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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950123-10-092996.txt : 20101013
<SEC-HEADER>0000950123-10-092996.hdr.sgml : 20101013
<ACCEPTANCE-DATETIME>20101013165724
ACCESSION NUMBER:		0000950123-10-092996
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20101007
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:		20101013
DATE AS OF CHANGE:		20101013

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:		101122115

	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>c06882e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV
style="width: 7.5in; font-family: 'Times New Roman',Times,serif; margin-left: 0.25in">
<DIV style="font-size: 10pt">
<DIV
style="border-bottom: black 2pt solid; width: 100%; font-size: 1pt">&nbsp;</DIV>
<DIV
style="border-bottom: black 1pt solid; width: 100%; font-size: 1pt">&nbsp;</DIV>

<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

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

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): October 7, 2010</B>

<P style="font-size: 24pt" align="center"><B>KB HOME<BR>
</B><FONT
style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>
<TABLE style="text-align: center; font-size: 10pt" border="0" cellspacing="0"
cellpadding="0" width="100%">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Delaware</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>1-9195</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>95-3666267</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="text-align: center; font-size: 10pt" border="0" cellspacing="0"
cellpadding="0" width="100%">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>10990 Wilshire Boulevard, Los
Angeles, California <BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>90024</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(310) 231-4000</B>
<TABLE style="text-align: center; font-size: 10pt" border="0" cellspacing="0"
cellpadding="0" width="30%">

 <TR>
  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>Not
Applicable<BR>
</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">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:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>

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

<P style="font-size: 10pt" align="center">

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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

<DIV
style="width: 7.5in; font-family: 'Times New Roman',Times,serif; margin-left: 0.25in">

<P style="font-size: 10pt" align="left"><B>Item&nbsp;5.02. Departure of
Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers</B>

<P>
<TABLE style="font-size: 10pt" border="0" cellspacing="0" cellpadding="0"
width="100%">

 <TR
style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt"
valign="top">
  <TD width="3%" nowrap align="left"><B>(d)</B></TD>
  <TD width="1%">&nbsp;</TD>
  <TD><B>Election of Director.</B></TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">On October&nbsp;7, 2010, the board of
directors of KB Home (the &#8220;Company&#8221;) elected Ms.&nbsp;Barbara T.
Alexander as a director for a term ending on the date of the Company&#8217;s
2011 Annual Meeting of Stockholders. Ms.&nbsp;Alexander was also appointed to
the board&#8217;s audit and compliance committee. Ms.&nbsp;Alexander will
receive the same compensation as the Company&#8217;s other independent
directors. Ms.&nbsp;Alexander is an independent consultant who has not done any
consulting work for the Company.
<DIV align="center">
<TABLE style="font-size: 10pt" border="0" cellspacing="0" cellpadding="0"
width="100%">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="3%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="96%">&nbsp;</TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR valign="bottom">
  <TD valign="top">
<DIV style="text-indent: 0px; margin-left: 0px"><B>(e)</B>&nbsp;</DIV>
</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="left"><B>Fiscal Year 2011 Long-Term Incentive
Awards.</B></TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="left">On October&nbsp;7, 2010, the management
development and compensation committee of the KB Home board of directors (the
&#8220;Committee&#8221;) approved grants of long-term incentive awards for
fiscal year 2011 to Jeffrey T. Mezger, the Company&#8217;s president and chief
executive officer, Jeff J. Kaminski, the Company&#8217;s executive vice
president and chief financial officer, and William R. Hollinger, the
Company&#8217;s senior vice president and chief accounting officer, as set
forth in the table below. Long-term incentive awards were also approved for
grant to certain other senior executives of the Company. The grants consisted
of options to purchase KB&nbsp;Home common stock and awards of restricted cash.

<P style="font-size: 10pt" align="left"><I>Stock Options</I>. Except for the
grant of performance stock options to Mr.&nbsp;Mezger as described below, each
stock option granted on October&nbsp;7, 2010, once vested, entitles a recipient
to purchase a share of KB Home common stock at the stock option&#8217;s grant
price. The grant price for each stock option is $11.06. Each stock option has a
ten-year term from October&nbsp;7, 2010 and vests in equal annual installments
over a three-year period, subject to the recipient&#8217;s continued employment
with KB Home or a subsidiary. The foregoing description of the stock option
awards (excluding the performance stock options granted to Mr.&nbsp;Mezger) is
qualified by reference to the form of stock option award agreement incorporated
as an exhibit to this Current Report on Form 8-K.

