Document:

KBH - 11.30.2014 - 10K Exhibit 10.57

EXHIBIT 10.57

FOURTH AMENDED AND RESTATED 
KB HOME
NON-EMPLOYEE DIRECTORS COMPENSATION PLAN 
(Effective as of October 9, 2014)
1. PURPOSE OF THE PLAN.  The purpose of the KB Home Non-Employee Directors Compensation Plan (“Plan”) is to grant Awards of equity-based compensation and other forms of compensation to non-employee Directors of KB Home, a Delaware corporation (the “Company”).  The Plan was adopted effective as of September 26, 1996 (the “Effective Date”), and was subsequently amended as of December 4, 1998, December 6, 1999, July 10, 2003, January 1, 2009, July 9, 2009, July 18, 2013 and July 17, 2014.  The Plan is hereby amended and restated as set forth herein effective as of October 9, 2014 (the “Amendment Date”).
2. DEFINITIONS.
“ADDITIONAL MEETING FEE” shall mean a fee payable to a Director who attends a meeting of the Board or a standing committee of the Board that is in excess of the Board’s or the standing committee’s respective regularly scheduled meetings for a given Director Year (without cross-aggregation of Board and standing committee meetings), and who attended each of that Director Year’s prior meetings of the Board or standing committee, as applicable.
“AMENDMENT DATE” shall have the meaning set forth in Section 1 above.
“ANNUAL ELECTION” shall mean the election by a Director described in Section 6 below.
“ANNUAL MEETING” shall mean an annual meeting of stockholders of the Company.
“ANNUAL BOARD RETAINER” shall mean the annual retainer fee to be paid to a Director for service on the Board for a given Director Year.
“ANNUAL AWARD” shall mean the Award granted to a Director for such Director’s agreement to serve on the Board for a given Director Year.
“AWARD” shall mean an award of Stock pursuant to the Plan.  Such Stock shall be issued from the Company’s 2014 Equity Incentive Plan or any other compensation plan, program or arrangement approved by the Company’s stockholders for grants of Stock to Directors, or as otherwise permitted by applicable law and stock exchange listing standards.
“BOARD” shall mean the Board of Directors of the Company.
“CHAIR” shall mean the Director designated as the chairman or chairwoman of a Committee.
“CHANGE IN CONTROL” of the Company shall mean the occurrence of a “change in the ownership,” a “change in the effective control,” or a “change in the ownership of a substantial portion of the assets” of the Company (or of such other corporation described in Section 1.409A-3(i)(5)(ii)(A)), as 

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determined in accordance with Section 1.409A-1(i)(5) of the Treasury Regulations and the following provisions:
(a)     a “change in the ownership” of the Company (or other applicable corporation) shall occur on the date on which any one person, or more than one person acting as a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation.  However, if any person or group is considered to own more than 50% of the total fair market value or total voting power of the stock of such corporation, and such person or group acquires additional stock of such corporation, the acquisition of additional stock by such person or group shall not be considered to cause a “change in the ownership” (or a “change in the effective control”) of such corporation.
(b)     a “change in the effective control” of the Company (or other applicable corporation) shall occur on either of the following dates: (i) the date on which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing 30% or more of the total voting power of the stock of such corporation; provided, however, that if any person or group is considered to own more than 30% of the total voting power of the stock of such corporation, and such person or group acquires additional stock of such corporation, the acquisition of additional stock by such person or group shall not be considered to cause a “change in the effective control” of such corporation; or (ii) the date on which a majority of the Company’s Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of the appointment or election.
(c)     a “change in the ownership of a substantial portion of the assets” of the Company (or other applicable corporation) shall occur on the date on which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the corporation immediately before such acquisition or acquisitions.  However, a transfer of assets shall not be treated as a “change in the ownership of a substantial portion of the assets” when such a transfer is made to a related person as described in Section 1.409A-3(i)(5)(vii)(B) of the Treasury Regulations.
“CODE” shall mean the Internal Revenue Code of 1986, as amended from time to time.  All references to the Code or any section thereof shall include the Treasury Regulations and other Department of Treasury guidance issued thereunder.
“COMMITTEE” shall mean the Management Development and Compensation Committee of the Board or such other committee as may be designated by the Board.
“COMMITTEE CHAIR RETAINER” shall mean the annual retainer fee to be paid to a Director for service as the Chair of a standing committee of the Board for a given Director Year.
“COMMITTEE MEMBER RETAINER” shall mean the annual retainer fee to be paid to an eligible Director for service as a member of a standing committee of the Board for a given Director Year. 
“COMMON STOCK EQUIVALENTS” shall mean any instrument granted to a Director as compensation for the Director’s service on the Board reflecting the right to receive Stock or a cash payment based upon the value of Stock, including without limitation any Stock Units granted under the Plan after the Amendment Date and any vested and unvested Old Grants awarded under the Plan for 

