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Exhibit 4.4  

 
  SERVICEMAGIC, INC.
  
    AMENDED AND RESTATED 1999 STOCK OPTION PLAN    
    

SECTION 1: PURPOSE  

        The purpose of the Servicemagic, Inc. 1999 Stock Option Plan (the "Plan") is to further the growth and development of Servicemagic, Inc. (f/k/a
Wisen.com, Inc.) (the "Company") by affording an opportunity for stock ownership to selected employees, directors and consultants of the Company and its subsidiaries who are responsible for the
conduct and management of its business or who are involved in endeavors significant to its success. 

SECTION 2: DEFINITIONS  

        Unless otherwise indicated, the following words when used herein shall have the following meanings: 

        (a)   "Acquisition"
shall mean (i) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate
reorganization, in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization own less than a majority of the voting power of the surviving or acquiring
party immediately after such consolidation, merger or reorganization, or any transaction or series of related transactions in which fifty percent (50%) or more of the Corporation's voting power is
transferred, or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company. 

        (b)   "Affiliate"
shall mean, with respect to any person or entity, a person or entity that directly or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such person or entity. 

        (c)   "Board
of Directors" shall mean the Board of Directors of the Company. 

        (d)   "Cause"
shall mean a termination on account of (1) repeated refusal to obey written directions of the Board of Directors or a superior officer (so long as such
directions do not involve illegal or immoral acts); (2) repeated acts of substance abuse which are materially injurious to the Company or any of its Subsidiaries, (3) fraud or dishonesty
that is materially injurious to the Company or any of its Subsidiaries, (4) breach of any material obligation of nondisclosure or confidentiality owed to the Company or any of its Subsidiaries,
(5) commission of a criminal offense involving money or other property of the Company (excluding any traffic violations or similar violations), or (6) commission of a criminal offense
that constitutes a felony in the jurisdiction in which the offense is committed. 

        (e)   "Code"
shall mean the Internal Revenue Code of 1986, as amended from time to time. 

        (f)    "Common
Stock" shall mean the Company's common stock ($0.0001 par value per share) and any share or shares of the Company's capital stock hereafter issued or issuable in
substitution for such shares. 

        (g)   "Director"
shall mean a member of the Board of Directors. 

        (h)   "Early
Exercise Stock Purchase Agreement" shall mean an agreement for the repurchase by the Company of shares acquired upon exercise of any portion of an Option prior to
its vesting. 

        (i)    "Incentive
Stock Option" shall mean any option granted to an eligible employee under the Plan, which the Company intends at the time the option is granted to be an
Incentive Stock Option within the meaning of Section 422 of the Code. 

        (j)    "Non-Employee
Director" shall mean a Director who is a Non-Employee Director within the meaning of Rule 16b-3 as promulgated
by the Securities and Exchange Commission under the Securities Act of 1933, as amended from time to time. 

 

        (k)   "Nonqualified
Stock Option" shall mean any option granted to an eligible employee, Director or consultant under the Plan which is not an Incentive Stock Option. 

        (l)    "Option"
shall mean and refer collectively to Incentive Stock Options and Nonqualified Stock Options. 

        (m)  "Option
Agreement" means the agreement specified in Section 7.2. 

        (n)   "Optionee"
shall mean any employee, Director or consultant who is granted an Option under the Plan. "Optionee" shall also mean the personal representative of an Optionee
and any other person who acquires the right to exercise an Option by bequest or inheritance. 

        (o)   "Parent"
shall mean a parent corporation of the Company as defined in Section 424(e) of the Code. 

        (p)   "Plan
Administrator" shall mean the body which is responsible for the administration of the Plan, as determined pursuant to Section 4.1. 

        (q)   "Stock
Restriction Agreement" shall mean an agreement placing certain restrictions upon the Optionee's right to transfer shares, including without limitation the
creation of an irrevocable right of first refusal upon the transfer of shares in favor of the Company and its designees and provisions requiring the Optionee to transfer the shares to the Company or
the Company's designees upon a termination of employment, as described in Section 11.4. 

        (r)   "Subsidiary"
shall mean a subsidiary corporation of the Company as defined in Section 424(f) of the Code. 

SECTION 3: EFFECTIVE DATE  

        The effective date of the Plan is February 1, 1999; provided, however, that the adoption of the Plan by the Board of Directors is subject to approval and
ratification by the shareholders of the Company within 12 months of the effective date. Options granted under the Plan prior to approval of the Plan by the shareholders of the Company shall be
subject to approval of the Plan by the shareholders of the Company. 

SECTION 4: ADMINISTRATION  

        4.1    Plan Administrator.    The Plan shall be administered by the Board of Directors, unless and until such time as
the Board of Directors delegates the administration of the Plan to a committee. Any such committee shall be appointed by,and shall serve at the pleasure of the Board of Directors and shall consist
solely of two or more Non-Employee Directors. The Board of Directors may from time to time remove members from or add members to any such committee, and vacancies on the committee,
howsoever caused, shall be filled by the Board of Directors. 

        4.2    Meetings and Actions.    The Plan Administrator shall hold meetings at such times and places as it may
determine. A majority of the members of the Plan Administrator shall constitute a quorum, and the acts of the majority of the members present at a meeting or a consent in writing signed by all members
of the Plan Administrator shall be the acts of the Plan Administrator and shall be final, binding and conclusive upon all persons, including the Company, its Subsidiaries, its shareholders, and all
persons having any interest in Options which may be or have been granted pursuant to the Plan. 

        4.3    Powers of Plan Administrator.    The Plan Administrator shall have the full and exclusive right to grant and
determine terms and conditions of all Options granted under the Plan and to prescribe, amend and rescind rules and regulations for administration of the Plan. In granting Options, the Plan
Administrator shall take into consideration the contribution the Optionee has made or may make to 

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the
success of the Company or its Subsidiaries and such other factors as the Plan Administrator shall determine. 

        4.4    Interpretation of Plan.    The determination of the Plan Administrator as to any disputed question arising
under the Plan, including questions of construction and interpretation, shall be final, binding and conclusive upon all persons, including the Company, its Subsidiaries, its shareholders, and all
persons having any interest in Options which may be or have been granted pursuant to the Plan. 