<P style="font-size: 10pt" align="left"><I>Performance Stock Options Granted to
Mr.&nbsp;Mezger</I>. To further strengthen the alignment of
Mr.&nbsp;Mezger&#8217;s interests with those of the Company&#8217;s
stockholders, Mr.&nbsp;Mezger received a grant of
performance stock options that are identical to the stock option awards
described above, except that the performance stock option award will vest only
if its time-based requirements are met and only to the extent certain objective
performance metrics are achieved. The performance stock options constitute the
majority of Mr.&nbsp;Mezger&#8217;s equity-based 2011 fiscal year long-term
incentive awards, as set forth in the table below. The performance stock
options will vest in full, but subject to a three-year time vesting schedule,
if any one of the following performance metrics is determined by the Committee
to have been achieved at the end of the Company&#8217;s 2011 fiscal year or
2012 fiscal year or 2013 fiscal year (each, a &#8220;measurement date&#8221;):
(a)&nbsp;the Company has achieved a measure of positive cumulative operating margin
during a period from December&nbsp;1, 2010 to an applicable measurement date;
(b)&nbsp;the Company&#8217;s cumulative operating margin is greater than the 50<SUP
style="font-size: 85%; vertical-align: text-top">th</SUP> percentile relative
to a comparator group of homebuilding industry companies; or (c)&nbsp;the
Company&#8217;s mean customer satisfaction rating, based on the most recently
released pre-measurement date results of a survey conducted by an independent
firm, is above the mean customer satisfaction ratings of the homebuilders
covered in the survey; provided that if no such survey is available at any
applicable measurement date, this item may be measured by objective data
underlying customer satisfaction, as determined by the Committee in its sole
discretion. If any one of the foregoing performance metrics is determined by the
Committee to have been achieved at the first or second measurement date,
one-third or two-thirds of the performance stock options will vest, as
applicable, and the remaining portion will vest in equal installments on the
second and third anniversaries of the grant date, subject to
Mr.&nbsp;Mezger&#8217;s continued employment with the Company. If the foregoing
performance metrics are determined by the Committee to have not been achieved
at the first or second measurement date, but at least one is determined by the
Committee to have been achieved at the third measurement date, all of the
performance stock options will then vest, subject to Mr.&nbsp;Mezger&#8217;s
continued employment with the Company. If none of the foregoing performance
metrics is determined by the Committee to have been achieved by the third
measurement date, a portion of the performance stock options may vest if
Mr.&nbsp;Mezger continues to be employed with the Company and the Committee
determines that the relative cumulative operating margin metric and/or customer
satisfaction performance metric have been achieved at a threshold level of 60%
of the applicable performance metric goal. Accordingly, depending on how close
an applicable performance metric is achieved relative to its goal (provided it
is above the 60% threshold level), up to one half of the performance stock
option award will vest based on the relative operating margin
performance metric, and up to one half
of the performance stock option award will vest based on the customer
satisfaction performance metric, in each case per the following table (with performance
between 60% and 100% of an applicable performance goal interpolated linearly):
<P style="font-size: 10pt" align="center">

<P style="display: none; font-size: 10pt" align="center">2
</DIV>


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

<DIV
style="width: 7.5in; font-family: 'Times New Roman',Times,serif; margin-left: 0.25in">

<DIV align="center">
<TABLE style="font-size: 10pt" border="0" cellspacing="0" cellpadding="0"
width="100%">
<!-- Begin Table Head -->

 <TR valign="bottom">
  <TD width="47%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="48%">&nbsp;</TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD nowrap align="center"><B>Performance Metric Achievement</B></TD>
  <TD>&nbsp;</TD>
  <TD nowrap align="center"><B>Range of Performance Option Vesting</B></TD>
 </TR>
 <TR style="font-size: 10pt" valign="bottom">
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"><I>Actual %
of Performance Goal Achieved</I></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid" nowrap align="center"><I>% of
Eligible Award</I></TD>
 </TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom" style="background: #cceeff">
  <TD valign="top" align="center">60% -70% </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="center">25% -44%</TD>
</TR>
 <TR valign="bottom">
  <TD valign="top" align="center">70% -80%</TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="center">44% -63%</TD>
 </TR>