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which the payout has been deferred, but not including any Old Grants denominated in the form of options or the like (whether settled in Stock or cash) awarded under the Plan.
“COMPANY” shall have the meaning set forth in Section 1 above.
“DIRECTOR” shall mean a non-employee director of the Company.
“DIRECTOR YEAR” shall mean the period commencing on the date of an Annual Meeting and ending on the date immediately preceding the next Annual Meeting.
“EFFECTIVE DATE” shall have the meaning set forth in Section 1 above.
“FAIR MARKET VALUE” of the Stock on a particular date shall equal (a) if shares are traded on a securities exchange, the closing price of a share as reported by The Wall Street Journal for such date or, if no sale occurred on such date, for the first trading date immediately prior to such date during which a sale occurred; or (b) if shares are not traded on a securities exchange, (i) the last sales price on such date (if shares are then listed as a Global Market Issue under the NASDAQ Global Market System) or (ii) the mean between the closing representative bid and asked prices (in all other cases) for shares on such date; or, if no sales prices or bid and asked prices, as applicable, are reported by a national quotation system, the first date immediately prior to such date on which sales prices or bid and asked prices, as applicable, are reported by a national quotation system; or (c) if shares are not publicly traded, or with respect to any non-share based Award or settlement of an Award, the fair market value established by the Committee acting in good faith.
“OLD GRANT” shall mean an outstanding award of equity-based compensation, whether denominated as Stock, stock units, options or otherwise and whether payable in Stock, cash or other property, received for service as a Director in respect of the 2014-2015 Director Year or any earlier Director Year.
“OLD STOCK-BASED OWNERSHIP REQUIREMENT” shall mean the requirement in effect prior to the Amendment Date of each Director to hold, while serving as a Director, at least $250,000 in value of Stock and/or Common Stock Equivalents; provided that once a Director meets such requirement, subsequent changes alone in the Fair Market Value of the Stock shall not cause the requirement to become unsatisfied with respect to that Director.
“OWNERSHIP REQUIREMENT” shall mean the requirement in effect as of the Amendment Date of each Director to hold at least five times the Annual Board Retainer in value of Stock and/or Common Stock Equivalents by the fifth anniversary of the date a Director joins the Board of Directors (or for a Director serving on the Board as of the Amendment Date, by the fifth anniversary of the Amendment Date); provided that once a Director meets such requirement, subsequent changes alone in the Fair Market Value of the Stock shall not cause the requirement to become unsatisfied with respect to that Director.
“PER DIEM FEES” shall mean a fee authorized to be paid by the Chairman of the Board (or a designated Director if at an applicable time the Chairman of the Board is also an employee of the Company), in his or her sole discretion, to a Director who is asked to work on Board issues for a significant part of the day outside of normal Board or standing committee service.  
“PLAN” shall have the meaning set forth in Section 1 above.
“RULE 16B-3” shall mean Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended.

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“SECTION 409A” shall mean Section 409A of the Code and, for the avoidance of doubt only, the Treasury Regulations and other Department of Treasury guidance issued thereunder.
“STOCK” shall mean shares of Common Stock, par value $1.00 per share, of the Company.
“STOCK UNIT” shall mean a right to receive one share of Stock.
“TERMINATION DATE” shall mean the date a Director’s service on the Board terminates for any reason, provided that such termination constitutes a “separation from service” within the meaning of Section 409A as determined in accordance with Section 10(c) below.
“TREASURY REGULATIONS” shall mean the rules and regulations issued or adopted by the Department of Treasury in respect of the Code.
3. PROCESS. The Committee shall from time to time establish (a) the value of the Annual Board Retainer, Committee Chair Retainers and Committee Member Retainers for a given Director Year, (b) the number of shares of Stock or the value of Stock in respect of the Annual Award for a given Director Year, and (c) the value of any Additional Meeting Fees for a given Director Year; provided that any adjustment in any of the foregoing amounts or values shall be subject to the approval of the Board.
4. ANNUAL AWARDS.
(a)     On the date of each Annual Meeting, each incumbent Director and each individual who becomes a Director as of the date of such Annual Meeting shall be entitled to receive on such date a grant of an Annual Award, as determined pursuant to Section 3 above.  As part of each Director’s Annual Election, a Director shall be given the opportunity to elect to defer receipt of the grant of his or her Annual Award and instead be credited with an equal number of Stock Units with respect to such Annual Award.  If an individual becomes a Director during a given Director Year outside of being elected to the Board at an Annual Meeting, he or she shall be granted, on his or her first day of such service, a prorated Annual Award for the remaining balance of that Director Year.  
(b)     If the Committee establishes a dollar value for the Annual Award, then the Annual Award shall be equal to such value divided by the Fair Market Value of one share of Stock on the date of grant.  
(c)     Annual Awards vest immediately upon grant; provided that if a Director’s Ownership Requirement is not satisfied on the last day of the Director’s taxable year ending prior to the applicable Director Year of grant (or the due date for an Annual Election under Section 6(c) below, if applicable), (a) the Director may not sell or otherwise dispose of (directly or indirectly) any shares of Stock or any Common Stock Equivalents; and (b) the Director will be credited with an equal number of Stock Units with respect to and in lieu of receiving grants of any Annual Awards, in each case until the earlier of (i) the first business day after the date the Director satisfies the Ownership Requirement or (ii) the Director’s Termination Date.  
(d)    All Stock Units credited to a Director after the Amendment Date shall be paid out as soon as practicable (but no later than 60 days following) upon the earlier of (i) the occurrence of a Change in Control and (ii) the Director’s Termination Date.
5. ANNUAL RETAINERS AND FEES. 
(a)     Each Director shall be entitled to receive an Annual Board Retainer with respect to each Director Year.  As part of each Director’s Annual Election, a Director shall be given an opportunity to elect to receive his or her Annual Board Retainer in cash or by an Award grant, or to defer receipt of the Annual Board Retainer and instead be credited with Stock Units with respect to such Annual Board 