        4.5    Indemnification.    Each person who is or shall have been a member of the Plan Administrator or of the Board of
Directors shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred in connection with or resulting
from any claim, action, suit or proceeding to which such person may be a party or in which such person may be involved by reason of any action taken or failure to act under the Plan and against and
from any and all amounts paid in settlement thereof., provided that the Company approved such settlement, or paid in satisfaction of a judgment in any such action, suit or proceeding, provided such
person shall give the Company an opportunity, at its own expense, to handle and defend the same before undertaking to handle and defend it on such person's own behalf. The foregoing right of
indemnification shall not be exclusive of, and is in addition to, any other rights of indemnification to which any person may be entitled under the Company's Articles of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

SECTION 5: STOCK SUBJECT TO THE PLAN  

        5.1    Number.    The aggregate number of shares of Common Stock which may be issued under Options granted pursuant to
the Plan shall not exceed 5,030,745 shares. Shares which may be issued under Options may consist, in whole or in part, of authorized but unissued stock or treasury stock of the Company not reserved
for any other purpose. 

        5.2    Unused Stock.    If any outstanding Option under the Plan expires or for any other reason ceases to be
exercisable, in whole or in part, other than upon exercise of the Option, the shares which were subject to such Option and as to which the Option had not been exercised shall continue to be available
for issuance under the Plan. Any shares which are repurchased by the Company in accordance with the terms of an Early Exercise Stock Purchase Agreement shall upon such repurchase once again be
available for issuance under the Plan. 

        5.3    Adjustment for Change in Outstanding Shares.    If there is any change, increase or decrease, in the
outstanding shares of Common Stock which is effected without receipt of additional consideration by the Company, by reason of a stock dividend, recapitalization, merger, consolidation, stock split,
combination or exchange of stock, or other similar circumstances, then in each such event, the Plan Administrator shall make an appropriate adjustment in the aggregate number of shares of stock
available under the Plan, the number of shares of stock subject to each outstanding Option and the
Option prices in order to prevent the dilution or enlargement of any Optionee's rights. The Plan Administrator's determinations in making adjustments shall be final and conclusive. 

        5.4    Reorganization or Sale of Assets.    In the event of (i) a dissolution, liquidation or sale of all or
substantially all of the Company's assets; (ii) a merger or consolidation of the Company with another entity; or (iii) any other capital reorganization in which the persons and entities
who were the stockholders of the Company immediately before such capital reorganization own, directly or indirectly, less than two-thirds of the outstanding voting securities of the
Company following such capital reorganization (each of such events being referred to hereinafter as a "Reorganization Event"), the Plan Administrator shall, as to outstanding Options, either
(1) make appropriate provision for the protection of any such outstanding Options by the substitution on an equitable basis of appropriate 

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stock
of the Company, or of the merged, consolidated or otherwise reorganized corporation, which will be issuable in respect of the Common Stock, provided that no additional benefits shall be
conferred upon Optionees as a result of such substitution, and provided further that the excess of the aggregate fair market value of the shares subject to the Options immediately after such
substitution over the purchase price thereof is not more than the excess of the aggregate fair market value of the shares subject to such Options immediately before such substitution over the purchase
price thereof, or (2) upon written notice to all Optionees, which notice shall be given not less than 20 days prior to the effective date of the Reorganization Event, provide that all
unexercised Options must be exercised within a specified number of days (which shall not be less than 20) of the date of such notice or such Options will terminate. In response to a notice
provided pursuant to clause (2) of the preceding sentence, an Optionee may make an irrevocable election to exercise the Optionee's Option contingent upon and effective as of the effective date
of the Reorganization Event. Options which are not exercised within the specified period following the receipt of such a notice shall terminate and cease to be outstanding. The Plan Administrator may,
in its sole discretion, accelerate the exercise dates of outstanding Options in connection with any Reorganization Event. 

        5.5    Acceleration Upon Acquisition.    Notwithstanding the provisions of Section 5.4, in the event of an
Acquisition in which the acquiring or surviving company fails to make appropriate provision for the protection of any such outstanding Options by the assumption of or substitution on an equitable
basis (in the sole judgment of the Plan Administrator) of appropriate stock or options of the Company, or of the merged, consolidated or otherwise reorganized corporation, as the case may be, then
upon written notice to all Optionees, which notice shall be given not less than 20 days prior to the effective date of the Acquisition, (a) all outstanding Options shall become fully
vested immediately prior to, and contingent upon, the Acquisition, and (b) all Options will terminate if not exercised in connection with the Acquisition (which exercise will be contingent upon
and effective as of the effective date of the Acquisition). 

SECTION 6: ELIGIBILITY  

        All full- or part-time salaried employees of the Company and its Subsidiaries who are responsible for the conduct and management of its
business or who are involved in endeavors significant to its success shall be eligible to receive both Incentive Stock Options and Nonqualified Stock Options under the Plan. Directors and consultants
who are neither full- nor part-time salaried employees of the Company or its Subsidiaries but who are involved in endeavors significant to its success shall be eligible to
receive Nonqualified Stock Options, but not Incentive Stock Options, under the Plan. 

SECTION 7: GRANT OF OPTIONS  

        7.1    Grant of Options.    The Plan Administrator may from time to time in its discretion determine which of the
eligible employees, Directors and consultants of the Company or its Subsidiaries should receive Options, the type of Options to be granted (whether Incentive Stock Options or Nonqualified Stock
Options), the number of shares subject to such Options, and the dates on which such Options are to be granted. No employee may be granted Incentive Stock Options to the extent that the aggregate fair
market value (determined as of the time each Option is granted) of the Common Stock with respect to which any such Options are exercisable for the first time during a calendar year (under all
incentive stock option plans of the Company and its Parent and Subsidiaries) would exceed $100,000. To the extent that the limitation set forth in the preceding sentence has been exceeded, the Options
which exceed the annual limitation shall be deemed to be Nonqualified Stock Options rather than Incentive Stock Options. 

        7.2    Option Agreement.    Each Option granted under the Plan shall be evidenced by a written Option Agreement
setting forth the terms upon which the Option is granted. Each Option Agreement 

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shall
designate the type of Options being granted (whether Incentive Stock Options or Nonqualified Stock Options), and shall state the number of shares of Common Stock, as designated by the Plan
Administrator, to which that Option pertains. More than one Option may be granted to an eligible person. 

        7.3    Option Price.    The option price per share of Common Stock under each Option shall be determined by the Plan
Administrator and stated in the Option Agreement. The option price for Incentive Stock
Options granted under the Plan shall not be less than 100% of the fair market value (determined as of the day the Option is granted) of the shares subject to the Option. The option price for
Nonqualified Stock Options granted under the Plan shall not be less than 85% of the fair market value (determined as of the day the Option is granted) of the shares subject to the Option. 

