{"id":40167,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/nonqualified-deferred-compensation-plan-kb-home.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"nonqualified-deferred-compensation-plan-kb-home","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/nonqualified-deferred-compensation-plan-kb-home.html","title":{"rendered":"Nonqualified Deferred Compensation Plan &#8211; KB Home"},"content":{"rendered":"<pre>[KB HOME LOGO]\n\nNonqualified Deferred Compensation Plan\nMaster Plan Document\n\n================================================================================\n\n\n\n\n\n\n\n\n\n\n\n\n\n                     NONQUALIFIED DEFERRED COMPENSATION PLAN\n\n                             EFFECTIVE MARCH 1, 2001\n\n\n\n\n\n\n\n\n\n\n\n                               COPYRIGHT (C) 2000\n                         BY COMPENSATION RESOURCE GROUP\n                               ALL RIGHTS RESERVED\n\n\n\n================================================================================\n\n\n\n\n                                      TABLE OF CONTENTS\n\n\n<\/pre>\n<table>\n<caption>\n                                                                                             PAGE<br \/>\n                                                                                             &#8212;-<br \/>\n<s>                                                                                          <c><br \/>\nPurpose          &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;1<\/p>\n<p>ARTICLE 1        Definitions&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.1<\/p>\n<p>ARTICLE 2        Selection, Enrollment, Eligibility&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..8<\/p>\n<p>         2.1    Selection by Committee&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;8<br \/>\n         2.2    Enrollment Requirements&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..8<br \/>\n         2.3    Eligibility; Commencement of Participation&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.8<br \/>\n         2.4    Termination of Participation and\/or Deferrals&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.8<\/p>\n<p>ARTICLE 3        Deferral Commitments\/Company Matching\/Crediting\/Taxes&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.9<\/p>\n<p>         3.1    Minimum Deferrals&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..9<br \/>\n         3.2    Maximum Deferrals&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.10<br \/>\n         3.3    Election to Defer; Effect of Election Form&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;10<br \/>\n         3.4    Withholding of Annual Deferral Amounts&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.12<br \/>\n         3.5    Annual Company Contribution Amount&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..12<br \/>\n         3.6    Annual Company Matching Amount&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;12<br \/>\n         3.7    Stock Option Amount&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..12<br \/>\n         3.8    Restricted Stock Amount&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.13<br \/>\n         3.9    Rollover Amount&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;13<br \/>\n         3.10   Investment of Trust Assets&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.13<br \/>\n         3.11   Sources of Stock&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..13<br \/>\n         3.12   Vesting&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..13<br \/>\n         3.13   Crediting\/Debiting of Account Balances&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.14<br \/>\n         3.14   FICA and Other Taxes&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.16<br \/>\n         3.15   Distribution&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;17<\/p>\n<p>ARTICLE 4        Short-Term Payout; Unforeseeable Financial Emergencies; Withdrawal Election..17<\/p>\n<p>         4.1    Short-Term Payout&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.17<br \/>\n         4.2    Other Benefits Take Precedence Over Short-Term&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..17<br \/>\n         4.3    Withdrawal Payout\/Suspensions for Unforeseeable Financial Emergencies&#8230;&#8230;&#8230;18<br \/>\n         4.4    Withdrawal Election&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..18<\/p>\n<p>ARTICLE 5        Retirement Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..18<\/p>\n<p>         5.1    Retirement Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;18<br \/>\n         5.2    Payment of Retirement Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.18<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>                                       i<\/p>\n<table>\n<s>                                                                                          <c><br \/>\n         5.3    Death Prior to Completion of Retirement Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.19<\/p>\n<p>ARTICLE 6        Pre-Retirement Survivor Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.19<\/p>\n<p>         6.1    Pre-Retirement Survivor Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..19<br \/>\n         6.2    Payment of Pre-Retirement Survivor Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;19<\/p>\n<p>ARTICLE 7        Termination Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.20<\/p>\n<p>         7.1    Termination Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..20<br \/>\n         7.2    Payment of Termination Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;20<\/p>\n<p>ARTICLE 8        Disability Waiver and Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;20<\/p>\n<p>         8.1    Disability Waiver&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.20<br \/>\n         8.2    Continued Eligibility; Disability Benefit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.21<\/p>\n<p>ARTICLE 9        Beneficiary Designation&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;21<\/p>\n<p>         9.1    Beneficiary&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.21<br \/>\n         9.2    Beneficiary Designation; Change; Spousal Consent&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;21<br \/>\n         9.3    Acknowledgement&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;21<br \/>\n         9.4    No Beneficiary Designation&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.21<br \/>\n         9.5    Doubt as to Beneficiary&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.22<br \/>\n         9.6    Discharge of Obligations&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;22<\/p>\n<p>ARTICLE 10       Leave of Absence&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.22<\/p>\n<p>         10.1   Paid Leave of Absence&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;22<br \/>\n         10.2   Unpaid Leave of Absence&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.22<\/p>\n<p>ARTICLE 11       Termination, Amendment or Modification&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;22<\/p>\n<p>         11.1   Termination&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.22<br \/>\n         11.2   Amendment&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;23<br \/>\n         11.3   Plan Agreement&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.23<br \/>\n         11.4   Effect of Payment&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.23<\/p>\n<p>ARTICLE 12       Administration&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;23<\/p>\n<p>         12.1   Committee Duties&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..23<br \/>\n         12.2   Administration Upon Change In Control&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..24<br \/>\n         12.3   Agents&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;24<br \/>\n         12.4   Binding Effect of Decisions&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;24<br \/>\n         12.5   Indemnity of Committee&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..25<br \/>\n         12.6   Employer Information&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.25<br \/>\n<\/c><\/s><\/table>\n<p>                                       ii<\/p>\n<table>\n<caption>\n                                                                                             PAGE<br \/>\n                                                                                             &#8212;-<br \/>\n<s>                                                                                          <c><br \/>\nARTICLE 13       Other Benefits and Agreements&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;25<\/p>\n<p>         13.1   Coordination with Other Benefits&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.25<\/p>\n<p>ARTICLE 14       Claims Procedures&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;25<\/p>\n<p>         14.1   Presentation of Claim&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;25<br \/>\n         14.2   Notification of Decision&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;25<br \/>\n         14.3   Review of a Denied Claim&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;26<br \/>\n         14.4   Decision on Review&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;26<br \/>\n         14.5   Legal Action&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;26<\/p>\n<p>ARTICLE 15       Trust&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;26<\/p>\n<p>         15.1   Establishment of the Trust&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.26<br \/>\n         15.2   Interrelationship of the Plan and the Trust&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..27<br \/>\n         15.3   Distributions From the Trust&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..27<br \/>\n         15.4   Stock Transferred to the Trust&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;27<\/p>\n<p>ARTICLE 16       Miscellaneous&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.27<\/p>\n<p>         16.1   Status of Plan&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.27<br \/>\n         16.2   Unsecured General Creditor&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.27<br \/>\n         16.3   Employer&#8217;s Liability&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.27<br \/>\n         16.4   Nonassignability&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..28<br \/>\n         16.5   Not a Contract of Employment&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..28<br \/>\n         16.6   Furnishing Information&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..28<br \/>\n         16.7   Terms&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.28<br \/>\n         16.8   Captions&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.28<br \/>\n         16.9   Governing Law&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..28<br \/>\n         16.10  Notice&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;28<br \/>\n         16.11  Successors&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..29<br \/>\n         16.12  Spouse&#8217;s Interest&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.29<br \/>\n         16.13  Validity&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.29<br \/>\n         16.14  Incompetent&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.29<br \/>\n         16.15  Court Order&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.29<br \/>\n         16.16  Distribution in the Event of Taxation&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..30<br \/>\n         16.17  Insurance&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;30<br \/>\n         16.18  Legal Fees To Enforce Rights After Change in Control&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..30<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>                                      iii<\/p>\n<p>                                     KB HOME<\/p>\n<p>                     NONQUALIFIED DEFERRED COMPENSATION PLAN<\/p>\n<p>                             Effective March 1, 2001<\/p>\n<p>                                     PURPOSE<\/p>\n<p>        The purpose of this Plan is to provide specified benefits to a select<br \/>\ngroup of management and highly compensated Employees who contribute materially<br \/>\nto the continued growth, development and future business success of KB Home, a<br \/>\nDelaware corporation, and its subsidiaries, if any, that sponsor this Plan. This<br \/>\nPlan shall be unfunded for tax purposes and for purposes of Title I of ERISA.<\/p>\n<p>                                    ARTICLE 1<br \/>\n                                   DEFINITIONS<\/p>\n<p>        For purposes of this Plan, unless otherwise clearly apparent from the<br \/>\ncontext, the following phrases or terms shall have the following indicated<br \/>\nmeanings:<\/p>\n<p>1.1     &#8220;Account Balance&#8221; shall mean, with respect to a Participant, a credit on<br \/>\n        the records of the Employer equal to the sum of (i) the Deferral Account<br \/>\n        balance, (ii) the vested Company Contribution Account balance, (iii) the<br \/>\n        vested Company Matching Account balance, (iv) the Stock Option Account<br \/>\n        balance, (v) the Restricted Stock Account balance and (vi) the Rollover<br \/>\n        Account balance. The Account Balance, and each other specified account<br \/>\n        balance, shall be a bookkeeping entry only and shall be utilized solely<br \/>\n        as a device for the measurement and determination of the amounts to be<br \/>\n        paid to a Participant, or his or her designated Beneficiary, pursuant to<br \/>\n        this Plan.<\/p>\n<p>1.2     &#8220;Annual Base Salary&#8221; shall mean the annual cash compensation relating to<br \/>\n        services performed during any calendar year, whether or not paid in such<br \/>\n        calendar year or included on the Federal Income Tax Form W-2 for such<br \/>\n        calendar year, excluding bonuses, commissions, overtime, fringe<br \/>\n        benefits, stock options, relocation expenses, incentive payments,<br \/>\n        non-monetary awards, directors fees and other fees, automobile and other<br \/>\n        allowances paid to a Participant for employment services rendered<br \/>\n        (whether or not such allowances are included in the Employee&#8217;s gross<br \/>\n        income). As provided in Section 3.3 notwithstanding anything in this<br \/>\n        Plan to the contrary, a Participant&#8217;s deferrals under this Plan in each<br \/>\n        year shall not commence with respect to any portion of his\/her Annual<br \/>\n        Base Salary unless and until that Participant has deferred into the<br \/>\n        401(k) Plan the maximum amount authorized by Section 402(g).<\/p>\n<p>1.3     &#8220;Annual Bonus&#8221; shall mean any compensation, in addition to Annual Base<br \/>\n        Salary relating to services performed during any calendar year, whether<br \/>\n        or not paid in such calendar year or included on the Federal Income Tax<br \/>\n        Form W-2 for such calendar year, payable to a Participant as an Employee<br \/>\n        under any Employer&#8217;s annual bonus or cash incentive plans, excluding<br \/>\n        stock options, restricted stock based upon the performance of services<br \/>\n        during such calendar year, and commissions.<\/p>\n<p>                                       1<\/p>\n<p>1.4     &#8220;Annual Company Contribution Amount&#8221; shall mean, for any one Plan Year,<br \/>\n        the amount determined in accordance with Section 3.5.<\/p>\n<p>1.5     &#8220;Annual Company Matching Amount&#8221; shall mean, for any one Plan Year, the<br \/>\n        amount determined in accordance with Section 3.6.<\/p>\n<p>1.6     &#8220;Annual Deferral Amount&#8221; shall mean that portion of a Participant&#8217;s<br \/>\n        Annual Base Salary or Annual Bonus, as applicable, that a Participant<br \/>\n        elects to have, and is deferred, in accordance with Article 3, for any<br \/>\n        one Plan Year. In the event of a Participant&#8217;s Retirement, Disability<br \/>\n        (if deferrals cease in accordance with Section 8.1), death or a<br \/>\n        Termination of Employment prior to the end of a Plan Year, such year&#8217;s<br \/>\n        Annual Deferral Amount shall be the actual amount withheld prior to such<br \/>\n        event.