Document:

Exhibit 10.7

Exhibit 10.7

BEAZER HOMES USA, INC.

DIRECTOR STOCK PURCHASE PROGRAM

Article 1 - Introduction

The Director Stock Purchase Program is hereby adopted pursuant to the 1999 Stock Incentive Plan and is 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 outside directors of Beazer Homes USA, Inc. (the “Company”) and its subsidiaries to acquire Company stock. This is accomplished by the outside directors deferring for a minimum of three years a portion of their annual retainer fees up to 50% and receiving an award of Restricted Stock Units at a discount, thus aligning Directors’ and shareholders’ interest in the Company as well as providing the outside directors with incentives of a discount on the stock and a tax deferral.

Article 2 - Definitions

	2.1.	Award - shall mean Restricted Stock Units granted under the Program.

	2.2	Award Agreement - shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Program.

	2.3	Award Date - shall mean the last business day of a fiscal year. 

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

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

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

	2.7	Deferral Period - shall mean a period of time (expressed in whole months) of not less than thirty-six months beginning on an Award Date specified with respect to Restricted Stock Units awarded on that Award Date. A Participant may elect on his Election Form to extend the Deferral Period with respect to Restricted Stock Units awarded to the first day of any month which is more than thirty six months after the Award Date, but less than 120 months after the Award Date. 

	2.8	Director - shall mean a member of the Board who is not also an employee of the Company. 

	2.9	Disability - shall mean the permanent inability to perform the duties of a director because of illness or injury, as determined by the Committee based on medical evidence. 

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

	2.11	Election Form - shall mean the form on which the Participant elects to defer a portion of his Retainer and receive an Award.

	2.12	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. 

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

	2.14	Participant - shall mean a Director participating in this Program. 

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

	2.16	Program - shall mean the Beazer Homes USA, Inc. Director Stock Purchase Program. 

	2.17	Restricted Stock Unit or RSU - shall mean a bookkeeping entry representing the right to receive a share of Common Stock (or a cash payment equal to the Fair Market Value of 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. 

	2.18	Retainer - shall mean the fee paid to a Director for a Fiscal Year for his services rendered to the Company; provided that for purposes of this Program only the Retainer paid to Mr. Brian Beazer in his capacity as Director shall be deemed to be equal to the amount paid to each other Director, notwithstanding the fact that he receives a larger amount. 

	2.19	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. 

 

	 
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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

Directors of the Company and its Subsidiaries as designated by the Committee shall be eligible to participate in the Program.

Article 5 - Purchases

	5.1	General. Each Participant shall be entitled to elect to receive up to 50% of his Retainer as an award of RSUs. The number of RSUs to be awarded to Participants shall be determined using a 20% discount from the Fair Market Value of the Common Stock on the Award Date. 

	5.2	Purchases. For each Fiscal Year, each Participant may elect to receive up to 50% (in whole percentages) of his Retainer for that Fiscal Year as an award of RSUs 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 Retainer. 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 preceeding the Fiscal Year for which such Retainer amount is earned and paid. 

	5.3	Award of RSUs. The Company shall award RSUs to each Participant on the Award Date. Each Participant shall be credited with a whole number of RSUs determined by dividing (a) the amount of the Participant’s Retainer 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. An Award Agreement will be forwarded as soon as practicable after the Award Date. 

Article 6 - Vesting and Payment of RSUs

	6.1	Vesting. A Participant shall be fully vested in each RSU 36 months after the Award Date pertaining to that RSU provided that the Participant has remained a Director for that entire 36 month period. In the event that a Participant dies, becomes Disabled or retires in accordance with the retirement policies of the Board of Directors before the end of the 36 month period after the Award Date of any RSU, but while still a Director, the Participant or the Participant’s Beneficiary shall become fully vested in all his RSUs at that time. In the event that Participant ceases to be a Director following a Change in Control (as defined in the Participant’s Award Agreement) before the end of the 36 month period after the Award Date of any RSU, the Participant shall become fully vested in all RSUs.