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Retainer as set forth in Section 5(d) below.  A Director who does not make a timely Annual Election shall receive his or her Annual Board Retainer in cash. 
(b)     The Chair of each standing committee of the Board shall be entitled to receive the applicable annual Committee Chair Retainer with respect to each Director Year.  Each other member (other than the Chairman of the Board, unless otherwise determined by the Committee or the Board) of each standing committee of the Board shall be entitled to receive the applicable annual Committee Member Retainer with respect to each Director Year.  As part of the Annual Election, each committee Chair and eligible standing committee member shall be given an opportunity to elect to receive his or her Committee Chair Retainer(s) and/or Committee Member Retainer(s) in cash or by an Award grant, or to defer receipt of any such retainers and instead be credited with Stock Units with respect to such retainers as set forth in Section 5(d) below.  A committee Chair or eligible standing committee member who does not make a timely Annual Election shall receive his or her Committee Chair Retainer(s) and/or Committee Member Retainer(s) in cash. 
(c)     If a Director elects pursuant to his or her Annual Election to receive his or her Annual Board Retainer, Committee Chair Retainer(s) and/or Committee Member Retainer(s) (as eligible) in cash (or defaults to such election), payment shall be made on a quarterly basis during the applicable Director Year for so long as the Director is serving in the relevant capacity. 
(d)    If a Director elects to receive his or her Annual Board Retainer, Committee Chair Retainer(s) and/or Committee Member Retainer(s) (as eligible) by an Award grant, the Director shall be granted an Award on the date of the Annual Meeting with a Fair Market Value on the date of grant equal to 100% of the value of the Annual Board Retainer, Committee Chair Retainer and/or Committee Member Retainer, as applicable; and any such Awards vest immediately upon grant.  If a Director elects to be credited with Stock Units with respect to his or her Annual Board Retainer, Committee Chair Retainer(s) and/or Committee Member Retainer(s) (as eligible), the Director shall be so credited on the date of the Annual Meeting with Stock Units equal in number to the shares of Stock the Director would have received had the Director elected to receive the applicable retainers by an Award grant as set forth in the foregoing sentence of this Section 5(d).  Notwithstanding the foregoing, in lieu of being granted an Award covering a fractional share of Stock or fractional Stock Unit, the Director shall receive a cash payment equal to the Fair Market Value of any such fractional share of Stock or fractional Stock Unit.  
(e)     Any individual who becomes a Director (outside of being elected to the Board at an Annual Meeting), a committee Chair or a standing committee member during a Director Year shall be granted, on his or her first day of such service, an Annual Board Retainer, Committee Chair Retainer and/or Committee Member Retainer (if eligible), as applicable, in cash prorated for the remaining balance of that Director Year.  
(f)     Payment of Additional Meeting Fees to which a Director becomes eligible shall be made in cash promptly following each applicable additional meeting.  Eligibility for receipt of any Additional Meeting Fees beyond five (5) such additional meetings of the Board or a particular standing committee shall be subject to the approval, in each applicable case, of the Chairman of the Board (or a designated Director if at an applicable time the Chairman of the Board is also an employee of the Company) as to Board meetings, or the applicable committee Chair as to standing committee meetings.  In all circumstances, Per Diem Fees shall be paid in cash only promptly after approval and shall not be subject to the Annual Election.
6. ANNUAL ELECTION AND PARTIAL DIRECTOR YEARS.
(a)    Each Director may make a written election, which must be delivered to the Secretary of the Company no later than the last day of the Director’s taxable year ending prior to the Director Year to 

