Document:

ex10_20.htm

    
      
Exhibit
10.20

    

      CHANGE OF CONTROL EMPLOYMENT
AGREEMENT

      

      AGREEMENT
by and between Beazer Homes USA, Inc., a Delaware corporation (the "Company")
and MICHAEL R. DOUGLAS (the "Executive"), dated as of the 1st day of
May, 2007.

      

      The Board
of Directors of the Company (the "Board"), has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will
have the continued dedication of the Executive, notwithstanding the possibility,
threat or occurrence of a Change of Control (as defined below) of the Company.
The Board believes it is imperative to diminish the inevitable distraction of
the Executive by virtue of the personal uncertainties and risks created by a
pending or threatened Change of Control and to encourage the Executive's full
attention and dedication to the Company currently and in the event of any
threatened or pending Change of Control, and to provide the Executive with
compensation and benefits arrangements upon a Change of Control which ensure
that the compensation and benefits expectations of the Executive will be
satisfied and which are competitive with those of other corporations. Therefore,
in order to accomplish these objectives, the Board has caused the Company to
enter into this Agreement.

      

      NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

      

      1.            
Certain
Definitions.

      

      (a)          
The "Effective Date" shall mean the first date during the Change of Control
Period (as defined in Section 1(b)) on which a Change of Control (as defined in
Section 2) occurs. Anything in this Agreement to the contrary notwithstanding,
if a Change of Control occurs and if the Executive's employment with the Company
is terminated prior to the date on which the Change of Control occurs, and if it
is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in connection
with or in anticipation of a Change of Control, then for all purposes of this
Agreement the "Effective Date" shall mean the date immediately prior to the date
of such termination of employment.

      

      (b)          
The "Change of Control Period" shall mean the period commencing on the date
hereof and ending on the second anniversary of the date hereof; provided,
however, that commencing on the date one year after the date hereof, and on each
annual anniversary of such date (such date and each annual anniversary thereof
shall be hereinafter referred to as the "Renewal Date"), unless previously
terminated, the Change of Control Period shall be automatically extended so as
to terminate two years from such Renewal Date, unless at least 60 days prior to
the Renewal Date the Company shall give notice to the Executive that the Change
of Control Period shall not be so extended.

      

                      2.             Change of Control.
For the purpose of this Agreement, a "Change of Control" shall
mean:

      

      (a)          
The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act")) (a "Person") of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (i)
the then outstanding shares of common stock of the Company (the "Outstanding
Company Common Stock") or (ii) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however, that
for purposes of this subsection (a), the following acquisitions shall not
constitute a Change of Control: (i) any acquisition directly from the Company,
(ii) any acquisition by the Company, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or (iv) any acquisition by any corporation
pursuant to a transaction which complies with clauses (i), (ii) and (iii) of
subsection (c) of this Section 2; or

      

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

      

      
        
          
          

        

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

      

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

      

      3.            
Employment
Period. The Company hereby agrees to continue the Executive in its
employ, and the Executive hereby agrees to remain in the employ of the Company,
subject to the terms and conditions of this Agreement, for the period commencing
on the Effective Date and ending on the second anniversary of such date (the
"Employment Period").

      

      4.            
Terms of
Employment.

      

      (a)         
  Position
and Duties.

      
 

      (i)  During
the Employment Period, (A) the Executive's position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall
be at least commensurate in all material respects with the most significant of
those held, exercised and assigned at any time during the 120 day period
immediately preceding the Effective Date and (B) the Executive's services shall
be performed at the location where the Executive was employed immediately
preceding the Effective Date or any office or location less than 35 miles from
such location.

      

      (ii)
During the Employment Period, and excluding any periods of vacation and sick
leave to which the Executive is entitled, the Executive agrees to devote
reasonable attention and time during normal business hours to the business and
affairs of the Company and, to the extent necessary to discharge the
responsibilities assigned to the Executive hereunder, to use the Executive's
reasonable best efforts to perform faithfully such responsibilities. During the
Employment Period it shall not be a violation of this Agreement for the
Executive to (A) serve on corporate, civic or charitable boards or committees,
(B) deliver lectures, fulfill speaking engagements or teach at educational
institutions and (C) manage personal investments, so long as such activities do
not significantly interfere with the performance of the Executive's
responsibilities as an employee of the Company in accordance with this
Agreement. It is expressly understood and agreed that to the extent that any
such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company.

      

      
        
          
          

        

        
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      (b)           Compensation.

      

      (i)           Base Salary. During
the Employment Period, the Executive shall receive an annual base salary
("Annual Base Salary"), which shall be paid at a monthly rate, at least equal to
twelve times the highest monthly base salary paid or payable, including any base
salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve month period immediately
preceding the month in which the Effective Date occurs. Annual Base Salary shall
be payable in accordance with the Company’s normal payroll practices (but not
less frequently than monthly). During the Employment Period, the Annual Base
Salary shall be reviewed (for purposes of increase only) no more than 12 months
after the last salary increase awarded to the Executive prior to the Effective
Date and thereafter 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. As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.

