;such other date as the Board of Directors shall fix in
accordance with section (k)&nbsp;of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) &#147;Percentage Stock Ownership&#148; means the percentage Stock Ownership
interest of any Person or group (as the context may require) for purposes of Section&nbsp;382 of
the
Code, as determined in accordance with the Treasury Regulation &#167;&#167; 1.382-2T(g), (h), (j)&nbsp;and
(k)&nbsp;or any successor provision.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) &#147;Person&#148; means any individual, firm, corporation or other legal entity,
and includes any successor (by merger or otherwise) of such entity;
<U>provided</U>, <U>however</U>,
that a
Person shall not mean a Public Group.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) &#147;Pre-existing 5-percent Stockholder&#148; means (A)&nbsp;any Person that has filed
a Schedule&nbsp;13D or 13G with respect to the Common Stock on or before the Effective Date and
(B)&nbsp;any &#147;5-percent owner&#148; or &#147;higher tier entity&#148; of any Person described in the foregoing
clause (A)&nbsp;within the meaning of Treasury Regulation &#167;&#167; 1.382-2T(f)(10) and 1.382-2T(f)(14).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) &#147;Prohibited Distributions&#148; means any and all dividends or other
distributions paid by the Corporation with respect to any Excess Securities received by a
Purported Transferee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) &#147;Prohibited Transfer&#148; means any Transfer or purported Transfer of
Corporation Securities to the extent that such Transfer is prohibited and/or void under this
Article
Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) &#147;Public Group&#148; has the meaning set forth in Treasury Regulation
&#167; 1.382-2T(f)(13).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) &#147;Purported Transferee&#148; has the meaning set forth in paragraph (1)&nbsp;of
section (d)&nbsp;of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) &#147;Securities&#148; and &#147;Security&#148; each has the meaning set forth in section (g)
of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) &#147;Stock&#148; means any interest that would be treated as &#147;stock&#148; of the
Corporation pursuant to Treasury Regulation &#167; 1.382-2T(f)(18).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) &#147;Stock Ownership&#148; means any direct or indirect ownership of Stock,
including any ownership by virtue of application of constructive ownership rules, with such
direct, indirect and constructive ownership determined under the provisions of Section&nbsp;382 of
the
Code and the regulations thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) &#147;Tax Benefits&#148; means the net operating loss carryforwards, capital loss
carryforwards, general business credit carryforwards, alternative minimum tax credit
carryforwards and foreign tax credit carryforwards, as well as any loss or deduction
attributable
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">to a &#147;net unrealized built-in loss&#148; of the Corporation or any direct or indirect subsidiary
thereof, within the meaning of Section&nbsp;382 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) &#147;Transfer&#148; means, any direct or indirect sale, transfer, assignment,
conveyance, pledge or other disposition or other action taken by a Person, other than the
Corporation, that alters the Percentage Stock Ownership of any Person or group, including,
without limitation, the creation or grant of an option (including an option within the meaning
of
Treasury Regulation &#167; l.382-2T(h)(4)(v)), but shall not include (A)&nbsp;the creation or grant of
an
option by the Corporation, or (B)&nbsp;the issuance of Stock by the Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) &#147;Transferee&#148; means any Person to whom Corporation Securities are
Transferred.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) &#147;Treasury Regulations&#148; means the regulations, including temporary
regulations or any successor regulations promulgated under the Code, as amended from time to
time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Transfer And Ownership Restrictions. In order to preserve the Tax Benefits, from
and after the Effective Date of this Article&nbsp;Ninth, except as otherwise provided by section
(c)&nbsp;of
this Article&nbsp;Ninth, any attempted Transfer of Corporation Securities prior to the Expiration
Date
and any attempted Transfer of Corporation Securities pursuant to an agreement entered into
prior