<TR valign="bottom" style="background: #cceeff">
 <TD valign="top" align="center">  80% -90% </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="center">63% -81%</TD>
 </TR>
 <TR valign="bottom">
 <TD valign="top" align="center">90% -100% </TD>
  <TD>&nbsp;</TD>
  <TD valign="top" align="center">81% to 100%</TD>
 </TR>
<!-- End Table Body -->

</TABLE>
</DIV>

<P style="font-size: 10pt" align="left">If the Committee determines that none
of the performance metrics have been achieved at a 60% threshold level, none of
the performance stock options will vest.

<P style="font-size: 10pt" align="left"><I>Restricted Cash</I>. Each award of
restricted cash granted on October&nbsp;7, 2010 entitles a recipient to a
payment of a specific cash amount upon the vesting of the award. A recipient
will forfeit an award if his or her employment with KB Home or a subsidiary
terminates before the vesting date. Each award of restricted cash granted on
October&nbsp;7, 2010 vests on October&nbsp;7, 2013. The foregoing description
of the restricted cash awards is qualified by reference to the restricted cash
award agreement attached as an exhibit to this Current Report on Form 8-K.
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Performance Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Stock Options</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Restricted Cash</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeffrey T. Mezger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeff J. Kaminski</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">215,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William R. Hollinger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">260,000</TD>
    <TD>&nbsp;</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="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Item 9.01.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Financial Statements and Exhibits.</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>(d)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Exhibits.</B></TD>
</TR>

<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">10.58</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Stock Option Award Agreement under the KB Home 2010 Equity
Incentive Plan, filed as an exhibit to the Company&#146;s Current Report
on Form&nbsp;8-K dated July&nbsp;20, 2010, is incorporated by reference
herein.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="left" valign="top">10.61</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Fiscal Year 2011
Restricted Cash Award Agreement.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



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

<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; margin-left: .25in; width: 7.50in">



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


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">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: 10pt">Date: October&nbsp;13, 2010
</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/ Brian J. Woram
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Brian J. Woram&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">&nbsp;

<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; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><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="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">10.58</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Stock Option Award Agreement under the KB Home 2010 Equity
Incentive Plan, filed as an exhibit to the Company&#146;s Current Report
on Form&nbsp;8-K dated July&nbsp;20, 2010, is incorporated by reference
herein.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="left" valign="top">10.61</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of Fiscal Year 2011
Restricted Cash Award Agreement.</DIV></TD>
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<TYPE>EX-10.61
<SEQUENCE>2
<FILENAME>c06882exv10w61.htm
<DESCRIPTION>EXHIBIT 10.61
<TEXT>
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<HEAD>
<TITLE>Exhibit 10.61</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit 10.61</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>KB HOME<BR>
FISCAL YEAR 2011 RESTRICTED CASH AWARD AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Restricted Cash Award Agreement (this &#147;Agreement&#148;) is made on October&nbsp;7, 2010 (the &#147;Grant
Date&#148;) between KB Home, a Delaware corporation (the &#147;Company&#148;), and &#091;NAME&#093; (the &#147;Employee&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">WHEREAS, the Company desires to grant the Employee a restricted cash award (the &#147;Award&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Award is intended to constitute compensation that is payable within the
&#147;short-term deferral&#148; period after the Award is no longer subject to a &#147;substantial risk of
forfeiture&#148; and that does not provide for the deferral of compensation under, and is therefore
exempt from, Section&nbsp;409A of the Internal Revenue Code of 1986, as amended from time to time (the
&#147;Code&#148;), together with the Department of Treasury Regulations and other interpretative guidance
issued thereunder (&#147;Section&nbsp;409A&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, in consideration of the foregoing, the Company and the Employee enter into
this Agreement as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">A G R E E M E N T
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>1.&nbsp;</B><U><B>Grant</B></U><B>. </B>Subject to the terms of this Agreement, the Company hereby grants to the
Employee the Award, which entitles the Employee to earn a future cash payment in an amount equal to
$&#091;
&nbsp;_____&nbsp;