	6.2	Payment after Vesting. With respect to each vested RSU, the Company shall issue to the Participant one share of Common Stock as soon as practicable after the end of the Deferral Period specified in the Participant’s Award Agreement pertaining to such RSU, or, if earlier, the date the Participant ceases to be a member of the Board. 

	6.3	Payment Prior to Vesting. If a Participant ceases to be a member of the Board for any reason, he/she will receive a cash payment equal to the number of those RSUs awarded on the Award Date multiplied by the respective Cost of those RSUs.

	 
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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 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.

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. 

 

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. 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. 

	9.5	Effective Date of Program. The Program shall become effective as of the date of its approval by the Board.

	9.6	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.

	 
	 	 	3Exhibit 10.8

 

Exhibit 10.8

 

BEAZER HOMES USA, INC.

AMENDED AND RESTATED 1999 STOCK INCENTIVE PLAN

AWARD AGREEMENT

THIS AWARD AGREEMENT (this “Agreement”) is made effective as of <> by and between BEAZER HOMES USA, Inc., a Delaware corporation (the “Company”), and «fullname», an individual resident of the State of «state» (“Participant”).

WITNESSETH:

WHEREAS, the Company pursuant to its Amended and Restated 1999 Stock Incentive Plan (the “Plan”) wishes to make certain incentive awards to Participant.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto hereby agree to the terms set forth below. The terms of this Agreement shall be interpreted in accordance with the Plan and any capitalized terms used in this Agreement but not defined herein shall have the meaning set forth in the Plan.

1.   GRANT OF OPTION TO ACQUIRE COMMON STOCK

(a)   Grant; Effective Date; Option Price. The Company hereby notifies Participant that the Company has granted to Participant in accordance with the Plan and effective as of <> (the “Option Effective Date”), the right and option (hereinafter referred to as the “Option”) to purchase, on the terms and conditions set forth herein, all or any part of an aggregate of «options» shares of Common Stock of the Company, $0.01 par value per share (“Common Stock”), at a price per share equal to the closing price per share of the Common Stock as reported by the New York Stock Exchange (the “NYSE”) at the close of business on the Option Effective Date <> (the ”Option Price”), subject to adjustment as provided in Section 1(g) below. The Option is not intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company will at all times during the Option Term of the Option (as set forth in Section 1(b) below) reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Agreement.

(b)    Duration and Exercisability of Option; Limitations on Exercisability.

(i)         The Option shall in all events terminate at midnight on the seventh anniversary of the Option Effective Date (the period commencing on the Option Effective Date and ending on the seventh anniversary thereof being referred to herein as the “Option Term”). The Option shall not be exercisable, in whole or in part, prior to the third anniversary of the Option Effective Date, but shall become fully exercisable by Participant on such date. Notwithstanding the foregoing sentence, the Option shall become exercisable in full upon the occurrence of a Change of Control (as defined in the Plan).

(ii)        During the lifetime of Participant, the Option shall be exercisable only by Participant (or, subject to Section 1(d) (ii) or (iii) below, by Participant’s guardian or legal representative or Family Member (as defined in Section 7.2 of the Plan) to whom the Option has been gifted or transferred pursuant to a domestic relations order) and shall not be assignable or transferable by Participant other than (a) to an individual by will or the laws of descent and distribution or (b) to a Family Member by gift or transfer pursuant to a domestic relations order.

	  
	 	 	 
	

	 

(iii)       The exercise of all or any part of the Option shall only take effect at such time that the sale of the shares of Common Stock or shares of such other securities or property as may be the subject of grants herein pursuant to an adjustment made under Section 9.1 of the Plan and Section 1(g) of this Agreement (“Shares”) issuable pursuant to such exercise will not violate any state or federal securities or other laws or the rules of the NYSE or any other exchange upon which the Company’s securities may then be trading. Any other provision of this Agreement notwithstanding, the Company shall have the right to designate one or more periods of time, each of which shall not exceed 180 days in length, during which the Option shall not be exercisable if the Company determines (in its sole discretion) that such limitation on exercise could in any way facilitate a lessening of any restriction on transfer pursuant to the Securities Act of 1933, as amended (the “Act”) or any state securities laws with respect to any issuance of securities by the Company, facilitate the registration or qualification or any securities by the Company under the Act or any state securities laws, or facilitate the perfection of any exemption from the registration or qualification requirements of the Act or any applicable state securities laws for the issuance or transfer of any securities. Such limitation on exercise shall not affect the date on which the Option becomes exercisable or the Option Term pursuant to clause (i) of this Section 1(b) in any way other than to limit the periods during which the Option shall be exercisable.

