Document:

ex10_5.htm

    
      
Exhibit
10.5

    

    BEAZER
HOMES USA, INC.

    SECOND
AMENDED AND RESTATED

    CORPORATE
MANAGEMENT STOCK PURCHASE PROGRAM

    

    Article 1 –
Introduction

    

    The Beazer Homes USA, Inc. Corporate
Management Stock Purchase Program, originally adopted pursuant to the 1994 Stock
Incentive Plan, is hereby amended and restated as set forth
herein.  The Amended and Restated Corporate Management Stock Purchase
Program is adopted pursuant to the 1994 and 1999 Stock Incentive Plans and is
governed by the terms of the 1999 Stock Incentive Plan, provided that Awards
hereunder originally made pursuant to the 1994 Stock Incentive Plan will
continue to be governed by the terms thereof.  The purpose of the
Program is to provide a mechanism in accordance with the terms of the 1999 Stock
Incentive Plan for Beazer executives to acquire Company stock.  This
is accomplished by the Beazer executives deferring for a minimum of three years
a portion or all of any annual cash bonus to which they are entitled and
receiving an award of Restricted Stock Units at a discount in lieu thereof, thus
aligning executives’ and shareholders’ interest in the Company as well as
providing the executives with incentives of a discount on the stock and a tax
deferral.

    

    Article 2 -
Definitions

    

    
      	
              2.1

            	
              Award - shall
      mean Restricted Stock Units and Cash Settled Award Units granted under the
      Program.

            

    

    
      	
              2.2

            	
              Award Date -
      shall mean any date as determined by the Committee (e.g., November
      15).

            

    

    
      	
              2.3

            	
              Beneficiary -
      shall mean a beneficiary or beneficiaries designated by Participant under
      Article 7.

            

    

    
      	
              2.4

            	
              Board - shall
      mean the Board of Directors of the
Company.

            

    

    
      	
              2.5

            	
              Bonus - shall
      mean any annual bonus awarded for services performed during a Fiscal Year,
      whether discretionary or from an incentive plan in place for Beazer
      executives of which no amount is paid or payable during the Fiscal
      Year.

            

    

    
      	
              2.6

            	
              Cash Settled Award
      Units – shall mean a bookkeeping entry representing the right to
      receive cash based on the value of a share of Common Stock at some future
      date, as described in Section 5.5 hereof.  The fair market value
      of a Cash Settled Award Unit on any date shall be deemed to be the Fair
      Market Value of a share of Common Stock on that
  date.

            

    

    
      	
              2.7

            	
              Cause - shall
      mean any of the following: (i) any act or failure to act (or series or
      combination thereof) by the Participant done with the intent to harm in
      any material respect the interests of the Company or any affiliate
      thereof; (ii) the commission by Participant of a felony; (iii) the
      perpetration by Participant of a dishonest act or common law fraud against
      the Company or any affiliate thereof; (iv) a grossly negligent act or
      failure to act (or series or combination thereof) by Participant
      detrimental in any material respect to the interests of the Company or any
      affiliate thereof; (v) the material breach by Participant of his or her
      agreements or obligations under his or her employment agreement; or (vi)
      the continued refusal to follow directives which are consistent with
      Participant’s duties and
responsibilities.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2.8

            	
              Change in Control
      – shall mean any of the
following:

            

    

       (i)           the
acquisition by any individual, entity or group (within the meaning of Section
13(d) (3) or 14(d) (2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act)) (a ”Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the then
outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (B) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however, that for
purposes of this paragraph (i), the following acquisitions shall not constitute
a Change of Control:  (1) any acquisition directly from the Company,
(2) any acquisition by the Company, (3) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or (4) any acquisition by any corporation
pursuant to a transaction which complies with clauses (A), (B) and (C) of
paragraph (iii) of this Section 2.8; or

       (ii)             individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of any actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

       (iii)                      consummation
of a reorganization, merger or consolidation or sale or other disposition of all
or substantially all of the assets of the Company (a “Business Combination”), in
each case, unless, following such Business Combination, (A) all or substantially
all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (B) no Person (excluding any corporation
resulting from such Business Combination or any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination and (C) at least a
majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

     

    
      
        
        

      

      
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       (iv)                      Approval
by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

    
      	
              2.9

            	
              Committee -
      shall mean the Compensation Committee or any other Committee of the Board
      designated by the Board to administer the Plan which shall consist of at
      least two members appointed from time to time by the
      Board.  Each Committee member must qualify as an “outside
      director” as defined in the Treasury Regulation §1.162-27(e)(3) (or any
      successor rule) and, to the extent necessary to qualify Awards hereunder
      for exemption from the liability provisions of Rule 16b-3, a “non-employee
      director” as defined in Reg. §240.16b-3(b)(3) (or any successor rule) of
      the Securities Exchange Act of
1934.