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which the written election relates (subject to Section 6(c) below), indicating that the Director would like to receive all of one or more of his or her Annual Board Retainer, Committee Chair Retainer(s) and/or Committee Member Retainer(s) by an Award grant rather than in cash, and/or to defer receipt of one or more of his or her Annual Award, Annual Board Retainer, Committee Chair Retainer(s) and/or Committee Member Retainer(s) and instead be credited with Stock Units with respect to same as set forth in Section 4(a) or Section 5(d) above (as applicable).  The Annual Election shall be irrevocable after the last day of such taxable year, subject to Section 6(c) below.
(b)    In the event a Director resigns from the Board during a Director Year, (i) the Director shall return to the Company any cash payment covering the prorated portion of the Annual Board Retainer, Committee Chair Retainer(s) and/or Committee Member Retainer(s) for the remaining balance of that Director Year, and (ii) the Director shall forfeit any unvested Old Grants in their entirety.  No return or forfeiture of any portion of the Annual Board Retainer, Committee Chair Retainer(s), Committee Member Retainer(s) or Old Grants shall be required in the event a Director leaves the Board as the result of retirement or disability (in either case, as determined in the Committee’s sole discretion) or death.
(c)    Notwithstanding the provisions of Section 6(a), a Director’s Annual Election for (i) the Director Year during which the individual becomes a Director and (ii) for the next Director Year if the individual becomes a Director after the last day of his or her taxable year ending prior to the next Director Year, may be delivered to the Secretary of the Company no later than the date on which such individual first becomes a Director, and such Annual Election(s) shall be irrevocable after the date on which such individual first becomes a Director; provided that any individual who becomes a Director during a Director Year outside of being elected to the Board at an Annual Meeting will not have the opportunity to elect to defer the receipt of and to instead be credited with Stock Units with respect to his or her prorated Annual Award, Annual Board Retainer, Committee Chair Retainer(s) or Committee Member Retainer(s), as the case may be, for that Director Year.  
7. OLD GRANTS. 
(a)    Each Old Grant shall comply with, or be exempt from, the requirements of Section 409A.
(b)    Each Old Grant denominated in the form of an option or the like (whether settled in Stock or cash) that was 
(i) received by a Director for service in respect of the 2009-2010 Director Year or any earlier Director Year (X) shall become exercisable if and while the Old Stock-Based Ownership Requirement is satisfied or, if earlier, on the Director’s Termination Date, (Y) shall have a maximum term of fifteen (15) years from the date of grant, and (Z) shall remain outstanding and fully exercisable until the earlier of the end of its term or one (1) year from the Director’s Termination Date, except in the event of removal for cause, in which case each such Old Grant shall remain outstanding and fully exercisable for thirty (30) days, or as provided in Section 7(c) below; or 
(ii) received by a Director for service in respect of any of the Director Years from and including the 2010-2011 Director Year through to and including the 2014-2015 Director Year (X) shall become exercisable if and while the Old Stock-Based Ownership Requirement is satisfied or, if earlier, on the Director’s Termination Date, (Y) shall have a maximum term of ten (10) years from the date of grant and (Z) shall remain outstanding and fully exercisable until the earlier of the end of its term or the third (3rd) anniversary of the Director’s Termination Date, subject to Section 7(c) below; provided that upon the occurrence of a Change in Control, the vesting of any such Old Grant shall accelerate and any ownership requirement as a condition to exercise shall be waived.
(c)    Notwithstanding Sections 7(a) and 7(b), and subject to Section 16 below, each Old Grant denominated in the form of a vested option or the like (whether settled in Stock or cash) shall remain 

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outstanding and fully exercisable by a recipient Director until the end of its term in the event the Director leaves the Board as a result of retirement or disability (in either case, as determined in the Committee’s sole discretion) or death.
(d)    Subject to Section 16 below, each Old Grant denominated in the form of a vested stock unit or the like (whether settled in Stock or cash) shall be paid out as soon as practicable after (but no later than sixty (60) days following) the earlier of (i) the occurrence of a Change in Control and (ii) the Director’s Termination Date.
(e)    All payments due in respect of a Director’s outstanding Old Grants shall be made in shares of Stock having a Fair Market Value equal to the amount of such payment in accordance with the Plan and all previous applicable elections made by the Director.  Such shares of Stock may be obtained by the Company for this purpose from the Company’s treasury, through open market transactions or negotiated purchases, pursuant to an equity plan, or otherwise.
8. SECTION 409A.  
(a)    To the extent that the Committee determines that any Award granted under the Plan is subject to Section 409A, the Award agreement evidencing such Award (if any) shall comply with the requirements of Section 409A.  To the extent possible, the Plan and Award agreements (if any) shall be interpreted in accordance with Section 409A, including without limitation any Treasury Regulations or other Department of Treasury guidance that may be issued or amended after the Effective Date or the Amendment Date.  Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Committee determines that any Award may be subject to Section 409A, including such Department of Treasury guidance as may be issued after the Effective Date or the Amendment Date, the Committee may adopt such amendments to the Plan and the applicable Award agreement (if any) or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (i) exempt the Award from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Section 409A.
(b)    If, on a Director’s Termination Date, (i) such Director is a “specified employee” of the Company (within the meaning of Section 409A as determined annually by the Committee in accordance with the methodology specified by resolution of the Board or the Committee and in accordance with Section 1.409A-1(i) of the Treasury Regulations) and (ii) the Company shall make a good-faith determination that an amount payable pursuant to an Award constitutes “deferred compensation” (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to preserve the tax treatment intended for such payment or to avoid additional tax, interest, or penalties under Section 409A, then the Company shall not pay such amount on the otherwise scheduled payment date but shall instead pay it on the first business day after such six-month period.  Such amount shall be paid without interest, unless otherwise determined by the Committee, in its sole discretion, or as otherwise provided in any applicable agreement between the Company and the relevant Director.
(c)     For purposes of the Plan, a “separation from service” within the meaning of Section 409A shall mean termination of services provided by a Director to the Company, whether voluntary or involuntary, as determined by the Committee in accordance with Section 1.409A-1(h) of the Treasury Regulations.  In determining whether a Director has experienced a separation from service, the following provisions shall apply:
(i)    If a Director provides services for the Company as both an employee and as a director of the Board of the Company, to the extent permitted by Section 1.409A-1(h)(5) of the Treasury 