        7.4    Determination of Fair Market Value.    If the Common Stock is listed upon an established stock exchange or
exchanges, then the fair market value per share shall be deemed to be the average of the quoted closing prices of the Common Stock on such stock exchange or exchanges on the day for which the
determination is made, or if no sale of the Common Stock shall have been made on any stock exchange on that day, on the next preceding day on which there was such a sale. If the Common Stock is not
listed upon an established stock exchange but is traded in the NASDAQ National Market System, the fair market value per share shall be deemed to be the closing price of the Common Stock in the
National Market System on the day for which the determination is made, or if there shall have been no trading of the Common Stock on that day, on the next preceding day on which there was such
trading. If the Common Stock is not listed upon an established stock exchange and is not traded in the National Market System, the fair market value per share shall be deemed to be the mean between
the dealer "bid" and "ask" closing prices of the Common Stock on the NASDAQ System on the day for which the determination is made, or if there shall have been no trading of the Common Stock on that
day, on the next preceding day on which there was such trading. If none of these conditions apply, the fair market value per share shall be deemed to be an amount as determined in good faith by the
Plan Administrator by applying any reasonable valuation method. 

        7.5    Duration of Options.    Each Option shall be of a duration as specified in the Option Agreement; provided,
however, that the term of each Option shall be no more than ten years from the date on which the Option is granted and shall be subject to early termination as provided herein. 

        7.6    Additional Limitations on Grant.    No Incentive Stock Option shall be granted to an employee who, al the time
the Incentive Stock Option is granted, owns stock (as determined in accordance with Section 424(d) of the Code) representing more than 10% of the total combined voting power of all classes of
stock of the Company or of any Parent or Subsidiary, unless the option price of such Incentive Stock Option is at least 110% of the fair market value (determined as of the day the Incentive Stock
Option is granted) of the stock subject to the Incentive Stock Option and the Incentive Stock Option by its terms is not exercisable more than five years from the date it is granted. 

        7.7    Early Exercise.    The Option Agreement may, but need not, provide that the Optionee may elect to exercise all
or any portion of the Option prior to its vesting. Any shares purchased upon exercise of an unvested portion of the Option shall be subject to a right of repurchase in favor of the Company in
accordance with the terms of a Early Exercise Stock Purchase Agreement which shall be set forth as an attachment to the Stock Option Agreement. 

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        7.8    Other Terms and Conditions.    The Option Agreement may contain such other provisions, which shall not be
inconsistent with the Plan, as the Plan Administrator shall deem appropriate, including, without limitation, provisions that relate the Optionee's ability to exercise an Option to the passage of time
or the achievement of specific goals or the occurrence of certain events, as specified by the Plan Administrator. 

SECTION 8:    EXERCISE OF OPTIONS  

        8.1    Manner of Exercise.    Subject to the limitations and conditions of the Plan or the Option Agreement, an Option
shall be exercisable, in whole or in part, from time to time, by giving written notice of exercise to the Secretary of the Company, which notice shall specify the number of shares of Common Stock to
be purchased and shall be accompanied by (1) payment in full to the Company of the purchase price of the shares to be purchased, plus (2) payment in full of such amount as the Company
shall determine to be sufficient to satisfy any liability it may have for any withholding of federal, state or local income or other taxes incurred by reason of the exercise of the Option,
(3) representations meeting the requirements of Sections 11.3 and/or 11.5 if requested by the Company, and (4) a Stock Restriction Agreement meeting the requirements of
Section 11.4 if requested by the Company. 

        8.2    Payment of Purchase Price.    Payment for shares and withholding taxes shall be in the form of either
(1) cash, (2) a certified or bank cashier's check to the order of the Company, or (3) shares of the Common Stock, properly endorsed to the Company, in an amount the fair market
value of which on the date of receipt by the Company (as determined in accordance with Section 7.4) equals or exceeds the aggregate option price of the shares with respect to which the Option
is being exercised, (4) any other form of legal consideration that may be acceptable to the Plan Administrator, or (5) in any combination thereof; provided, however, that no payment may
be made in shares of Common Stock unless the Plan Administrator has approved of payment in such form by such Optionee with respect to the Option exercise in question. Should the Common Stock be
registered under Section 12(g) of the Securities Exchange Act of 1934, as amended, at the time an Option is exercised, and to the extent the option is exercised for vested shares, then payment
may also be made through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable written instructions (A) to a brokerage firm designated by
the Company to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise
price payable for the purchased shares plus all applicable withholding taxes, and (B) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in
order to complete the sale. Upon the exercise of any Option, the
Company, in its sole discretion, may permit the deferred payment of the purchase price on such terms and conditions as the Company shall specify. 

SECTION 9:    EFFECT OF TERMINATION OF EMPLOYMENT  

        9.1    Termination of Employment Other Than Upon Death or Disability.    Subject to any limitations set forth in the
Option Agreement, and provided that the notice of exercise is provided prior to the expiration of the Option, the Optionee shall be entitled to exercise the Option (i) during the Optionee's
employment by the Company or a Subsidiary and (ii) for a period of three months after the date of a termination of employment other than for Cause. Any vesting of the Option shall cease upon
termination of employment, and the Option shall be exercisable only to the extent that it was exercisable on the date of such termination. Any Options not exercisable as of the date of termination,
and any Options or portions of Options not exercised within the period specified herein, shall terminate. 

        9.2    Termination By Death of Optionee.    Notwithstanding Section 9.1, if an Optionee should die while in the
employ of the Company or a Subsidiary or within a period of three months after 

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termination
of employment with the Company or a Subsidiary under circumstances in which Section 9.1 would permit the exercise of the Option following termination, the personal representatives
of the Optionee's estate or the person or persons who shall have acquired the Option from the Optionee by bequest or inheritance may exercise the Option at any time within the year after the date of
death, but not later than the expiration date of the Option. Any vesting of the Option shall cease upon termination of employment, and the Option shall be exercisable only to the extent that it was
exercisable on the date of such termination. Any Options not exercisable as of the date of termination, and any Options or portions of Options not exercised within the period specified herein, shall
terminate. 

        9.3    Termination By Disability of Optionee.    Notwithstanding Section 9.1, if an Optionee should terminate
employment with the Company or a Subsidiary by reason of the Optionee's disability. (within the meaning of Section 22(e)(3) of the Code), the Optionee may exercise the Option at any time within
one year after the date of termination but not later than the expiration date of the Option. Any vesting of the Option shall cease upon termination of employment, and the Option shall be exercisable
only to the extent that it was exercisable on the date of such termination. Any Options not exercisable as of the date of termination, and any Options or portions of Options not exercised within the
period specified herein, shall terminate. 

