Document:

exv10w31

 

EXHIBIT 10.31

KB HOME

2001 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

This
agreement dated the [_____] day of [_________________]

WITNESSETH:

     1. Pursuant to the provisions of the KB HOME 2001 Stock Incentive Plan (the “Plan”), KB
HOME (the “Company”) on the date set forth above has granted to [____________] (the “Optionee”), an
option (the “Option”) to purchase from the Company an aggregate of [____________] shares of Common
Stock, $1.00 par value, of the Company (“Common Stock”), at the purchase price of $[____________] per
share, the Option to be exercisable as hereinafter provided. A copy of the prospectus describing
the Plan is attached hereto and made a part hereof.

     2. Subject to the terms and conditions of the Plan and action taken pursuant to the Plan, both
of which may modify the terms hereof, the shares may be purchased in accordance with the following
schedule. If the Optionee is employed by the Company or its subsidiaries on the date indicated:

	 	 	 	 	 	 	 
	 	On or After	 	 	 	Shares Subject to Purchase
	 	[_______________]

	 	 	 	33 1/3% of Grant
	 	[_______________]

	 	an additional
	 	33 1/3% of Grant
	 	[_______________]

	 	an additional
	 	33 1/3% of Grant

Notwithstanding the foregoing, upon (i) a Change of Ownership of the Company (as defined in the
Plan) or (ii) upon the Optionee’s Retirement (as hereinafter defined), the entire Option granted
hereunder shall vest and become immediately exercisable.

Any exercise of the Option shall be made by giving the Company written notice of exercise
specifying the number of shares to be purchased. The notice of exercise shall be accompanied by
tender to the Company of cash, or its equivalent, or of shares of the Company stock owned by the
Optionee (which are not the subject of any pledge or other security interest), or of a combination
of the foregoing, provided that the combined value of all such cash and cash equivalents and the
fair market value of any such stock so tendered to the Company, valued as of the date of such
tender, is equal to the full purchase price of said shares plus the related amount of any taxes
required to be withheld by the Company in connection with such exercise, to the extent such
withholding taxes are then ascertainable. If the amount of such taxes is not ascertainable at the
time of the notice of exercise, such amount shall be tendered by the Optionee to the Company as
soon as the same shall become ascertainable and shall be communicated to the Optionee by the
Company.

“Retirement” shall mean severance from employment with the Company or its Subsidiaries for any
reason other than a leave of absence, termination for cause, death or disability at such time as
the sum of the Optionee’s age and years of service with the Company or its Subsidiaries equals at
least sixty-five (65) or more, provided that Optionee is then at least fifty-five (55) years of
age. Whether Optionee’s severance from employment with the Company results from disability or
termination for cause shall be determined solely by the Company in its discretion.

 

 

     3. Without limiting the generality of paragraph 1 hereof, it is understood and agreed that the
Option is subject to the following conditions:

          (a) the Option shall in any event cease to be exercisable and shall expire and terminate to
the extent not exercised on the earlier of (1) the close of business on [___]; (2) 90
calendar days after the termination of the Optionee’s employment with the Company or its
subsidiaries for any reason other than for cause (as determined by the Company) or Retirement; (3)
the date specified in subparagraph (a)(1) of this paragraph 3 in the event of Optionee’s
Retirement, or (4) five (5) calendar days after the date of Optionee’s termination of employment if
Optionee’s employment is terminated for cause (as determined by the Company).

          (b) the Option shall not be transferred except to a “family member” (as such term is defined
in the applicable rules of the Securities and Exchange Commission relating to the Registration
Statement under which the shares underlying the Options are registered) in accordance with such
procedures as may be established by the Company from time to time, or by will or the laws of
descent and distribution and, during the lifetime of the Optionee, shall be exercised only by the
Optionee, unless the Option has transferred to a “family member” as contemplated herein. No
transfer to a “family member” as contemplated herein shall be effective unless Optionee and
Optionee’s designated transferee(s) complies with all procedures established by the Company from
time to time for effecting such transfer, including signing an agreement to that effect; and

          (c) neither the Optionee nor any legal representative, legatee, or distributee of the Optionee
shall be deemed to be a holder of or possess any stockholder rights with respect to any shares
subject to the Option prior to the issuance of such shares upon exercise of the Option.

Notwithstanding subparagraph (a) of this paragraph, in the event of the death of the Optionee (i)
while the Optionee is employed by the Company or its Subsidiaries, (ii) on or before 90 days after
the Optionee’s employment with the Company or its Subsidiaries ceases for any reason other than
cause (as determined by the Company) or Optionee’s Retirement, or (iii) in the event of Optionee’s
Retirement prior to the date set forth in subparagraph (a)(1) of this paragraph, then in each such
event the Option herein will terminate on the earlier of (i) one year from the date of death or
(ii) the date specified in subparagraph (a)(1) of this paragraph 3.