<\/p>\n<p>1.7     &#8220;Annual Installment Method&#8221; shall be an annual installment payment over<br \/>\n        the number of years selected by the Participant in accordance with this<br \/>\n        Plan, calculated as follows: The Account Balance of the Participant<br \/>\n        shall be calculated as of the most recent Valuation Date. The annual<br \/>\n        installment shall be calculated by multiplying this balance by a<br \/>\n        fraction, the numerator of which is one, and the denominator of which is<br \/>\n        the remaining number of annual payments due the Participant. By way of<br \/>\n        example, if the Participant elects a 10-year Annual Installment Method,<br \/>\n        the first payment shall be 1\/10 of the Account Balance as of the most<br \/>\n        recent Valuation Date. The following year, the payment shall be 1\/9 of<br \/>\n        the Account Balance as of the most recent Valuation Date. Each annual<br \/>\n        installment shall be paid on or as soon as practicable after the amount<br \/>\n        is calculated.<\/p>\n<p>1.8     &#8220;Annual Restricted Stock Amount&#8221; shall mean, with respect to a<br \/>\n        Participant for any one Plan Year, the value of unvested restricted<br \/>\n        stock under any Company stock incentive plan, deferred in accordance<br \/>\n        with Section 3.8 of this Plan.<\/p>\n<p>1.9     &#8220;Annual Stock Option Amount&#8221; shall mean, with respect to a Participant<br \/>\n        for any one Plan Year, the amount of Qualifying Gains deferred on<br \/>\n        Eligible Stock Option exercise in accordance with Section 3.7 of this<br \/>\n        Plan, calculated using the closing price of Stock as of the end of the<br \/>\n        business day closest to the date of such Eligible Stock Option exercise.<\/p>\n<p>1.10    &#8220;Beneficiary&#8221; shall mean one or more persons, trusts, estates or other<br \/>\n        entities, designated in accordance with Article 9, or entitled under<br \/>\n        Article 9 in the absence of a designation, that are entitled to receive<br \/>\n        benefits under this Plan upon the death of a Participant.<\/p>\n<p>1.11    &#8220;Beneficiary Designation Form&#8221; shall mean the form established from time<br \/>\n        to time by the Committee that a Participant completes, signs and returns<br \/>\n        to the Committee to designate one or more Beneficiaries.<\/p>\n<p>1.12    &#8220;Board&#8221; shall mean the board of directors of the Company.<\/p>\n<p>1.13    &#8220;Change in Control&#8221; shall mean the first to occur of either of the<br \/>\n        following events:<\/p>\n<p>                                       2<\/p>\n<p>        (a)    individuals who, as of the effective date of this Plan,<br \/>\n               constitute the Board of Directors of the Company (as of the date<br \/>\n               hereof the &#8220;Incumbent Board&#8221;) cease for any reason to constitute<br \/>\n               at least a majority of the directors constituting the Board of<br \/>\n               Directors, provided that any person becoming a director<br \/>\n               subsequent to the effective date of this Plan whose election, or<br \/>\n               nomination for election by the Company&#8217;s shareholders, was<br \/>\n               approved by a vote of at least three-quarters (3\/4) of the then<br \/>\n               directors who are members of the Incumbent Board (other than an<br \/>\n               election or nomination of an individual whose initial assumption<br \/>\n               of office is (i) in connection with the acquisition by a third<br \/>\n               person, including a &#8220;group&#8221; as such term is used in Section<br \/>\n               13(d)(3) of the Securities Exchange Act of 1934, as amended (the<br \/>\n               &#8220;Act&#8221;), of beneficial ownership, directly or indirectly, of 20%<br \/>\n               or more of the combined voting securities ordinarily having the<br \/>\n               right to vote for the election of directors of the Company<br \/>\n               (unless such acquisition of beneficial ownership was approved by<br \/>\n               a majority of the Board of Directors who are members of the<br \/>\n               Incumbent Board), or (ii) in connection with an actual or<br \/>\n               threatened election contest relating to the election of the<br \/>\n               directors of the Company, as such terms are used in Rule 14a-11<br \/>\n               of Regulation 14A promulgated under the Act) shall be, for<br \/>\n               purposes of this Plan, considered as though such person were a<br \/>\n               member of the Incumbent Board; or<\/p>\n<p>        (b)    the Board of Directors (a majority of which shall consist of<br \/>\n               directors who are members of the Incumbent Board) has determined<br \/>\n               that a Change in Control shall have occurred.<\/p>\n<p>1.14    &#8220;Claimant&#8221; shall have the meaning set forth in Section 14.1.<\/p>\n<p>1.15    &#8220;Code&#8221; shall mean the Internal Revenue Code of 1986, as it may be<br \/>\n        amended from time to time.<\/p>\n<p>1.16    &#8220;Committee&#8221; shall mean the committee described in Article 12.<\/p>\n<p>1.17    &#8220;Company&#8221; shall mean KB Home, a Delaware corporation, and any successor<br \/>\n        to all or substantially all of the Company&#8217;s assets or business.<\/p>\n<p>1.18    &#8220;Company Contribution Account&#8221; shall mean (i) the sum of the<br \/>\n        Participant&#8217;s Annual Company Contribution Amounts, plus (ii) amounts<br \/>\n        credited (net of amounts debited) in accordance with all the applicable<br \/>\n        crediting provisions of this Plan that relate to the Participant&#8217;s<br \/>\n        Company Contribution Account, less (iii) all distributions made to the<br \/>\n        Participant or his or her Beneficiary pursuant to this Plan that relate<br \/>\n        to the Participant&#8217;s Company Contribution Account.<\/p>\n<p>1.19    &#8220;Company Matching Account&#8221; shall mean (i) the sum of all of a<br \/>\n        Participant&#8217;s Annual Company Matching Amounts, plus (ii) amounts<br \/>\n        credited (net of amounts debited) in accordance with all the applicable<br \/>\n        provisions of this Plan that relate to the Participant&#8217;s Company<br \/>\n        Matching Account, less (iii) all distributions made to the Participant<br \/>\n        or his or her Beneficiary pursuant to this Plan that relate to the<br \/>\n        Participant&#8217;s Company Matching Account.<\/p>\n<p>                                       3<\/p>\n<p>1.20    &#8220;Deduction Limitation&#8221; shall mean the following described limitation on<br \/>\n        a benefit that may otherwise be distributable pursuant to the provisions<br \/>\n        of this Plan. Except as otherwise provided, this limitation shall be<br \/>\n        applied to all distributions that are &#8220;subject to the Deduction<br \/>\n        Limitation&#8221; under this Plan. If an Employer determines in good faith<br \/>\n        prior to a Change in Control that there is a reasonable likelihood that<br \/>\n        any compensation paid to a Participant for a taxable year of the<br \/>\n        Employer would not be deductible by the Employer solely by reason of the<br \/>\n        limitation under Code Section 162(m), then to the extent deemed<br \/>\n        necessary by the Employer to ensure that the entire amount of any<br \/>\n        distribution to the Participant pursuant to this Plan prior to the<br \/>\n        Change in Control is deductible, the Employer may defer all or any<br \/>\n        portion of a distribution under this Plan. Any amounts deferred pursuant<br \/>\n        to this limitation shall continue to be credited and debited with<br \/>\n        additional amounts in accordance with Section 3.13 below, even if such<br \/>\n        amount is being paid out in installments. The amounts so deferred and<br \/>\n        amounts credited (net of amounts debited) thereon shall be distributed<br \/>\n        to the Participant or his or her Beneficiary (in the event of the<br \/>\n        Participant&#8217;s death) at the earliest possible date, as determined by the<br \/>\n        Employer in good faith, on which the deductibility of compensation paid<br \/>\n        or payable to the Participant for the taxable year of the Employer<br \/>\n        during which the distribution is made will not be limited by Section<br \/>\n        162(m), or if earlier, the effective date of a Change in Control.<br \/>\n        Notwithstanding anything to the contrary in this Plan, the Deduction<br \/>\n        Limitation shall not apply to any distributions made after a Change in<br \/>\n        Control.<\/p>\n<p>1.21    &#8220;Deferral Account&#8221; shall mean (i) the sum of all of a Participant&#8217;s<br \/>\n        Annual Deferral Amounts, plus (ii) amounts credited (net of amounts<br \/>\n        debited) in accordance with all the applicable provisions of this Plan<br \/>\n        that relate to the Participant&#8217;s Deferral Account, less (iii) all<br \/>\n        distributions made to the Participant or his or her Beneficiary pursuant<br \/>\n        to this Plan that relate to his or her Deferral Account.<\/p>\n<p>1.22    &#8220;Disability&#8221; shall mean a period of disability during which a<br \/>\n        Participant qualifies for permanent disability benefits under the KB<br \/>\n        Home Long-term Disability Plan, or, if a Participant does not<br \/>\n        participate in such plan, a period of disability during which the<br \/>\n        Participant would have qualified for permanent disability benefits under<br \/>\n        such plan had the Participant been a participant in such plan, as<br \/>\n        determined in the sole discretion of the Committee. If the Participant&#8217;s<br \/>\n        Employer does not sponsor such plan, or discontinues to sponsor such<br \/>\n        plan, Disability shall be determined by the Committee in its sole<br \/>\n        discretion.<\/p>\n<p>1.23    &#8220;Disability Benefit&#8221; shall mean the benefit set forth in Article 8.<\/p>\n<p>1.24    &#8220;Election Form&#8221; shall mean the form established from time to time by the<br \/>\n        Committee that a Participant completes, signs and returns to the<br \/>\n        Committee to make an election under the Plan.<\/p>\n<p>1.25    &#8220;Eligible Stock Option&#8221; shall mean one or more non-qualified stock<br \/>\n        option(s) selected by the Committee in its sole discretion and<br \/>\n        exercisable under a plan or arrangement of any Employer permitting a<br \/>\n        Participant under this Plan to defer gain with respect to such option.<\/p>\n<p>1.26    &#8220;Employee&#8221; shall mean a person who is an employee of any Employer.<\/p>\n<p>                                       4<\/p>\n<p>1.27    &#8220;Employer&#8221; shall mean the Company or any of its subsidiaries (now in<br \/>\n        existence or hereafter formed or acquired) that have been selected by<br \/>\n        the Board to participate in the Plan and have adopted the Plan.<\/p>\n<p>1.28    &#8220;ERISA&#8221; shall mean the Employee Retirement Income Security Act of 1974,<br \/>\n        as it may be amended from time to time.<\/p>\n<p>1.29    &#8220;First Plan Year&#8221; shall mean the period beginning March 1, 2001 and<br \/>\n        ending December 31, 2001.<\/p>\n<p>1.30    &#8220;401(k) Plan&#8221; shall be that certain Kaufman and Broad Home Corporation,<br \/>\n        Inc. 401(k) Savings Plan adopted by the Company, as it may be amended<br \/>\n        from time to time.<\/p>\n<p>1.31    &#8220;Participant&#8221; shall mean any Employee (i) who is selected by the Board<br \/>\n        (or a committee to which the Board has delegated such authority) from<br \/>\n        among the highly compensated and management employees of the Employer to<br \/>\n        participate in the Plan, (ii) who elects to participate in the Plan,<br \/>\n        (iii) who signs a Plan Agreement, an Election Form and a Beneficiary<br \/>\n        Designation Form, (iv) whose signed Plan Agreement, Election Form and<br \/>\n        Beneficiary Designation Form are accepted by the Committee, (v) who<br \/>\n        commences participation in the Plan, and (vi) whose Plan Agreement has<br \/>\n        not terminated. A spouse or former spouse of a Participant shall not be<br \/>\n        treated as a Participant in the Plan or have an account balance under<br \/>\n        the Plan, even if he or she has an interest in the Participant&#8217;s<br \/>\n        benefits under the Plan as a result of applicable law or property<br \/>\n        settlements resulting from legal separation or divorce.<\/p>\n<p>1.32    &#8220;Plan&#8221; shall mean the KB HOME NONQUALIFIED DEFERRED COMPENSATION PLAN,<br \/>\n        effective March 1, 2001 which shall be evidenced by this instrument and<br \/>\n        by each Plan Agreement, as they may be amended from time to time.<\/p>\n<p>1.33    &#8220;Plan Agreement&#8221; shall mean a written agreement, as may be amended from<br \/>\n        time to time, which is entered into by and between an Employer and a<br \/>\n        Participant. Each Plan Agreement executed by a Participant and the<br \/>\n        Participant&#8217;s Employer shall provide for the entire benefit to which<br \/>\n        such Participant is entitled under the Plan; should there be more than<br \/>\n        one Plan Agreement, the Plan Agreement bearing the latest date of<br \/>\n        acceptance by the Employer shall supersede all previous Plan Agreements<br \/>\n        in their entirety and shall govern such entitlement. The terms of any<br \/>\n        Plan Agreement may be different for any Participant, and any Plan<br \/>\n        Agreement may provide additional benefits not set forth in the Plan or<br \/>\n        limit the benefits otherwise provided under the Plan; provided, however,<br \/>\n        that any such additional benefits or benefit limitations must be agreed<br \/>\n        to by both the Employer and the Participant.<\/p>\n<p>1.34    &#8220;Plan Year&#8221; shall, for the first Plan Year, begin on March 1, 2001, and<br \/>\n        end on December 31, 2001. For each Plan Year thereafter, the Plan Year<br \/>\n        shall mean a period beginning on January 1 of each calendar year and<br \/>\n        continuing through December 31 of such calendar year.<\/p>\n<p>1.35    &#8220;Pre-Retirement Survivor Benefit&#8221; shall mean the benefit set forth in<br \/>\n        Article 6.<\/p>\n<p>                                       5<\/p>\n<p>1.36    &#8220;Qualifying Gain&#8221; shall mean the value accrued upon exercise of an<br \/>\n        Eligible Stock Option (i) using a Stock-for-Stock payment method and<br \/>\n        (ii) having an aggregate fair market value in excess of the total Stock<br \/>\n        purchase price necessary to exercise the option. In other words, the<br \/>\n        Qualifying Gain upon exercise of an Eligible Stock Option equals the<br \/>\n        total market value of the shares (or share equivalent units) as to which<br \/>\n        the option is exercised minus the total exercise price for such shares<br \/>\n        under the option. For example, assume a Participant elects to defer the<br \/>\n        Qualifying Gain accrued upon exercise of an Eligible Stock Option to<br \/>\n        purchase 1000 shares of Stock at an exercise price of $20 per share,<br \/>\n        when Stock has a current fair market value of $25 per share. Using the<br \/>\n        Stock-for-Stock payment method, the Participant would deliver 800 shares<br \/>\n        of Stock (worth $20,000) to exercise the Eligible Stock Option and<br \/>\n        receive, in return, 800 shares of Stock plus a Qualifying Gain (in this<br \/>\n        case, in the form of an unfunded and unsecured promise to pay money or<br \/>\n        property in the future) equal to $5,000 (i.e., the current value of the<br \/>\n        remaining 200 shares of Stock).<\/p>\n<p>1.37    &#8220;Restricted Stock&#8221; shall mean unvested shares of restricted stock<br \/>\n        awarded to the Participant under any Company stock incentive plan.