        9.4    Termination of Directors and Consultants.    For purposes of this Section 9, a termination of employment
shall be deemed to include the termination of a Director's service as a member of the Board of Directors and the termination of a consulting arrangement in the case of consultants, provided that
immediately following such termination the Director or consultant is not employed by the Company or a Subsidiary. 

        9.5    Breach of Covenant Not to Compete.    Notwithstanding anything herein to the contrary, Options granted to the
Optionee shall terminate immediately if the Optionee breaches any obligation under a covenant not to compete with the Company or any of its Subsidiaries. 

        9.6    Extension of Option Termination Date.    The Plan Administrator, in its sole discretion, may extend the
termination date of an Option granted under the Plan without regard to the preceding provisions of this Section 9. In such event, the termination date shall be a date selected by the Plan
Administrator in its sole discretion, but not later than the latest expiration date of the Option permitted pursuant to Section 7.5. Such extension may be made in the Option Agreement as
originally executed or by amendment to the Option Agreement, either prior to or following termination of an Optionee's employment. The Plan Administrator shall have no power to extend the termination
date of an Incentive Stock Option beyond the periods provided in Sections 9.1, 9.2 and 9.3 prior to the termination of the Optionee's employment or without the approval of the Optionee, which may be
granted or withheld in the Optionee's sole discretion. Any extension of the termination date of an Incentive Stock Option shall be deemed to be the grant of a new Option for purposes of the Code. 

SECTION 10:    NON-TRANSFERABILITY OF OPTION  

        Options granted pursuant to the Plan are not transferable by the Optionee other than by Will or the laws of descent and distribution and shall be exercisable
during the Optionee's lifetime only by the Optionee. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Option contrary to the provisions hereof, or upon the levy of
any attachment or similar process upon the Option, the Option shall immediately become null and void. 

SECTION 11:    ISSUANCE OF SHARES  

        11.1    Transfer of Shares to Optionee.    As soon as practicable after the Optionee has given the Company written
notice of exercise of an Option and has otherwise met the requirements of Section 8. 1, the Company shall issue or transfer to the Optionee the number of shares of Common Stock as to 

7

 

which
the Option has been exercised and shall deliver to the Optionee a certificate or certificates therefor, registered in the Optionee's name. If the Optionee has made an early exercise in
accordance with the Option Agreement, the Company may retain the non-vested shares of Common Stock until they have vested pursuant to the Early Exercise Stock Purchase Agreement. In no
event shall the Company be required to transfer fractional shares to the Optionee, and in lieu thereof, the Company may pay an amount in cash equal to the fair market value (as determined in
accordance with Section 7.4) of such fractional shares on the date of exercise. 

        11.2    Compliance with Laws.    If the issuance or transfer of shares by the Company would for any reason, in the
opinion of counsel for the Company, violate any applicable federal or state laws or regulations, the Company may delay issuance or transfer of such shares to the Optionee until compliance with such
laws can reasonably be obtained. In no event shall the Company be obligated to effect or obtain any listing, registration, qualification, consent or approval under any applicable federal or state laws
or regulations or any contract or agreement to which the Company is a party with respect to the issuance of any such shares. If, after reasonable efforts, the Company is unable to obtain the authority
which counsel for the Company deems necessary for the lawful issuance and sale of shares upon exercise of Options under the Plan, the Company shall be relieved from any liability for failure to issue
and sell shares upon exercise of such Options unless and until such authority is obtained. To the extent required by Section 260.140.46 of Title 10 of the California Code of Regulations, the
Company shall deliver financial statements to Optionees at least annually. 

        11.3    Investment Representation.    The Company may require any Optionee, as a condition precedent to exercising any
Option, to provide a written representation providing assurances satisfactory to the Company (i) as to the Optionee's knowledge and experience in financial and business matters and/or that the
Optionee has engaged a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters, (ii) that the Optionee is capable
of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Option; and (iii) that the Optionee is acquiring the stock subject to the Option for
such person's own account and not with any present intention of selling or otherwise distributing the stock. Such a representation shall not be required if (A) the issuance of the shares upon
the exercise of the Option has been registered under a then currently effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), or (B) as to any
particular requirement, a determination is made by counsel for the Company that such representation is not required. Certificates representing Common Stock acquired upon exercise of Options may
contain such legends and transfer restrictions as the Company shall deem reasonably necessary or desirable, including, without limitation, legends restricting transfer of the Common Stock until there
has been compliance with federal and state securities laws and until the Optionee or any other holder of the Common Stock has paid the Company such amounts as may be necessary in order to satisfy any
withholding tax liability of the Company. 

        11.4    Stock Restriction Agreement.    Upon demand by the Company, the Optionee shall execute and deliver to the
Company a Stock Restriction Agreement in such. form as the Company may provide at the time of exercise of the Option. Such Agreement may include, without limitation, restrictions upon the Optionee's
right to transfer shares, including the creation of an irrevocable right of first refusal in the Company and its designees, and provisions requiring the Optionee to transfer the shares to the Company
or the Company's designees upon a termination of employment. Upon such demand, execution of the Stock Restriction Agreement by the Optionee prior to the transfer or delivery of any shares and prior to
the expiration of the option period shall be a condition precedent to the right to purchase such shares, unless such condition is expressly waived in writing by the Company. 

        11.5    Lock-Up Agreement.    Upon demand by the Company, the Optionee shall execute and deliver to the
Company a representation that, in connection with the first underwritten registered offering of any securities of the Company under the Securities Act of 1933, as amended, the Optionee 

8

 

will
not sell or otherwise transfer or dispose of any shares of Common Stock acquired upon exercise of an Option, or any shares of Common Stock acquired with respect thereto, during such period
following the effective date of the registration statement of the Company filed under the Act as may be requested by the Company or the representative of the underwriters for the Company; provided,
however, that such restriction shall apply only if the executive officers and directors of the Company agree with the representatives of the underwriters not to transfer shares of Common Stock owned
by them for the same or a greater period. Such representation shall further state that the Company may impose stop-transfer instructions with respect to securities subject to the foregoing
restrictions until the end of such period. 

SECTION 12:    AMENDMENTS  

        The Board of Directors may at any time and from time to time alter, amend, suspend or terminate the Plan or any part thereof as it may deem proper, except that no
such action shall diminish or impair the rights under an Option previously granted. Unless the shareholders of the Company shall have given their approval, the total number of shares for which Options
may be issued under the Plan shall not be increased, except as provided in Section 5.3, and no amendment shall be made which reduces the price at which the Common Stock may be offered under the
Plan below the minimum required by Section 7.3, except as provided in Section 5.3, or which materially modifies the requirements as to eligibility for participation in the Plan. Subject
to the terms and conditions of the Plan, the Board of Directors may modify, extend or renew outstanding Options granted under the Plan, or accept the surrender of outstanding Options to the extent not
theretofore exercised and authorize the granting of new Options in substitution therefor, except that no such action shall diminish or impair the rights under an Option previously granted without the
consent of the Optionee. 