     4. Neither the execution and delivery hereof nor the granting of the Option shall constitute
or be evidence of any agreement or understanding, express or implied, on the part of the Company or
any of its subsidiaries to employ or continue the employment of the Optionee for any period.

     5. In the event of any merger, reorganization, consolidation, recapitalization, stock
dividend, or other change in corporate structure affecting the Common Stock of the Company, such
adjustment shall be made in the number and option price of the shares subject to the Option as may
be determined to be appropriate by the Committee.

     6. The Optionee agrees that prior to any sale of the shares purchased pursuant to the Option,
the Optionee will notify the Company in order to enable it to take any steps required by the
Securities Act of 1933 in connection with such sale and further agrees that he will not complete
any such sale until he has been advised by the Company that such steps have been taken.

     7. This Option grant is made subject to all of the terms and conditions of the Plan, a copy of
which is available to the Optionee upon request, including any terms, rules, or determinations made
by the Committee (as defined in the Plan), pursuant to its administrative authority under the Plan
and such further terms as are set forth in the Plan that are applicable to awards thereunder,
including without

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limitation provisions on adjustment of awards, non-transferability, satisfaction of tax
requirements and compliance with other laws. Capitalized terms used in this Agreement and not
defined herein have the meaning set forth in the Plan.

     8. The Company may impose such restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any resales by the Optionee or other subsequent
transfers by the Optionee of any shares of common stock issued as a result of the exercise of this
Option, including without limitation (a) restrictions under an insider trading policy, (b)
restrictions designed to delay and/or coordinate the timing and manner of sales by Optionee and
other optionholders following a public offering of the Company’s common stock and (c) restrictions
as to the use of a specified brokerage firm for such resales or other transfers.

     9. Any notice given hereunder to the Company shall be addressed to the Company, attention
Senior Vice President, Human Resources, and any notice given hereunder to the Optionee shall be
addressed to him at his address as shown on the records of the Company.

     10. The Optionee agrees to be bound by the terms and conditions hereof and of the Plan; and,
in the event of any conflict in terms between this Agreement and the terms of the Plan, the terms
of the Plan shall prevail.

     11. This Agreement shall be construed, administered and enforced in accordance with the laws
of the State of California. This Agreement and the grant of Options evidenced hereby shall be
subject to rescission by the Company if an executed original of this Agreement is not received by
the Company within 90 days of its transmittal to the Optionee.

     IN WITNESS WHEREOF, the Company, by its duly authorized officer, and the Optionee have
executed this Agreement as of the day and year first above written.

	 	 	 	 	 
	 	 	KB HOME
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	OPTIONEE:
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:  
	 	 
	 	 	 	 
	 

	 	 	[________________________]

3exv10w32

 

EXHIBIT 10.32

KB HOME

2001 STOCK INCENTIVE PLAN

STOCK RESTRICTION AGREEMENT

     THIS STOCK RESTRICTION AGREEMENT (this “Agreement”) is made as of [_______________] (herein
the “Effective Date”) by and between KB HOME, a Delaware corporation (the “Company”) and
[_______________] (the “Participant”).

R E C I T A L S

     By action of the Management Development and Compensation Committee (the “Committee”) taken on
[_______________] (the “Committee Action”), the Company desires to award the Participant shares of
restricted common stock of the Company, par value $1.00 per share (“Stock”) under the 2001 Stock
Incentive Plan (the “Plan”).

A G R E E M E N T

     In consideration of the provisions contained in this Agreement and with reference to the
foregoing Recitals, the Company and the Participant agree as follows:

     1. Award. As of the Effective Date, the Company shall issue to the Participant
[_______________] shares of Stock (the “Award”), subject to the terms and conditions set forth in
this Agreement, the Plan, and the Committee Action. The certificate(s) representing shares of
Stock granted pursuant to the Award shall not be delivered to the Participant until the lapse of
the restrictions on transferability in accordance with Paragraphs 2, 4 and 5 of this Agreement.
Prior to such lapse, the certificate(s) shall be held by the Company in escrow pursuant to Section
7(d) of the Plan along with a stock power duly endorsed in blank by the Participant.

     2. Lapse of Restrictions. The restrictions imposed by this Agreement and the Plan
with respect to the shares covered by this Award shall lapse on the business day next following the
third anniversary of the Effective Date. Subject to the exceptions set forth in section 4 below,
the restrictions imposed by this Agreement shall lapse only if Participant continues to be employed
by the Company on the third anniversary of the Effective Date.