            

    

    
      	
              2.10

            	
              Company - shall
      mean Beazer Homes USA, Inc. and its
  subsidiaries.

            

    

    
      	
              2.11

            	
              Cost - shall
      mean the amount actually paid for a Restricted Stock
  Unit.

            

    

    
      	
              2.12

            	
              Deferral Period
      - shall mean a period of time (expressed in whole months) of not less than
      thirty-six months and not greater than 119 months in length beginning on
      an Award Date specified with respect to Restricted Stock Units awarded on
      that Award Date.  A Participant may elect on his/her Election
      Form delivered to the Company as required in Section 5.2, any Deferral
      Period with respect to Restricted Stock Units awarded to the corresponding
      day as the Award Date of any month which is more than thirty six months
      after the Award Date, but less than 120 months after the Award
      Date.

            

    

    
      	
              2.13

            	
              Discounted Cost
      - shall mean 80% of the Fair Market Value of a share of Common Stock on
      the Award Date.

            

    

    
      	
              2.14

            	
              Election Form -
      shall mean the form on which the Participant irrevocably elects to defer a
      portion of his/her Bonus and receive an
Award.

            

    

    
      	
              2.15

            	
              Fair Market
      Value - shall mean the fair market value of any property (including
      but not limited to shares of Common Stock or other security) determined by
      a valuation method as established by the Committee from time to
      time.  However, for purposes of the Program, the Fair Market
      Value of shares of Common Stock on any day on which shares of Common Stock
      are traded on the New York Stock Exchange (“NYSE”) or any other nationally
      recognized stock exchange or automated quotation system shall be the
      closing price of such shares of Common Stock as reported by the NYSE or
      such other exchange or quotation
system.

            

    

    
      	
              2.16

            	
              Fiscal Year -
      shall mean the fiscal year of the
Company.

            

    

    
      	
              2.17

            	
              Incapacity –
      shall mean a Participant’s condition such that he or she is (a) unable to
      engage in any substantial gainful activity by reason of any medically
      determinable physical or mental impairment which can be expected to result
      in death or can be expected to last for a continuous period of not less
      than twelve (12) months, or (b) is, by reason of any medically
      determinable physical or mental impairment which can be expected to last
      for a continuous period of not less than twelve (12) months, receiving
      income replacement benefits for a period of not less than three (3) months
      under an accident or health plan covering employees of the Participant’s
      employer.

            

    

     

    
      
        
        

      

      
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              2.18

            	
              Participant -
      shall mean an executive participating in this
  Program.

            

    

    
      	
              2.19

            	
              Plan - shall
      mean the Beazer Homes USA, Inc. 1999 Stock Incentive
  Plan.

            

    

    
      	
              2.20

            	
              Program - shall
      mean this Beazer Homes USA, Inc. Second Amended and Restated Corporate
      Management Stock Purchase Program.

            

    

    
      	
              2.21

            	
              Restricted Stock Unit
      or RSU - shall mean a bookkeeping entry representing the right to
      receive a share of Common Stock at some future date.  A holder
      of RSUs shall not be entitled to voting rights on any Shares to which the
      RSUs relate.  The fair market value of an RSU on any date shall
      be deemed to be the Fair Market Value of a share of Common Stock on that
      date.

            

    

    
      	
              2.22

            	
              Retirement –
      shall mean a voluntary termination of employment by an employee aged 65
      years or older with at least five (5) years of Company
      service.  A Participant may request approval for retirement
      treatment if between the ages of 62 and 65 with at least five (5) years of
      Company service.  At the sole discretion of the Compensation
      Committee, such requests can be approved or
  denied.