SECTION 13:    TERM OF PLAN  

        This Plan shall terminate on February 1, 2009; provided, however, that the Board of Directors may at any time prior thereto suspend or terminate the Plan.
No such suspension or termination shall diminish or impair the rights under an Option previously granted without the consent of the Optionee. 

SECTION 14:    RIGHTS AS STOCKHOLDER  

        An Optionee shall have no rights as a stockholder of the Company with respect to any shares of Common Stock covered by an Option until the date of the issuance of
the stock certificate for such shares. 

SECTION 15:    NO EMPLOYMENT RIGHTS  

        Nothing contained in this Plan or in any Option granted under the Plan shall confer upon any Optionee any right with respect to the continuation of such
Optionee's employment by the Company or any Subsidiary or interfere in any way with the right of the Company or any Subsidiary, subject to the terms of any separate employment agreement to the
contrary, at any time to terminate such employment or to increase or decrease the compensation of the Optionee from the rate in existence at the time of the grant of the Option. 

SECTION 16:    GOVERNING LAW  

        This Plan, and all Options granted under this Plan, shall be construed and shall take effect in accordance with the laws of the State of Colorado, without regard
to the conflicts of laws rules of such State. 

SECTION 17:    USE OF PROCEEDS  

        Any cash proceeds received by the Company from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 

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Exhibit 10.01  

 
  AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
    

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is made effective as of the 1st day of September, 2004 (the "Effective Date") by
and between BEAZER HOMES USA, INC., a Delaware corporation (the "Company"), and IAN J. McCARTHY an individual resident of the State of Georgia ("Executive"). 

WITNESSETH: 

        WHEREAS,
the Company and Executive have heretofore entered into an Amended And Restated Employment Agreement dated March 31, 1995 (the "Existing Agreement"); and 

        WHEREAS,
the Company and Executive desire to amend certain provisions of, and to restate in its entirety the Existing Agreement as provided herein. 

        NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, the Company and Executive hereby agree as follows: 

        1.    Employment and Duties.    

        (a)   The
Company hereby agrees to employ Executive for the Term (as hereinafter defined) as its President and Chief Executive Officer. If requested by the Board of Directors
of the Company (the "Board"), Executive shall also serve on the Board without additional compensation. Executive shall also serve, if requested by the Board, as an executive officer and/or director of
any subsidiaries and/or
affiliated companies and shall comply with the policy of the Compensation Committee of the Board (the "Compensation Committee") with regard to retention or forfeiture of any director's fees. As used
in this Agreement, the term "affiliated companies" shall include any company controlled by, controlling or under common control with the Company. 

        (b)   The
Executive shall have such management and oversight responsibilities and authority as are necessary to efficiently administer the affairs of the Company and as are
customary of a President and Chief Executive Officer. All powers herein granted to the Executive are subject to supervisory approval of the Board, and the Executive may be given such further
reasonably related supervisory duties, powers and prerogatives as may be delegated to him from time to time by said Board. The Executive shall report exclusively to the Board and further shall render
such advice to the Board as said Board may from time to time request. 

        (c)   During
the Term, and excluding any periods of vacation and sick leave to which the Executive is entitled, Executive shall devote substantially all of his business time
and efforts to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, use the Executive's reasonable best efforts
to perform faithfully such responsibilities. In performing such duties hereunder, Executive shall comply with the policies and procedures as adopted from time to time by the Board, shall give the
Company the benefit of his special knowledge, skills, contacts and business experience, shall perform his duties and carry out his responsibilities hereunder in a diligent manner. 

        (d)   During
the Employment Term, it shall not be a violation of this Agreement for the Executive to (i) with the prior approval of the Board in each case, serve on
corporate, civic or charitable boards or committees, (ii) with the prior approval of the Board in each case, deliver lectures, fulfill speaking engagements or teach at educational institutions,
and (iii) manage personal investments, so long as such activities do not significantly interfere or constitute a conflict of interest with the performance of the Executive's responsibilities as
an employee of the Company in accordance with this Agreement. 

1

 

        (e)   The
principal location for performance of Executive's services hereunder shall be at the offices of Beazer Homes USA, Inc. in Atlanta, Georgia, subject to
reasonable travel requirements during the course of such performance. Executive shall not be required, without his consent, to regularly report to any office of the Company which is located more than
thirty-five (35) miles from the Company's current office location, provided Executive will be expected to travel to the extent reasonably necessary to fulfill his responsibilities. 

        2.    Employment Term.    The term of Executive's employment hereunder (the "Term") shall
commence effective as of the date hereof and shall end on August 31, 2007, unless sooner terminated as provided herein; provided,  however; that the
Term shall automatically be extended for successive one year periods
unless: (i) this Agreement is terminated as otherwise provided herein; or (ii) Executive or the Company provides written notice to the other of such party's desire not to extend the Term
at least sixty (60) days prior to the scheduled expiration of the Term as then in effect. 

        3.    Compensation and Benefits    

        (a)   Base Salary.    During the Term, the Executive shall receive an annual base salary ("Annual Base Salary") in
the amount of $900,000, payable in accordance with the Company's normal payroll practices (but not less frequently than monthly). During the Term, the Annual Base Salary shall be reviewed by the
Compensation Committee (for purposes of increase only) at least annually. Any increase in Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this
Agreement. Annual Base Salary shall not be reduced after any such increase and the term Annual Base Salary as utilized in this Agreement shall refer to Annual Base Salary as so increased.
Notwithstanding anything contained herein to the contrary, in the event that the Company shall implement a Company-wide reduction in executive base compensation, then, solely for such
purpose and only during the continuation of such Company-wide reduction, the Company shall have the right to reduce the Annual Base Salary then payable hereunder in a manner that is
consistent with said Company-wide reduction. 

        (b)   Bonuses; Stock Incentive Plans.    Executive will be eligible to and shall participate in the Company's bonus
and stock incentive plans at the discretion of the Compensation Committee of the Board. The amount and terms of, and the targets, conditions and restrictions applicable to each bonus or other
incentive award shall be subject to the provisions of any such plan and of the applicable award letter duly executed and delivered by the Company. 

        (c)   Incentive, Savings and Retirement Plans.    During the Term, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs applicable generally to other most senior executives of the Company and its affiliated companies. 