to the Expiration Date, shall be prohibited and void <I>ab initio </I>(1)&nbsp;if the transferor is a
5-percent
Stockholder or (2)&nbsp;to the extent that, as a result of such Transfer (or any series of
Transfers of
which such Transfer is a part), either (A)&nbsp;any Person or group of Persons would become a 5-percent
Stockholder or (B)&nbsp;the Percentage Stock Ownership in the Corporation of any 5-percent
Stockholder would be increased.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Exceptions. (1)&nbsp;Notwithstanding anything to the contrary herein, if a Transfer
by (but not to) a Pre-existing 5-percent Stockholder otherwise would be prohibited by section
(b)
of this Article&nbsp;Ninth, such Transfer shall not be prohibited under section (b)&nbsp;if both of the
following conditions are met: (A)&nbsp;such Transfer does not increase the Percentage Stock
Ownership of any 5-percent Stockholder or create a new 5-percent Stockholder, in each case
other than a Public Group (including a new Public Group created under Treasury Regulation &#167;
1.382-2T(j)(3)(i)) and (B)&nbsp;the Stock that is the subject of the Transfer was acquired by such
Pre-existing 5-percent Stockholder prior to the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;The restrictions set forth in section (b)&nbsp;of this Article&nbsp;Ninth shall not apply to
an attempted Transfer that is a 5-percent Transaction if the transferor or the Transferee obtains
the written approval of the Board of Directors or a duly authorized committee thereof. As a
condition to granting its approval pursuant to this section (c), the Board of Directors, may, in
its discretion, require (at the expense of the transferor and/or transferee) an opinion of counsel
selected by the Board of Directors that the Transfer shall not result in the application of any
Section&nbsp;382 of the Code limitation on the use of the Tax Benefits; <U>provided</U> that the Board
may grant such approval notwithstanding the effect of such approval on the Tax Benefits if it
determines that the approval is in the best interests of the
Corporation. The Board of Directors
may impose any conditions that it deems reasonable and appropriate in connection with such
approval, including, without limitation, restrictions on the ability of any Transferee to Transfer
Stock acquired through a Transfer. Approvals of the Board of Directors hereunder may be given
prospectively or retroactively. The Board of Directors, to the fullest extent permitted by law, may
exercise the authority granted by this Article&nbsp;Ninth through duly authorized officers or agents of
the Corporation. Nothing in this section (c)&nbsp;shall be construed to limit or restrict the Board of
Directors in the exercise of its fiduciary duties under applicable law.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Excess Securities. (1)&nbsp;No employee or agent of the Corporation shall record any
Prohibited Transfer, and the purported transferee of such a Prohibited Transfer (the
&#147;Purported
Transferee&#148;) shall not be recognized as a stockholder of the Corporation for any purpose
whatsoever in respect of the Corporation Securities which are the subject of the Prohibited
Transfer (the &#147;Excess Securities&#148;). Until the Excess Securities are acquired by another Person
in a
Transfer that is not a Prohibited Transfer, the Purported Transferee shall not be entitled
with
respect to such Excess Securities to any rights of stockholders of the Corporation, including,
without limitation, the right to vote such Excess Securities and to receive dividends or
distributions, whether liquidating or otherwise, in respect thereof, if any, and the Excess
Securities shall be deemed to remain with the transferor unless and until the Excess
Securities are
transferred to the Agent pursuant to section (e)&nbsp;of this Article&nbsp;Ninth or until an approval is
obtained under section (c)&nbsp;of this Article&nbsp;Ninth. After the Excess Securities have been
acquired in
a Transfer that is not a Prohibited Transfer, the Corporation Securities shall cease to be
Excess
Securities. For this purpose, any Transfer of Excess Securities not in accordance with the
provisions of this section (d)&nbsp;or section (e)&nbsp;of this Article&nbsp;Ninth shall also be a Prohibited
Transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;The Corporation may require as a condition to the registration of the Transfer of
any Corporation Securities or the payment of any distribution on any Corporation Securities that
the proposed Transferee or payee furnish to the Corporation all information reasonably requested by
the Corporation with respect to all the direct or indirect ownership interests in such Corporation
