D.R. HORTON, INC. NON-QUALIFIED STOCK OPTION AGREEMENT

Exhibit 10.2

D.R. HORTON, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

(Employee - Term Vesting)

                         , 200X

WHEREAS,                          (hereinafter called the “Participant”) is a key employee of D.R. Horton, Inc., a Delaware corporation (hereinafter called the “Company”);

WHEREAS, the grant of Options to the Participant effective                          , 200X (the “Date of Grant”), and the execution of a Stock Option Agreement in the form hereof has been duly authorized by a resolution of the Committee duly adopted on                      , 200X, and incorporated herein by reference; and

WHEREAS, the option granted hereby is intended to be a non-qualified stock option and shall not be treated as an “incentive stock option” within the meaning of that term under Section 422 of the Code.

NOW, THEREFORE, effective as of the Date of Grant, the Company hereby grants to the Participant a non-qualified option pursuant to the Company’s 2006 Stock Incentive Plan (the “Plan”) to purchase                      shares of Common Stock at the price of                          Dollars ($              ) per share (the “Option Price”), and agrees to either cause certificates for any shares purchased hereunder to be delivered to the Participant or to register the Shares in book entry form (as determined by the Administrator) upon payment of the aggregate Option Price in full, all subject, however, to the terms and conditions hereinafter set forth. Capitalized terms used in this Agreement that are not otherwise defined in this Agreement are used as defined in the Plan.

1.    (A)    This option (until terminated as hereinafter provided) shall become exercisable as follows:

Except as otherwise provided in paragraph 3, this option shall be exercisable only if the Participant shall have been in the continuous employ of the Company or any Subsidiary from the date hereof until this option is exercised. For the purposes of this paragraph, leaves of absence approved by the Board for illness, disability, military or governmental service, or other cause, shall be considered as employment. To the extent exercisable, this option may be exercised in whole or in part from time to time.

       (B)    Notwithstanding the provisions of subparagraph (A) of this paragraph 1, this option shall be exercisable to the extent of 100% of the shares hereinabove specified upon

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the occurrence of any Change in Control (as hereinafter defined) of the Company. For purposes of this Agreement, a “Change in Control” means the occurrence of any of the following events:

(i) A merger, consolidation or reorganization of the Company into or with another corporation or other legal person if the stockholders of the Company, immediately before such merger, consolidation or reorganization, do not, immediately following such merger, consolidation or reorganization, then own directly or indirectly, more than 50% of the combined voting power of the then-outstanding voting securities of the corporation or other legal person resulting from such merger, consolidation or reorganization in substantially the same proportion as their ownership of Voting Securities (as hereinafter defined) immediately prior to such merger, consolidation or reorganization;

(ii) The Company sells all or substantially all of its assets to another corporation or other legal person, or there is a complete liquidation or dissolution of the Company;

(iii) There is a report filed on Schedule 13D or Schedule 14D-l (or any successor schedule, form or report), each as promulgated pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), disclosing that any person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act) of securities representing 20% or more of the combined voting power of the then-outstanding voting securities of the Company (“Voting Securities”) (computed in accordance with the standards for the computation of total percentage ownership for the purposes of Schedule 13D or Schedule 14D-