        (d)   Welfare Benefit Plans.    During the Term, the Executive and/or the Executive's family, as the case may be,
shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its affiliated companies (including,
without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other
most senior executives of the Company and its affiliated companies. 

        (e)   Expenses.    The Company will pay or reimburse Executive for all reasonable and necessary
out-of-pocket expenses incurred by him in the performance of his duties under this Agreement. Executive shall keep detailed and accurate records of expenses incurred in
connection with the performance of his duties hereunder and reimbursement therefore shall be in accordance with policies and procedures to be established from time to time by the Board. 

2

 

        (f)    Office and Support Staff.    During the Term, the Executive shall be entitled to an office or offices of a size
and with furnishings and other appointments, and to secretarial and other assistance, consistent with the Executive's position and title. 

        (g)   Vacation.    During the Term, Executive shall be entitled to twenty (20) working days of compensated
vacation in each fiscal year, to be taken at times which do not unreasonably interfere with the performance of Executive's duties hereunder. Any unused vacation time from any fiscal year shall be
subject to accumulation or forfeiture in accordance with Company policy as in effect from time to time. 

        4.    Termination of Employment.    

        (a)   Death or Disability.    The Executive's employment shall terminate automatically upon the Executive's death
during the Term. If the Disability of the Executive occurs during the Term (pursuant to the definition of Disability set forth below), the Company may give to the Executive written notice in
accordance with Section 10(c) of this Agreement of its intention to terminate the Executive's employment. In such event, the Executive's employment with the Company shall terminate effective on
the 30th day after receipt of such notice by the Executive (the "Disability Effective Date"), provided that, within the 30 days after such receipt, the Executive shall not have returned to
full-time performance of the Executive's duties. For purposes of this Agreement, "Disability" shall mean the absence of the Executive from the Executive's duties with the Company on a
full-time basis for 120 consecutive business days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the
Company or its insurers and acceptable to the Executive or the Executive's legal representative. 

        (b)   Cause.    The Company may terminate the Executive's employment for Cause. For purposes of this Agreement,
"Cause" shall mean: 

	(i)
	any
act or failure to act by Executive done with the intent to harm in any material respect the financial interests or reputation of the Company or any affiliated
companies;

	(ii)
	Executive
being convicted of (or entering a plea of guilty or nolo contendere to) a felony (other than a felony
involving a motor vehicle);

	(iii)
	Executive's
dishonesty, misappropriation or fraud with regard to the Company or any affiliated companies (other than good faith expense account disputes);

	(iv)
	a
grossly negligent act or failure to act by Executive which has a material adverse affect on the Company or any affiliated companies;

	(v)
	the
material breach by Executive of his agreements or obligations under this Agreement which has a material adverse effect on the Company, which breach, if curable, is
not cured by Executive within fifteen (15) days after written notice from the Company which specifically identifies the material breach which the Company believes that Executive has committed;
or

	(vi)
	the
continued refusal to follow the directives of the Board or its designees which are consistent with Executive's duties and responsibilities identified in
Section 1 hereof; provided that the foregoing refusal shall not be "cause" if Executive in good faith believes that such direction is illegal, unethical or immoral and promptly so notifies the
Board in writing. 

3

 

        (c)   Good Reason.    The Executive's employment may be terminated by the Executive for Good Reason. For purposes of
this Agreement, "Good Reason" shall mean: 

	(i)
	the
assignment to the Executive of any duties inconsistent in any material respect with the Executive's position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 1 of this Agreement, or any other action by the Company which results in a diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company within 15 days
after receipt of notice thereof given by the Executive;

	(ii)
	any
failure by the Company to comply with any of the provisions of Section 3 of this Agreement, other than an isolated, insubstantial and inadvertent failure not
occurring in bad faith and which is remedied by the Company within 15 days after receipt of notice thereof given by the Executive;

	(iii)
	the
Company's requiring the Executive to be based at any office or location other than as provided in Section 1(e) hereof, which is not remedied by the Company
within 15 days after receipt of notice thereof given by the Executive; or

	(iv)
	the
material breach by the Company of any of its other material obligations under this Agreement, which breach, if curable, is not cured by the Company within fifteen
(15) days after written notice from the Executive which specifically identifies the material breach which the Executive believes that the Company has committed permitted by this Agreement; or 

        (d)   Notice of Termination.    Any termination by the Company for Cause, or by the Executive for Good Reason, shall
be communicated by Notice of Termination to the other party hereto given in accordance with Section 10(c) of this Agreement. For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the
date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice). The failure by the Executive or the Company to set forth
in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or
preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive's or the Company's rights hereunder. 

        (e)   Date of Termination.    "Date of Termination" means (i) if the Executive's employment is terminated by
the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or, subject to applicable cure periods, any later date specified therein, as the case may
be, (ii) if the Executive's employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Executive of
such termination and (iii) if the Executive's employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be. 

4

 

        6.    Obligations of the Company upon Termination.    

        (a)   Good Reason; Other Than for Cause.    If, during the Term, the Company shall terminate the Executive's
employment other than for Cause or the Executive shall terminate his employment for Good Reason: 

	(i)
	the
Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts: (1) the
Executive's Annual Base Salary through the Date of Termination to the extent not theretofore paid, (2) any accrued but unpaid annual bonus ("Annual Bonus") respecting any completed fiscal year
ending prior to the Date of Termination, (3) the product of (x) the Average Annual Bonus (hereinafter defined) and (y) a fraction, the numerator of which is the number of days in
the current fiscal year through the Date of Termination, and the denominator of which is 365 and (4) any compensation previously deferred by the Executive (together with any accrued interest or
earnings thereon) and any accrued vacation pay, in each case to the extent not theretofore paid (the sum of the amounts described in clauses (1), (2), (3) and (4) shall be hereinafter
referred to as the "Accrued Obligations"). The timing of payment by the Company of any deferred compensation shall remain subject to any payment election previously made by the Executive. The term
"Average Annual Bonus" shall mean the arithmetic average of the Executive's bonuses (whether paid or deferred) under the Company's annual incentive plans during the last three full fiscal years prior
to the Date of Termination or for such lesser period as the Executive has been employed by the Company (annualized in the event that the Executive was not employed by the Company for the whole of any
such fiscal year). Without limiting the generality of the foregoing definition, the "Average Annual Bonus" shall include the following components, if any, pursuant to the Company's Amended and
Restated VCIP Rules (or any successor incentive plan, for so long as any of same shall exist):

	(a)
	Cash
payouts from VC and IVC awards and the "Bank" payout, subject to the Payout Cap, all at full face value;