Securities. The Corporation may make such arrangements or issue such instructions to its stock
transfer agent as may be determined by the Board of Directors to be necessary or advisable to
implement this Article&nbsp;Ninth, including, without limitation, authorizing such transfer agent to
require an affidavit from a Purported Transferee regarding such Person&#146;s actual and constructive
ownership of stock and other evidence that a Transfer will not be prohibited by this Article&nbsp;Ninth
as a condition to registering any transfer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Transfer to Agent. If the Board of Directors determines that a Transfer of
Corporation Securities constitutes a Prohibited Transfer then, upon written demand by the
Corporation sent within thirty days of the date on which the Board of Directors determines
that
the attempted Transfer would result in Excess Securities, the Purported Transferee shall
transfer
or cause to be transferred any certificate or other evidence of ownership of the Excess
Securities
within the Purported Transferee&#146;s possession or control, together with any Prohibited
Distributions, to an agent designated by the Board of Directors (the &#147;Agent&#148;). The Agent shall
thereupon sell to a buyer or buyers, which may include the Corporation, the Excess Securities
transferred to it in one or more arm&#146;s-length transactions (on the public securities market on
which such Excess Securities are traded, if possible, or otherwise privately); <U>provided</U>,
<U>however</U>,
that any such sale must not constitute a Prohibited Transfer and <U>provided</U>,
<U>further</U>, that the Agent
shall effect such sale or sales in a manner that would not disrupt the market for the
Corporation
Securities or otherwise would affect the value of the Corporation Securities. If the Purported
Transferee has resold the Excess Securities before receiving the Corporation&#146;s demand to
surrender Excess Securities to the Agent, the Purported Transferee shall be deemed to have
sold
the Excess Securities for the Agent, and shall be required to transfer to the Agent any
Prohibited
Distributions and proceeds of such sale, except to the extent that the Corporation grants
written
permission to the Purported Transferee to retain a portion of such sales proceeds not
exceeding
the amount that the Purported Transferee would have received from the Agent pursuant to
section (f)&nbsp;of this Article&nbsp;Ninth if the Agent rather than the Purported Transferee had resold
the
Excess Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Application of Proceeds and Prohibited Distributions. The Agent shall apply any
proceeds of a sale by it of Excess Securities and, if the Purported Transferee has previously
resold
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the Excess Securities, any amounts received by it from a Purported Transferee, together, in either
case, with any Prohibited Distributions, as follows: (1)&nbsp;first, such amounts shall be paid to the
Agent to the extent necessary to cover its costs and expenses incurred in connection with its
duties hereunder, (2)&nbsp;second, any remaining amounts shall be paid to the Purported Transferee, up
to the amount paid by the Purported Transferee for the Excess Securities (or the fair market value
at the time of the Transfer, in the event the purported Transfer of the Excess Securities was, in
whole or in part, a gift, inheritance or similar Transfer) which amount shall be determined at the
discretion of the Board of Directors, and (3)&nbsp;third, any remaining amounts shall be paid to one or
more organizations qualifying under section 501(c)(3) of the Code (or any comparable successor
provision) selected by the Board of Directors. The Purported Transferee of Excess Securities shall
have no claim, cause of action or any other recourse whatsoever against the Corporation. The
Purported Transferee&#146;s sole right with respect to such shares shall be limited to the amount
payable to the Purported Transferee pursuant to this section (f). In no event shall the proceeds of
any sale of Excess Securities pursuant to this section (f)&nbsp;inure to the benefit of the Corporation
or the Agent, except to the extent used to cover costs and expenses incurred by Agent in performing
its duties hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Modification of Remedies for Certain Indirect Transfers. In the event of any Transfer
which does not involve a transfer of securities of the Corporation within the meaning of Delaware
law (&#147;Securities,&#148; and individually, a &#147;Security&#148;) but which would cause a 5-percent Stockholder to