            

    

    
      	
              2.23

            	
              Subsidiary -
      shall mean a company at least 50% of whose issued and outstanding stock is
      owned directly or indirectly by the
Company.

            

    

    

    All capitalized terms used herein but
not defined herein shall have the meanings assigned to them in the
Plan.

    

    Article 3 –
Administration

    

    
      	
              3.1

            	
              Power and Authority of
      the Committee.  The Program shall be administered by the
      Committee.  Subject to the express provisions of this Program,
      the Plan and applicable law, the Committee shall have complete discretion
      and authority with respect to the Program and its interpretation and
      application.  Determination by the Committee shall be final and
      binding on all parties with respect to all matters relating to the
      Program.

            

    

    
      	
              3.2

            	
              Delegation.  The
      Committee may delegate its powers and duties under the Program to one or
      more officers of the Company or any Affiliate or a committee of such
      officers, subject to such terms, conditions and limitations as the
      Committee may establish in its sole discretion and subject to the
      requirements of the Plan.

            

    

    

    Article 4 –
Eligibility

    

    All employees of the Company and its
Subsidiaries who participate in the incentive plan in place for Beazer
executives shall be eligible to participate in the Program.

    

    
      
        
        

      

      
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    Article 5 –
Purchases

    

    
      	
              5.1

            	
              General.  Each
      Participant shall be entitled to elect to defer all or a portion of
      his/her Bonus on a pre-tax basis and receive an award of RSUs at some
      future date.  The number of RSUs to be awarded to Participants
      shall be determined using the Discounted Cost of the Common Stock on the
      Award Date.

            

    

    
      	
              5.2

            	
              Purchases.  For
      each Fiscal Year, each Participant may elect to receive all or a portion
      (in whole percentages) of his/her Bonus for that Fiscal Year as an award
      of RSUs (the “Discretionary Amount” and “Credited Amount”) by completing
      an Election Form.  The Election Form shall provide that the
      Participant elects to receive RSUs in lieu of a specified portion of
      his/her Bonus.  Each Election Form shall specify a Deferral
      Period with respect to the RSUs to which it pertains.  Election
      Forms must be received by the Company no later than the last business day
      of the Fiscal Year immediately preceding the Fiscal Year in which are
      performed any services for which such Bonus is
  payable.

            

    

    
      	
              5.3

            	
              Award of
      RSUs.  The Company shall award RSUs to each Participant
      on the Award Date, subject to the limitations set forth in Section 5.5
      below.  Each Participant shall be credited with a whole number
      of RSUs determined by dividing (a) the amount of the Discretionary Amount
      to be received as an award of RSUs under paragraph 5.2 by (b) the
      Discounted Cost of a share of Common Stock on the Award
      Date.  No fractional RSU will be credited and the amount
      equivalent in value to the fractional RSU will be paid out to the
      Participant currently in cash.

            

    

    
      	
              5.4

            	
              Termination Prior to
      Award Date.  If an eligible employee terminates
      employment for any reason prior to an Award Date, such employee shall
      not receive an award of RSUs and shall cease to be a Participant
      under this Program.  Any Bonus then subject to deferral under
      this Program shall be paid to the employee in cash in accordance with the
      terms of any plan or other program governing the payment of such
      Bonus.  Any RSUs previously awarded to such employee under this
      Program will be settled as set forth in Article 6
  hereof.

            

    

    
      	
              5.5

            	
              Cash Settled
      Awards.  Notwithstanding anything herein to the contrary,
      at any time that there are not a sufficient number of RSUs available for
      use under the 1999 Stock Incentive Plan or any successor plan upon an
      Award Date to satisfy the issuance to all Participants of RSUs in the
      amount required to cover all Credited Amounts, the Committee may, in its
      sole discretion, reduce the number of RSUs to be awarded to each
      Participant pro rata such that the aggregate number of RSUs awarded on
      such Award Date shall not exceed the number then available.  Any
      additional Credit Amounts as to which a deferral election has been made by
      Participants shall be credited to an account representing Cash Settled
      Award Units.  A Participant’s Cash Settled Award Unit account
      shall be credited with that number of Cash Settled Award Units as is
      determined by dividing the Credited Amount to be allocated to such account
      by the Discounted Cost.  Upon vesting and payment in accordance
      with Article 6, a holder of Cash Settled Award Units shall receive an
      amount in cash equal to the fair market value of such Cash Settled Award
      Units on the date of payment.  Notwithstanding the foregoing,
      the Committee shall have the right in its sole discretion to provide for
      the conversion of outstanding Cash Settled Award Units to an equal number
      of RSUs at such later date as the Committee shall determine that a
      sufficient number of RSUs is again available under the 1999 Stock
      Incentive Plan or any successor plan for use pursuant to this Program
      provided that the conversion of such Cash Settled Award Units to RSUs
      under the Program has been approved by the stockholders of the
      Company.