      

      (ii)           Annual Bonus. In
addition to Annual Base Salary, the Executive shall be awarded, for each fiscal
year ending during the Employment Period, an annual bonus (the "Annual Bonus")
in cash at least equal to the arithmetic average of the Executive’s bonuses
(whether paid or deferred) under the Company's or its predecessor’s annual
incentive plans during the last three full fiscal years prior to the Effective
Date or for such lesser period as the Executive has been employed by the Company
or its predecessor (annualized in the event that the Executive was not employed
by the Company for the whole of any such fiscal year), (the “Average Annual
Bonus”).  Each such Annual Bonus shall be paid no later than the end
of the third month of the fiscal year next following the fiscal year for which
the Annual Bonus is awarded, unless the Executive shall elect to defer the
receipt of such Annual Bonus. Without limiting the generality of the foregoing
definition, the “Average Annual Bonus” shall include any deferred bonus under
the Executive’s bonus program 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).

      

      (iii)           Incentive, Savings and
Retirement Plans. During the Employment Period, the Executive shall be
entitled to participate in all incentive, savings and retirement plans,
practices, policies and programs applicable generally to other peer executives of the
Company and its affiliated companies, but in no event shall such plans,
practices, policies and programs provide the Executive with incentive
opportunities (measured with respect to both regular and special incentive
opportunities, to the extent, if any, that such distinction is applicable),
savings opportunities and retirement benefit opportunities, in each case, less
favorable, in the aggregate, than the most favorable of those provided by the
Company and its affiliated companies for the Executive under such plans,
practices, policies and programs as in effect at any time during the 120-day
period immediately preceding the Effective Date or if more favorable to the
Executive, those provided generally at any time after the Effective Date to
other peer executives of the Company and its affiliated companies.

      

      
        
          
          

        

        
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      (iv)           Welfare Benefit
Plans. During the Employment Period, 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 peer executives of the
Company and its affiliated companies, but in no event shall such plans,
practices, policies and programs provide the Executive with benefits which are
less favorable, in the aggregate, than the most favorable of such plans,
practices, policies and programs in effect for the Executive at any time during
the 120 day period immediately preceding the Effective Date or, if more
favorable to the Executive, those provided generally at any time after the
Effective Date to other peer executives of the Company and its affiliated
companies.

      

      (v)           Expenses. During the
Employment Period, the Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by the Executive in
accordance with the most favorable policies, practices and procedures of the
Company and its affiliated companies in effect for the Executive at any time
during the 120 day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated
companies.

      

      (vi)           Fringe Benefits.
During the Employment Period, the Executive shall be entitled to fringe
benefits, including, without limitation, tax and financial planning services,
payment of club dues, and, if applicable, use of an automobile and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120 day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and its
affiliated companies.

      

      (vii)           Office and Support
Staff. During the Employment Period, the Executive shall be entitled to
an office or offices of a size and with furnishings and other appointments, and
to exclusive personal secretarial and other assistance, at least equal to the
most favorable of the foregoing provided to the Executive by the Company and its
affiliated companies at any time during the 120 day period immediately preceding
the Effective Date or, if more favorable to the Executive, as provided generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

      

      (viii)           Vacation. During the
Employment Period, the Executive shall be entitled to paid vacation in
accordance with the most favorable plans, policies, programs and practices of
the Company and its affiliated companies as in effect for the Executive at any
time during the 120 day period immediately preceding the Effective Date or, if
more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and its affiliated
companies.

      

      5.            
Termination of
Employment.

      

      (a)           Death or Disability.
The Executive's employment shall terminate automatically upon the Executive's
death during the Employment Period. If the Disability of the Executive occurs
during the Employment Period (pursuant to the definition of Disability set forth
below), the Company may give to the Executive written notice in accordance with
Section 12(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 180 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.

      

      
        
          
          

        

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

      

      (i)           the
willful and continued failure of the Executive to perform substantially the
Executive's duties with the Company or one of its affiliates (other than any
such failure resulting from incapacity due to physical or mental illness), for
more than 15 days after a written demand for substantial performance is
delivered to the Executive by the Board or the Chief Executive Officer of the
Company which specifically identifies the manner in which the Board or Chief
Executive Officer believes that the Executive has not substantially performed
the Executive's duties, or

      

      (ii)           the
willful engaging by the Executive in illegal conduct or gross misconduct which
is materially and demonstrably injurious to the Company.

      

      For
purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the President and Chief
Executive Officer of the Company or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company. The cessation
of employment of the Executive shall not be deemed to be for Cause unless and
until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and
specifying the particulars thereof in detail.

      

      (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 respect with the
Executive's position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section
4(a) 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 4(b) 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 4(a)(i)(B) hereof or the Company's requiring the
Executive to travel on Company business to a substantially greater extent than
required immediately prior to the Effective Date, which is not remedied by the
Company within 15 days after receipt of notice thereof given by the
Executive;

      

      
        
          
          

        

        
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      (iv)           any
purported termination by the Company of the Executive's employment otherwise
than as expressly permitted by this Agreement; or

      

      (v)           any
failure by the Company to comply with and satisfy Section 11(c) of this
Agreement, which is not remedied by the Company within 15 days after receipt of
notice thereof given by the Executive.