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Regulations, the services provided by such Director as an employee shall not be taken into account in determining whether the Director has experienced a separation from service as a director of the Board of the Company, and the services provided by such Director as a director of the Board of the Company shall not be taken into account in determining whether the Director has experienced a separation from service as an employee.        
(ii)     For purposes of this Subsection, services performed for the Company shall include service performed both for the Company and for any other corporation that is a member of the same “controlled group” of corporations as the Company under Section 414(b) of the Code or any other trade or business (such as a partnership) that is under common control with the Company as determined under Section 414(c) of the Code, in each case as modified by Treasury Regulation Section 1.409A-1(h)(3) and substituting “at least 50 percent” for “at least 80 percent” each place it appears in Section 1563(a) of the Code or Treasury Regulation Section 1.414(c)-2.
(d)     A Director shall be solely responsible and liable for the satisfaction of all taxes, interest, and penalties that may be imposed on such Director or for such Director’s account in connection with an Award (including any taxes, interest, and penalties under Section 409A), and neither the Company nor its affiliates shall have any obligation to indemnify or otherwise hold such Director harmless from any or all of such taxes, interest, or penalties.
9. STATEMENT OF ACCOUNT. Each Director shall receive an annual statement showing the number of outstanding Awards, Stock Units and Old Grants that have been awarded to the Director under the Plan.
10. CHANGE IN CAPITAL STRUCTURE. In the event of any change in the Stock by reason of any stock dividend, split, combination of shares, exchange of shares warrants or rights offering to purchase Stock at a price below its fair market value, reclassification, recapitalization, merger, consolidation or other change in capitalization, appropriate adjustment shall be made by the Committee to any relevant provisions of the Plan and any outstanding Awards, Stock Units or Old Grants, whose determination shall be binding and conclusive on all persons; provided, however, that such adjustment shall be made only to the extent that it does not cause a violation of the requirements of Section 409A.
11. NONTRANSFERABILITY. Except as provided in the Plan, Awards and Stock Units shall not be transferable and may not be alienated by a Director, except by will or the laws of descent and distribution.
12. RIGHTS. Except to the extent otherwise set forth in the Plan or in the terms of the applicable Award agreement (if any), Directors (a) shall have all the rights of a stockholder with respect to the Stock subject to an Award, including the right to receive all dividends and other distributions paid or made with respect to such Stock; but (b) shall not have any of the rights of a stockholder with respect to any Stock Units.
13. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the Committee. The Committee shall have full power, discretion and authority to interpret and administer the Plan, except that the Committee shall have no power to (i) determine the eligibility for Awards or Stock Units or the number or the timing or the value of Awards or Stock Units to be granted to any Director, or (ii) take any action specifically delegated to the Board under the Plan. With respect to any determination contemplated in subsection (i) of the preceding sentence, the Committee shall make recommendations to the Board, but any final determination with respect to such recommendation shall be subject to the approval of the full Board.

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14. AMENDMENT OR TERMINATION OF THE PLAN. The Board may, at any time, amend or terminate the Plan; but no amendment or termination shall, without the written consent of a Director, reduce the Director’s rights under previously granted Awards, Stock Units or with respect to any fees previously earned. No amendment which requires stockholder approval in order for the Plan to continue to comply with Rule 16b-3 shall be effective unless the same shall be approved by the requisite vote of the stockholders of the Company.
15. NO RIGHT TO RENOMINATION. Nothing in the Plan or in any Award, Stock Unit or Old Grant shall confer upon any Director the right to be nominated for reelection to the Board.
16. PAYMENTS UPON DEATH. In the event of a Director’s death, shares of the Stock subject to an Award held by the Company’s transfer agent (if any) shall be promptly transferred to, payouts with respect to any Stock Units or any vested Old Grants denominated in the form of stock units or the like shall be promptly made and/or the right to exercise any vested Old Grants denominated in the form of options or the like (whether settled in Stock or cash) shall be promptly accorded to the beneficiary designated by the Director (or in the absence of an executed beneficiary form, to the person legally entitled thereto, as designated under his or her will, or to such heirs as determined under the laws of intestacy for the state of his or her domicile).
17. DIVIDEND EQUIVALENT PAYMENTS.  Effective as of each cash dividend payment date for outstanding shares of Stock, a current cash payment shall be made on each outstanding Stock Unit to the holder thereof in the amount equal to the dividend paid on an outstanding share of Stock.
18. GOVERNING LAW. The Plan and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of California.