(c)   No Rights as a Shareholder. Participant shall have none of the rights of a Shareholder with respect to Shares subject to the Option until such Shares shall have been issued to Participant upon exercise of the Option. No adjustments will be made for dividends or other distributions or rights if the applicable record date occurs before a stock certificate is issued pursuant to Participant’s exercise of the Option.

(d)   Effect of Termination of Employment on Option. 

(i)   In the event that Participant has a “Termination for Cause” (as hereinafter defined) or in the event Participant voluntarily resigns, the Option shall be terminated as of such date of resignation or termination.

For purposes of this Agreement, a Termination for Cause shall mean a termination of employment by the Company (or an Affiliate) due to any of the following: (A) any act or failure to act (or series or combination thereof) by Participant done with the intent to harm in any material respect the interests of the Company or any Affiliate thereof; (B) the commission by Participant of a felony; (C) the perpetration by Participant of a dishonest act or common law fraud against the Company or any Affiliate thereof; (D) 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; (E) the material breach by Participant of his/her agreements or obligations under his/her employment agreement, if applicable; or (F) the continued refusal to follow directives which are consistent with Participant’s duties and responsibilities. 

(ii)       In the event Participant’s employment is terminated as a result of either his/her becoming “Disabled” (as hereinafter defined) or a “Termination Not for Cause” (as hereinafter defined) prior to the complete exercise of the Option, then the Option, to the extent exercisable at that time pursuant to Section 1(b)(i) hereof, may be exercised at any time within three (3) months after the date of such termination. In this case the Option may be exercised by Participant, his/her guardians or legal representatives, or by any Family Member to whom the Option is gifted or transferred pursuant to a domestic relations order to the extent of the full number of Shares which Participant was entitled to purchase under the Option on the date of such termination and subject to the condition that no portion of the Option shall be exercisable after the expiration of the Option Term.

For purposes of this Agreement, a Participant shall be deemed “Disabled” if the Participant becomes ill or is injured or otherwise becomes disabled or incapacitated such that, in the opinion of the Board, he/she cannot fully carry out and perform his/her duties as an employee of the Company (and all Affiliates), and such disability or incapacity shall continue for a period of forty-five (45) consecutive days, and the term “disability” shall have a meaning correlative with the foregoing. 

For purposes of this Agreement, a “Termination Not for Cause” shall mean a Participant’s termination of employment by the Company (and all Affiliates) which is not a Termination for Cause. 

	  
	 	 	 
	

	 

(iii)       In the event Participant dies while an active Participant prior to the complete exercise of the Option, then the Option, to the extent exercisable at that time pursuant to Section 1(b)(i) hereof, may be exercised at any time within twelve (12) months after Participant’s death. The Option may be exercised by his/her guardian or legal representatives or by any Family Member to whom the Option is by gifted or transferred pursuant to a domestic relations order, or by any person or persons to whom the Option is transferred by will or the applicable laws of descent and distribution, as applicable, to the extent of the full number of Shares which Participant was entitled to purchase under the Option on the date of such death, and subject to the condition that no portion of the Option shall be exercisable after the expiration of the Option Term.

(iv)       In the event Participant terminates employment with the Company by reason of Retirement as hereinafter defined 

(a) prior to the Option becoming fully exercisable per Section 1(b)(i), then Participant shall be entitled to the immediate vesting of such portion of such Option (rounded upward to the nearest whole share) as equals the product of (y) the total number of shares underlying such Option awarded to Participant as described in Section 1(a) hereof multiplied by (z) a fraction, the numerator of which shall be equal to the number of whole months (counting each month as ending on the first day of a calendar month) elapsed from the Option Effective Date until the date of such Retirement and the denominator of which shall be 36, or 

(b) subsequent to the Option becoming fully exercisable per Section 1(b)(i), 

the Option may be exercised at any time within twelve (12) months after Participant’s Retirement.