      

      (d)           Notice of
Termination.  Any termination of the Executive’s employment by
the Company or by the Executive shall be communicated by Notice of Termination
to the other party hereto given in accordance with Section 12(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.

      

      6.            
Obligations of the
Company upon Termination.

      

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

       

                                                   
A.           the sum of
(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
respecting any completed fiscal year ending prior to the Date of Termination,
(3) the product of (x) the Average Annual Bonus 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").  Anything contained herein to the contrary
notwithstanding, the timing of payment by the Company of any deferred
compensation shall remain subject to the terms and conditions of the applicable
deferred compensation plan and any payment election previously made by the
Executive; provided, however,
that, if at the time of Termination, Executive is a “specified employee” within
the meaning of Section 409A of the Internal Revenue Code, as amended, then
payments shall not be made before the date which is six (6) months after the
date of separation from service with the Company (or, if earlier, the date of
the Executive’s death); and

      

      
        
          
          

        

        
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B.           the amount
equal to the product of (1) one and one-half (1.50), and (2) the sum of (x) the
Executive's Annual Base Salary and (y) the Highest Annual Bonus (as hereinafter
defined); and

      

      

      (ii)           for
eighteen (18) months after the Executive's 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 been provided to
them in accordance with the plans, programs, practices and policies described in
Section 4(b)(iv) of this Agreement if the Executive's employment had not been
terminated or, if more favorable to the Executive, as in effect generally at any
time thereafter with respect to other peer executives of the Company and its
affiliated companies and their families, provided, however, that if the
Executive becomes reemployed with another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the
medical and other welfare benefits described herein shall be secondary to those
provided under such other plan during such applicable period of eligibility. For
purposes of determining eligibility (but not the time of commencement of
benefits) of the Executive for retiree benefits pursuant to such plans,
practices, programs and policies, the Executive shall be considered to have
remained employed until eighteen (18) months after the Date of Termination and
to have retired on the last day of such period;

      

      (iii)           the
Company shall, at its sole expense as incurred, provide the Executive with
outplacement services in accordance with the Company’s policies with regard to
outplacement then in effect; 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").

      

      For
purposes hereof, the term “Highest Annual Bonus” shall mean the highest of the
Executive’s bonuses (whether paid or deferred) under the Company's or its
predecessor’s annual incentive plans during the last three full fiscal years
prior to the Effective Date or for such lesser period as the Executive has been
employed by the Company or its predecessor (annualized in the event that the
Executive was not employed by the Company for the whole of any such fiscal
year).

      

      (b)           Death. If the
Executive's employment is terminated by reason of the Executive's death during
the Employment Period, 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. With respect to the provision of Other Benefits, the term Other
Benefits as utilized in this Section 6(b) shall include, without limitation, and
the Executive's estate and/or beneficiaries shall be entitled to receive,
benefits at least equal to the most favorable benefits provided by the Company
and affiliated companies to the estates and beneficiaries of peer executives of
the Company and such affiliated companies under such plans, programs, practices
and policies relating to death benefits, if any, as in effect with respect to
other peer executives and their beneficiaries at any time during the 120 day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

      

      
        
          
          

        

        
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(c)            Disability. If the
Executive's employment is terminated by reason of the Executive's Disability
during the Employment Period, 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. With respect to the provision of
Other Benefits, the term Other Benefits as utilized in this Section 6(c) shall
include, and the Executive shall be entitled after the Disability Effective Date
to receive, disability and other benefits at least equal to the most favorable
of those generally provided by the Company and its affiliated companies to
disabled executives and/or their families in accordance with such plans,
programs, practices and policies relating to disability, if any, as in effect
generally with respect to other peer executives and their families at any time
during the 120 day period immediately preceding the Effective Date or, if more
favorable to the Executive and/or the Executive's family, as in effect at any
time thereafter generally with respect to other peer executives of the Company
and its affiliated companies and their families.

      

      (d)           Cause; Other than for Good
Reason. If the Executive's employment shall be terminated for Cause
during the Employment Period, 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 Employment Period, 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.

      

      7.            
Non-exclusivity of
Rights. Nothing in this Agreement shall prevent or limit the Executive's
continuing or future participation in any plan, program, policy or practice
provided by the Company or any of its affiliated companies and for which the
Executive may qualify, nor, subject to Section 12(f), shall anything herein
limit or otherwise affect such rights as the Executive may have under any
contract or agreement with the Company or any of its affiliated companies.
Amounts which are vested benefits or which the Executive is otherwise entitled
to receive under any plan, policy, practice or program of or any contract or
agreement with the Company or any of its affiliated companies at or subsequent
to the Date of Termination shall be payable in accordance with such plan,
policy, practice or program or contract or agreement except as explicitly
modified by this Agreement.

      

      8.           
 Full
Settlement. The Company's obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others. Each and
every payment made hereunder by the Company shall be final, and the Company
shall not seek to recover all or any part of such payment from the Executive or
from whomsoever may be entitled thereto, for any reasons whatsoever. 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").

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      9.           
 Certain
Additional Payments by the Company.