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Director Year 2015
(and future Director Years unless changed in accordance with the Plan)

Approved Amounts and Values

	
		
	Annual Board Retainer
	$100,000

	Committee Chair Retainers
(Chairman of the Board not eligible)
	$25,000 (Audit and Compliance)
$18,000 (Management Development and Compensation)
$15,000 (Nominating and Corporate Governance)

	Committee Member Retainers
(Chairman of the Board not eligible)
	$10,000 (Audit and Compliance)
$7,000 (Management Development and Compensation)
$5,000 (Nominating and Corporate Governance)

	Annual Award
	An Award with a value of $145,000

	Additional Meeting Fees
	$1,500 per Board or standing committee meeting

	Per Diem Fees
	TBD on a case-by-case basis in accordance with the Plan

Note:  Each Committee Chair Retainer is inclusive of the Committee Member Retainer for the associated Board Committee; thus, a Committee Chair is not eligible to receive the Chair Retainer and the Member Retainer for the same Committee.

- 10 -KBH - 11.30.2014 - 10-K Exhibit 10.58

EXHIBIT 10.58

SECOND AMENDMENT TO REVOLVING LOAN AGREEMENT
This SECOND AMENDMENT TO REVOLVING LOAN AGREEMENT, dated as of November 19, 2014 (this “Amendment”), is entered into by KB HOME, a Delaware corporation (the “Borrower”), the Guarantor Subsidiaries party hereto, the Banks and the Issuing Banks party hereto, and CITIBANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Loan Agreement (as defined below).
RECITALS
A.WHEREAS, the Borrower, the Banks, the Issuing Banks and the Administrative Agent entered into that certain Revolving Loan Agreement, dated as of March 12, 2013, as amended by that certain First Amendment to Revolving Loan Agreement, dated as of November 19, 2013 (as so amended, and as further amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).
B.WHEREAS, each of the Guarantor Subsidiaries is party to the Subsidiary Guaranty, pursuant to which the Guarantor Subsidiaries have guaranteed the Obligations.
C.WHEREAS, the Borrower, the Banks and the Issuing Banks party hereto and the Administrative Agent desire to amend the Loan Agreement on the terms and conditions set forth herein.
D.WHEREAS, each of the Guarantor Subsidiaries expects to realize substantial direct and indirect benefits as a result of this Amendment becoming effective and the consummation of the transactions contemplated hereby and desires to reaffirm its obligations under the Subsidiary Guaranty.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.  Amendments to Loan Agreement.  The Borrower, the Banks and the Issuing Banks party hereto and the Administrative Agent each agree that on the Amendment Effective Date (as defined below):
i.Section 1.1 of the Loan Agreement shall be amended by inserting the following defined terms in appropriate alphabetical order therein:
“ “Second Amendment” means the Second Amendment to Revolving Loan Agreement, dated as of November 19, 2014, among the Borrower, the Guarantor Subsidiaries party thereto, the Banks and the Issuing Banks party thereto, and Administrative Agent.”
“ “Second Amendment Effective Date” means the “Amendment Effective Date” as defined in the Second Amendment.”
ii.Section 1.1 of the Loan Agreement shall be amended by amending and restating the following defined term:

 LA\3843523.3

“ “Overadvance Amount” means $400,000,000; provided, that Borrower may elect for the Overadvance Amount to be reduced to $300,000,000 at any time by notice to the Administrative Agent.”
iii.Clause (b) of Section 6.11 of the Loan Agreement shall be amended by amending and restating such clause as follows:
“(b)    the Consolidated Interest Coverage Ratio to be, at the end of any Fiscal Quarter, less than:

	
		
	For each Fiscal Quarter ending after the Closing Date through and including the first Fiscal Quarter of 2014
	1.10

	For the second Fiscal Quarter of 2014
	1.20

	For the third Fiscal Quarter of 2014 and each Fiscal Quarter thereafter
	1.40”

iv.Section 3.10 of the Loan Agreement shall be amended by inserting as a new clause (g) in appropriate alphabetical order therein the following:
“(g)    For purposes of determining withholding Taxes imposed under FATCA, from and after the Second Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Banks hereby authorize the Administrative Agent to treat) the Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).” 
SECTION 1.    Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, each Loan Party represents and warrants to the Banks and the Administrative Agent that, as of the date hereof:
i.the representations and warranties contained in Article IV of the Loan Agreement (other than the representations and warranties contained in Sections 4.4(a), 4.18 and 4.19 of the Loan Agreement) shall be true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (except that the financial statements referred to in Section 4.5 of the Loan Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b) of Section 7.1 of the Loan Agreement and the Borrowing Base Certificate referred to in Section 4.7(b) of the Loan Agreement shall be deemed to refer to the most recent Borrowing Base Certificate delivered pursuant to Section 2.8 of the Loan Agreement); it being understood and agreed that any representation or warranty that is qualified as to materiality or “Material Adverse Effect” shall be true and correct in all respects;
ii.(i) the execution, delivery, and performance by the Borrower and by each Guarantor Subsidiary of this Amendment have been duly authorized by all necessary corporate or partnership action, and do not: (A) require any consent or approval not heretofore obtained of any stockholder, partner, security 