violate a restriction on Transfers provided for in this Article&nbsp;Ninth, the application of section
(e)&nbsp;and section (f)&nbsp;of this Article&nbsp;Ninth shall be modified as described in this section (g). In
such case, no such 5-percent Stockholder shall be required to dispose of any interest that is not a
Security, but such 5-percent Stockholder and/or any Person whose ownership of Securities is
attributed to such 5-percent Stockholder shall be deemed to have disposed of and shall be required
to dispose of sufficient Securities (which Securities shall be disposed of in the inverse order in
which they were acquired) to cause such 5-percent Stockholder, following such disposition, not to
be in violation of this Article&nbsp;Ninth. Such disposition shall be deemed to occur simultaneously
with the Transfer giving rise to the application of this provision, and such number of Securities
that are deemed to be disposed of shall be considered Excess Securities and shall be disposed of
through the Agent as provided in sections (e)&nbsp;and (f)&nbsp;of this Article&nbsp;Ninth, except that the
maximum aggregate amount payable either to such 5-percent Stockholder, or to such other Person that
was the direct holder of such Excess Securities, in connection with such sale shall be the fair
market value of such Excess Securities at the time of the purported
Transfer. All expenses incurred
by the Agent in disposing of such Excess Stock shall be paid out of any amounts due such 5-percent
Stockholder or such other Person. The purpose of this section (g)&nbsp;is to extend the restrictions in
sections (b)&nbsp;and (e)&nbsp;of this Article&nbsp;Ninth to situations in which there is a 5-percent Transaction
without a direct Transfer of Securities, and this section (g), along with the other provisions of
this Article&nbsp;Ninth, shall be interpreted to produce the same results, with differences as the
context requires, as a direct Transfer of Corporation Securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Legal Proceedings; Prompt Enforcement. If the Purported Transferee fails to surrender
the Excess Securities or the proceeds of a sale thereof to the Agent within thirty days from the
date on which the Corporation makes a written demand pursuant to section (e)&nbsp;of this Article&nbsp;Ninth
(whether or not made within the time specified in section (e)&nbsp;of this Article&nbsp;Ninth), then the
Corporation shall promptly take all actions which it believes are appropriate to enforce the
provisions hereof, including the institution of legal proceedings to compel the surrender. Nothing
in this section (h)&nbsp;shall: (1)&nbsp;be deemed inconsistent with any Transfer of the Excess Securities
provided in this Article&nbsp;Ninth being void <I>ab initio, </I>(2)&nbsp;preclude the Corporation in its discretion
from immediately bringing legal proceedings without a prior demand, or (3)&nbsp;cause any failure of the
Corporation to act within the time periods set forth in section (e)&nbsp;of this Article&nbsp;Ninth to
constitute a waiver or loss of any right of the Corporation under this Article&nbsp;Ninth. The
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Board of Directors may authorize such additional actions as it deems advisable to give effect to
the provisions of this Article&nbsp;Ninth.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Liability. To the fullest extent permitted by law, any stockholder subject to the
provisions of this Article&nbsp;Ninth who knowingly violates the provisions of this Article&nbsp;Ninth and
any Persons controlling, controlled by or under common control with such stockholder shall be
jointly and severally liable to the Corporation for, and shall indemnify and hold the Corporation
harmless against, any and all damages suffered as a result of such violation, including but not
limited to damages resulting from a reduction in, or elimination of, the Corporation&#146;s ability to
utilize its Tax Benefits, and attorneys&#146; and auditors&#146; fees incurred in connection with such
violation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Obligation to Provide Information. As a condition to the registration of the Transfer
of any Stock, any Person who is a beneficial, legal or record holder of Stock, and any proposed
Transferee and any Person controlling, controlled by or under common control with the proposed
Transferee, shall provide such information as the Corporation may request from time to time in
order to determine compliance with this Article&nbsp;Ninth or the status of the Tax Benefits of the
Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Legends. The Board of Directors may require that any certificates issued by the
Corporation evidencing ownership of shares of Stock that are subject to the restrictions on
transfer and ownership contained in this Article&nbsp;Ninth bear the following legend:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;THE RESTATED CERTIFICATE OF INCORPORATION, AS AMENDED (THE &#147;CERTIFICATE OF
INCORPORATION&#148;), OF THE CORPORATION CONTAINS RESTRICTIONS PROHIBITING THE TRANSFER
(AS DEFINED IN THE CERTIFICATE OF INCORPORATION) OF COMMON STOCK OF THE CORPORATION
(INCLUDING THE CREATION OR GRANT OF CERTAIN OPTIONS, RIGHTS AND WARRANTS) WITHOUT
THE PRIOR AUTHORIZATION OF THE BOARD OF DIRECTORS OF THE CORPORATION (THE &#147;BOARD OF
DIRECTORS&#148;) IF SUCH TRANSFER AFFECTS THE PERCENTAGE OF STOCK OF THE CORPORATION
(WITHIN THE MEANING OF SECTION 382 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE &#147;CODE&#148;) AND THE TREASURY REGULATIONS PROMULGATED THEREUNDER), THAT IS TREATED
AS OWNED BY A FIVE PERCENT SHAREHOLDER UNDER THE CODE AND SUCH REGULATIONS. IF THE
TRANSFER RESTRICTIONS ARE VIOLATED, THEN THE TRANSFER WILL BE VOID <I>AB INITIO </I>AND
THE PURPORTED TRANSFEREE OF THE STOCK WILL BE REQUIRED TO TRANSFER EXCESS
SECURITIES (AS DEFINED IN THE CERTIFICATE OF INCORPORATION) TO THE CORPORATION&#146;S
AGENT. IN THE EVENT OF A TRANSFER WHICH DOES NOT INVOLVE SECURITIES OF THE
CORPORATION WITHIN THE MEANING OF THE GENERAL CORPORATION LAW OF THE STATE OF
DELAWARE (&#147;SECURITIES&#148;) BUT WHICH WOULD VIOLATE THE TRANSFER RESTRICTIONS, THE
PURPORTED TRANSFEREE (OR THE RECORD OWNER) OF THE SECURITIES WILL BE REQUIRED TO
TRANSFER SUFFICIENT SECURITIES PURSUANT TO THE TERMS PROVIDED FOR IN THE
CERTIFICATE OF INCORPORATION TO CAUSE THE FIVE PERCENT STOCKHOLDER TO NO LONGER BE
IN VIOLATION OF THE TRANSFER RESTRICTIONS. THE CORPORATION WILL FURNISH WITHOUT
CHARGE TO THE HOLDER OF RECORD OF THIS
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">CERTIFICATE A COPY OF THE CERTIFICATE OF INCORPORATION, CONTAINING THE
ABOVE-REFERENCED TRANSFER RESTRICTIONS, UPON WRITTEN REQUEST TO THE CORPORATION AT
ITS PRINCIPAL PLACE OF BUSINESS.&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Board of Directors may also require that any certificates issued by the Corporation evidencing
ownership of shares of Stock that are subject to conditions imposed by the Board of Directors under
section (c)&nbsp;of this Article&nbsp;Ninth also bear a conspicuous legend referencing the applicable
restrictions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Authority of Board of Directors. (1)&nbsp;The Board of Directors shall have the power to
determine all matters necessary for assessing compliance with this Article&nbsp;Ninth, including,
without limitation, (A)&nbsp;the identification of 5-percent Stockholders, (B)&nbsp;whether a Transfer is a
5-percent Transaction or a Prohibited Transfer, (C)&nbsp;the Percentage Stock Ownership in the
Corporation of any 5-percent Stockholder, (D)&nbsp;whether an instrument constitutes a Corporation
Security, (E)&nbsp;the amount (or fair market value) due to a Purported Transferee pursuant to section
(f), and (F)&nbsp;any other matters which the Board of Directors determines to be relevant. The good
faith determination of the Board of Directors on such matters shall be conclusive and binding for
all the purposes of this Article&nbsp;Ninth. In addition, the Board of Directors may, to the extent
permitted by law, from time to time establish, modify, amend or rescind bylaws, regulations and
procedures of the Corporation not inconsistent with the provisions of this Article&nbsp;Ninth for
purposes of determining whether any Transfer of Corporation Securities would jeopardize the
Corporation&#146;s ability to preserve and use the Tax Benefits and for the orderly application,
administration and implementation of this Article&nbsp;Ninth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Nothing contained in this Article&nbsp;Ninth shall limit the authority of the
Board of Directors to take such other action to the extent permitted by law as it deems
necessary
or advisable to protect the Corporation and its stockholders in preserving the Tax Benefits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;In the case of an ambiguity in the application of any of the provisions of
this Article&nbsp;Ninth, including any definition used herein, the Board of Directors shall have
the
power to determine the application of such provisions with respect to any situation based on
its
reasonable belief, understanding or knowledge of the circumstances. In the event this Article