For purposes of this Agreement, Retirement shall mean a voluntary termination of employment by a Participant aged 65 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 of the Board of Directors, such requests can be approved or denied.    

(e)   Effect of a Change of Control of the Company on the Option. In the event of a Change of Control (as defined in the Plan), the Company shall use its best efforts to notify Participant that a Change of Control will occur promptly after the Company is informed thereof and the Company shall give to Participant, at the time of such Change of Control, either, in the Company’s sole discretion (i) a reasonable time thereafter within which to exercise the Option, prior to the effectiveness of such Change of Control, at the end of which time the Option shall terminate, or (ii) the right to exercise the Option (or a substitute option) as to an equivalent number of shares of stock of the corporation succeeding the Company or acquiring its business by reason of such Change of Control in accordance with Section 1(g).

(f)   Manner of Exercise. 

(i)   The Option can be exercised only by Participant or other proper party by delivering within the Option Term written notice to the Company at its principal office. The notice shall state the number of Shares as to which the Option is being exercised and be accompanied by payment in full of the Option Price for all shares designated in the notice.

(ii)        Participant may pay the Option Price in cash, by check (bank check, certified check or personal check), by money order, or by wire transfer. In addition, with the approval of the Company, Participant may pay the Option Price by (A) delivering to the Company for cancellation, Shares with a Fair Market Value as of the date of exercise equal to the Option Price or the portion thereof being paid by tendering such Shares, or (B) delivering to the Company the full Option Price in a combination of cash and/or shares of Common Stock in accordance with clause (A) above; provided, however, that the Option Price may not be paid by the delivery of Shares more frequently than once every six (6) months; any shares so delivered must have been held by Participant for at least six months. 

(iii)   The Shares issued pursuant to exercise of the Option may be subject to restrictions on transfer under applicable federal or state securities laws. Certificates of Shares issued pursuant to exercise of the Option shall bear an appropriate legend referring to the restrictions applicable to such Shares.

	  
	 	 	 
	

	 

(g)   Adjustments. If there shall be any change in the Common Stock through (a) dividend or other distribution (whether in the form of cash, Shares, other securities or other property), (b) recapitalization, (c) stock split, (d) reverse stock split, (e) reorganization, (f) merger, (g) consolidation, (h) split-up, (i) spin-off, (j) combination, (k) repurchase or exchange of Shares or other securities of the Company, (l) issuance of warrants or other rights to purchase Shares or other securities of the Company or (m) other similar corporate transaction or event affects the Shares, and all or any portion of the Option shall then be unexercised and not yet expired, then appropriate adjustments in the outstanding portion of the Option shall be made by the Company, in its sole discretion under the Plan, in order to prevent dilution or enlargement of the Option rights contemplated hereby. Such adjustments shall include, where appropriate, changes in the number and type of Shares subject to the Option and/or the Option Price. In addition, in the event of a merger, consolidation, liquidation, sale of all or substantially all of the assets of the Company or other change of like nature in the corporate structure of the Company, the Company shall, if the Option has not yet expired, make such adjustments to the terms of the Option, which adjustments may (but need not) include, without limitation, acceleration of the date of the initial exercisability of the Option or provision for the redemption of the unexercised portion of the Option for an amount of cash or other property reasonably equivalent to the amount that could have been realized by Participant upon exercise of the unexercised portion of the Option had the Option been exercisable and exercised immediately prior to such event, all as the Company, in its sole discretion under the Plan, may deem appropriate under the circumstances.

2.   AWARD OF RESTRICTED STOCK.

(a)   Award; Effective Date. The Company hereby notifies Participant that, effective as of <> (the “Restricted Stock Effective Date”), the Company has awarded to Participant «restr_stk» shares of Common Stock, subject to the terms of the Plan and subject to such further restrictions as set forth below. Such shares of restricted Common Stock are hereinafter referred to as “Restricted Stock”. 

(b)   Vesting; Change of Control; Restrictions. (i) Subject in each case to the provisions of Section 2, Participant’s rights with respect to 100% of the Restricted Stock awarded hereunder shall vest on <>. 