	(b)
	Any
excess in the Bank discounted at 75% of face value (which shall, for purposes hereof, be deemed to be fully vested);

	(c)
	10%
of the Bank contributed to the Deferred Compensation Plan, at full face value (which shall, for purposes hereof, be deemed to be fully vested); and

	(d)
	Any
deferred bonus under the VCIP which is invested in stock under the Company's Corporate Management Stock Purchase Program, at full face value of said bonus (which shall, for
purposes hereof, be deemed to be fully vested);

	(ii)
	so
long as the Executive is and remains in compliance in all material respects with his obligations under Section 7 below, the Company shall pay to the Executive
an amount equal to the sum of (1) Executive's Annual Base Salary (at the rate in effect on the Date of Termination), and (2) the Average Annual Bonus for a period of three years from the
Date of Termination, (the "Severance Period"), at the same time that payments of Annual Base Salary would otherwise have become due and payable during said period in the absence of such termination;

	(iii)
	so
long as the Executive is and remains in compliance in all material respects with his obligations under Section 7 below, for a period three (3) years
after the Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the Company shall continue benefits to the Executive and/or
the Executive's family at least equal to those which would have 

5

 

been
provided to them in accordance with the plans, programs, practices and policies described in Section 3(d) of this Agreement if the Executive's employment had not been terminated, provided,
however, that if the Executive becomes reemployed with another employer and receives medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits
described herein shall cease; and 

	(iv)
	to
the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided
or which the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be
hereinafter referred to as the "Other Benefits"). 

        (b)   Death.    If the Executive's employment is terminated by reason of the Executive's death, this Agreement shall
terminate without further obligations to the Executive's legal representatives under this Agreement, other than for payment of Accrued Obligations and the timely payment or provision of Other
Benefits. Accrued Obligations shall be paid to the Executive's estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination. 

        (c)   Disability.    If the Executive's employment is terminated by reason of the Executive's Disability, this
Agreement shall terminate without further obligations to the Executive, other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall
be paid to the Executive or the Executive's legal representative in a lump sum in cash within 30 days of the Date of Termination. 

        (d)   Cause; Other than for Good Reason.    If the Executive's
employment shall be terminated for Cause, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay to the Executive (x) his Annual Base
Salary through the Date of Termination, (y) the amount of any compensation previously deferred by the Executive, and (z) Other Benefits, in each case to the extent theretofore unpaid. If
the Executive voluntarily terminates employment during the Term, excluding a termination for Good Reason, this Agreement shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits. In such case, all Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date
of Termination. 

        (e)   Election Not to Extend.    In the event that the Company elects, pursuant to Section 2 above, not to
extend the Term, then, such election shall be treated for all purposes hereof the same as the termination by the Company of Executive's employment for other than Cause, and, in such case, commencing
upon the date of the expiration of the Term, Executive shall be entitled to receive from the Company the same payments and benefits as Executive would be entitled to receive pursuant to
Section 6(a) above; provided, however, and notwithstanding anything contained in Section 6(a) above to the contrary, in connection with an election by the Company not to renew the Term,
the applicable "Severance Period" shall not extend beyond the date that the Executive reaches the age of sixty-five (65). 

        7.    Employment Covenants.    

        (a)   Covenant Not to Compete.    Executive recognizes and acknowledges that the Company is placing its confidence
and trust in Executive. Executive, therefore, covenants and agrees that during the Applicable Non-Compete Period (as defined below) Executive shall not, either directly 

6

 

or
indirectly, without the prior written consent of the Board (which may be withheld in the sole and absolute discretion of the Board): 

	(i)
	Engage
in or carry on any business or in any way become associated with any business in the Restricted Area (as hereinafter defined) which is similar to or is in
competition with the Business of the Company (as hereinafter defined). As used in this Section 7(a), the term (1) "Business of the Company" shall mean and include all business activities
in which the Company and/or any affiliated companies have engaged (or have prepared written plans to engage) at any time during the Term, including but not limited to, the purchase of land (or options
therefor) for development and the construction of residential homes for resale to consumers, and (2) "Restricted Area" shall mean and include anywhere in the United States of America or in any
foreign country in which the Company or any affiliated companies then engage (or have within the preceding three years engaged) in business;

	(ii)
	in
connection with any business which is similar to or is in competition with the Business of the Company in the Restricted Area, solicit the business of any person or
entity, on behalf of himself or any other person or entity, which is or has been at any time during the Term a customer or supplier of the Company including, but not limited to, former or present
customers or suppliers with whom Executive has had personal contact during, or by reason of, his relationship with the Company;

	(iii)
	Be
or become an employee, agent, consultant, representative, director or officer of, or be otherwise in any manner associated with, any person, firm, corporation,
association or other entity which is engaged in or is carrying on any business which is similar to or in competition with the Business of the Company in the Restricted Area;

	(iv)
	Solicit
for employment or employ any person employed by the Company at any time during the twelve (12) month period immediately preceding such solicitation or
employment; or

	(v)
	Be
or become a shareholder, joint venturer, owner (in whole or in part), or partner, or be or become associated with or have any proprietary or financial interest in or
of any firm, corporation, association or other entity which is engaged in or is carrying on any business which is similar to or in competition with the Business of the Company in the Restricted Area.
Notwithstanding the preceding sentence, passive equity investments by Executive of $25,000 or less in any entity or affiliated group of any entity which is engaged in or is carrying on any business
which is similar to or in competition with the Business of the Company shall not be deemed to violate this Section 7(a). 

        For
purposes of identifying the Restricted Area, Executive hereby recognizes and acknowledges that the existing Business of the Company currently extends throughout the States of
Georgia, Tennessee, South Carolina, North Carolina, California, Arizona, Nevada, Florida, New Jersey, Delaware, Maryland, Virginia, West Virginia, Texas, New York, Colorado, Mississippi, Indiana,
Kentucky, Ohio, Pennsylvania and Washington, D.C. Executive further warrants and represents that, because of his varied skill and abilities, he does not need to compete with the Business of the
Company and that this Agreement will
not prevent him from earning a livelihood and acknowledges that the restrictions contained in this Section 7 constitute reasonable protections for the Company. 

        As
used in this Section 7, "Applicable Non-Compete Period" shall mean the following: 

	(A)
	at
all times that the Executive is employed by the Company; and 

7

 

	(B)
	for
a period of time after the Executive's employment under this Agreement is terminated for any reason equal to the greater of

	(i)
	180 days;
or

	(ii)
	such
longer period of time that the Executive is entitled to receive payments under Sections 6(a)(ii) or (iii) above. 