            

    

     

    
      
        
        

      

      
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    Article 6 - Vesting and
Payment of RSUs

    

    
      	
              6.1

            	
              Vesting.  A
      Participant shall be fully vested in each RSU or Cash Settled Award Unit
      36 months after the Award Date pertaining to that RSU provided that the
      Participant has remained an employee for that entire 36-month
      period.

            

    

    
      	
              6.2

            	
              Payment after
      Vesting.  With respect to each vested RSU, the Company
      shall issue to the Participant one share of Common Stock (“Deferred
      Compensation Share”) as soon as practicable after the end of the Deferral
      Period specified in the Participant’s Election Form.  With
      respect to each vested Cash Settled Award Unit, the Company shall pay to
      the Participant an amount in cash equal to the fair market value of such
      Cash Settled Award Unit as soon as practical after the end of the Deferral
      Period specified in the Participant’s Election
  Form.

            

    

    
      	
              6.3

            	
              Payment Prior to
      Vesting.  In the event the Participant does not remain an
      employee until the end of the 36-month period due
  to:

            

    

    
      	
               
      

            	
              (a)

            	
              Termination
      by the Company for Cause, the Participant shall be entitled to receive
      from the Company payment in an aggregate amount equal to the lesser of (x)
      the Credited Amount, or (y) the Fair Market Value of the number of shares
      of Common Stock represented by or related to the RSUs or Cash Settled
      Award Units on the date of termination of the
  Participant;

            

    

    
      	
               
      

            	
              (b)
      Voluntary resignation or otherwise voluntarily terminating his/her
      employment with the Company or one of its Subsidiaries for any reason
      other than as the result of his death, Incapacity or Retirement, the
      Participant shall receive from the Company payment in an aggregate amount
      equal to the lesser of (x)
      the Credited Amount, or (y) the Fair Market Value of the number of shares
      of Common Stock represented by or related to the RSUs or Cash Settled
      Award Units on the date of resignation or termination by
      Participant.

            

    

    
      	
               
      

            	
              (c)

            	
              Termination
      by the Company for any reason other than “Cause”, Participant shall be
      entitled to receive from the Company:  (i) the pro rata portion
      (the “Issuable Shares”) of the Deferred Compensation Shares which is the
      product
      of (x) the aggregate number of Deferred Compensation Shares into which the
      Credited Amount would be convertible at the end of the Deferral Period in
      accordance with the provisions of Article 6.2 hereof and (y) a
      fraction, the numerator of which is the number of whole months elapsed
      since the Award Date and the denominator of which is thirty-six (36) (the
      “Fraction”); and (ii) in respect of the pro rata portion of the Credited
      Amount represented by RSUs which are not converted into Issuable Shares
      (the “Remaining Credit”), payment is an aggregate amount equal to the
      lesser of
      (xx) the Remaining Credit, or (yy) the Fair Market Value, on the date of
      termination of Participant, of that number of Deferred Compensation Shares
      into which the Remaining Credit would have been converted in accordance
      with the provisions of Article 6.2 hereof.  Further, upon such
      termination for any reason other than “Cause”, with respect to Cash
      Settled Award Units, Participant shall be entitled to receive from the
      Company:  cash in an amount equal to (i) the pro rata portion of
      the fair market value of such Cash Settled Award Units equal to the
      product of (x) the aggregate number of unvested Cash Settled Award Units
      held in the Program on behalf of Participant and (y) the Fraction and (ii)
      in respect to the pro rata portion of the Credited Amount which is
      represented by Cash Settled Award Untis that are not paid out in
      accordance with the foregoing (the “Cash Remaining Credit”), payment in an
      aggregate amount equal to the lesser of (x) the Cash Remaining Credit or
      (y) the fair market value, on the date of termination of the Participant,
      of such Cash Settled Award Units.