(ii)         Subject to the provisions of this Section 2(c), upon the occurrence of a Change of Control of the Company, all shares of Restricted Stock not theretofore vested pursuant to Section 2(b)(i) above shall become immediately vested. 

(iii)        Prior to vesting, shares of Restricted Stock shall not be voluntarily or involuntarily sold, assigned, transferred, pledged, alienated, hypothecated or encumbered by Participant, other than by will or the laws of descent and distribution. 

(iv)        Prior to vesting, Participant shall have voting rights and receive dividends if and when declared on shares of Restricted Stock held by the Company on behalf of Participant. 

(v)         Prior to vesting, the Company may impose such restrictions with respect to Restricted Stock in addition to those contained herein as the Company may deem appropriate. 

(c)   Forfeiture of Restricted Stock. Except as provided in Section 6.3(c) of the Plan:

(i)   In the event that Participant’s employment with the Company or any of its subsidiaries shall be terminated by the Company for “cause” (as defined in Section 1(d)(i) hereof) or in the event Participant voluntarily resigns from or otherwise terminates his/her employment with the Company or any of its subsidiaries (other than termination by reason of Participant’s “disability” (as defined in Section 1(d)(ii) hereof) or death, and other than termination by the Company or any of its subsidiaries for any reason other than for “cause” or termination by reason of Participant’s Retirement as defined in Section 1(d)(iv) above), then any shares of Restricted Stock which are held by Participant on the date of such termination shall be forfeited by Participant, and the Company shall have no further obligation to Participant with respect to such forfeited Restricted Stock.     (ii)

	  
	 	 	 
	

	 

In the event Participant becomes disabled or dies or his/her employment is terminated by the Company or any of its subsidiaries for any reason other than for “cause”, or in the event Participant’s employment is terminated by reason of his/her Retirement, then Participant (or, as appropriate, Participant’s executors, estate or proper legal guardians and representatives) shall be entitled, to the immediate vesting of such number Restricted Stock (rounded upward to the nearest whole share) as equals the product of (y) the total number of Restricted Stock awarded to Participant as described in Section 2(a) hereof multiplied by (z) a fraction, the numerator of which shall be equal to the number of whole months (counting each month as ending on the first day of a calendar month) elapsed from the Restricted Stock Effective Date until the date of such disability, death, termination not for “cause” or retirement and the denominator of which shall be 60. 

(d)   Stock Certificates. The Restricted Stock awarded hereunder shall be held in a book entry account by the Company. Upon vesting of any shares of Restricted Stock awarded hereunder, a certificate or certificates representing such shares shall be delivered to the Participant, which certificate or certificates may contain such legends as the Company, in its sole discretion, deems necessary or advisable in connection with applicable securities laws. 

3.   INVESTMENT REPRESENTATIONS; INDEMNIFICATION. 

In connection with, and as an inducement to the grant by the Company to Participant of the Option and the Restricted Stock as described in Section 1 and Section 2 above, respectively;

(a)   Participant hereby represents and warrants that, effective as of the Restricted Stock Effective Date, the Option Effective Date, and each date of exercise of any part of the Option, he/she is not acquiring the Restricted Stock, the Option or the Shares issuable upon exercise of the Option, as the case may be, with a view to a distribution of any part thereof, nor with any then present intention of distributing any part thereof in violation of any applicable federal or state securities law.

(b)   Participant acknowledges that he/she (i) is an executive of the Company, (ii) has been given an opportunity to examine such instruments, documents and other information relating to the Company as he/she has deemed necessary or advisable in order to make an informed decision relating to the transactions in Shares contemplated hereby and with respect to the suitability of such transactions as an investment for Participant, (iii) has been afforded an opportunity to ask questions and to obtain any additional information necessary in order to verify the accuracy of the information furnished, and (iv) has, in fact, asked all such questions and reviewed all such instruments, documents and other information as he/she has deemed necessary under the circumstances.