2

holder, or creditor of such Loan Party; (B) violate or conflict with any provision of such Loan Party’s charter, certificate or articles of incorporation, bylaws, certificate or articles of organization, operating agreement, partnership agreement or other organizational or governing documents of such Loan Party; (C) result in or require the creation or imposition of any Lien (except to the extent that any Lien is created under the Loan Documents) or Right of Others upon or with respect to any Property now owned or leased or hereafter acquired by such Loan Party; (D) constitute a “transfer of an interest” or an “obligation incurred” that is avoidable by a trustee under Section 548 of the Bankruptcy Code of 1978, as amended, or constitute a “fraudulent transfer” or “fraudulent obligation” within the meaning of the Uniform Fraudulent Transfer Act as enacted in any jurisdiction or any analogous Law; (E) violate any Requirement of Law applicable to such Loan Party; or (F) result in a breach of or constitute a default under, or cause or permit the acceleration of any obligation owed under, any indenture or loan or credit agreement or any other Contractual Obligation to which such Loan Party or any of its Property is bound or affected with respect to any obligation or obligations aggregating $25,000,000 or more; and (ii) neither the Borrower nor any Guarantor Subsidiary is in violation of, or default under, any Requirement of Law or Contractual Obligation, or any indenture, loan or credit agreement described in the foregoing clause (i)(F) in any respect that would constitute a Material Adverse Effect;
iii.except such as have heretofore been obtained, no authorization, consent, approval, order, license or permit from, or filing, registration, or qualification with, or exemption from any of the foregoing from, any Governmental Agency is or will be required to authorize or permit the execution, delivery and performance by the Borrower or any Guarantor Subsidiary of this Amendment; and
iv.no Default or Event of Default has occurred and is continuing.
SECTION 2.    Amendment Effectiveness.  The effectiveness of this Amendment shall be subject to the following conditions precedent (the date on which such conditions have been satisfied (or waived) is referred to herein as the “Amendment Effective Date”):
i.the Administrative Agent shall have received from (i) the Borrower and each Guarantor Subsidiary and (ii) each Bank and each Issuing Bank, a duly executed and delivered counterpart of this Amendment signed on behalf of each such party;
ii.the representations and warranties of the Borrower and the Guarantor Subsidiaries set forth in Section 2 hereof shall be true and correct on and as of the Amendment Effective Date, and no Default or Event of Default shall have occurred and be continuing; and
iii.the Administrative Agent shall have received all amounts due and payable to the Administrative Agent on or prior to the Amendment Effective Date pursuant to the Loan Documents, including, reimbursement of the reasonable actual out-of-pocket expenses (including the fees and expenses of not more than one firm of outside legal counsel retained to represent the Administrative Agent) required to be reimbursed or paid hereunder or under any other Loan Document.
SECTION 3.    Costs and Expenses.  The Borrower shall pay on demand the reasonable actual out-of-pocket costs and expenses of the Administrative Agent (including the fees and expenses of not more than one firm of outside legal counsel retained to represent the Administrative Agent) incurred in connection with the preparation, execution and delivery of this Amendment.

3

SECTION 4.    Reaffirmation.  Each of the Guarantor Subsidiaries acknowledges that its consent to this Amendment is not required, but each of the Guarantor Subsidiaries nevertheless does hereby agree and consent to this Amendment.  Each of the Guarantor Subsidiaries agrees and acknowledges that (i) notwithstanding the effectiveness of this Amendment, the guarantee of the Obligations by such Guarantor Subsidiary shall remain in full force and effect without modification thereto and (ii) nothing herein shall in any way limit any of the terms or provisions of such guarantee or any other Loan Document executed by such Guarantor Subsidiary, all of which are hereby ratified, confirmed and affirmed in all respects.  Each of the Guarantor Subsidiaries hereby agrees and acknowledges that no other agreement, instrument, consent or document shall be required to give effect to this Section 5.  Each of the Guarantor Subsidiaries hereby further acknowledges that Borrower, the Administrative Agents and any Bank may from time to time enter into any further amendments, modifications, terminations and/or waivers of any provisions of the Loan Documents without notice to or consent from such Guarantor Subsidiary and without affecting the validity or enforceability of such Guarantor Subsidiary’s guarantee of the Obligations or giving rise to any reduction, limitation, impairment, discharge or termination of such guarantee.
SECTION 5.    Effect of Amendment.  On and after the Amendment Effective Date, each reference to the Loan Agreement in any Loan Document shall be deemed to be a reference to the Loan Agreement as amended by this Amendment.  Except as expressly provided in this Amendment, nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Loan Agreement or any other Loan Document in similar or different circumstances.  On and after the Amendment Effective Date, this Amendment shall constitute a “Loan Document” for all purposes of the Loan Agreement and the other Loan Documents.  On and after the Amendment Effective Date, as used in the Loan Agreement, the terms “Agreement,” “this Agreement,” “herein,” “hereinafter,” “hereto,” “hereof,” “hereunder” and words of similar import shall, unless the context otherwise requires, mean the Loan Agreement as amended by this Amendment.
SECTION 6.    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other customary means of electronic transmission (e.g., “pdf”) shall be as effective as delivery of a manually executed counterpart hereof.
SECTION 7.    Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
SECTION 8.    Submission to Jurisdiction; Waiver of Venue; Service of Process.  Subsections (b), (c) and (d) of Section 11.18 of the Loan Agreement are hereby incorporated by reference herein, mutatis mutandis, and shall have the same force and effect as if originally set forth herein.  
SECTION 9.    WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT 