            

    

     

    
      
        
        

      

      
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              (d)

            	
              Termination
      as the result of death, Incapacity or Retirement, the Credited Amount
      related to RSUs shall be automatically converted, as of the date of such
      termination of Participant, into Deferred Compensation Shares and related
      to Cash Settled Award Units shall be paid in cash, as of the date of such
      termination of Participant, in an amount equal to the fair market value of
      such Cash Settled Award Units in accordance with the provisions of Article
      6.2 hereof.

            

    

    
      	
               
      

            	
              (e)

            	
              Change
      of Control of the Company, the Credited Amount shall be automatically
      converted into Deferred Compensation Shares and the Credited Amount
      related to Cash Settled Award Units shall be paid in cash in accordance
      with the provisions of Article 6.2
hereof.

            

    

    
      	
               
      

            	
              (f)

            	
              Notwithstanding
      the foregoing, if, at the time of a Participant’s “separation from
      service” (within the meaning of Section 409A of the Code), a Participant
      is a "specified employee" (within the meaning of Code Section 409A), any
      Plan benefit as to which Section 409A penalties could be assessed that
      becomes payable to the Participant on account of the Participant’s
      separation from service will not be paid or otherwise settled until
      after the end of the sixth calendar month beginning after the
      Participant’s separation from service (the "409A Suspension Period").
      Within 14 calendar days after the end of the 409A Suspension Period, the
      Participant shall be paid a lump sum payment in cash (or shares of Common
      Stock, as the case may be) equal to any payments delayed because of the
      preceding sentence, without interest. Thereafter, the Participant shall
      receive any remaining payments or other benefits as if there had not been
      an earlier delay. 

            
	 	(g)	Fair
      Market Value determinations of Common Stock represented by RSUs shall
      be valued at of the date of payment rather
      than the date of termination of
employment.

    

    
    

    
      	
              6.4

            	
              Compensation Committee
      Waiver and Modification.  Notwithstanding the provisions
      of Sections 6.1 and 6.3 above, the Compensation Committee shall have the
      right in its sole discretion to waive or alter the payment provisions of
      Section 6.3.

            

    

    
       

    

    Article 7 - Designation of
Beneficiary

    

    A Participant may designate one or more
Beneficiaries to receive payments or shares of Common Stock in the event of
his/her death.  A designation of Beneficiary shall apply to a
specified percentage of a Participant’s entire interest in the
Program.  Such designation, or any change therein, must be in writing
and shall be effective upon receipt by the Company.  If there is no
effective designation of Beneficiary, or if no Beneficiary survives the
Participant, the Participant’s estate shall be deemed to be the
Beneficiary.

    

    
      
        
        

      

      
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    Article 8 - Amendment or
Termination of Program

    

    Subject to the requirements of the
Plan, the Company reserves the right to amend or terminate the Program at any
time, by action of the Board or a Committee delegated by the Board, provided
that no such action shall adversely affect a Participant’s rights under the
Program with respect to RSUs awarded and vested before the date of such
action.  If the Program is terminated, the payment of Deferred
Compensation Shares may only be accelerated if the requirements set forth in
Treas. Reg. § 1.409A-3(j)(4) are met.

    

    Article 9 - Miscellaneous
Provisions

    

    
      	
              9.1

            	
              No Distribution;
      Compliance with Legal Requirements.  The Committee may
      require each person acquiring shares of Common Stock under the Program to
      represent to and agree with the Company in writing that such person is
      acquiring the shares without a view to distribution thereof.  No
      shares of Common Stock shall be issued until all applicable securities law
      and other legal and stock exchange requirements have been
      satisfied.  The Committee may require the placing of such
      stop-orders and restrictive legends on certificates for Common Stock as it
      deems appropriate.

            

    

    
      	
              9.2

            	
              Notices; Delivery of
      Stock Certificates.  Any notice required or permitted to
      be given by the Company or the Committee pursuant to the Program shall be
      deemed given when personally delivered or deposited in the United States
      mail, registered or certified, postage prepaid, addressed to the
      Participant at the last address shown for the Participant on the records
      of the Company.  Delivery of stock certificates to persons
      entitled to receive them under the Program shall be deemed effected for
      all purposes when the Company or a share transfer agent of the Company
      shall have deposited such certificates in the United States mail,
      addressed to such person at his/her last known address on file with the
      Company.