      

      (a)           Anything
in this Agreement to the contrary notwithstanding and except as set forth below,
in the event it shall be determined that any payment or distribution by the
Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 9) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including, without limitation, any income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed upon
the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Section 9(a), if it shall be determined that the Executive is
entitled to a Gross-Up Payment, but that the Payments do not exceed 110% of the
greatest amount (the "Reduced Amount") that could be paid to the Executive such
that the receipt of Payments would not give rise to any Excise Tax, then no
Gross-Up Payment shall be made to the Executive and the Payments, in the
aggregate, shall be reduced to the Reduced Amount.

      

      (b)           Subject
to the provisions of Section 9(c), all determinations required to be made under
this Section 9, including whether and when a Gross-Up Payment is required and
the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by such certified public
accounting firm as may be designated by the Company (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days of the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Company shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). All fees and expenses of the Accounting
Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined
pursuant to this Section 9, shall be paid by the Company to the Executive within
five days of the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Company should have been made ("Underpayment"), consistent with the
calculations required to be made hereunder. In the event that the Company
exhausts its remedies pursuant to Section 9(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

      

      (c)           The
Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of
the Gross-Up Payment. Such notification shall be given as soon as practicable
but no later than ten business days after the Executive is informed in writing
of such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on
which it gives such notice to the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the
Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

      

      (i)           give
the Company any information reasonably requested by the Company relating to such
claim,

      

      (ii)           take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

      

      (iii)           cooperate
with the Company in good faith in order effectively to contest such claim,
and

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      (iv)           permit
the Company to participate in any proceedings relating to such
claim;

      

      provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs
and expenses. Without limitation on the foregoing provisions of this Section
9(c), the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive
to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

      

      (d)           If,
after the receipt by the Executive of an amount advanced by the Company pursuant
to Section 9(c), the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying
with the requirements of Section 9(c)) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after taxes
applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim and
the Company does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

      

      10.           Confidential
Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data
relating to the Company or any of its affiliated companies, and their respective
businesses, which shall have been obtained by the Executive during the
Executive's employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive's employment with the Company, the Executive
shall not, without the prior written consent of the Company or as may otherwise
be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 10 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

      

      11.           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.

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

      

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

      

      (c)           The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this
Agreement, "Company" shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.

      

      12.           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.

      

      (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.

      

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

      

      If to the
Executive:

      

      171
Chapman Road

      Greenville,
SC 29605

      

      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 5(c)(i)
through (v) 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.

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

      

      (g)           Except
as may otherwise be provided under any other written agreement between the
Executive and the Company, the Executive and the Company acknowledge that the
employment of the Executive by the Company is "at will" and, subject to Section
1 hereof, prior to the Effective Date, the Executive's employment and/or this
Agreement may be terminated by either the Executive or the Company at any time
prior to the Effective Date, in which case the Executive shall have no further
rights under this Agreement. From and after the Effective Date, this Agreement
shall supersede any other agreement between the parties with respect to the
subject matter hereof and, upon the Effective Date, any such other agreement
shall be null, void and of no further force or effect.

      

      IN
WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and,
pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

      

      
        
          	
                   

                	 	/s/ Michael R. Douglas	 
	 	 	MICHAEL
      R. DOUGLAS	 
	 	 	 	 
	 	 	BEAZER
      HOMES USA, INC.	 
	 	 	 	 
	 	 	 	 

        

        
          
            
              	
                      By:

                    	 	/s/ Ian J. McCarthy	 
	 	 	Ian
      J. McCarthy	 
	 	 	President
      and Chief Executive Officer	 

            

             

             

             

            12ex10_27.htm

    
      
Exhibit
10.27

    

      

       

      BEAZER
HOMES USA, INC.

      2008
DEFERRED COMPENSATION PLAN

      (Amended
and Restated Effective January 1, 2008)

       

       

      WHEREAS,
the Company has set forth its desire to establish this Deferred Compensation
Plan for a select group of management or highly compensated employees;
and

       

      WHEREAS,
the Company desires to amend and restate this Plan in order to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”);

       

      NOW,
THEREFORE, as of the effective date set forth herein, this Plan is hereby
amended and restated in its entirety to read as follows, provided that (i) no
provision of this Plan shall cause the loss of grandfathering treatment under
Code section 409A for any amounts that are attributable to compensation that was
vested and deferred on or before December 31, 2004, and (ii) the Company shall
have complete discretion to interpret and construe the Plan and any associated
documents in any manner that establishes an exemption from or otherwise conforms
to the requirements of Section 409A.

       

      ARTICLE
I

       

      DEFINITIONS

       

      1.1           Definitions.

       

      Whenever
the following words and phrases are used in this Plan, with the first letter
capitalized, they shall have the meanings specified below.

       

      (a)           "Account"
or "Accounts" shall mean all of such accounts as are specifically authorized for
inclusion in this Plan.

       

      (b)           "Base
Salary" shall mean a Participant's annual base salary, including Severance Pay
and refunded 401(k) contributions, but excluding bonus, commissions, incentive
and all other remuneration for services rendered to Company and prior to
reduction for any salary contributions to a plan established pursuant to Section
125 of the Code or qualified pursuant to Section 401(k) of the
Code.