<\/p>\n<p>1.38    &#8220;Restricted Stock Account&#8221; shall mean (i) the sum of the Participant&#8217;s<br \/>\n        Annual Restricted Stock Amounts, plus (ii) amounts credited (net of<br \/>\n        amounts debited) in accordance with all the applicable provisions of<br \/>\n        this Plan that relate to the Participant&#8217;s Restricted Stock Account,<br \/>\n        less (iii) all distributions made to the Participant or his or her<br \/>\n        Beneficiary pursuant to this Plan that relate to the Participant&#8217;s<br \/>\n        Restricted Stock Account.<\/p>\n<p>1.39    &#8220;Restricted Stock Amount&#8221; shall mean, for any grant of Restricted Stock,<br \/>\n        the amount of such Restricted Stock deferred in accordance with Section<br \/>\n        3.8 of this Plan, calculated using the closing price of Stock as of the<br \/>\n        end of the business day closest to the date such Restricted Stock would<br \/>\n        otherwise vest, but for the election to defer.<\/p>\n<p>1.40    &#8220;Retirement&#8221;, &#8220;Retire(s)&#8221; or &#8220;Retired&#8221; shall mean, with respect to an<br \/>\n        Employee, severance from employment from all Employers for any reason<br \/>\n        other than a leave of absence, death or Disability at such time as the<br \/>\n        sum of the Employee&#8217;s age and Years of Service equals at least<br \/>\n        sixty-five (65) or more, provided that the Employee is then at least<br \/>\n        fifty-five (55) years of age.<\/p>\n<p>1.41    &#8220;Retirement Benefit&#8221; shall mean the benefit set forth in Article 5.<\/p>\n<p>1.42    &#8220;Rollover Account&#8221; shall mean (i) the sum of the Participant&#8217;s Rollover<br \/>\n        Amount, plus (ii) amounts credited (net of amounts debited) in<br \/>\n        accordance with all the applicable provisions of this Plan that relate<br \/>\n        to the Participant&#8217;s Rollover Account, less (iii) all distributions made<br \/>\n        to the Participant or his or her Beneficiary pursuant to this Plan that<br \/>\n        relate to the Participant&#8217;s Rollover Account.<\/p>\n<p>1.43    &#8220;Rollover Amount&#8221; shall mean the amount determined in accordance with<br \/>\n        Section 3.9.<\/p>\n<p>1.44    &#8220;Short-Term Payout&#8221; shall mean the payout set forth in Section 4.1.<\/p>\n<p>                                       6<\/p>\n<p>1.45    &#8220;Stock&#8221; shall mean KB Home common stock, $1.00 par value, or any other<br \/>\n        equity securities of the Company designated by the Committee.<\/p>\n<p>1.46    &#8220;Stock Option Account&#8221; shall mean the sum of (i) the Participant&#8217;s<br \/>\n        Annual Stock Option Amounts, plus (ii) amounts credited (net of amounts<br \/>\n        debited) in accordance with all the applicable provisions of this Plan<br \/>\n        that relate to the Participant&#8217;s Stock Option Account, less (iii) all<br \/>\n        distributions made to the Participant or his or her Beneficiary pursuant<br \/>\n        to this Plan that relate to the Participant&#8217;s Stock Option Account.<\/p>\n<p>1.47    &#8220;Stock Option Amount&#8221; shall mean, for any Eligible Stock Option, the<br \/>\n        amount of Qualifying Gains deferred in accordance with Section 3.7 of<br \/>\n        this Plan, calculated using the closing price of Stock as of the end of<br \/>\n        the business day closest to the date of exercise of such Eligible Stock<br \/>\n        Option.<\/p>\n<p>1.48    &#8220;Supplemental Deferral Plan&#8221; shall mean the Kaufman and Broad Home<br \/>\n        Corporation, Inc. Supplemental Deferral plan heretofore adopted by the<br \/>\n        Company<\/p>\n<p>1.49    &#8220;Termination Benefit&#8221; shall mean the benefit set forth in Article 7.<\/p>\n<p>1.50    &#8220;Termination of Employment&#8221; shall mean the severing of employment with<br \/>\n        an Employer, voluntarily or involuntarily, for any reason other than<br \/>\n        Retirement, Disability, death or an authorized leave of absence.<br \/>\n        Termination of Employment shall not be deemed to occur, however, upon<br \/>\n        the transfer of a Participant from the employ of the Company or another<br \/>\n        Employer to the employ of any subsidiary or affiliate, regardless of<br \/>\n        whether that subsidiary or affiliate is an Employer under the Plan. For<br \/>\n        purposes of this Plan, &#8220;affiliate&#8221; means (1) any entity 50% or more of<br \/>\n        the voting interest in which is owned, directly or indirectly, by an<br \/>\n        entity which owns, directly or indirectly, 50% or more of the voting<br \/>\n        interest in the Company and (2) any entity which owns, directly or<br \/>\n        indirectly, 50% or more of the voting interest in the Company.<\/p>\n<p>1.51    &#8220;Trust&#8221; shall mean one or more trusts established pursuant to that<br \/>\n        certain Master Trust Agreement, dated as of March 1, 2000 between the<br \/>\n        Company and the trustee named therein, as amended from time to time.<\/p>\n<p>1.52    &#8220;Unforeseeable Financial Emergency&#8221; shall mean an unanticipated<br \/>\n        emergency that is caused by an event beyond the control of the<br \/>\n        Participant that would result in severe financial hardship to the<br \/>\n        Participant resulting from (i) a sudden and unexpected illness or<br \/>\n        accident of the Participant or a dependent of the Participant, (ii) a<br \/>\n        loss of the Participant&#8217;s property due to casualty, or (iii) another<br \/>\n        extraordinary and unforeseeable circumstance arising as a result of<br \/>\n        events beyond the control of the Participant, all as determined in the<br \/>\n        sole discretion of the Committee.<\/p>\n<p>1.53    &#8220;Valuation Date&#8221; shall mean the last day of each Plan Year or any other<br \/>\n        date as of which the Committee, in its sole discretion, designates as a<br \/>\n        Valuation Date.<\/p>\n<p>                                       7<\/p>\n<p>1.54    &#8220;Years of Plan Participation&#8221; shall mean the total number of full Plan<br \/>\n        Years a Participant has been selected for participation in the Plan<br \/>\n        prior to his or her Termination of Employment (determined without regard<br \/>\n        to whether deferral elections have been made by the Participant for any<br \/>\n        Plan Year). Any partial year shall not be counted. Notwithstanding the<br \/>\n        previous sentence, a Participant&#8217;s first Plan Year of participation<br \/>\n        shall be treated as a full Plan Year for purposes of this definition,<br \/>\n        even if it is only a partial Plan Year of participation.<\/p>\n<p>1.55    &#8220;Years of Service&#8221; shall mean the total number of full years in which a<br \/>\n        Participant has been employed by one or more Employers. A year of<br \/>\n        employment shall be a 365-day period (or 366-day period in the case of a<br \/>\n        leap year) that, for the first year of employment, commences on the<br \/>\n        Employee&#8217;s date of hiring and that, for any subsequent year, commences<br \/>\n        on an anniversary of that hiring date. Any partial year of employment<br \/>\n        shall not be counted. Notwithstanding any provision of this Plan that<br \/>\n        may be construed to the contrary, for purposes of this definition, the<br \/>\n        Committee may, in its sole and absolute discretion, deem a Participant<br \/>\n        to be credited with additional Years of Service.<\/p>\n<p>                                    ARTICLE 2<br \/>\n                       SELECTION, ENROLLMENT, ELIGIBILITY<\/p>\n<p>2.1     SELECTION BY COMMITTEE. Participation in the Plan shall be limited to a<br \/>\n        select group of Employees of the Employers, each of whom is a member of<br \/>\n        management or is highly compensated. From the group of Employees who are<br \/>\n        management or highly compensated, the Committee shall select, in its<br \/>\n        sole discretion, Employees to participate in the Plan.<\/p>\n<p>2.2     ENROLLMENT REQUIREMENTS. As a condition to participation, each selected<br \/>\n        Employee shall complete, execute and return to the Committee a Plan<br \/>\n        Agreement, an Election Form and a Beneficiary Designation Form, all<br \/>\n        within the number of days specified by the Committee after he or she is<br \/>\n        selected to participate in the Plan. In addition, the Committee may<br \/>\n        establish from time to time such other enrollment requirements as it<br \/>\n        determines in its sole discretion are necessary.<\/p>\n<p>2.3     ELIGIBILITY; COMMENCEMENT OF PARTICIPATION. Provided an Employee<br \/>\n        selected to participate in the Plan has met all enrollment requirements<br \/>\n        set forth in this Plan and required by the Committee, including<br \/>\n        returning all required documents to the Committee within the specified<br \/>\n        time period, that Employee shall commence participation in the Plan on<br \/>\n        the first day of the month following the month in which the Employee<br \/>\n        completes all enrollment requirements. If an Employee fails to meet all<br \/>\n        such requirements within the period required, in accordance with Section<br \/>\n        2.2, that Employee shall not be eligible to participate in the Plan<br \/>\n        until the first day of the Plan Year following the delivery to and<br \/>\n        acceptance by the Committee of the required documents.<\/p>\n<p>2.4     TERMINATION OF PARTICIPATION AND\/OR DEFERRALS. If the Committee<br \/>\n        determines in good faith that a Participant no longer qualifies as a<br \/>\n        member of a select group of management or highly compensated employees,<br \/>\n        as membership in such group is determined in accordance with<\/p>\n<p>                                       8<\/p>\n<p>        Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall<br \/>\n        have the right, in its sole discretion, to (i) terminate any deferral<br \/>\n        election the Participant has made for the remainder of the Plan Year in<br \/>\n        which the Participant&#8217;s membership status changes, and (ii) prevent the<br \/>\n        Participant from making future deferral elections or, in the Committee&#8217;s<br \/>\n        discretion, may also (iii) immediately distribute the Participant&#8217;s then<br \/>\n        Account Balance as a Termination Benefit and terminate the Participant&#8217;s<br \/>\n        participation in the Plan.<\/p>\n<p>                                    ARTICLE 3<br \/>\n              DEFERRAL COMMITMENTS\/COMPANY MATCHING\/CREDITING\/TAXES<\/p>\n<p>3.1     MINIMUM DEFERRALS.<\/p>\n<p>        (a)    ANNUAL BASE SALARY AND ANNUAL BONUS. For each Plan Year, a<br \/>\n               Participant may elect to defer, as his or her Annual Deferral<br \/>\n               Amount, Annual Base Salary or Annual Bonus, or both, in the<br \/>\n               following minimum amounts for each deferral elected:<\/p>\n<table>\n<caption>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                  DEFERRAL                 MINIMUM AMOUNT<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                        <s>                                <c><br \/>\n                              Annual Base Salary               $2,000<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                              Annual Bonus                     $2,000<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>               If an election is made for less than stated minimum amounts, or<br \/>\n               if no election is made, the amount deferred shall be zero.<\/p>\n<p>        (b)    SHORT PLAN YEAR. Notwithstanding the foregoing, if a Participant<br \/>\n               first becomes a Participant after the first day of a Plan Year,<br \/>\n               or in the case of the first Plan Year of the Plan itself, the<br \/>\n               minimum Annual Base Salary deferral shall be an amount equal to<br \/>\n               the minimum set forth above, multiplied by a fraction, the<br \/>\n               numerator of which is the number of complete months remaining in<br \/>\n               the Plan Year and the denominator of which is 12.<\/p>\n<p>        (c)    STOCK OPTION AMOUNT. For each Eligible Stock Option, a<br \/>\n               Participant may elect to defer, as his or her Stock Option<br \/>\n               Amount, the receipt of shares of Stock to which the Participant<br \/>\n               is entitled upon exercise of such option, provided that the<br \/>\n               election pertains to at least the number of shares having<br \/>\n               following minimum percentage of Qualifying Gain (as a percentage<br \/>\n               of all of the Qualifying Gain with respect to exercise of the<br \/>\n               Eligible Stock Option:<\/p>\n<table>\n<caption>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                   DEFERRAL              MINIMUM PERCENTAGE<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                        <s>                              <c><br \/>\n                              Qualifying Gain                   25%<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>               provided, however, that such Stock Option Amount shall be no less<br \/>\n               than the lesser of $50,000 or 100% of such Qualifying Gain.<\/p>\n<p>                                       9<\/p>\n<p>        (d)    RESTRICTED STOCK AMOUNT. For Restricted Stock, a Participant may<br \/>\n               elect to defer, as his or her Restricted Stock Amount, the<br \/>\n               following minimum percentage of the Participant&#8217;s Restricted<br \/>\n               Stock as to which the condition to vesting is lapsing at that<br \/>\n               time:<\/p>\n<table>\n<caption>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                   DEFERRAL              MINIMUM PERCENTAGE<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                        <s>                              <c><br \/>\n                              Restricted Stock                    25%<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>               provided, however, that the Annual Restricted Stock Amount shall<br \/>\n               be no less than the lesser of $50,000 or 100% of the<br \/>\n               Participant&#8217;s Restricted Stock then vesting.<\/p>\n<p>3.2     MAXIMUM DEFERRAL.<\/p>\n<p>        (a)    ANNUAL BASE SALARY AND ANNUAL BONUS. For each Plan Year, a<br \/>\n               Participant may elect to defer, as his or her Annual Deferral<br \/>\n               Amount, Annual Base Salary and Annual Bonus up to the following<br \/>\n               maximum percentages for each deferral elected:<\/p>\n<table>\n<caption>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                   DEFERRAL              MAXIMUM PERCENTAGE<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                        <s>                              <c><br \/>\n                              Annual Base Salary                75%<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                              Annual Bonus                      75%<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>        (b)    Notwithstanding the foregoing, if a Participant first becomes a<br \/>\n               Participant after the first day of a Plan Year, or in the case of<br \/>\n               the first Plan Year of the Plan itself, the maximum Annual<br \/>\n               Deferral Amount, with respect to Annual Base Salary and Annual<br \/>\n               Bonus shall be limited to the amount of compensation not yet<br \/>\n               earned by the Participant as of the date the Participant submits<br \/>\n               a Plan Agreement and Election Form to the Committee for<br \/>\n               acceptance.<\/p>\n<p>        (c)    For each Eligible Stock Option, a Participant may elect to defer,<br \/>\n               as his or her Stock Option Amount, receipt of Stock having<br \/>\n               Qualifying Gain up to the following maximum percentage with<br \/>\n               respect to exercise of the Eligible Stock Option:<\/p>\n<table>\n<caption>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                   DEFERRAL              MAXIMUM PERCENTAGE<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                        <s>                              <c><br \/>\n                              Qualifying Gain                   100%<br \/>\n                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>        (d)    Stock Option Amounts may also be limited by other terms or<br \/>\n               conditions set forth in the stock option plan or agreement under<br \/>\n               which such options are granted.