            

    

    
      	
              9.3

            	
              Nontransferability of
      Rights.  During a Participant’s lifetime, any payment or
      issuance of shares under the Program shall be made to
      him/her.  No RSU or other interest under the Program shall be
      subject in any manner to anticipation, alienation, sale, transfer,
      assignment, pledge, encumbrance or charge, and any attempt by a
      Participant or any Beneficiary under the Program to do so shall be
      void.  No interest under the Program shall in any manner be
      liable for or subject to the debts, contracts, liabilities, engagements or
      torts of a Participant or Beneficiary entitled
  thereto.

            

    

    
      	
              9.4

            	
              Obligations Unfunded
      and Unsecured.  The Program shall at all times be
      entirely unfunded, and no provision shall at any time be made with respect
      to segregating assets of the Company (including Common Stock) for payment
      of any amounts or issuance of any shares of Company Stock
      hereunder.  No Participant or other person shall have any
      interest in any particular assets of the Company (including Common Stock)
      by reason of the right to receive payment under the Program, and any
      Participant or other person shall have only the rights of a general
      unsecured creditor of the Company with respect to any rights under the
      Program.

            

    

     

    
      
        
        

      

      
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              9.5

            	
              No Guarantee of Tax
      Consequences.  While the Program is intended to provide
      tax deferral for Participants, the Program is not a guarantee that the
      intended tax deferral will be achieved.  Participants are solely
      responsible and liable for the satisfaction of all taxes and penalties
      that may arise in connection with this Program (including any taxes
      arising under Section 409A of the Code).  Neither the Company
      nor its affiliates nor any of their directors, officers or employees shall
      have any obligation to indemnify or otherwise hold any Participant
      harmless from any such taxes. The Committee reserves the right (including
      the right to delegate such right) to unilaterally amend this Plan without
      the consent of any Participant in order to accurately reflect its correct
      interpretation and operation, as well as to maintain an exclusion from the
      application of, or to establish compliance with, Code Section
      409A.  A Participant’s participation in the Plan constitutes
      acknowledgement and consent to such rights of the
    Committee.

            

    

    
      	
              9.6

            	
              Effective Date of
      Amended and Restated Program.  The Program, as amended
      and restated, shall become effective as of the date of its approval by the
      Board.

            

    

    
      	
              9.7

            	
              Incorporation of
      Plan.  This Program description is qualified in its
      entirety by the Plan.  Should there be any discrepancy between
      this description and the Plan, the terms of the Plan shall govern,
      excluding definitions that are specifically provided
    herein.

            

    

     

     

    9ex10_15.htm

    `

      

    

    Exhibit
10.15

    
      Effective
as of May 1, 2007

      

      Michael
R.
Douglas                           
Dear Mike:

      171
Chapman Road

      Greenville,
SC 29605                           Re:      
BEAZER HOMES USA, INC. (the "Company")

      

      I am
pleased to extend the Company’s offer of employment to you on the following
amended terms based on you working from your home office in Greenville, South
Carolina with periodic trips to Atlanta or other locations as
required.

      

      You will
be initially appointed Special Counsel reporting to me.  Your duties
will include, but not be limited to, handling all litigation
stemming from the investigation into our mortgage practices, securities
litigation and related issues.

      

      Your
first day of employment is May 1, 2007.

      

      Your base
salary will be $350,000 per year, paid semi-monthly.  You will be
eligible to receive an annual bonus of up to 100% of base salary.  For
Fiscal Year 2007 (October 1, 2006 to September 30, 2007), you will be guaranteed
a 100% bonus, prorated for months worked.  For Fiscal Year 2008 (and
thereafter, if applicable), the formula for bonus eligibility will be agreed
before the applicable Fiscal Year commences.