       

      (c)           "Beneficiary"
or "Beneficiaries" shall mean the person or persons, including a trustee,
personal representative or other fiduciary, last designated in writing by a
Participant in accordance with procedures established by the Committee to
receive the benefits specified hereunder in the event of the Participant's
death.  No beneficiary designation shall become effective until it is
filed with the Committee; provided that a designation that the Committee
receives shall be honored and given effect unless the Committee sends the
Participant a written notice of its rejection within 10 business days after
receipt of the designation.  Any designation shall be revocable at any
time through a written instrument filed by the Participant with the Committee
with or without the consent of the previous Beneficiary. If a Participant has
not made an effective beneficiary designation or the designated beneficiary
predeceases the Participant, the duly appointed and currently acting personal
representative of the Participant's estate (which shall include either the
Participant's probate estate or living trust) shall be the
Beneficiary.  In any case where there is no such personal
representative of the Participant's estate duly appointed and acting in that
capacity within 90 days after the Participant's death (or such extended period
as the Committee determines is reasonably necessary to allow such personal
representative to be appointed, but not to exceed 180 days after the
Participant's death), then Beneficiary shall mean the person or persons who can
verify by affidavit or court order to the satisfaction of the Committee that
they are legally entitled to receive the benefits specified
hereunder.  In the event any amount is payable under the Plan to a
minor, payment shall not be made to the minor, but instead be paid (a) to that
person's living parent(s) to act as custodian, (b) if that person's parents are
then divorced, and one parent is the sole custodial parent, to such custodial
parent, or (c) if no parent of that person is then living, to a custodian
selected by the Committee to hold the funds for the minor under the Uniform
Transfers of Gifts to Minors Act in effect in the jurisdiction in which the
minor resides.  If no parent is living and the Committee decides not
to select another custodian to hold the funds for the minor, then payment shall
be made to the duly appointed and currently acting guardian of the estate for
the minor or, if no guardian of the estate for the minor is duly appointed and
currently acting within 60 days after the date the amount becomes payable,
payment shall be deposited with the court having jurisdiction over the estate of
the minor.  Payment by Company pursuant to any unrevoked Beneficiary
designation, or to the Participant's estate if no such designation exists, of
all benefits owed hereunder shall terminate any and all liability of
Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (d)           "Board
of Directors" or "Board" shall mean the Board of Directors of
Company.

       

      (e)           "Bonuses"
shall mean the annual or periodic bonuses payable in cash during the Plan Year
excepting any cash distributed from the Corporate Management Stock Purchase
Program.

       

      (f)           "Change
in Control" shall have the following meaning, subject to the Committee’s
interpretation of this definition in a manner that conforms with the
requirements of Section 409A of the Code and associated
regulations:

       

      (i)  The acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) more than 50% of either (x) the then outstanding
shares of common stock of the Company (the “Outstanding Company Com­mon
Stock”) or (y) the total voting power of the then outstanding voting
securities of the Company (the “Outstanding Company Voting
Securities”);

       

      (ii)  The acquisition by a
Person of stock possessing 30% or more of the voting power of the then
outstanding voting securities of the Company;

       

      (iii)  A majority of
individuals who, as of the date hereof, constitute the Board (the “Incumbent
Board”) are replaced during any 12-month period by directors whose appointment
or election is not endorsed by a majority of the Incumbent Board before the date
of the appointment or election. or

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

         

      

                                                     
(iv)  Consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the
Company (a “Business Combination”), in each case, resulting in the acquisition
assets from the Company that have a total gross fair market value equal to or
more than 40 percent of the total gross fair market value of all of the assets
of the Company immediately before the acquisition.

       

      (g)           "Code"
shall mean the Internal Revenue Code of 1986, as amended.

       

      (h)           "Committee"
shall mean the Committee appointed by the Board to administer the Plan in
accordance with Article VII.

       

      (i)           "Company"
shall mean Beazer Homes USA, Inc.

       

      (j)           "Company
Contribution Account" shall mean the bookkeeping account maintained by Company
for each Participant that is credited with an amount equal to the Company
Discretionary Contribution Amount, if any, and Company Matching Contribution
Amount, if any, and earnings and losses on such amounts pursuant to Section
4.2.

       

      (k)           "Company
Discretionary Contribution Amount" shall mean such discretionary amount if
contributed by the Company for each Participant for a Plan Year.  Such
amount may differ from Participant to Participant both in amount, including no
contribution, and as a percentage of Compensation.

       

      (l)           "Company
Matching Contribution Amount" shall mean such amount if contributed by the
Company for each Participant for a Plan Year. Such amount may differ from
Participant to Participant both in amount, including no contribution, and as a
percentage of Compensation.

       

      (m)           "Compensation"
shall be Base Salary and Bonuses.

       

      (n)           "Deferral
Account" shall mean the bookkeeping account maintained by the Committee for each
Participant that is credited with amounts equal to (1) the portion of the
Participant's Compensation that he or she elects to defer, and (2) earnings and
losses pursuant to Section 4.1.

       

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

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

         

      

      (p)           "Distributable
Amount" shall mean the vested accumulated balance in the Participant's Deferral
Account and Company Contribution Account.