(c)   Participant represents to the Company that (i) his/her financial capacity is of such proportion that the total cost of his/her commitment in the transactions contemplated hereby would not be material when compared with his/her total financial capacity; (ii) either he/she or his/her purchaser representative (if any) has knowledge of finance, securities and investments generally; and (iii) either he/she or his/her purchaser representative (if any) has experience and skill in investments based on actual participation. Participant also represents that his/her purchaser representative (if any) (A) has no business relationship with the Company, (B) represents only him/her and not the Company, and (C) will be compensated only by him.

(d)   Participant acknowledges that his/her representations made in this Section 3 are material inducements to the Company’s (i) award of Restricted Stock and grant of the Option made hereby and (ii ) eventual acceptance of his/her offer to purchase the Shares underlying the Option and that, but for such representations, such grants would not have been made and such offer would not be accepted. Participant agrees to promptly notify the Company of any change in the status of any of his/her representations or warranties made herein.

(e)   Participant agrees to indemnify and hold harmless the Company and any person or entity which “controls” the Company within the meaning of the Act from and against any and all liabilities, damages, claims, debts, costs and expenses suffered or incurred by them (including costs of investigation and defense and attorneys’ fees) arising out of any breach by him/her of the agreements or inaccuracy in the representations that are made by him/her herein.

	  
	 	 	 
	

	 

 

4.   MISCELLANEOUS

(a)   The Plan. The grant of the Option and award of Restricted Stock provided for herein are made pursuant to the Plan and are subject to its terms. The Plan is available for inspection during business hours at the principal offices of the Company (currently located at 1000 Abernathy Road, Suite 1200, Atlanta, Georgia 30328) and a copy of the Plan may be obtained by Participant through a request in writing therefor directed to the Secretary of the Company.

(b)   No Right to Employment. This Agreement shall not confer on Participant any right with respect to continuance of employment by the Company or any Affiliates, nor will it interfere in any way with the right of the Company to terminate such employment at any time.

(c)   Taxes. In order to provide the Company with the opportunity to claim the benefit of any income tax deduction which may be available to it upon the grant or exercise of the Option or upon the award or vesting of Restricted Stock, and in order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to insure that, if necessary, all applicable federal or state payroll, withholding, income or other taxes are withheld or collected from Participant. Participant may elect to satisfy his/her federal and state income tax withholding obligations upon the vesting of Restricted Stock or the exercise of the Option by (i) having the Company withhold a portion of the Shares otherwise to be delivered upon the vesting of Restricted Stock or the exercise of the Option having a Fair Market Value equal to the amount of federal and state income tax required to be withheld, (ii) delivering to the Company Shares other than the Shares issuable upon the vesting of Restricted Stock or the exercise of the Option with a Fair Market Value equal to such taxes, (iii) delivering to the Company cash, check (bank check, certified check or personal check), money order or wire transfer equal to such taxes upon the vesting of Restricted Stock or the exercise of the Option, or (iv) any combination of 4. (c) (i) through (iii).

(d)   Waivers. No waiver at any time of any term or provision of this Agreement shall be construed as a waiver of any other term or provision of this Agreement and a waiver at any time of any term or provision of this Agreement shall not be construed as a waiver at any subsequent time of the same term or provision. 

(e)   Headings. All headings set forth in this Agreement are intended for convenience only and shall not control or affect the meaning, construction or effect of this Agreement or of any of the provisions hereof. 

(f)     Counterparts. This Agreement may be executed via facsimile transmission signature and in counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 

(g)   Board and Committee Determinations. All matters to be determined by the Board or any committee thereof, including, without limitation, the Compensation Committee, pursuant to the terms of this Agreement shall be determined by the members of the Board or such duly authorized committee without the vote of Participant. 

(h)   Law Governing Agreement. This agreement shall be governed by and construed in accordance with the laws of the state of Georgia.

IN WITNESS WHEREOF, the parties hereto have executed this AWARD AGREEMENT effective as of the date first written above. 

	 	
BEAZER HOMES USA, INC.

	 	 
	 	 
	 	
By: ________________________________

	 	
Name:
	
Ian J. McCarthy

	 	
Its:
	
President & CEO

	 	 
	 	 
	 	
PARTICIPANT

	 	 
	 	
___________________________________

	 	
«fullname»

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