&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>2.&nbsp;</B><U><B>Award Vesting</B></U><B>. </B>The Award granted under this Agreement will vest on October&nbsp;7, 2013
only if the Employee is employed by the Company or any &#147;subsidiary corporation&#148; as defined in
Section 424(f) of the Code and any applicable regulations promulgated thereunder or any other
entity of which a majority of the outstanding voting stock or voting power is beneficially owned
directly or indirectly by the Company (each, a &#147;Subsidiary&#148;) on such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>3.&nbsp;</B><U><B>Forfeiture</B></U><B>. </B>Subject to Section&nbsp;2, the Employee will immediately forfeit all rights,
title and interests in and to any and all of the Award that has not vested on the date the
Employee&#146;s employment with the Company or its Subsidiaries is terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>4.&nbsp;</B><U><B>Payment</B></U><B>. </B>As soon as reasonably practicable following the date of vesting of the
Award in accordance with Section&nbsp;2 above (the &#147;Vesting Date&#148;), but in no event later than the later
of (i)&nbsp;the fifteenth day of the third month following the end of the Employee&#146;s first taxable year
in which the Vesting Date occurs or (ii)&nbsp;the fifteenth day of the third month following the end of
the Company&#146;s first taxable year in which the Vesting Date occurs, the Company will pay in cash to
the Employee the amount set forth in Section&nbsp;1 of this Agreement. The Company has the authority to
deduct or withhold an amount sufficient to satisfy applicable federal, state, local and foreign
taxes (including the Employee&#146;s FICA obligation) required by law to be withheld with respect to any
taxable event arising from the vesting or payment of any portion of the Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>5.&nbsp;</B><U><B>California Law</B></U><B>. </B>This Agreement will be construed, administered and enforced in
accordance with the laws of the State of California.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>6. </B><U><B>Entire Agreement; Committee Authority</B></U><B>.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement sets forth the entire agreement and understanding of the
parties with respect to the subject matter of this Agreement, and supersedes all prior
and contemporaneous oral and written agreements and understandings relating to such
subject matter.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to applicable law, this Agreement and the Award shall be administered
by the Management Development and Compensation Committee (the &#147;Committee&#148;) of the
Board of Directors of the Company, and the Committee shall have full power and
authority to determine and interpret the terms and conditions of this Agreement and
the Award, and make any determination and take any action that the Committee deems
necessary or desirable for the administration of this Agreement and the Award, based
in each case on such considerations as the Committee in its sole discretion
determines.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All designations, determinations, interpretations, and other decisions under
or with respect to this Agreement or the Award shall be within the sole discretion of
the Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons (as defined below), including, but not limited to, the Company, any
Subsidiary, the Employee, any stockholder and any employee of the Company or any
Subsidiary. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE COMMITTEE SHALL ADMINISTER
THIS AGREEMENT AND THE AWARD, AND THAT THE EMPLOYEE IS BOUND BY, AND THE AWARD IS
SUBJECT TO, ANY TERMS, RULES OR DETERMINATIONS MADE BY THE COMMITTEE.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>7.&nbsp;</B><U><B>Non-Transferability</B></U><B>. </B>Neither this Agreement nor the Award may be assigned by the
Employee by operation of law or otherwise. Any purported assignment by the Employee shall be null
and void. This Agreement shall, however, be binding upon the successors and assigns of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>8.&nbsp;</B><U><B>No Obligation</B></U><B>. </B>Neither the execution and delivery hereof nor the granting of the
Award will constitute or be evidence of any agreement or understanding, express or implied, on the
part of the Company or any Subsidiary to employ or continue the employment of the Employee for any
period or in any capacity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>9.&nbsp;</B><U><B>Notice</B></U><B>. </B>Any notice given hereunder to the Company will be addressed to the Company,
attention: Senior Vice President, Human Resources, or a designee or successor thereof, and any
notice given hereunder to the Employee will be addressed to the Employee at his or her address as
shown on the records of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>10.&nbsp;</B><U><B>Amendment and Cancellation</B></U><B>. </B>Subject to Section&nbsp;12 hereof, at any time and from
time to time, the Committee may terminate, amend or modify this Agreement. Except with respect to
amendments made pursuant to Section&nbsp;12 hereof, no termination, amendment, or modification of this
Agreement will adversely affect in any material way the Award granted hereunder without the prior
written consent of the Employee.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>11. </B><U><B>General Provisions</B></U><B>.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Severability</B></U><B>. </B>If any provision of this Agreement is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to the