       

      (q)           "Early
Distribution" shall mean an election by Participant in accordance with Section
6.2 to receive a withdrawal of vested amounts from his or her Deferral Account
and Company Contribution Account prior to the time at which such Participant
would otherwise be entitled to such amounts.

       

      (r)           "Effective
Date" shall be January 1, 2008 with respect to this amendment and restatement,
with the Plan being initially effective January 1, 2002.

       

      (s)           "Eligible
Employee" shall include only Employees designated by the Committee to
participate in the Plan.

       

      (t)           “Employee”
shall mean any person whom the Company or any member of its controlled group
(within the meaning of Section 414(b) or (c) of the Code) treats as an employee
for purposes of federal income tax withholding, regardless of whether or not the
person would be treated as an employee under applicable common law.

       

      (u)           "Fund"
or "Funds" shall mean one or more of the investment funds selected by the
Committee pursuant to Section 3.2(b).

       

      (v)           “Grandfathered
Amounts” shall mean the portion of a Participant’s Account that is attributable
to amounts deferred and vested before January 1, 2005.

       

      (w)           "Hardship
Distribution" shall mean a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, the Participant’s beneficiary, or the Participant’s Dependent (as
defined in Section 152, without regard to section 152(b)(1), (b)(2), and
(d)(1)(B)) of the Code); loss of a Participant's property due to casualty
(including the need to rebuild a home following damage to a home not otherwise
covered by insurance, for example, not as a result of a natural disaster); or
other similar or extraordinary and unforseeable circumstances arising as a
result of events beyond the control of the Participant.  For example,
the imminent foreclosure of or eviction from the Participant’s primary residence
may constitute an unforeseeable emergency.  In addition, the need to
pay for medical expenses, including non-refundable deductibles, as well as for
the costs of prescription drug medication, may constitute an unforeseeable
emergency.  Finally, the need to pay for the funeral expenses of a
spouse, a beneficiary, or a dependent (as defined in section 152, without regard
to section 152(b)(1), (b)(2), and (d)(1)(B)) may also constitute an
unforeseeable emergency.  Except as otherwise provided herein, the
purchase of a home and the payment of college tuition are not unforeseeable
emergencies.  The circumstances that would constitute an unforseeable
emergency will depend upon the facts of each case, but, in any case, a Hardship
Distribution may not be made to the extent that such hardship is or may be
relieved (i) through reimbursement or compensation by insurance or otherwise,
(ii) by liquidation of the Participant's assets, to the extent the liquidation
of assets would not itself cause severe financial hardship, or (iii) by
cessation of deferrals under this Plan.

       

      (x)           "Initial
Election Period" shall mean the 30-day period following the time an employee
shall be designated by the Company as an Eligible Employee.

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

         

      

      (y)           "Interest
Rate" shall mean, for each Fund, an amount equal to the net gain or loss on the
assets of such Fund during each month.

       

      (z)           "Participant"
shall mean any Eligible Employee who becomes a Participant in this Plan in
accordance with Article II.

       

      (aa)           "Payment
Date" shall be a date as soon as possible after the end of the Plan Year, but
not later than the March 31st following the end of the Plan Year.  A
Hardship Distribution shall be paid as soon as administratively
practicable.

       

      (bb)           "Plan"
shall be this Beazer Homes USA, Inc. Deferred Compensation Plan.

       

      (cc)           "Plan
Year" shall be the calendar year.

       

      (dd)           "Scheduled
Withdrawal Date" shall mean the distribution date elected by the Participant for
an in-service withdrawal of vested amounts from such Accounts deferred in a
given Plan Year, and earnings and losses attributable thereto, as set forth on
the election form for such Plan Year executed by a Participant in accordance
with Article III of the Plan.

       

      (ee)           “Separation
from Service” means the Participant’s “separation from service” (within the
meaning of Treasury Regulation § 1.409A-1(h)) from the Company and all
affiliates for any reason; however, for purposes of this paragraph, the
definition of affiliate shall be modified by substituting 50 percent for 80
percent each place it appears in Code Section 1563(a)(1), (2) and (3), for
purposes of Code Section 414(b), and each plan it appears in Treasury Regulation
§ 1.414(c)-2, for purposes of Code Section 414(c).  A Separation of
Service will be deemed to occur if the Company and the Participant reasonably
anticipate that the Participant shall perform no further services for the
Company (whether an employee or an independent contractor) or that the level of
bona fide services the Participant will perform in the future (whether as an
employee or an independent contractor) will permanently decrease to no more than
20 percent of the average level of bona fide services performed (whether as an
employee or independent contractor) over the immediately preceding 36-month
period.  A Participant on an authorized, bona fide leave of absence
shall experience a Separation from Service on the first day of the seventh (7th)
month of such leave, unless the Participant’s right to reemployment with an
Employer is provided either by statute or contract.  A leave of
absence constitutes a bona
fide leave of absence only if there is a reasonable expectation that the
Participant will return to perform services for the Company or any of its
affiliates.  For purposes of the 36-month period described above, (a)
a Participant who is on a paid bona fide leave of absence is treated as
providing bona fide services at a level equal to the level of services that the
Participant would have been required to perform to receive the compensation paid
during the leave of absence, and (b) unpaid bona fide leaves of absence are
disregarded.