<\/p>\n<p>        (e)    A Participant may elect to defer up to 100% of his or her<br \/>\n               Restricted Stock as to which restrictions lapse.<\/p>\n<p>3.3     ELECTION TO DEFER; EFFECT OF ELECTION FORM.<\/p>\n<p>                                       10<\/p>\n<p>        (a)    FIRST PLAN YEAR. Within thirty days after being designated by the<br \/>\n               Committee for participation in the Plan, the Participant shall<br \/>\n               make an irrevocable deferral election for the Plan Year in which<br \/>\n               the Participant commences participation, along with such other<br \/>\n               elections as the Committee deems necessary or desirable under the<br \/>\n               Plan. Notwithstanding anything in this Plan to the contrary, a<br \/>\n               Participant may not defer any portion of his\/her Annual Base<br \/>\n               Salary to the Plan unless and until that Participant has deferred<br \/>\n               into the 401(k) Plan for the calendar year the maximum amount<br \/>\n               authorized by Section 402(g). For these elections to be valid,<br \/>\n               the Election Form must be completed and signed by the<br \/>\n               Participant, timely delivered to the Committee (in accordance<br \/>\n               with Section 2.2 above) and accepted by the Committee.<br \/>\n               Notwithstanding a timely filed election, deferrals of a<br \/>\n               Participant&#8217;s Annual Base Salary under this Plan shall not be<br \/>\n               effected in any calendar year until such time as the aggregate<br \/>\n               amount deferred under the 401(k) Plan from Annual Base Salary and<br \/>\n               Annual Bonus in that calendar year equals the maximum amount<br \/>\n               authorized by Section 402(g) for that calendar year.<\/p>\n<p>        (b)    SUBSEQUENT PLAN YEARS. For each succeeding Plan Year, an<br \/>\n               irrevocable deferral election for that Plan Year, and such other<br \/>\n               elections as the Committee deems necessary or desirable under the<br \/>\n               Plan, shall be made by timely delivering to the Committee, in<br \/>\n               accordance with its rules and procedures, before the end of the<br \/>\n               Plan Year preceding the Plan Year for which the election is made,<br \/>\n               a new Election Form. If no such Election Form is timely delivered<br \/>\n               for a Plan Year, the Annual Deferral Amount shall be zero for<br \/>\n               that Plan Year. Notwithstanding anything in this Plan to the<br \/>\n               contrary, a Participant may not defer any portion of his\/her<br \/>\n               Annual Base Salary to the Plan unless and until that Participant<br \/>\n               has deferred into the 401(k) Plan the maximum amount authorized<br \/>\n               by Section 402(g). Notwithstanding a timely filed election,<br \/>\n               deferrals of a Participant&#8217;s Annual Base Salary under this Plan<br \/>\n               shall not be effected in any calendar year until such time as the<br \/>\n               aggregate amount deferred under the 401(k) Plan from Annual Base<br \/>\n               Salary and Annual Bonus in that calendar year equals the maximum<br \/>\n               amount authorized by Section 402(g) for that calendar year.<\/p>\n<p>        (c)    STOCK OPTION DEFERRAL. For an election to defer gain upon an<br \/>\n               Eligible Stock Option exercise to be valid: (i) a separate<br \/>\n               irrevocable Election Form must be completed and signed by the<br \/>\n               Participant with respect to the Eligible Stock Option; (ii) the<br \/>\n               Election Form must be timely delivered to the Committee and<br \/>\n               accepted by the Committee at least six (6) months prior to the<br \/>\n               date the Participant elects to exercise the Eligible Stock<br \/>\n               Option; (iii) the Eligible Stock Option must be exercised using<br \/>\n               an actual or phantom Stock-for-Stock payment method; and (iv) the<br \/>\n               Stock actually or constructively delivered by the Participant to<br \/>\n               exercise the Eligible Stock Option must have been owned by the<br \/>\n               Participant during the entire six (6) month period prior to its<br \/>\n               delivery.<\/p>\n<p>        (d)    RESTRICTED STOCK. For an election to defer Restricted Stock<br \/>\n               Amounts to be valid: (i) a separate irrevocable Election Form<br \/>\n               must be completed and signed by the Participant, with respect to<br \/>\n               such Restricted Stock; and (ii) such Election Form must be timely<br \/>\n               delivered to the Committee and accepted by the Committee at least<br \/>\n               six (6) months prior<\/p>\n<p>                                       11<\/p>\n<p>               to the date such Restricted Stock vests under the terms of the<br \/>\n               Company&#8217;s stock incentive plan.<\/p>\n<p>3.4     WITHHOLDING OF ANNUAL DEFERRAL AMOUNTS. For each Plan Year, for each<br \/>\n        Participant, the Annual Base Salary portion of the Annual Deferral<br \/>\n        Amount shall be withheld from each regularly scheduled Annual Base<br \/>\n        Salary payroll in equal amounts after the 401(k) Plan has been funded to<br \/>\n        the 402(g) limit for that Participant, as adjusted from time to time for<br \/>\n        increases and decreases in Annual Base Salary. The Annual Bonus portion<br \/>\n        of the Annual Deferral Amount shall be withheld at the time the Annual<br \/>\n        Bonus is or otherwise would be paid to the Participant, provided this is<br \/>\n        after the 401(k) Plan has been funded to the 402(g) limit for that<br \/>\n        Participant, whether or not this occurs during the Plan Year itself.<\/p>\n<p>3.5     ANNUAL COMPANY CONTRIBUTION AMOUNT. For each Plan Year, an Employer, in<br \/>\n        its sole discretion, may, but is not required to, credit any amount it<br \/>\n        desires to any Participant&#8217;s Company Contribution Account under this<br \/>\n        Plan, which amount shall be for that Participant the Annual Company<br \/>\n        Contribution Amount for that Plan Year. The amount so credited to a<br \/>\n        Participant may be smaller or larger than the amount credited to any<br \/>\n        other Participant, and the amount credited to any Participant for a Plan<br \/>\n        Year may be zero, even though one or more other Participants receive an<br \/>\n        Annual Company Contribution Amount for that Plan Year. The Annual<br \/>\n        Company Contribution Amount, if any, shall be credited as of the last<br \/>\n        day of the Plan Year. If a Participant is not employed by an Employer as<br \/>\n        of the last day of a Plan Year for a reason other than his or her<br \/>\n        Retirement or death while employed, the Annual Company Contribution<br \/>\n        Amount for that Plan Year shall be zero.<\/p>\n<p>3.6     ANNUAL COMPANY MATCHING AMOUNT. A Participant&#8217;s Annual Company Matching<br \/>\n        Amount for any Plan Year shall be the sum of all Pay Period Company<br \/>\n        Matching Contributions for the Plan Year. For this purpose, a Pay Period<br \/>\n        Company Matching Contribution shall mean an amount which, when added to<br \/>\n        the matching contribution allocated to the Participant&#8217;s account under<br \/>\n        the 401(k) Plan for the same pay period, equals the match the<br \/>\n        Participant would have received under the 401(k) Plan during the<br \/>\n        corresponding plan year of the 401(k) Plan, if the portion of Annual<br \/>\n        Base Salary elected to be deferred had instead been elected and<br \/>\n        contributed as a salary deferral contribution under the 401(k) Plan<br \/>\n        (determined as if the 401(k) Plan was not subject to the limitations<br \/>\n        imposed under Code Sections 401(a)(17), 401(k)(3), 402(g) and 415). The<br \/>\n        Annual Company Matching Amount shall be credited during the Plan Year on<br \/>\n        a pay period-by-pay period basis. Notwithstanding any provision of this<br \/>\n        Plan to the contrary, the Company shall have the right, in its sole and<br \/>\n        absolute discretion, to alter the manner in which the Annual Company<br \/>\n        Matching Amount is calculated and\/or to terminate the Annual Company<br \/>\n        Matching Amount.<\/p>\n<p>3.7     STOCK OPTION AMOUNT. Subject to any terms and conditions imposed by the<br \/>\n        Committee, Participants may elect to defer, under the Plan, receipt of<br \/>\n        Stock to which they are entitled as a result of an Eligible Stock Option<br \/>\n        exercise. Stock Option Amounts, equal to the Qualifying Gains<br \/>\n        attributable to the Stock as to which receipt is deferred shall be<br \/>\n        credited to the Participant<\/p>\n<p>                                       12<\/p>\n<p>        on the books of the Employer at the time Stock would otherwise have been<br \/>\n        delivered to the Participant pursuant to the Eligible Stock Option<br \/>\n        exercise, but for the election to defer.<\/p>\n<p>3.8     RESTRICTED STOCK AMOUNT. Subject to any terms and conditions imposed by<br \/>\n        the Committee, Participants may elect to defer, under the Plan, receipt<br \/>\n        of Restricted Stock. Restricted Stock Amounts shall be credited to the<br \/>\n        Participant on the books of the Employer in connection with such an<br \/>\n        election at the time the Restricted Stock would otherwise vest (i.e.,<br \/>\n        the restrictions on such Stock would otherwise lapse) under the terms of<br \/>\n        the Company&#8217;s stock incentive plan, but for the election to defer, and<br \/>\n        the certificates representing such shares of Stock, if previously<br \/>\n        delivered to the Participant, shall be returned to the Employer before<br \/>\n        such time.<\/p>\n<p>3.9     ROLLOVER AMOUNT. If an Employee has an account balance in the<br \/>\n        Supplemental Deferral Plan, the Company will specify a Transfer Date on<br \/>\n        which the Employee&#8217;s Supplemental Deferral Plan account balance, as<br \/>\n        determined as of the Transfer Date, shall be transferred and added to<br \/>\n        the Participant&#8217;s Account Balance under this Plan, and shall thereafter<br \/>\n        be governed by the terms and conditions of this Plan and shall be<br \/>\n        referred to as the &#8220;Rollover Amount.&#8221; All elections made by a<br \/>\n        Participant with respect to his or her account balance under the<br \/>\n        Supplemental Deferral Plan shall apply to his or her Rollover Amount<br \/>\n        under this Plan.<\/p>\n<p>3.10    INVESTMENT OF TRUST ASSETS. The Trustee of the Trust shall be<br \/>\n        authorized, upon written instructions received from the Committee or<br \/>\n        investment manager appointed by the Committee, to invest and reinvest<br \/>\n        the assets of the Trust in accordance with the applicable Trust<br \/>\n        Agreement, including the disposition of Stock and reinvestment of the<br \/>\n        proceeds in one or more investment vehicles designated by the Committee.<\/p>\n<p>3.11    SOURCES OF STOCK. If Stock is credited under the Plan in the Trust in<br \/>\n        connection with an Eligible Stock Option exercise or in connection with<br \/>\n        a deferral of Restricted Stock, the shares so credited shall be deemed<br \/>\n        to have originated, and shall be counted against the number of shares<br \/>\n        reserved, under such other plan, program or arrangement.<\/p>\n<p>3.12    VESTING.<\/p>\n<p>        (a)    A Participant shall at all times be 100% vested in his or her<br \/>\n               Deferral Account, Stock Option Account, Restricted Stock Account<br \/>\n               and Rollover Account.<\/p>\n<p>        (b)    A Participant shall be vested in his or her Company Contribution<br \/>\n               Account in accordance with the vesting schedules established by<br \/>\n               the Committee, in its sole and absolute discretion, for each<br \/>\n               Annual Company Contribution Amount (and amounts credited or<br \/>\n               debited thereon) at the time each such Annual Company<br \/>\n               Contribution Amount is first credited to the Participant&#8217;s<br \/>\n               Account Balance under the Plan. The vesting schedules established<br \/>\n               by the Committee for each Annual Company Contribution Amount may<br \/>\n               be different for different Participants.<\/p>\n<p>                                       13<\/p>\n<p>        (c)    A Participant shall be vested in his or her Annual Company<br \/>\n               Matching Amount in accordance with the following schedule:<\/p>\n<table>\n<caption>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                     YEARS OF SERVICE ON DATE          VESTED PERCENTAGE OF ANNUAL COMPANY<br \/>\n                   OF TERMINATION OF EMPLOYMENT                 MATCHING ACCOUNT<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n               <s>                                     <c><br \/>\n                         Less than 1 year                              0%<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                 1 year or more, but less than 2                       10%<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                 2 years or more, but less than 3                      25%<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                 3 years or more, but less than 4                      50%<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                 4 years or more, but less than 5                      75%<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                          5 years or more                             100%<br \/>\n               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n<\/c><\/s><\/caption>\n<\/table>\n<p>        (d)    Notwithstanding anything to the contrary contained in this<br \/>\n               Section 3.12, except as provided in subsection (d) below, in the<br \/>\n               event of a Change in Control, a Participant&#8217;s Company<br \/>\n               Contribution Account and Company Matching Account shall<br \/>\n               immediately become 100% vested (without regard to whether it is<br \/>\n               already vested in accordance with the above vesting schedules).<\/p>\n<p>        (e)    Notwithstanding subsection (d) in this Section 3.12, the vesting<br \/>\n               schedule for a Participant&#8217;s Company Contribution Account shall<br \/>\n               not be accelerated to the extent that the Committee determines<br \/>\n               that such acceleration would cause the deduction limitations of<br \/>\n               Section 280G of the Code to become effective. In the event that<br \/>\n               any portion of a Participant&#8217;s Company Contribution Account is<br \/>\n               not vested pursuant to such a determination, the Participant may<br \/>\n               request independent verification of the Committee&#8217;s calculations<br \/>\n               with respect to the application of Section 280G. In such case,<br \/>\n               the Committee must provide to the Participant within 15 business<br \/>\n               days of such a request an opinion from a nationally recognized<br \/>\n               accounting firm selected by the Participant (the &#8220;Accounting<br \/>\n               Firm&#8221;), to the effect that, in the Accounting Firm&#8217;s opinion that<br \/>\n               any limitation in the vested percentage hereunder is necessary to<br \/>\n               avoid the limits of Section 280G, and containing supporting<br \/>\n               calculations, or, in the absence of such an opinion, shall cause<br \/>\n               the relevant portion of the Participant&#8217;s Company Contribution<br \/>\n               Account to become vested. The cost of such opinion shall be paid<br \/>\n               for by the Company.