     3. Parties’ Obligations. Following the lapse of restrictions, the Company shall
deliver to the Participant as soon as practicable certificate(s) representing those shares as to
which restrictions have lapsed in accordance with Paragraphs 2, 4 or 5, as the case may be.

     4. Termination of Employment. Except as set forth in Paragraph 5 below, upon
termination of the Participant’s employment with the Company by the Company for “Cause” (as
determined by the Company) or by the Participant without “Good Reason” (as determined by the
Company), the Participant’s right, title and interest in those shares granted pursuant to the Award
as to which the restrictions shall not have lapsed at the time of such termination of employment
shall immediately terminate. The Participant shall forthwith execute such further assignments or
endorsements as the Company may require to effect the transfer of beneficial ownership to those
shares granted pursuant to the Award back to the KB HOME Grantor Stock Trust (the “Trust”), if the
shares were issued to Participant out of the Trust and the Trust continues to exist at such time,
or otherwise back to the Company. Notwithstanding the other provisions of this Section 4, upon the
termination of the Participant’s

 

 

employment with the Company by reason of the Participant’s Retirement (as hereinafter
defined); the restrictions set forth herein and Section 7 of the Plan shall lapse immediately upon
such termination of employment. “Retirement” shall mean severance from employment with the Company
for any reason other than a leave of absence, termination for cause (as determined by the Company)
death or disability at such time as the sum of the Participant’s age and years of service with the
Company equals at least sixty-five (65) or more, provided that the employee is then at least
fifty-five (55) years of age. Whether severance from employment results from the disability of
Participant results from disability or termination for cause shall be determined solely by the
Company in its discretion.

     5. Lapse of Restrictions Upon Change of Ownership. Notwithstanding any provision of
Paragraph 2, but subject to Paragraph 4, all of the restrictions set forth herein and in Section 7
of the Plan on the shares of Stock granted under this Award shall lapse upon a Change of Ownership,
as defined under the Plan.

     6. Dividends. Cash dividends or other distributions paid on or in respect of any
shares of Stock subject to the Award shall be paid directly to Participant at the same time any
such dividends or distributions are paid to holders of shares of Stock that are not restricted and
are freely tradeable (“Other Holders”). Any stock or other non-cash distributions issued on or in
respect of any shares of Stock subject to the Award shall be issued at the same time any such
distributions are issued to Other Holders, but shall be held in escrow and shall be subject to the
same restrictions as the shares of Stock subject to the Award.

     7. Tax Withholding Election. At Participant’s discretion, he may direct the Company
to withhold shares of Stock otherwise deliverable upon the lapse of restrictions on the Award to
satisfy any withholding tax liability that may arise upon such lapse of restrictions, provided that
such Stock withholding complies with Section 16(b) of the Securities Exchange Act of 1934, as
amended, and the rules promulgated thereunder.

     8. Adjustments. The number of shares granted pursuant to the Award shall be adjusted
by the Board, whose determination shall be conclusive, to reflect any stock split, stock dividend,
reorganization, recapitalization, merger, consolidation, combination or exchange of shares or
similar event.

     The Committee shall make any adjustments or modifications, and its determination thereof shall
be conclusive, in the lapse of restrictions set forth in Section 2 or Section 5 to give effect to
the intent of the Plan and the Committee Action in connection with any event affecting the Award,
including without limitation, any reorganization, recapitalization, merger, consolidation, offering
of additional shares of common stock or other change in the Company’s shareholders’ equity by means
other than earnings, or any similar event. No such adjustment shall be made if it would reduce the
benefits otherwise accruing to the Participant under this Award.

     9. No Assignment. This Agreement may not be assigned by the Participant by operation
of law or otherwise. Notwithstanding, this Agreement shall be binding upon and shall inure to the
benefit of the personal representatives, heirs, legatees, successors and assigns of the Company and
the Participant.

     10. Governing Law. This Agreement and the legal relations between the parties shall
be governed by and construed in accordance with the laws of the State of California.

     11. Conflict in Terms. In the event there shall be a conflict in terms between this
Agreement, the Plan, and/or the Committee Action, the terms of the Plan shall prevail.

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     IN WITNESS WHEREOF, the Company and the Participant have duly executed and delivered this
Agreement as of the date first above written.

	 	 	 	 	 
	 	 	KB HOME
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	PARTICIPANT:
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:  
	 	 
	 	 	 	 
	 

	 	 	[________________________]

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