      

      On your
date of employment, May 1, 2007, a “phantom” LTIP package with a factor of three
(3) times initial base salary was granted.  At a stock price of $34
(the closing stock price on the first day of employment), this equated to 38,603
phantom stock options and 15,441 phantom shares of restricted
stock.  The phantom stock options will vest over three (3) years with
33.3% vesting on the first anniversary of employment.  The remaining
66.7% will vest in 8.33% increments each quarter over the following eight (8)
quarters on the day of the month corresponding to your date of
employment.  The phantom shares of restricted stock will vest over
five (5) years with 20% vesting on the first anniversary of
employment.  The remaining 80% will vest in 5% increments each quarter
over the following 16 quarters on the day of the month corresponding to your
date of employment.  The specific terms will be set forth in an award
agreement which will be provided shortly after the grant.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Salaries
are reviewed periodically.  Your first salary review will be January
1, 2008.  At that time your base salary will be increased to $400,000
with corresponding increases to your bonus potential and phantom LTIP package to
reflect this increased salary.  As an indication, at a stock price of
$30, this would equate to approximately 6,250 phantom stock options and 2,500
shares of phantom restricted stock.  This will be calculated at the
closing price on January 1, 2008.

      

      You will
receive a car allowance of $9,600 per year, paid semi-monthly, which will cover
transportation expenses when driving on Beazer business including, but not
limited to, trips to Atlanta.  You will also be reimbursed for
reasonable non-driving transportation expenses and other reasonable expenses
incurred in performing your duties under this agreement.

      

      Your
employment by the Company will continue until terminated as
follows:  (i) upon your death; (ii) upon termination of your
employment by the Company for cause (as defined below);  or (iii) by
either party, without cause, upon at least 90 days advance written notice to the
other party.

      

      For
purposes hereof, "cause" shall mean: (a)  any act or failure to act by
you done with the intent to harm in any material respect the financial interests
or reputation of the Company or any affiliated companies; (b) your being
convicted of (or entering a plea of guilty or nolo contendere to) a felony;
(c) your dishonesty, misappropriation or fraud with regard to the Company or any
affiliated companies (other than good faith expense account disputes);
(d)  a grossly negligent act or failure to act by you which has a
material adverse affect on the Company or any affiliated companies; (e) the
material breach by you of your agreements or obligations under this or any other
agreement to which you are a party with the Company which has a material adverse
effect on the Company, which breach, if curable, is not cured by you within
fifteen (15) days after written notice from the Company; or (f) your continued
refusal to follow the directives of the President and CEO or the Board of the Company or their
designees which are consistent with your duties and
responsibilities.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        
          Upon the
termination of your employment for any reason, the Company’s obligations to you
shall be as follows:

           

        

      

      (a)           to
pay to you in a lump sum in cash within 30 days after the date of termination
(1) your base salary through the date of termination to the extent not
theretofore paid, (2)  except in the case of termination of your
employment by the Company for cause, any accrued but unpaid annual bonus
respecting any completed fiscal year ending prior to the date of termination,
and (3) any compensation previously deferred by you (together with any accrued
interest or earnings thereon) and any vacation pay, in each case to the extent
not theretofore paid.  The timing of payment by the Company of any
deferred compensation shall remain subject to any payment election previously
made by you; and

      

      (b)           to
timely pay or provide to you any other amounts or benefits required to be paid
or provided to you (or which you are eligible to receive) under any applicable
plan, program, policy or practice or contract or agreement of the Company and
its affiliated companies.

      

      If
elected, medical, dental, vision and life insurance will begin on the first of
the month following 30 days of employment.  You have 30 days from your
date of hire to enroll.  Life insurance coverage is one times base
annual salary and will be paid by the Company.  Medical and dental
coverage are at a cost supplemented by the Company.  Vision,
supplemental life and AD&D coverage are at employee
expense.  Complete details will be provided upon
employment.

      

      On the
first of the month following 30 days of employment, you will automatically be
enrolled in our 401(k) Plan at a deferral rate of 2%.  You may call
Fidelity or go on-line to elect any other percentage or to stop this automatic
enrollment once you receive Plan information from Fidelity.

      

      Upon your
date of employment, you will be granted four (4) weeks of vacation per 12 months
of service.

      

      You will
be eligible to participate in the Company’s Deferred Compensation Plan
(DCP).  Upon hire, materials will be sent to you by MullinTBG, our
plan administrator.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      You shall
devote your full business time and attention to your services to the Company and
shall not be employed by, render services to, engage in, or have any interest
in, any other business without the prior written consent of the
Company.