<\/p>\n<p>3.13    CREDITING\/DEBITING OF ACCOUNT BALANCES. In accordance with, and subject<br \/>\n        to, the rules and procedures that are established from time to time by<br \/>\n        the Committee, in its sole discretion, amounts shall be credited or<br \/>\n        debited to a Participant&#8217;s Account Balance in accordance with the<br \/>\n        following rules:<\/p>\n<p>        (a)    ELECTION OF MEASUREMENT FUNDS. Subject to Section 3.13(f) below,<br \/>\n               a Participant, in connection with his or her initial deferral<br \/>\n               election in accordance with Section 3.3(a) above, shall elect, on<br \/>\n               the Election Form, one or more Measurement Fund(s) to be used to<br \/>\n               determine the additional amounts to be credited to his or her<br \/>\n               Account Balance for the first business day in which the<br \/>\n               Participant commences participation in the Plan and continuing<br \/>\n               thereafter for each subsequent day in which the Participant<br \/>\n               participates in the<\/p>\n<p>                                       14<\/p>\n<p>               Plan, unless changed in accordance with the next sentence.<br \/>\n               Subject to Section 3.13(f) below, commencing with the first<br \/>\n               business day that follows the Participant&#8217;s commencement of<br \/>\n               participation in the Plan and continuing thereafter for each<br \/>\n               subsequent day in which the Participant participates in the Plan,<br \/>\n               the Participant may (but is not required to) elect, by submitting<br \/>\n               an Election Form to the Committee that is accepted by the<br \/>\n               Committee, to add or delete one or more Measurement Fund(s) to be<br \/>\n               used to determine the additional amounts to be credited to his or<br \/>\n               her Account Balance, or to change the portion of his or her<br \/>\n               Account Balance allocated to each previously or newly elected<br \/>\n               Measurement Fund. If an election is made in accordance with the<br \/>\n               previous sentence, it shall apply to the next business day and<br \/>\n               continue thereafter for each subsequent day in which the<br \/>\n               Participant participates in the Plan, unless changed in<br \/>\n               accordance with the previous sentence.<\/p>\n<p>        (b)    PROPORTIONATE ALLOCATION. In making any election described in<br \/>\n               Section 3.13(a) above, the Participant shall specify on the<br \/>\n               Election Form, in increments of five percentage points (5%), the<br \/>\n               percentage of his or her Account Balance to have gains and losses<br \/>\n               measured by a Measurement Fund.<\/p>\n<p>        (c)    MEASUREMENT FUNDS. From time to time, the Committee in its sole<br \/>\n               discretion shall select and announce to Participants its<br \/>\n               selection of mutual funds, insurance company separate accounts,<br \/>\n               indexed rates or other methods, one of which shall be the Stock<br \/>\n               (each, a &#8220;Measurement Fund&#8221;), for the purpose of providing the<br \/>\n               basis on which gains and losses shall be attributed to Account<br \/>\n               Balances under the Plan. The Committee may, in its sole<br \/>\n               discretion, discontinue, substitute or add a Measurement Fund at<br \/>\n               any time, provided, however, that the Committee may never<br \/>\n               discontinue or substitute the Company Stock Measurement Fund.<br \/>\n               Each such action will take effect as of the first day of the<br \/>\n               calendar quarter that follows by thirty (30) days the day on<br \/>\n               which the Committee gives Participants advance written notice of<br \/>\n               such change.<\/p>\n<p>        (d)    CREDITING OR DEBITING METHOD. The performance of each elected<br \/>\n               Measurement Fund (either positive or negative) will be determined<br \/>\n               by the Committee, in its reasonable discretion, based on<br \/>\n               available reports of the performance of the Measurement Funds. A<br \/>\n               Participant&#8217;s Account Balance shall be credited or debited on a<br \/>\n               daily basis based on the performance of each Measurement Fund<br \/>\n               selected by the Participant, as determined by the Committee in<br \/>\n               its sole discretion, as though (i) a Participant&#8217;s Account<br \/>\n               Balance were invested in the Measurement Fund(s) selected by the<br \/>\n               Participant, in the percentages applicable to such day, as of the<br \/>\n               close of business on such day, at the closing price on such date;<br \/>\n               (ii) the portion of the Annual Deferral Amount that was actually<br \/>\n               deferred during any day were invested in the Measurement Fund(s)<br \/>\n               selected by the Participant, in the percentages applicable to<br \/>\n               such day, no later than the close of business on the first<br \/>\n               business day after the day on which such amounts are actually<br \/>\n               deferred from the Participant&#8217;s Annual Base Salary through<br \/>\n               reductions in his or her payroll, at the closing price on such<br \/>\n               date; and (iii) any distribution made to a Participant that<br \/>\n               decreases such<\/p>\n<p>                                       15<\/p>\n<p>               Participant&#8217;s Account Balance ceased being invested in the<br \/>\n               Measurement Fund(s), in the percentages applicable to such day,<br \/>\n               no earlier than one business day prior to the distribution, at<br \/>\n               the closing price on such date. The Participant&#8217;s Annual Stock<br \/>\n               Option Amount(s) shall be credited to his or her Stock Option<br \/>\n               Account no later than the close of business on the first business<br \/>\n               day after the day on which the Eligible Stock Option was<br \/>\n               exercised. The Participant&#8217;s Annual Restricted Stock Amounts<br \/>\n               shall be credited to his or her Restricted Stock Account no later<br \/>\n               than the close of business on the first business day after the<br \/>\n               day on which the Restricted Stock to which it relates would have<br \/>\n               vested, but for the election to defer.<\/p>\n<p>        (e)    NO ACTUAL INVESTMENT. Notwithstanding any other provision of this<br \/>\n               Plan that may be interpreted to the contrary, the Measurement<br \/>\n               Funds are to be used for measurement purposes only, and a<br \/>\n               Participant&#8217;s election of any such Measurement Fund, the<br \/>\n               allocation to his or her Account Balance thereto, the calculation<br \/>\n               of additional amounts and the crediting or debiting of such<br \/>\n               amounts to a Participant&#8217;s Account Balance shall not be<br \/>\n               considered or construed in any manner as an actual investment of<br \/>\n               his or her Account Balance in any such Measurement Fund. In the<br \/>\n               event that the Company or the Trustee (as that term is defined in<br \/>\n               the Trust), in its own discretion, decides to invest funds in any<br \/>\n               or all of the Measurement Funds, no Participant shall have any<br \/>\n               rights in or to such investments themselves. Without limiting the<br \/>\n               foregoing, a Participant&#8217;s Account Balance shall at all times be<br \/>\n               a bookkeeping entry only and shall not represent any investment<br \/>\n               made on his or her behalf by the Company or the Trust; the<br \/>\n               Participant shall at all times remain an unsecured creditor of<br \/>\n               the Company.<\/p>\n<p>        (f)    STOCK OPTION ACCOUNT AND RESTRICTED STOCK ACCOUNT MUST BE<br \/>\n               ALLOCATED TO COMPANY STOCK MEASUREMENT FUND. Notwithstanding any<br \/>\n               provision of this Plan that may be construed to the contrary, a<br \/>\n               Participant&#8217;s Stock Option Account and Restricted Stock Account<br \/>\n               must always be allocated to the Company Stock Measurement Fund,<br \/>\n               may never be reallocated to any other Measurement Fund and must<br \/>\n               be distributed from this Plan in the form of actual shares of<br \/>\n               Stock.<\/p>\n<p>3.14    FICA AND OTHER TAXES.<\/p>\n<p>        (a)    ANNUAL DEFERRAL AMOUNTS. For each Plan Year in which an Annual<br \/>\n               Deferral Amount is being withheld from a Participant, the<br \/>\n               Participant&#8217;s Employer(s) shall withhold from that portion of the<br \/>\n               Participant&#8217;s Annual Base Salary or Annual Bonus that is not<br \/>\n               being deferred, in a manner determined by the Employer(s), the<br \/>\n               Participant&#8217;s share of FICA, other employment taxes and other<br \/>\n               employee contributions on such Annual Deferral Amount. If<br \/>\n               necessary, the Committee may reduce the Annual Deferral Amount in<br \/>\n               order to comply with this Section 3.14.<\/p>\n<p>        (b)    COMPANY MATCHING AMOUNTS. When a participant becomes vested in a<br \/>\n               portion of his or her Company Matching Account, the Participant&#8217;s<br \/>\n               Employer(s) shall withhold from the Participant&#8217;s Annual Base<br \/>\n               Salary or Annual Bonus that is not deferred, in a manner<\/p>\n<p>                                       16<\/p>\n<p>               determined by the Employer(s), the Participant&#8217;s share of FICA<br \/>\n               and other employment taxes. If necessary, the Committee may<br \/>\n               reduce the vested portion of the Participant&#8217;s Company Matching<br \/>\n               Account in order to comply with this Section 3.14.<\/p>\n<p>        (c)    ANNUAL STOCK OPTION AMOUNTS AND ANNUAL RESTRICTED STOCK AMOUNTS.<br \/>\n               For each Plan Year in which an Annual Stock Option Amount or<br \/>\n               Annual Restricted Stock Amount is being first withheld from a<br \/>\n               Participant, the Participant&#8217;s Employer(s) shall withhold from<br \/>\n               that portion of the Participant&#8217;s Annual Base Salary or Annual<br \/>\n               Bonus that is not being deferred, in a manner determined by the<br \/>\n               Employer(s), the Participant&#8217;s share of FICA and other employment<br \/>\n               taxes on such Annual Stock Option Amount or Annual Restricted<br \/>\n               Stock Amount. If necessary, the Committee may reduce the Annual<br \/>\n               Deferral Amount in order to comply with this Section 3.14.<\/p>\n<p>3.15    DISTRIBUTIONS. The Participant&#8217;s Employer(s), or the trustee of the<br \/>\n        Trust, shall withhold from any payments made to a Participant under this<br \/>\n        Plan all federal, state and local income, employment and other taxes<br \/>\n        required to be withheld by the Employer(s), or the trustee of the Trust,<br \/>\n        in connection with such payments, in amounts and in a manner to be<br \/>\n        determined in the sole discretion of the Employer(s) and the trustee of<br \/>\n        the Trust, respectively (whichever is making the payment).<\/p>\n<p>                                    ARTICLE 4<br \/>\n             SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL EMERGENCIES;<br \/>\n                               WITHDRAWAL ELECTION<\/p>\n<p>4.1     SHORT-TERM PAYOUT. In connection with each election to defer an Annual<br \/>\n        Deferral Amount, a Participant may irrevocably elect to receive a future<br \/>\n        &#8220;Short-Term Payout&#8221; from the Plan with respect to such Annual Deferral<br \/>\n        Amount. Subject to the Deduction Limitation, the Short-Term Payout shall<br \/>\n        be a lump sum payment in an amount that is equal to the Annual Deferral<br \/>\n        (or a specified portion thereof) plus amounts credited or debited in the<br \/>\n        manner provided in Section 3.13 above on that amount, determined at the<br \/>\n        time that the Short-Term Payout becomes payable (rather than the date of<br \/>\n        a Termination of Employment) or, alternatively if so elected by the<br \/>\n        Participant, a fixed stated sum, up to the total Account. Subject to the<br \/>\n        Deduction Limitation and the other terms and conditions of this Plan,<br \/>\n        each Short-Term Payout elected shall be paid out during a 60 day period<br \/>\n        commencing immediately after the last day of any Plan Year designated by<br \/>\n        the Participant that is at least three Plan Years after the Plan Year in<br \/>\n        which the Annual Deferral Amount is actually deferred.<\/p>\n<p>4.2     OTHER BENEFITS TAKE PRECEDENCE OVER SHORT-TERM. Should an event occur<br \/>\n        that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral<br \/>\n        Amount, plus amounts credited or debited thereon, that is subject to a<br \/>\n        Short-Term Payout election under Section 4.1 shall not be paid in<br \/>\n        accordance with Section 4.1 but shall be paid in accordance with the<br \/>\n        other applicable Article.<\/p>\n<p>                                       17<\/p>\n<p>4.3     WITHDRAWAL PAYOUT\/SUSPENSIONS FOR UNFORESEEABLE FINANCIAL EMERGENCIES.<br \/>\n        If the Participant experiences an Unforeseeable Financial Emergency, the<br \/>\n        Participant may petition the Committee to (i) suspend any deferrals<br \/>\n        required to be made by a Participant or (ii) receive a partial or full<br \/>\n        payout from the Plan. The payout shall not exceed the lesser of the<br \/>\n        Participant&#8217;s Account Balance, calculated as if such Participant were<br \/>\n        receiving a Termination Benefit, or the amount reasonably needed to<br \/>\n        satisfy the Unforeseeable Financial Emergency. If, subject to the sole<br \/>\n        discretion of the Committee, the petition for a suspension and\/or payout<br \/>\n        is approved, suspension shall take effect upon the date of approval and<br \/>\n        any payout shall be made within 60 days of the date of approval. The<br \/>\n        payment of any amount under this Section 4.3 shall not be subject to the<br \/>\n        Deduction Limitation.<\/p>\n<p>4.4     WITHDRAWAL ELECTION. A Participant (or, after a Participant&#8217;s death, his<br \/>\n        or her Beneficiary) may elect, at any time, to withdraw a portion or all<br \/>\n        of his or her Account Balance, calculated as if there had occurred a<br \/>\n        Termination of Employment as of the day of the election, less a<br \/>\n        withdrawal penalty equal to 10% of the amount withdrawn (the net amount<br \/>\n        shall be referred to as the &#8220;Withdrawal Amount&#8221;). This election can be<br \/>\n        made at any time, before or after Retirement, Disability, death or<br \/>\n        Termination of Employment, and whether or not the Participant (or<br \/>\n        Beneficiary) is in the process of being paid pursuant to an installment<br \/>\n        payment schedule. If made before Retirement, Disability or death, a<br \/>\n        Participant&#8217;s Withdrawal Amount shall be his or her Account Balance (or<br \/>\n        portion of his or her Account Balance elected by the Participant)<br \/>\n        calculated as if there had occurred a Termination of Employment as of<br \/>\n        the day of the election. Notwithstanding anything in this Section or the<br \/>\n        Plan to the contrary, a Participant may not elect a Withdrawal Amount<br \/>\n        less than $5,000. The Participant (or his or her Beneficiary) shall make<br \/>\n        this election by giving the Committee advance written notice of the<br \/>\n        election in a form determined from time to time by the Committee. The<br \/>\n        Participant (or his or her Beneficiary) shall be paid the Withdrawal<br \/>\n        Amount within 60 days of his or her election and the Participant&#8217;s<br \/>\n        Account shall concurrently be reduced by the Withdrawal Amount plus the<br \/>\n        10% penalty. The payment of this Withdrawal Amount shall not be subject<br \/>\n        to the Deduction Limitation.