        (b)   Confidential Information.    Executive agrees that all Confidential Information shall be the sole property of
the Company, and Executive agrees that he shall not during the Term nor thereafter, use for his benefit or the benefit of others or disclose at any time Confidential Information or take with him upon
termination of this Agreement any records, papers, reports, lists, computer tapes or disks or any other materials of any nature that contain any Confidential Information. "Confidential Information"
shall mean all information other than General Knowledge (defined below) relating to the Company's: (i) business or existing projects including all those in various stages of research and
development including all unpublished plans for new products or services; (ii) financial information, internal business procedures and other information which relate to the way the Company
conducts its business and which are not publicly available; (iii) data written by the Company's employees or others, including source codes, object codes, marketing and development plans,
budgets, forecasts, forecast assumptions and future plans and potential strategies of the Company which have been or are being discussed; (iv) unpublished pricing data; (v) identity,
buying habits and practices of the Company, its suppliers and customers to the extent not publicly available; (vi) information regarding the skills or compensation of employees of the Company;
(vii) the Intellectual Property of the Company and any information pertaining thereto; (viii) materials and information supplied by customers or clients to the Company that contain data
regarding any research, products, procedures or the like; and (ix) any other information
deemed confidential by the Company by marking such information with the word "Confidential" or similar word; by orally advising the Executive that the information is confidential or by treating the
information in such a manner that the Executive should reasonably believe it to be deemed confidential by the Company. "General Knowledge" shall mean (i) general skills or experience gained
during Executive's employment with, consultation for or work for the Company; and (ii) information and data publicly available. 

        (c)   Records.    All files, records, memoranda and other documents regarding former, existing or prospective
customers of the Company or relating in any manner whatsoever to Confidential Information or the Business of the Company (collectively, "Records"), whether prepared by Executive or otherwise coming
into his possession, shall be the exclusive property of the Company. All Records shall be immediately placed in the physical possession of the Company upon the termination of Executive's employment
with the Company, or at any other time specified by the Board. The retention and use by Executive of duplicates in any form of Records is prohibited after the termination of Executive's employment
with the Company. 

        (d)   Breach.    Executive hereby recognizes and acknowledges that irreparable injury or damage shall result to the
Company in the event of a breach or threatened breach by Executive of any of the terms or provisions of this Section 7, and Executive therefore agrees that the Company shall be entitled to an
injunction restraining Executive from engaging in any activity constituting such breach or threatened breach. Nothing contained herein shall be construed as prohibiting the Company from pursuing any
other remedies available to the Company at law or in equity for such breach or threatened breach, including but not limited to, the recovery of damages from Executive and, if Executive is an employee
of the Company, the termination of his employment with the Company in accordance with the terms and provisions of this Agreement. 

        (e)   Survival.    Notwithstanding the termination of the employment of Executive or the termination of this
Agreement, the provisions of this Section 7 shall survive and be binding upon 

8

 

Executive
unless a written agreement which specifically refers to the termination of the obligations and covenants of this Section 7 is executed by the Company. Notwithstanding the foregoing,
this Section 7 shall not survive the termination of this Agreement as the result of the Change Of Control Agreement (hereinafter defined) becoming effective. 

        (f)    Blue-Penciling.    Should any court or other legally constituted authority determine that for any
such agreement or covenant to be effective it must be modified to limit its duration or scope, the parties hereto shall consider such agreement or covenant to be amended or modified with respect to
duration and/or scope so as to comply with the orders of any such court or other legally constituted authority, and as to all other portions of such agreement or covenants they shall remain in full
force and effect as originally written. 

        8.    No Mitigation.    In no event shall the Executive be obligated to seek other employment
or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive
obtains other employment. The Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of any contest by
(i) the Company, provided that the Executive prevails in at least one material issue, (ii) the Executive or (iii) others, of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof (including, without limitation, as a result of any contest by the Executive about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f) (2) (A) of the Internal Revenue Code of 1986, as amended (the
"Code"). 

        9.    Successors.    

        (a)   This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the
laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives. 

        (b)   This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

        10.    Miscellaneous.    

        (a)   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 and agree that service of all process in any such action, suit or proceeding in any such court may be made by registered or certified mail, return
receipt requested, to its address set forth in this Agreement, such service being hereby acknowledged by such party to be sufficient for personal jurisdiction in any action against such party in any
such court and to be otherwise effective and binding service in every respect. 

        (b)   The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a
written agreement executed by the parties hereto or their respective successors and legal representatives. 

9

 

        (c)   All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party, by FedEx or other commercial overnight courier
or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

If to the Executive:

Ian
J. McCarthy

600 Blue Teal Court

Atlanta, Georgia 30327 

If to the Company:

1000
Abernathy Road

Suite 1200

Atlanta, Georgia 30328

Attention: Company Secretary 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

        (d)   The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

        (e)   The
Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any
applicable law or regulation. 

        (f)    The
Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the
Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 4(c) of this Agreement, shall not be deemed to
be a waiver of such provision or right or any other provision or right of this Agreement. 

        (g)   This
Agreement supersedes any and all other prior or contemporaneous agreements, either oral or in writing, between the parties hereto with respect to the subject matter
hereof including, without limitation, the Existing Agreement, and this Agreement contains all of the covenants and agreements between the parties with respect to employment of Executive by the
Company, provided, however, that nothing contained herein shall impair Executive's right to
(i) any salary, bonus or other payments accrued through the effective date hereof and owing to Executive pursuant to the Existing Agreement or (ii) any award of restricted stock and
grants of options to acquire shares of the Company's common stock referred to in the Existing Agreement and the award letters delivered by the Company to Executive in connection therewith. 

        Reference
is hereby made to that certain Employment Agreement dated as of September 1, 2004 (the "Change Of Control Agreement") by and between the Company and the Executive.
Notwithstanding anything contained herein to the contrary, (i) this Agreement shall not supersede the Change of Control Agreement, and (ii) upon the "Effective Date" occurring under the
Change of Control Agreement, this Agreement shall be superseded by the Change of Control Agreement. 

        (h)   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. 

10

 

        IN WITNESS WHEREOF, the parties hereto have executed this AMENDED AND RESTATED EMPLOYMENT
AGREEMENT effective as of the date first written above. 

	 	 	BEAZER HOMES USA, INC.
	

 	
 	

By:	
 	

    

	 	 	Name: Brian Beazer
	 	 	Title: Chairman of the Board of Directors
	

 	
 	
EXECUTIVE
	

 	
 	

 IAN J. McCARTHY

11

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AMENDED AND RESTATED EMPLOYMENT AGREEMENT

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