      

      You agree
that all secret, proprietary and/or confidential information, knowledge or data
relating to the Company or any of its affiliated companies, and their respective
businesses (collectively “Confidential Information”) shall be the sole property
of the Company.  You shall not, during your employment by the Company
nor thereafter, (i) use for your benefit or the benefit of others, or (ii)
except as may be required by law or legal process, disclose at any time
Confidential Information or (iii) take with you upon termination of your
employment any records, papers, reports, lists, computer tapes or disks or any
other materials of any nature that contain any Confidential
Information.

      

      The
Company agrees to indemnify and defend you (in your capacity as Special Counsel
of the Company) to the fullest extent provided by the Company’s Certificate of
Incorporation and Bylaws for executive officers, which indemnification and
defense obligations shall survive the termination of your employment. The
Company shall, to the extent permitted by law, include you under any directors
and officers’ liability insurance policy maintained for the
Company.

      

      This
agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, without reference to principles of conflict of laws. Any
legal action, suit or proceeding arising out of or relating to this agreement
shall be instituted in the state or federal courts in the State of Delaware and
the parties agree not to assert, in any action, suit or proceeding by way of
motion, as a defense or otherwise, any claim that either party is not personally
subject to the jurisdiction of such court, or that such action, suit or
proceeding is brought in an inconvenient forum, or that the venue is improper or
that the subject matter hereof cannot be enforced in such court.  The
parties hereby irrevocably submit to the jurisdiction of any such court in any
such action, suit or proceeding.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      This
letter sets forth the entire agreement between you and the Company with respect
to the subject matter hereof, and supersedes all prior agreements, arrangements
and understandings, written or oral, relating to the subject matter
hereof.  Reference is hereby made to that certain Change Of Control
Employment Agreement dated as of May 1, 2007 (the “COC Agreement”) between the
Company and you.  Notwithstanding anything contained herein to the
contrary, (i) this agreement shall not supersede the COC Agreement, and (ii)
upon the “Effective Date” occurring under the COC Agreement, this agreement
shall be superseded by the COC Agreement. This agreement may not be changed,
modified or waived, in whole or in part, except by a written instrument signed
by you and the Company.

      

      In
anticipation of your acceptance of these terms and conditions, I would like to
take this opportunity to welcome you to Beazer Homes for what I trust will be a
happy and mutually rewarding relationship. Please signify your agreement to the
terms hereof by signing below where indicated.

      

      Sincerely
yours,

      

      /s/ Ian
J. McCarthy

      

      Ian J.
McCarthy

      President
and

      Chief
Executive Officer

      

      IJM/kkh:

      

      Enclosures

      

      ACCEPTED
AND AGREED TO:

      

      

      ________________________________

      MICHAEL
R. DOUGLAS

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      August
24, 2007

      

      

      

      

      Michael
R.
Douglas                             Dear
Mike:

      171
Chapman Road

      
        Greenville,
SC 29605                           
 I am
pleased to inform you that as of yesterday, August 23, 2007, you have been
appointed Executive Vice President, Special Counsel responsible for

                                                                       
the Securities
Litigation and Special Investigations
Group.

      

      

      All other
terms and conditions of your Employment Letter effective May 1, 2007 remain in
force.

      

      In
anticipation of your acceptance of these terms and conditions, I would like to
commend your efforts to date and look forward to working together to
investigate

      and
resolve issues impacting our Company.

      

      Sincerely
yours,

      

      /s/ Ian.
J. McCarthy

      

      Ian J.
McCarthy

      President
and

      Chief
Executive Officer

      

      IJM/kkh:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      November
12, 2007

       

      

      Michael
R.
Douglas                             Dear
Mike:

      Executive
Vice President

        and
Special
Counsel                          I
am pleased to inform you that for Fiscal Year 2008, you will be

      Beazer
Homes USA,
Inc.                    eligible
for a guaranteed bonus of 100% of your base salary in

      330 E.
Coffee
Street                             effect
on January 1, 2008.  

      Suite
5025                                                      

      
        Greenville,
SC
29601                           
All other
terms and conditions of your Employment Letters dated May 1,
2007 and August 24, 2007 remain in force.

      

      

      With kind
regards,

      

      /s/ Ian
J. McCarthy

      

      Ian J.
McCarthy

      President
and

      Chief
Executive Officer

      

      IJM/kkh:

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