       

      (ff)           “Severance
Pay” shall mean any cash payments that a Participant may become entitled to
receive in connection with terminating status as an Employee.

       

      (gg)           “Specified
Employee” shall mean a Specified Employee as defined in Section 416(i) of the
Code (without regard to paragraph (5) thereof), of the Company or any affiliate
during any period when the stock of the Company or its affiliate, as the case
may be, is publicly traded on an established securities market or
otherwise.  The Committee shall designate in writing any Participant
as a Specified Employee prior to the suspension of any payments due a
Participant pursuant to Article VI of the Plan.

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      (hh)           "Trust"
shall mean the Beazer Homes USA, Inc. Deferred Compensation Plan
Trust.

       

      (ii)           "Trustee"
shall mean the trustee of the Trust, and shall refer to the successor of any
trustee who resigns or is removed in accordance with the terms of the
Trust.

      

      ARTICLE
II

       

      PARTICIPATION

       

      An
Eligible Employee shall become a Participant in the Plan by completing all
election forms that the Committee may require.  Newly hired or
promoted employees who are eligible to participate in the Plan will have 30
calendar days from their notification of eligibility date to complete the
forms.  Participation in the Plan in one year does not entitle an
Eligible Employee to participate in the Plan in future years. The Committee may
in its discretion change the criteria for eligibility.

       

      ARTICLE
III

       

      DEFERRAL
ELECTIONS

       

      3.1           Elections to Defer
Compensation.

       

      (a)           Initial Election
Period.  Subject to the provisions of Article II, each
Participant may elect to defer Compensation by filing with the Committee an
election that conforms to the requirements of this Section 3.1, on a form
provided by the Committee, no later than the last day of his or her Initial
Election Period. Any election pursuant to this Section 3.1 shall be for the
remainder of the Plan Year, in the event the Plan Year has
commenced.

       

      (b)           General
Rule.  The amount of Compensation which a Participant may elect
to defer is such Compensation earned after the time at which the Participant
elects to defer in accordance with Sections 1.1(w) and 3.1(a) and shall be a
flat dollar amount or percentage which shall not exceed fifty percent (50%) of
the Participant's Base Salary and seventy-five percent (75%) of the
Participant’s Bonuses, provided that the total amount deferred by a Participant
shall be limited in any calendar year, if necessary, to satisfy Social Security
Tax (including Medicare), income tax and employee benefit plan withholding
requirements as determined in the sole and absolute discretion of the
Committee.  The minimum contribution which may be made in any Plan
Year by a Participant shall not be less than $5,000, provided such minimum
contribution can be satisfied from any element of Compensation.

       

      (c)           Duration of Compensation
Deferral Election.  A Participant's election to defer
Compensation for any Plan Year must be made before the first day of the Plan
Year to which the election relates, is to be effective with respect to
Compensation received after such deferral election is processed, is irrevocable
for the Plan Year, and ceases to be effective at the end of the Plan
Year.

       

      
        
          
          

        

        
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      (d)           Elections other than
Elections during the Initial Election Period.  Subject to the
limitations of Section 3.1(b) above, any Participant who has terminated a prior
Compensation deferral election and any Eligible Employee who has failed to make
an election during the Initial Election Period may elect to defer Compensation,
by filing an election, on a form provided by the Committee, to defer
Compensation as described in Sections 3.1(b) and 3.1(c) above.  An
election to defer Compensation must be filed in a timely manner in accordance
with Section 3.1(c), and shall be effective on the first day of the
Participant’s taxable year after the Committee receives
it.  Additionally, a Participant may increase, decrease or terminate a
deferral election with respect to Compensation for any subsequent Plan Year
provided that such election must be made at least one year before the Payment
Date, such election must not take effect until at least one year after the date
on which it is made, and the Payment Date must be delayed for at least an
additional five years.

       

      3.2           Investment
Elections.

       

      (a)           At
the time of making the deferral elections described in Section 3.1, the
Participant shall designate, on a form provided by the Committee, the types of
investment funds in which the Participant's Account will be deemed to be
invested for purposes of determining the amount of earnings to be credited to
that Account.  In making the designation pursuant to this Section 3.2,
the Participant may specify that all or any multiple of his or her Account be
deemed to be invested, in whole percentage increments, in one or more of the
types of investment funds provided under the Plan as communicated from time to
time by the Committee.  Effective as of the end of any calendar month,
a Participant may change the designation made under this Section 3.2 by filing
an election, on a form provided by the Committee, by the 25th day of such
month.  If a Participant fails to elect a type of fund under this
Section 3.2, he or she shall be deemed to have elected the Money Market type of
investment fund.