<\/p>\n<p>                                    ARTICLE 5<br \/>\n                               RETIREMENT BENEFIT<\/p>\n<p>5.1     RETIREMENT BENEFIT. Subject to the Deduction Limitation, a Participant<br \/>\n        who Retires shall receive, as a Retirement Benefit, his or her Account<br \/>\n        Balance.<\/p>\n<p>5.2     PAYMENT OF RETIREMENT BENEFIT. A Participant, in connection with his or<br \/>\n        her commencement of participation in the Plan, shall elect on an<br \/>\n        Election Form the form in which the Retirement Benefit will be paid, if<br \/>\n        that benefit becomes payable under the terms of the Plan, which form<br \/>\n        shall be a lump sum or an Annual Installment Method of 5, 10, or 15<br \/>\n        years. The Participant may annually change his or her election to an<br \/>\n        allowable alternative payout period by submitting a new Election Form to<br \/>\n        the Committee, provided that the last such Election Form that is<br \/>\n        submitted at least 1 year prior to the Participant&#8217;s Retirement and is<br \/>\n        accepted by the Committee<\/p>\n<p>                                       18<\/p>\n<p>        in its sole discretion shall be the governing Election Form as to this<br \/>\n        matter. If a Participant does not make any election with respect to the<br \/>\n        payment of the Retirement Benefit, then such benefit shall be payable in<br \/>\n        a lump sum. The lump sum payment shall be made, or installment payments<br \/>\n        shall commence, no later than 60 days after the Participant Retires. Any<br \/>\n        payment made shall be subject to the Deduction Limitation.<\/p>\n<p>5.3     DEATH PRIOR TO COMPLETION OF RETIREMENT BENEFIT. If a Participant dies<br \/>\n        after Retirement but before the Retirement Benefit is paid in full, the<br \/>\n        Participant&#8217;s unpaid Retirement Benefit payments shall continue and<br \/>\n        shall be paid to the Participant&#8217;s Beneficiary (a) over the remaining<br \/>\n        number of years and in the same amounts as that benefit would have been<br \/>\n        paid to the Participant had the Participant survived, or (b) in a lump<br \/>\n        sum, if requested by the Beneficiary and allowed in the sole discretion<br \/>\n        of the Committee, that is equal to the Participant&#8217;s unpaid remaining<br \/>\n        Account Balance.<\/p>\n<p>                                    ARTICLE 6<br \/>\n                         PRE-RETIREMENT SURVIVOR BENEFIT<\/p>\n<p>6.1     PRE-RETIREMENT SURVIVOR BENEFIT. Subject to the Deduction Limitation,<br \/>\n        the Participant&#8217;s Beneficiary shall receive a Pre-Retirement Survivor<br \/>\n        Benefit equal to the Participant&#8217;s Account Balance if the Participant<br \/>\n        dies before he or she Retires, experiences a Termination of Employment<br \/>\n        or suffers a Disability.<\/p>\n<p>6.2     PAYMENT OF PRE-RETIREMENT SURVIVOR BENEFIT. A Participant, in connection<br \/>\n        with his or her commencement of participation in the Plan, shall elect<br \/>\n        on an Election Form whether the Pre-Retirement Survivor Benefit shall be<br \/>\n        received by his or her Beneficiary in a lump sum or pursuant to an<br \/>\n        Annual Installment Method of 5, 10 or 15 years. The Participant may<br \/>\n        annually change this election to an allowable alternative payout period<br \/>\n        by submitting a new Election Form to the Committee, which form must be<br \/>\n        accepted by the Committee in its sole discretion. The Election Form most<br \/>\n        recently accepted by the Committee prior to the Participant&#8217;s death<br \/>\n        shall govern the payout of the Participant&#8217;s Pre-Retirement Survivor<br \/>\n        Benefit. If a Participant does not make any election with respect to the<br \/>\n        payment of the Pre-Retirement Survivor Benefit, then such benefit shall<br \/>\n        be paid in a lump sum. Despite the foregoing, if the Participant&#8217;s<br \/>\n        Account Balance at the time of his or her death is less than $25,000,<br \/>\n        payment of the Pre-Retirement Survivor Benefit may be made, in the sole<br \/>\n        discretion of the Committee, in a lump sum or pursuant to an Annual<br \/>\n        Installment Method of not more than 5 years. The lump sum payment shall<br \/>\n        be made, or installment payments shall commence, no later than 60 days<br \/>\n        after the Committee is provided with proof that is satisfactory to the<br \/>\n        Committee of the Participant&#8217;s death. Any payment made shall be subject<br \/>\n        to the Deduction Limitation.<\/p>\n<p>                                       19<\/p>\n<p>                                    ARTICLE 7<br \/>\n                               TERMINATION BENEFIT<\/p>\n<p>7.1     TERMINATION BENEFIT. Subject to the Deduction Limitation, the<br \/>\n        Participant shall receive a Termination Benefit, which shall be equal to<br \/>\n        the Participant&#8217;s Account Balance if a Participant experiences a<br \/>\n        Termination of Employment prior to his or her Retirement, death or<br \/>\n        Disability.<\/p>\n<p>7.2     PAYMENT OF TERMINATION BENEFIT. The Termination Benefit shall be paid to<br \/>\n        a Participant in a lump sum. Notwithstanding the foregoing or anything<br \/>\n        in this Plan to the contrary, to the extent a Participant&#8217;s Account<br \/>\n        Balance is equal to or greater than $25,000 at the time of Termination<br \/>\n        of Employment, the Participant may request that the Committee cause the<br \/>\n        Termination Benefit to be paid pursuant to a method other than lump sum.<br \/>\n        The Committee may, in its sole discretion, accept, modify or reject the<br \/>\n        request of a Participant to pay the Termination Benefit pursuant to a<br \/>\n        method other than lump sum. The lump sum payment shall be made, or<br \/>\n        installment payments shall commence, no later than 60 days after<br \/>\n        Participant terminates his or her employment. Notwithstanding anything<br \/>\n        in this Section 7.2 or the Plan to the contrary, a Participant may<br \/>\n        request that the Company pay the lump sum payment or commence the<br \/>\n        installment payments 60 days after the end of the Plan Year in which the<br \/>\n        Participant terminates his or her employment. The Committee may, in its<br \/>\n        sole discretion, accept or reject such a request from a Participant.<\/p>\n<p>                                    ARTICLE 8<br \/>\n                          DISABILITY WAIVER AND BENEFIT<\/p>\n<p>8.1     DISABILITY WAIVER.<\/p>\n<p>        (a)    WAIVER OF DEFERRAL. A Participant who is determined by the<br \/>\n               Committee to be suffering from a Disability shall (i) have no<br \/>\n               further deferrals of the Annual Deferral Amount that would<br \/>\n               otherwise have been withheld from a Participant&#8217;s Annual Base<br \/>\n               Salary or Annual Bonus for the Plan Year during which the<br \/>\n               Participant first suffers a Disability and (ii) have no deferral<br \/>\n               of any unvested Restricted Stock Amount or unexercised Stock<br \/>\n               Option Amount as to which the Participant had previously elected<br \/>\n               deferral. During the period of Disability, the Participant shall<br \/>\n               not be allowed to make any additional deferral elections, but<br \/>\n               will continue to be considered a Participant for all other<br \/>\n               purposes of this Plan.<\/p>\n<p>        (b)    RETURN TO WORK. If a Participant returns to employment with an<br \/>\n               Employer, after a Disability ceases, the Participant may elect to<br \/>\n               defer an Annual Deferral Amount, Stock Option Amount and<br \/>\n               Restricted Stock Amount for the Plan Year following his or her<br \/>\n               return to employment or service and for every Plan Year<br \/>\n               thereafter while a Participant in the Plan; provided such<br \/>\n               deferral elections are otherwise allowed and an Election Form is<br \/>\n               delivered to and accepted by the Committee for each such election<br \/>\n               in accordance with Section 3.3 above.<\/p>\n<p>                                       20<\/p>\n<p>8.2     CONTINUED ELIGIBILITY; DISABILITY BENEFIT. A Participant suffering a<br \/>\n        Disability shall, for benefit purposes under this Plan, continue to be<br \/>\n        considered to be employed and shall be eligible for the benefits<br \/>\n        provided for in Articles 4, 5, 6 or 7 in accordance with the provisions<br \/>\n        of those Articles. Notwithstanding the above, the Committee shall have<br \/>\n        the right to, in its sole and absolute discretion and for purposes of<br \/>\n        this Plan only, and must in the case of a Participant who is otherwise<br \/>\n        eligible to Retire, deem the Participant to have experienced a<br \/>\n        Termination of Employment, or in the case of a Participant who is<br \/>\n        eligible to Retire, to have Retired, at any time (or in the case of a<br \/>\n        Participant who is eligible to Retire, as soon as practicable) after<br \/>\n        such Participant is determined to be suffering a Disability, in which<br \/>\n        case the Participant shall receive a Disability Benefit equal to his or<br \/>\n        her Account Balance at the time of the Committee&#8217;s determination;<br \/>\n        provided, however, that should the Participant otherwise have been<br \/>\n        eligible to Retire, he or she shall be paid in accordance with Article<br \/>\n        5. The Disability Benefit shall be paid in a lump sum within 60 days of<br \/>\n        the Committee&#8217;s exercise of such right. Any payment made shall be<br \/>\n        subject to the Deduction Limitation.<\/p>\n<p>                                    ARTICLE 9<br \/>\n                             BENEFICIARY DESIGNATION<\/p>\n<p>9.1     BENEFICIARY. Each Participant shall have the right, at any time, to<br \/>\n        designate his or her Beneficiary(ies) (both primary and contingent) to<br \/>\n        receive any benefits payable under the Plan to a beneficiary upon the<br \/>\n        death of a Participant. The Beneficiary designated under this Plan may<br \/>\n        be the same as or different from the Beneficiary designation under any<br \/>\n        other plan of an Employer in which the Participant participates.<\/p>\n<p>9.2     BENEFICIARY DESIGNATION; CHANGE; SPOUSAL CONSENT. A Participant shall<br \/>\n        designate his or her Beneficiary by completing and signing the<br \/>\n        Beneficiary Designation Form, and returning it to the Committee or its<br \/>\n        designated agent. A Participant shall have the right to change a<br \/>\n        Beneficiary by completing, signing and otherwise complying with the<br \/>\n        terms of the Beneficiary Designation Form and the Committee&#8217;s rules and<br \/>\n        procedures, as in effect from time to time. A Participant may name<br \/>\n        someone other than his or her spouse as a Beneficiary only if a spousal<br \/>\n        consent, in the form designated by the Committee, is signed by that<br \/>\n        Participant&#8217;s spouse and returned to the Committee. Upon the acceptance<br \/>\n        by the Committee of a new Beneficiary Designation Form, all Beneficiary<br \/>\n        designations previously filed shall be canceled. The Committee shall be<br \/>\n        entitled to rely on the last Beneficiary Designation Form filed by the<br \/>\n        Participant and accepted by the Committee prior to his or her death.<\/p>\n<p>9.3     ACKNOWLEDGMENT. No designation or change in designation of a Beneficiary<br \/>\n        shall be effective until received and acknowledged in writing by the<br \/>\n        Committee or its designated agent.<\/p>\n<p>9.4     NO BENEFICIARY DESIGNATION. If a Participant fails to designate a<br \/>\n        Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all<br \/>\n        designated Beneficiaries predecease the Participant or die prior to<br \/>\n        complete distribution of the Participant&#8217;s benefits, then the<br \/>\n        Participant&#8217;s designated Beneficiary shall be deemed to be his or her<br \/>\n        surviving spouse. If the Participant has no<\/p>\n<p>                                       21<\/p>\n<p>        surviving spouse, the Participant&#8217;s designated Beneficiary shall be<br \/>\n        deemed to be the Participant&#8217;s estate.<\/p>\n<p>9.5     DOUBT AS TO BENEFICIARY. If the Committee has any doubt as to the proper<br \/>\n        Beneficiary to receive payments pursuant to this Plan, the Committee<br \/>\n        shall have the right, exercisable in its discretion, to cause the<br \/>\n        Participant&#8217;s Employer to withhold such payments until this matter is<br \/>\n        resolved to the Committee&#8217;s satisfaction.<\/p>\n<p>9.6     DISCHARGE OF OBLIGATIONS. The payment of benefits under the Plan to a<br \/>\n        Beneficiary shall fully and completely discharge all Employers and the<br \/>\n        Committee from all further obligations under this Plan with respect to<br \/>\n        the Participant, and that Participant&#8217;s Plan Agreement shall terminate<br \/>\n        upon such full payment of benefits.<\/p>\n<p>                                   ARTICLE 10<br \/>\n                                LEAVE OF ABSENCE<\/p>\n<p>10.1    PAID LEAVE OF ABSENCE. If a Participant is authorized by the<br \/>\n        Participant&#8217;s Employer for any reason to take a paid leave of absence<br \/>\n        from the employment of the Employer, the Participant shall continue to<br \/>\n        be considered employed by the Employer and the Annual Deferral Amount<br \/>\n        shall continue to be withheld during such paid leave of absence in<br \/>\n        accordance with Section 3.3.<\/p>\n<p>10.2    UNPAID LEAVE OF ABSENCE. If a Participant is authorized by the<br \/>\n        Participant&#8217;s Employer for any reason to take an unpaid leave of absence<br \/>\n        from the employment of the Employer, the Participant shall continue to<br \/>\n        be considered employed by the Employer and deferrals shall not be made,<br \/>\n        in the absence of compensation. Upon such expiration of the unpaid leave<br \/>\n        and resumption of entitlement to compensation, deferrals shall resume<br \/>\n        for the remaining portion of the Plan Year in which the return occurs,<br \/>\n        based on the deferral election, if any, made for that Plan Year. If no<br \/>\n        election was made for that Plan Year, no deferral shall be withheld.