Employee or the Award, or would disqualify the Award under any law deemed applicable
by the Committee, such provision will be construed or deemed amended to conform to the
applicable laws, or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of this Agreement, such
provision will be stricken as to such jurisdiction, and the remainder of this
Agreement will remain in full force and effect.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Other Laws</B></U><B>. </B>The obligation of the Company to make payment of the
Award will be subject to all applicable laws, rules, and regulations, and to such
approvals by government agencies as may be required. The Company may refuse to
transfer any consideration under this Agreement if, acting in its sole discretion, it
determines that transfer of such consideration might violate any applicable law or
regulation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>No Trust or Fund Created</B></U><B>. </B>This Agreement is intended to be an
&#147;unfunded&#148; plan for incentive compensation. This Agreement will neither create nor be
construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Subsidiary or any affiliate and the Employee or any other
individual, corporation, partnership, association, joint-stock company, trust,
unincorporated organization, government or political subdivision thereof or other
entity (each, a &#147;Person&#148;). To the extent that any Person acquires a right to receive
payments from the Company or any Subsidiary pursuant to this Agreement, such right
will be no greater than the right of any unsecured general creditor of the Company or
any Subsidiary.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Headings</B></U><B>. </B>Headings are given to the Sections and subsections of this
Agreement solely as a convenience to facilitate reference. Such headings will not be
deemed in any way material or relevant to the construction or interpretation of this
Agreement or any provision thereof and, in the event of any conflict, the text of this
Agreement, rather than such titles or headings, will control.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>12. </B><U><B>Section&nbsp;409A</B></U><B>.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Award is intended to constitute compensation that is payable within the
&#147;short-term deferral&#148; period after the Award is no longer subject to a &#147;substantial
risk of forfeiture&#148; and that does not constitute &#147;nonqualified deferred compensation&#148;
within the meaning of Section&nbsp;409A. This Agreement shall be interpreted in accordance
with Section&nbsp;409A, to the extent applicable, including without limitation any Treasury
Regulations or other Department of Treasury guidance that may be issued or amended
after the date hereof, and shall not be amended or modified in any manner that would
cause this Agreement to violate the requirements of Section&nbsp;409A. In the event that,
following the date hereof, the Committee determines that the Award may be subject to
Section&nbsp;409A, including such Department of Treasury guidance as may be issued after
the date hereof, the Committee may, in its discretion, adopt such amendments to this
Agreement or adopt such other policies and procedures (including amendments, policies
and procedures with retroactive effect), or take any other actions, as the Committee
determines are necessary or appropriate to (i)&nbsp;exempt the Award from Section&nbsp;409A
and/or preserve the intended tax treatment of the benefits provided with respect to
the Award, or (ii)&nbsp;comply with the requirements of Section&nbsp;409A.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An Employee shall be solely responsible and liable for the satisfaction of
all taxes, interest, and penalties that may be imposed on such Employee or for such
Employee&#146;s account in connection with the Award (including any taxes, interest, and
penalties under Section&nbsp;409A), and neither the Company nor its affiliates shall have
any obligation to indemnify or otherwise hold such Employee harmless from any or all
of such taxes, interest, or penalties.</TD>
</TR>

</TABLE>
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>13.&nbsp;</B><U><B>Rescission</B></U>. This Agreement and the Award will be subject to rescission by the
Company if an original of this Agreement executed by the Employee is not received by the Company
within four weeks of the Grant Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>14.&nbsp;</B><U><B>Term</B></U><B>. </B>Upon forfeiture of all of the Employee&#146;s rights, title, and interests in
and to any and all of the Award pursuant to Section&nbsp;3 above, this Agreement shall terminate and be
of no further force or effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the Company and the Employee have duly executed and delivered this
Agreement as of the date first above written.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%">KB HOME
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%">By:&nbsp;&nbsp;Jeffrey T. Mezger<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%">EMPLOYEE:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%">By:
&nbsp;_________________________&nbsp;
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&#091;NAME&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%">Date:
&nbsp;_________________________&nbsp;


</DIV>


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