4

OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 10.    Headings.  Article and section headings in this Amendment are included for convenience of reference only and are not part of this Amendment for any other purpose.
[Remainder of page intentionally left blank; signature pages follow]

5

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized officers, all as of the date and year first above written.
KB HOME,  
as the Borrower 
By:    /S/ Jeff J. Kaminski    
		
	Name:
	Jeff J. Kaminski

		
	Title:
	Executive Vice President and 
Chief Financial Officer

KB HOME COASTAL INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME GREATER LOS ANGELES INC., 
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME SACRAMENTO INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME SOUTH BAY INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

[Signature Page to Second Amendment to Revolving Loan Agreement]

KB HOME LAS VEGAS INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME NEVADA INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME RENO INC., 
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME LONE STAR INC., 
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KBSA, INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

KB HOME PHOENIX INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title: 
	Vice President and Treasurer

[Signature Page to Second Amendment to Revolving Loan Agreement]

KB HOME TUCSON INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title:
	Vice President and Treasurer

KB HOME DELMARVA LLC,  
as a Guarantor Subsidiary
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President, Chief Financial

Officer and Assistant Secretary
KB HOME FLORIDA LLC, 
as a Guarantor Subsidiary
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President and Assistant Secretary

KB HOME FORT MYERS LLC, 
as a Guarantor Subsidiary
By:     KB HOME FLORIDA LLC, 
    its sole member
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President and Assistant Secretary

KB HOME MARYLAND LLC,  
as a Guarantor Subsidiary
By:     KB HOME DELMARVA LLC, 
    its sole member
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President, Chief Financial Officer and Assistant Secretary

[Signature Page to Second Amendment to Revolving Loan Agreement]

KB HOME ORLANDO LLC,  
as a Guarantor Subsidiary
By:     KB HOME FLORIDA LLC, 
    its sole member
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President and Assistant Secretary

KB HOME TAMPA LLC,  
as a Guarantor Subsidiary
By:     KB HOME FLORIDA LLC, 
    its sole member
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President and Assistant Secretary

KB HOME TREASURE COAST LLC,  
as a Guarantor Subsidiary
By:     KB HOME FLORIDA LLC, 
    its sole member
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President and Assistant Secretary

KB HOME VIRGINIA INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title:
	Vice President and Treasurer

KB HOME COLORADO INC.,  
as a Guarantor Subsidiary
By:    /S/ Thad Johnson    
		
	Name:
	Thad Johnson

		
	Title:
	Vice President and Treasurer

[Signature Page to Second Amendment to Revolving Loan Agreement]

KB HOME JACKSONVILLE LLC,  
as a Guarantor Subsidiary
By:     KB HOME FLORIDA LLC, 
    its sole member
By:    /S/ William R. Hollinger    
		
	Name:
	William R. Hollinger

		
	Title:
	Vice President and Assistant Secretary

[Signature Page to Second Amendment to Revolving Loan Agreement]

CITIBANK, N.A., 
as the Administrative Agent, a Bank and an Issuing Bank
By:    /S/ John Rowland    
		
	Name:
	John Rowland

		
	Title:
	Vice President

[Signature Page to Second Amendment to Revolving Loan Agreement]

BANK OF AMERICA, N.A., 
as a Bank and an Issuing Bank
By:    /S/ Ann E. Kenzie    
		
	Name:
	Ann E. Kenzie

		
	Title:
	Senior Vice President

[Signature Page to Second Amendment to Revolving Loan Agreement]

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, 
as a Bank and an Issuing Bank
By:    /S/ Bill O’Daly    
		
	Name:
	Bill O’Daly

		
	Title:
	Authorized Signatory

By:    /S/ D. Andrew Maletta    
		
	Name:
	D. Andrew Maletta

		
	Title:
	Authorized Signatory

[Signature Page to Second Amendment to Revolving Loan Agreement]

DEUTSCHE BANK TRUST COMPANY AMERICAS, 
as a Bank and an Issuing Bank
By:    /S/ Lisa Wong    
		
	Name:
	Lisa Wong

		
	Title:
	Vice President

By:    /S/ Michael Shannon    
		
	Name:
	Michael Shannon

		
	Title:
	Vice President

[Signature Page to Second Amendment to Revolving Loan Agreement]

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