<\/p>\n<p>                                   ARTICLE 11<br \/>\n                     TERMINATION, AMENDMENT OR MODIFICATION<\/p>\n<p>11.1    TERMINATION. Although the Company anticipates that it will continue the<br \/>\n        Plan for an indefinite period of time, there is no guarantee that the<br \/>\n        Company will continue the Plan or will not terminate the Plan at any<br \/>\n        time in the future. Accordingly, the Company reserves the right to<br \/>\n        discontinue its sponsorship of the Plan and to terminate the Plan at any<br \/>\n        time with respect to any or all of its participating Employees, by<br \/>\n        action of its Board of Directors. Upon the termination of the Plan, the<br \/>\n        Plan Agreements of the affected Participants shall terminate and their<br \/>\n        Account Balances, determined as if they had experienced a Termination of<br \/>\n        Employment on the date of Plan termination or, if Plan termination<br \/>\n        occurs after the date upon which a Participant was eligible to Retire,<br \/>\n        then with respect to that Participant as if he or she had Retired on the<br \/>\n        date of Plan termination, shall be paid to the Participants as follows:<br \/>\n        Prior to a Change in Control, if the Plan is terminated with respect to<br \/>\n        all of its Participants, the Company shall have the right, in its sole<br \/>\n        discretion, and notwithstanding any elections made by the Participant,<br \/>\n        to pay such<\/p>\n<p>                                       22<\/p>\n<p>        benefits in a lump sum or pursuant to an Annual Installment Method of up<br \/>\n        to 15 years, with amounts credited and debited during the installment<br \/>\n        period as provided herein. Prior to a Change in Control, if the Plan is<br \/>\n        terminated with respect to less than all of its Participants, the<br \/>\n        Company shall be required to pay such benefits in a lump sum. After a<br \/>\n        Change in Control, the Company shall be required to pay such benefits in<br \/>\n        a lump sum. The termination of the Plan shall not adversely affect any<br \/>\n        Participant or Beneficiary who has become entitled to the payment of any<br \/>\n        benefits under the Plan as of the date of termination; provided however,<br \/>\n        that the Company shall have the right to accelerate installment payments<br \/>\n        without a premium or prepayment penalty by paying the Account Balance in<br \/>\n        a lump sum or pursuant to an Annual Installment Method using fewer<br \/>\n        years.<\/p>\n<p>11.2    AMENDMENT. The Company may, at any time, amend or modify the Plan in<br \/>\n        whole or in part by the action of its Board of Directors; provided,<br \/>\n        however, that: (i) no amendment or modification shall be effective to<br \/>\n        decrease or restrict the value of a Participant&#8217;s Account Balance in<br \/>\n        existence at the time the amendment or modification is made, calculated<br \/>\n        as if the Participant had experienced a Termination of Employment as of<br \/>\n        the effective date of the amendment or modification or, if the amendment<br \/>\n        or modification occurs after the date upon which the Participant was<br \/>\n        eligible to Retire, the Participant had Retired as of the effective date<br \/>\n        of the amendment or modification, (ii) no amendment or modification<br \/>\n        shall be effective upon or after a Change in Control without the prior<br \/>\n        written consent of a majority of the Participants, and (iii) no<br \/>\n        amendment or modification of this Section 11.2 or Section 12.2 of the<br \/>\n        Plan shall be effective. The amendment or modification of the Plan shall<br \/>\n        not affect any Participant or Beneficiary who has become entitled to the<br \/>\n        payment of benefits under the Plan as of the date of the amendment or<br \/>\n        modification; provided, however, that the Employer shall have the right<br \/>\n        to accelerate installment payments by paying the Account Balance in a<br \/>\n        lump sum or pursuant to an Annual Installment Method using fewer years<br \/>\n        (provided that the present value of all payments that will have been<br \/>\n        received by a Participant at any given point of time under the different<br \/>\n        payment schedule shall equal or exceed the present value of all payments<br \/>\n        that would have been received at that point in time under the original<br \/>\n        payment schedule).<\/p>\n<p>11.3    PLAN AGREEMENT. Despite the provisions of Sections 11.1 and 11.2 above,<br \/>\n        if a Participant&#8217;s Plan Agreement contains benefits or limitations that<br \/>\n        are not in this Plan document, the Company may only amend or terminate<br \/>\n        such provisions with the consent of the Participant.<\/p>\n<p>11.4    EFFECT OF PAYMENT. The full payment of the applicable benefit under<br \/>\n        Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all<br \/>\n        obligations to a Participant and his or her designated Beneficiaries<br \/>\n        under this Plan and the Participant&#8217;s Plan Agreement shall terminate.<\/p>\n<p>                                   ARTICLE 12<br \/>\n                                 ADMINISTRATION<\/p>\n<p>12.1    COMMITTEE DUTIES. Except as otherwise provided in this Article 12, this<br \/>\n        Plan shall be administered by a Committee, which shall consist of the<br \/>\n        Board, or such committee as the Board shall appoint. Members of the<br \/>\n        Committee may be Participants under this Plan. The Committee<\/p>\n<p>                                       23<\/p>\n<p>        shall also have the discretion and authority to (i) make, amend,<br \/>\n        interpret, and enforce all appropriate rules and regulations for the<br \/>\n        administration of this Plan and (ii) decide or resolve any and all<br \/>\n        questions including interpretations of this Plan, as may arise in<br \/>\n        connection with the Plan. Any individual serving on the Committee who is<br \/>\n        a Participant shall not vote or act on any matter relating solely to<br \/>\n        himself or herself. When making a determination or calculation, the<br \/>\n        Committee shall be entitled to rely on information furnished by a<br \/>\n        Participant, the Company or any Employer.<\/p>\n<p>12.2    ADMINISTRATION UPON CHANGE IN CONTROL. For purposes of this Plan, the<br \/>\n        Company shall be the &#8220;Administrator&#8221; at all times prior to the<br \/>\n        occurrence of a Change in Control. Upon and after the occurrence of a<br \/>\n        Change in Control, the &#8220;Administrator&#8221; shall be an independent third<br \/>\n        party selected by the Trustee and approved by the individual who,<br \/>\n        immediately prior to such event, was the Company&#8217;s Chief Executive<br \/>\n        Officer or, if not so identified, the Company&#8217;s highest ranking officer<br \/>\n        (the &#8220;Ex-CEO&#8221;). The Administrator shall have the discretionary power to<br \/>\n        determine all questions arising in connection with the administration of<br \/>\n        the Plan and the interpretation of the Plan and Trust including, but not<br \/>\n        limited to benefit entitlement determinations; provided, however, upon<br \/>\n        and after the occurrence of a Change in Control, the Administrator shall<br \/>\n        have no power to direct the investment of Plan or Trust assets or select<br \/>\n        any investment manager or custodial firm for the Plan or Trust. Upon and<br \/>\n        after the occurrence of a Change in Control, the Company must: (1) pay<br \/>\n        all reasonable administrative expenses and fees of the Administrator;<br \/>\n        (2) indemnify the Administrator against any costs, expenses and<br \/>\n        liabilities including, without limitation, attorney&#8217;s fees and expenses<br \/>\n        arising in connection with the performance of the Administrator<br \/>\n        hereunder, except with respect to matters resulting from the gross<br \/>\n        negligence or willful misconduct of the Administrator or its employees<br \/>\n        or agents; and (3) supply full and timely information to the<br \/>\n        Administrator or all matters relating to the Plan, the Trust, the<br \/>\n        Participants and their Beneficiaries, the Account Balances of the<br \/>\n        Participants, the date of circumstances of the Retirement, Disability,<br \/>\n        death or Termination of Employment of the Participants, and such other<br \/>\n        pertinent information as the Administrator may reasonably require. Upon<br \/>\n        and after a Change in Control, the Administrator may be terminated (and<br \/>\n        a replacement appointed) by the Trustee only with the approval of the<br \/>\n        Ex-CEO. Upon and after a Change in Control, the Administrator may not be<br \/>\n        terminated by the Company.<\/p>\n<p>12.3    AGENTS. In the administration of this Plan, the Committee and the<br \/>\n        Administrator may, from time to time, employ agents and delegate to them<br \/>\n        such of their respective administrative duties as they see fit<br \/>\n        (including acting through a duly appointed representative) and may from<br \/>\n        time to time consult with counsel who may be counsel to any Employer.<\/p>\n<p>12.4    BINDING EFFECT OF DECISIONS. The decision or action of the Administrator<br \/>\n        with respect to any question arising out of or in connection with the<br \/>\n        administration, interpretation and application of the Plan and the rules<br \/>\n        and regulations promulgated hereunder shall be final and conclusive and<br \/>\n        binding upon all persons having any interest in the Plan.<\/p>\n<p>                                       24<\/p>\n<p>12.5    INDEMNITY OF COMMITTEE. All Employers shall indemnify and hold harmless<br \/>\n        the members of the Committee, and any Employee to whom the duties of the<br \/>\n        Committee may be delegated, and the Administrator against any and all<br \/>\n        claims, losses, damages, expenses or liabilities arising from any action<br \/>\n        or failure to act with respect to this Plan, except in the case of<br \/>\n        willful misconduct by the Committee, any of its members, any such<br \/>\n        Employee or the Administrator.<\/p>\n<p>12.6    EMPLOYER INFORMATION. To enable the Committee and Administrator to<br \/>\n        perform their respective functions, the Company and each Employer shall<br \/>\n        supply full and timely information to the Committee or Administrator, as<br \/>\n        the case may be, on all matters relating to the compensation of its<br \/>\n        Participants, the date and circumstances of the Retirement, Disability,<br \/>\n        death or Termination of Employment of its Participants, and such other<br \/>\n        pertinent information as the Committee or Administrator may reasonably<br \/>\n        require.<\/p>\n<p>                                   ARTICLE 13<br \/>\n                          OTHER BENEFITS AND AGREEMENTS<\/p>\n<p>13.1    COORDINATION WITH OTHER BENEFITS. The benefits provided for a<br \/>\n        Participant and Participant&#8217;s Beneficiary under the Plan are in addition<br \/>\n        to any other benefits available to such Participant under any other plan<br \/>\n        or program for employees of the Participant&#8217;s Employer. The Plan shall<br \/>\n        supplement and shall not supersede, modify or amend any other such plan<br \/>\n        or program except as may otherwise be expressly provided.<\/p>\n<p>                                   ARTICLE 14<br \/>\n                                CLAIMS PROCEDURES<\/p>\n<p>14.1    PRESENTATION OF CLAIM. Any Participant or Beneficiary of a deceased<br \/>\n        Participant (such Participant or Beneficiary being referred to below as<br \/>\n        a &#8220;Claimant&#8221;) may deliver to the Committee a written claim for a<br \/>\n        determination with respect to the amounts distributable to such Claimant<br \/>\n        from the Plan. If such a claim relates to the contents of a notice<br \/>\n        received by the Claimant, the claim must be made within 60 days after<br \/>\n        such notice was received by the Claimant. All other claims must be made<br \/>\n        within 180 days of the date on which the event that caused the claim to<br \/>\n        arise occurred. The claim must state with particularity the<br \/>\n        determination desired by the Claimant.<\/p>\n<p>14.2    NOTIFICATION OF DECISION. The Committee shall consider a Claimant&#8217;s<br \/>\n        claim within a reasonable time, and shall notify the Claimant in<br \/>\n        writing:<\/p>\n<p>        (a)    that the Claimant&#8217;s requested determination has been made, and<br \/>\n               that the claim has been allowed in full; or<\/p>\n<p>        (b)    that the Committee has reached a conclusion contrary, in whole or<br \/>\n               in part, to the Claimant&#8217;s requested determination, and such<br \/>\n               notice must set forth in a manner calculated to be understood by<br \/>\n               the Claimant:<\/p>\n<p>                                       25<\/p>\n<p>               (i)    the specific reason(s) for the denial of the claim, or any<br \/>\n                      part of it;<\/p>\n<p>               (ii)   specific reference(s) to pertinent provisions of the Plan<br \/>\n                      upon which such denial was based;<\/p>\n<p>               (iii)  a description of any additional material or information<br \/>\n                      necessary for the Claimant to perfect the claim, and an<br \/>\n                      explanation of why such material or information is<br \/>\n                      necessary; and<\/p>\n<p>               (iv)   an explanation of the claim review procedure set forth in<br \/>\n                      Section 14.3 below.<\/p>\n<p>14.3    REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice from<br \/>\n        the Committee that a claim has been denied, in whole or in part, a<br \/>\n        Claimant (or the Claimant&#8217;s duly authorized representative) may file<br \/>\n        with the Committee a written request for a review of the denial of the<br \/>\n        claim. Thereafter, but not later than 30 days after the review procedure<br \/>\n        began, the Claimant (or the Claimant&#8217;s duly authorized representative):<\/p>\n<p>        (a)    may review pertinent documents;<\/p>\n<p>        (b)    may submit written comments or other documents; and\/or<\/p>\n<p>        (c)    may request a hearing, which the Committee, in its sole<br \/>\n               discretion, may grant.<\/p>\n<p>14.4    DECISION ON REVIEW. The Committee shall render its decision on review<br \/>\n        promptly, and not later than 60 days after the filing of a written<br \/>\n        request for review of the denial, unless a hearing is held or other<br \/>\n        special circumstances require additional time, in which case the<br \/>\n        Committee&#8217;s decision must be rendered within 120 days after such date.<br \/>\n        Such decision must be written in a manner calculated to be understood by<br \/>\n        the Claimant, and it must contain:<\/p>\n<p>        (a)    specific reasons for the decision;<\/p>\n<p>        (b)    specific reference(s) to the pertinent Plan provisions upon which<br \/>\n               the decision was based; and<\/p>\n<p>        (c)    such other matters as the Committee deems relevant.<\/p>\n<p>14.5    LEGAL ACTION. A Claimant&#8217;s compliance with the foregoing provisions of<br \/>\n        this Article 14 is a mandatory prerequisite to a Claimant&#8217;s right to<br \/>\n        commence any legal action with respect to any claim for benefits under<br \/>\n        this Plan.<\/p>\n<p>                                   ARTICLE 15<br \/>\n                                      TRUST<\/p>\n<p>15.1    ESTABLISHMENT OF THE TRUST. The Company may establish the Trust, and<br \/>\n        each Employer may transfer over to the Trust such assets as the Employer<br \/>\n        determines, in its sole discretion, to<\/p>\n<p>                                       26<\/p>\n<p>        provide for its respective future liabilities created with respect to<br \/>\n        the Annual Deferral Amounts, Annual Company Contribution Amounts,<br \/>\n        Company Matching Amounts, Annual Stock Option Amounts and Annual<br \/>\n        Restricted Stock Amounts for such Employer&#8217;s Participants for all<br \/>\n        periods prior to the transfer, as well as any debits and credits to the<br \/>\n        Participants&#8217; Account Balances for all periods prior to the transfer,<br \/>\n        taking into consideration the value of the assets in the trust at the<br \/>\n        time of the transfer.<\/p>\n<p>15.2    INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the Plan<br \/>\n        and the Plan Agreement shall govern the rights of a Participant to<br \/>\n        receive distributions pursuant to the Plan. The provisions of the Trust<br \/>\n        shall govern the rights of the Employers, Participants and the other<br \/>\n        creditors of the Employers to the assets transferred to the Trust. Each<br \/>\n        Employer shall at all times remain liable to carry out its obligations<br \/>\n        under the Plan.