Ninth requires an action by the Board of Directors but fails to provide specific guidance with
respect to such action, the Board of Directors shall have the power to determine the action to
be
taken so long as such action is not contrary to the provisions of this Article&nbsp;Ninth. All such
actions, calculations, interpretations and determinations which are done or made by the Board
of
Directors in good faith shall be conclusive and binding on the Corporation, the Agent and all
other parties for all other purposes of this Article&nbsp;Ninth. The Board of Directors may
delegate all
or any portion of its duties and powers under this Article&nbsp;Ninth to a committee of the Board
of
Directors as it deems necessary or advisable and, to the fullest extent permitted by law, may
exercise the authority granted by this Article&nbsp;Ninth through duly authorized officers or
agents of
the Corporation. Nothing in this Article&nbsp;Ninth shall be construed to limit or restrict the
Board of
Directors in the exercise of its fiduciary duties under applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Reliance. To the fullest extent permitted by law, the Corporation and the directors
shall be fully protected in relying in good faith upon the information, opinions, reports or
statements of the chief executive officer, the chief financial officer, the chief accounting
officer or the corporate controller of the Corporation or of the Corporation&#146;s legal counsel,
independent auditors, transfer agent, investment bankers or other employees and agents in making
the determinations and findings contemplated by this Article&nbsp;Ninth, and the members of the Board of
Directors shall not be responsible for any good faith errors made in connection therewith. For
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt">purposes of determining the existence and identity of, and the amount of any Corporation Securities
owned by any stockholder, the Corporation is entitled to rely on the existence and absence of
filings of Schedule&nbsp;13D or 13G under the Securities and Exchange Act of 1934, as amended (or
similar filings), as of any date, subject to its actual knowledge of the ownership of Corporation
Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Benefits of This Article&nbsp;Ninth. Nothing in this Article&nbsp;Ninth shall be construed to
give to any Person other than the Corporation or the Agent any legal or equitable right, remedy or
claim under this Article&nbsp;Ninth. This Article&nbsp;Ninth shall be for the sole and exclusive benefit of
the Corporation and the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Severability. The purpose of this Article&nbsp;Ninth is to facilitate the Corporation&#146;s
ability to maintain or preserve its Tax Benefits. If any provision of this Article&nbsp;Ninth or the
application of any such provision to any Person or under any circumstance shall be held invalid,
illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision of this Article&nbsp;Ninth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;Waiver. With regard to any power, remedy or right provided herein or otherwise
available to the Corporation or the Agent under this Article&nbsp;Ninth, (1)&nbsp;no waiver will be effective
unless expressly contained in a writing signed by the waiving party and (2)&nbsp;no alteration,
modification or impairment will be implied by reason of any previous waiver, extension of time,
delay or omission in exercise, or other indulgence.&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>SECOND</B>: That thereafter, at the annual meeting of stockholders duly called and held upon notice in
accordance with Section&nbsp;222 of the General Corporation Law of the State of Delaware, the necessary
number of shares as required by statute were voted in favor of the amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>THIRD</B>: That said amendment was duly adopted in accordance with the provisions of Section
242 of the General Corporation Law of the State of Delaware.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">IN WITNESS WHEREOF, said corporation has caused this certificate to be signed this 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>
day of April, 2009.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KB HOME<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Wendy C. Shiba
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Wendy C. Shiba&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President,
<BR>
General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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