<\/p>\n<p>15.3    DISTRIBUTIONS FROM THE TRUST. Each Employer&#8217;s obligations under the Plan<br \/>\n        may be satisfied with Trust assets distributed pursuant to the terms of<br \/>\n        the Trust, and any such distribution shall reduce the Employer&#8217;s<br \/>\n        obligations under this Plan.<\/p>\n<p>15.4    STOCK TRANSFERRED TO THE TRUST. Notwithstanding any other provision of<br \/>\n        this Plan or the Trust, if assets are distributed to a Participant in a<br \/>\n        distribution which reduces the Participant&#8217;s Stock Option Account<br \/>\n        balance or Restricted Stock Account balance under this Plan, such<br \/>\n        distribution must be made in the form of Stock.<\/p>\n<p>                                   ARTICLE 16<br \/>\n                                  MISCELLANEOUS<\/p>\n<p>16.1    STATUS OF PLAN. The Plan is intended to be a plan that is not qualified<br \/>\n        within the meaning of Code Section 401(a) and that &#8220;is unfunded and is<br \/>\n        maintained by an employer primarily for the purpose of providing<br \/>\n        deferred compensation for a select group of management or highly<br \/>\n        compensated employees&#8221; within the meaning of ERISA Sections 201(2),<br \/>\n        301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted<br \/>\n        to the extent possible in a manner consistent with that intent.<\/p>\n<p>16.2    UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries, heirs,<br \/>\n        successors and assigns shall have no legal or equitable rights,<br \/>\n        interests or claims in any property or assets of an Employer. For<br \/>\n        purposes of the payment of benefits under this Plan, the Employer&#8217;s<br \/>\n        assets shall be, and remain, neither pledged nor restricted under or as<br \/>\n        a result of this Plan. An Employer&#8217;s obligation under the Plan shall be<br \/>\n        merely that of an unfunded and unsecured promise to pay money in the<br \/>\n        future.<\/p>\n<p>16.3    EMPLOYER&#8217;S LIABILITY. An Employer&#8217;s liability for the payment of<br \/>\n        benefits shall be defined only by the Plan and the Plan Agreement, as<br \/>\n        entered into between the Employer and a Participant. An Employer shall<br \/>\n        have no obligation to a Participant under the Plan except as expressly<br \/>\n        provided in the Plan and his or her Plan Agreement.<\/p>\n<p>                                       27<\/p>\n<p>16.4    NONASSIGNABILITY. Neither a Participant nor any other person shall have<br \/>\n        any right to commute, sell, assign, transfer, pledge, anticipate,<br \/>\n        mortgage or otherwise encumber, transfer, hypothecate, alienate or<br \/>\n        convey in advance of actual receipt, the amounts, if any, payable<br \/>\n        hereunder, or any part thereof, which are, and all rights to which are<br \/>\n        expressly declared to be, unassignable and non-transferable. No part of<br \/>\n        the amounts payable shall, prior to actual payment, be subject to<br \/>\n        seizure, attachment, garnishment or sequestration for the payment of any<br \/>\n        debts, judgments, alimony or separate maintenance owed by a Participant<br \/>\n        or any other person, be transferable by operation of law in the event of<br \/>\n        a Participant&#8217;s or any other person&#8217;s bankruptcy or insolvency or be<br \/>\n        transferable to a spouse as a result of a property settlement or<br \/>\n        otherwise.<\/p>\n<p>16.5    NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan<br \/>\n        shall not be deemed to constitute a contract of employment between any<br \/>\n        Employer and the Participant. Such employment is hereby acknowledged to<br \/>\n        be an &#8220;at will&#8221; employment relationship that can be terminated at any<br \/>\n        time for any reason, or no reason, with or without cause, and with or<br \/>\n        without notice, except to the extent expressly provided in a written<br \/>\n        employment agreement, if any. Nothing in this Plan shall be deemed to<br \/>\n        give a Participant the right to be retained in the service of any<br \/>\n        Employer or to interfere with the right of any Employer to discipline or<br \/>\n        discharge the Participant at any time.<\/p>\n<p>16.6    FURNISHING INFORMATION. A Participant or his or her Beneficiary, as a<br \/>\n        condition to entitlement to benefits hereunder, shall cooperate with the<br \/>\n        Committee by furnishing any and all information requested by the<br \/>\n        Committee and take such other actions as may be requested in order to<br \/>\n        facilitate the administration of the Plan and the payments of benefits<br \/>\n        hereunder, including but not limited to taking such physical<br \/>\n        examinations as the Committee may deem necessary.<\/p>\n<p>16.7    TERMS. Whenever any words are used herein in the masculine, they shall<br \/>\n        be construed as though they were in the feminine in all cases where they<br \/>\n        would so apply; and whenever any words are used herein in the singular<br \/>\n        or in the plural, they shall be construed as though they were used in<br \/>\n        the plural or the singular, as the case may be, in all cases where they<br \/>\n        would so apply.<\/p>\n<p>16.8    CAPTIONS. The captions of the articles, sections and paragraphs of this<br \/>\n        Plan are for convenience only and shall not control or affect the<br \/>\n        meaning or construction of any of its provisions.<\/p>\n<p>16.9    GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall be<br \/>\n        construed and interpreted according to the internal laws of the State of<br \/>\n        California without regard to its conflicts of laws principles.<\/p>\n<p>16.10   NOTICE. Any notice or filing required or permitted to be given to the<br \/>\n        Committee under this Plan shall be sufficient if in writing and<br \/>\n        hand-delivered, or sent by registered or certified mail, to the address<br \/>\n        below:<\/p>\n<p>                                       28<\/p>\n<p>                                Vice President, Taxation<br \/>\n                                &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                Kaufman and Broad Home<br \/>\n                                Corporation, Inc.<br \/>\n                                &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                10990 Wilshire Boulevard<br \/>\n                                &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                Los Angeles, California  90024<br \/>\n                                &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<\/p>\n<p>        Such notice shall be deemed given as of the date of delivery or, if<br \/>\n        delivery is made by mail, as of the date shown on the postmark on the<br \/>\n        receipt for registration or certification.<\/p>\n<p>        Any notice or filing required or permitted to be given to a Participant<br \/>\n        under this Plan shall be sufficient if in writing and hand-delivered, or<br \/>\n        sent by mail, to the last address of the Participant shown on the<br \/>\n        records of the Company.<\/p>\n<p>16.11   SUCCESSORS. The provisions of this Plan shall bind and inure to the<br \/>\n        benefit of the Participant&#8217;s Employer and its successors and assigns and<br \/>\n        the Participant and the Participant&#8217;s designated Beneficiaries.<\/p>\n<p>16.12   SPOUSE&#8217;S INTEREST. The interest in the benefits hereunder of a spouse of<br \/>\n        a Participant who has predeceased the Participant shall automatically<br \/>\n        pass to the Participant and shall not be transferable by such spouse in<br \/>\n        any manner, including but not limited to such spouse&#8217;s will, nor shall<br \/>\n        such interest pass under the laws of intestate succession.<\/p>\n<p>16.13   VALIDITY. In case any provision of this Plan shall be illegal or invalid<br \/>\n        for any reason, said illegality or invalidity shall not affect the<br \/>\n        remaining parts hereof, but this Plan shall be construed and enforced as<br \/>\n        if such illegal or invalid provision had never been inserted herein.<\/p>\n<p>16.14   INCOMPETENT. If the Committee determines in its discretion that a<br \/>\n        benefit under this Plan is to be paid to a minor, a person declared<br \/>\n        incompetent or to a person incapable of handling the disposition of that<br \/>\n        person&#8217;s property, the Committee may direct payment of such benefit to<br \/>\n        the guardian, legal representative or person having the care and custody<br \/>\n        of such minor, incompetent or incapable person. The Committee may<br \/>\n        require proof of minority, incompetence, incapacity or guardianship, as<br \/>\n        it may deem appropriate prior to distribution of the benefit. Any<br \/>\n        payment of a benefit shall be a payment for the account of the<br \/>\n        Participant and the Participant&#8217;s Beneficiary, as the case may be, and<br \/>\n        shall be a complete discharge of any liability under the Plan for such<br \/>\n        payment amount.<\/p>\n<p>16.15   COURT ORDER. The Committee is authorized to cause the Company or any<br \/>\n        Employer to make any payments directed by court order in any action in<br \/>\n        which the Plan or the Committee has been named as a party. In addition,<br \/>\n        if a court determines that a spouse or former spouse of a Participant<br \/>\n        has an interest in the Participant&#8217;s benefits under the Plan in<br \/>\n        connection with a property settlement or otherwise, the Committee, in<br \/>\n        its sole discretion, shall have the right, notwithstanding any election<br \/>\n        made by a Participant, to immediately cause the Company or any<\/p>\n<p>                                       29<\/p>\n<p>        Employer to distribute the spouse&#8217;s or former spouse&#8217;s interest in the<br \/>\n        Participant&#8217;s benefits under the Plan to that spouse or former spouse.<\/p>\n<p>16.16   DISTRIBUTION IN THE EVENT OF TAXATION.<\/p>\n<p>        (a)    IN GENERAL. If, for any reason, all or any portion of a<br \/>\n               Participant&#8217;s benefits under this Plan becomes taxable to the<br \/>\n               Participant prior to receipt, a Participant may petition the<br \/>\n               Committee before a Change in Control, or the trustee of the Trust<br \/>\n               after a Change in Control, for a distribution of that portion of<br \/>\n               his or her benefit that has become taxable. Upon the grant of<br \/>\n               such a petition, which grant shall not be unreasonably withheld<br \/>\n               (and, after a Change in Control, shall be granted), a<br \/>\n               Participant&#8217;s Employer shall distribute to the Participant<br \/>\n               immediately available funds in an amount equal to the taxable<br \/>\n               portion of his or her benefit (which amount shall not exceed a<br \/>\n               Participant&#8217;s unpaid Account Balance under the Plan). If the<br \/>\n               petition is granted, the tax liability distribution shall be made<br \/>\n               within 90 days of the date when the Participant&#8217;s petition is<br \/>\n               granted. Such a distribution shall affect and reduce the benefits<br \/>\n               to be paid under this Plan.<\/p>\n<p>        (b)    TRUST. If the Trust terminates in accordance with its terms and<br \/>\n               benefits are distributed from the Trust to a Participant in<br \/>\n               accordance with that Section, the Participant&#8217;s Account, and<br \/>\n               accordingly the benefits under this Plan, shall be reduced to the<br \/>\n               extent of such distributions.<\/p>\n<p>16.17   INSURANCE. The Employers, on their own behalf or on behalf of the<br \/>\n        trustee of the Trust, and, in their sole discretion, may apply for and<br \/>\n        procure insurance on the life of the Participants, in such amounts and<br \/>\n        in such forms as the Trust may choose. The Employers or the trustee of<br \/>\n        the Trust, as the case may be, shall be the sole owner and beneficiary<br \/>\n        of any such insurance. The Participants shall have no interest<br \/>\n        whatsoever in any such policy or policies, and at the request of the<br \/>\n        Employers shall submit to medical examinations and supply such<br \/>\n        information and execute such documents as may be required by the<br \/>\n        insurance company or companies to whom the Employers have applied for<br \/>\n        insurance.<\/p>\n<p>16.18   LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. The Company and<br \/>\n        each Employer is aware that upon the occurrence of a Change in Control,<br \/>\n        the Board or the board of directors of a Participant&#8217;s Employer (which<br \/>\n        might then be composed of new members) or a shareholder of the Company<br \/>\n        or the Participant&#8217;s Employer, or of any successor corporation might<br \/>\n        then cause or attempt to cause the Company, the Participant&#8217;s Employer<br \/>\n        or such successor to refuse to comply with its obligations under the<br \/>\n        Plan and might cause or attempt to cause the Company or the<br \/>\n        Participant&#8217;s Employer to institute, or may institute, litigation<br \/>\n        seeking to deny Participants the benefits intended under the Plan. In<br \/>\n        these circumstances, the purpose of the Plan could be frustrated.<br \/>\n        Accordingly, if, following a Change in Control, it should appear to any<br \/>\n        Participant that the Company, the Participant&#8217;s Employer or any<br \/>\n        successor corporation has failed to comply with any of its obligations<br \/>\n        under the Plan or any agreement thereunder or, if the Company, such<br \/>\n        Employer or any other person takes any action to declare the Plan void<br \/>\n        or unenforceable or institutes any litigation or other legal action<br \/>\n        designed to deny, diminish or to<\/p>\n<p>                                       30<\/p>\n<p>        recover from any Participant the benefits intended to be provided, then<br \/>\n        the Company and the Participant&#8217;s Employer irrevocably authorize such<br \/>\n        Participant to retain counsel of his or her choice at the expense of the<br \/>\n        Company and the Participant&#8217;s Employer (who shall be jointly and<br \/>\n        severally liable) to represent such Participant in connection with the<br \/>\n        initiation or defense of any litigation or other legal action, whether<br \/>\n        by or against the Company, the Participant&#8217;s Employer or any director,<br \/>\n        officer, shareholder or other person affiliated with the Company, the<br \/>\n        Participant&#8217;s Employer or any successor thereto in any jurisdiction.<\/p>\n<p>        IN WITNESS WHEREOF, the Company has signed this Plan document as of<br \/>\n        March 1, 2001.<\/p>\n<p>                                    &#8220;Company&#8221;<\/p>\n<p>                                    KB Home, a Delaware corporation<\/p>\n<p>                                    By: \/s\/ Cory F. Cohen<br \/>\n                                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<\/p>\n<p>                                    Title: Vice President, Tax<br \/>\n                                           &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<\/p>\n<p>                                       31<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7964],"corporate_contracts_industries":[9480],"corporate_contracts_types":[9539,9542],"class_list":["post-40167","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-kb-home","corporate_contracts_industries-construction__contractors","corporate_contracts_types-compensation","corporate_contracts_types-compensation__deferred"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40167"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40167"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40167"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}