       

      (b)           Although
the Participant may designate the type of investments, the Committee shall not
be bound by such designation.  The Committee shall select from time to
time, in its sole and absolute discretion, commercially available investments of
each of the types communicated by the Committee to the Participant pursuant to
Section 3.2(a) above to be the Funds.  The Interest Rate of each such
commercially available investment fund shall be used to determine the amount of
earnings or losses to be credited to Participant's Account under

       

      ARTICLE
IV

      

      DEFERRAL ACCOUNTS, COMPANY
CONTRIBUTION ACCOUNTS, 

      AND TRUST
FUNDING

      

      4.1           Deferral
Accounts.

       

      The
Committee shall establish and maintain a Deferral Account for each Participant
under the Plan.  Each Participant's Deferral Account shall be further
divided into separate subaccounts ("investment fund subaccounts"), each of which
corresponds to an investment fund elected by the Participant pursuant to Section
3.2(a).  A Participant's Deferral Account shall be credited as
follows:

       

      
        
          
          

        

        
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      (a)           On
the same business day that the amounts are withheld and deferred from a
Participant's Compensation, the Committee shall credit the investment fund
subaccounts of the Participant's Deferral Account with an amount equal to the
Compensation deferred by the Participant in accordance with the Participant's
election under Section 3.2(a); that is, the portion of the Participant's
deferred Compensation that the Participant has elected to be deemed to be
invested in a certain type of investment fund shall be credited to the
corresponding investment fund subaccount;

       

      (b)           Each
business day, each investment fund subaccount of a Participant's Deferral
Account shall be credited with earnings or losses in an amount equal to that
determined by multiplying the balance credited to such investment fund
subaccount as of the prior day plus contributions credited that day to the
investment fund subaccount by the Interest Rate for the corresponding Fund
selected by the Company pursuant to Section 3.2(b).

       

      (c)           All
amounts attributed to the deferral of Compensation for a given Plan Year shall
be accounted for in a manner which allows separate accounting for the deferral
of Compensation and investment gains and losses associated with such Plan Year's
deferral of Compensation.

       

      4.2           Company Contribution
Account.

       

      The
Committee shall establish and maintain a Company Contribution Account for each
Participant under the Plan.  Each Participant's Company Contribution
Account shall be further divided into separate investment fund subaccounts
corresponding to the investment fund elected by the Participant pursuant to
Section 3.2(a).  A Participant's Company Contribution Account shall be
credited as follows:

       

      (a)           On
the fifth business day after a Company Discretionary Contribution Amount or
Company Matching Contribution Amount has been made, the Committee shall credit
the investment fund subaccounts of the Participant's Company Contribution
Account with an amount equal to the Company Discretionary Contribution Amount,
if any, and the Company Matching Contribution Account, if any, applicable to
that Participant, that is, the proportion of the Company Discretionary
Contribution Amount, if any, and Company Matching Contribution Amount, if any,
that the Participant has elected to be deemed to be invested in a certain type
of investment fund shall be credited to the corresponding investment fund
subaccount; and

       

      (b)           Each
business day, each investment fund subaccount of a Participant's Company
Contribution Account shall be credited with earnings or losses in an amount
equal to that determined by multiplying the balance credited to such investment
fund subaccount as of the prior day plus contributions credited that day to the
investment fund subaccount by the Interest Rate for the corresponding Fund
selected by the Company pursuant to Section 3.2(b).

       

      4.3           Trust
Funding.

       

      The
Company has created a Trust with the Trustee.  The Company shall cause
the Trust to be funded as soon as practicable after the end of each pay period,
and shall not fund the Trust with assets located outside the United States of
America.  The Company shall contribute liquid assets to the Trust in
an amount equal to (1) the amount deferred by each Participant; (2) the
aggregate amount of Company Discretionary Contribution Amounts; (3) the
aggregate amount of Company Matching Contribution Amounts for the Plan Year; and
(4) net of any distributions paid pursuant to Article VI.

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

         

      

      Although
the principal of the Trust and any earnings thereon shall be held separate and
apart from other funds of Company and shall be used exclusively for the uses and
purposes of Plan Participants and Beneficiaries as set forth therein, neither
the Participants nor their Beneficiaries shall have any preferred claim on, or
any beneficial ownership in, any assets of the Trust prior to the time such
assets are paid to the Participants or Beneficiaries as benefits and all rights
created under this Plan shall be unsecured contractual rights of Plan
Participants and Beneficiaries against the Company.  Any assets held
in the Trust will be subject to the claims of Company's general creditors under
federal and state law in the event of insolvency as defined in the
Trust.

       

      ARTICLE
V

       

      VESTING

       

      A
Participant shall be 100% vested in his or her Deferral Account.  A
Participant shall be vested in accordance with any schedule that the Committee
may establish with respect to any amounts credited to the Participant’s Company
Contribution Account; provided that upon the death of a Participant or upon a
Change in Control, the Participant shall become 100% vested in his or her
Company Contribution Account.

       

      ARTICLE
VI

       

      DISTRIBUTIONS

       

      6.1           Distribution of Deferred
Compensation and Discretionary Company Contributions.

       

      (a)           Distribution Without
Scheduled Withdrawal Date.  In the case of a Participant who
incurs a Separation from Service and has a vested Account balance of $50,000 or
more, the Distributable Amount shall be paid to the Participant (and after his
or her death to his or her Beneficiary) in a lump sum distribution to be made on
the Participant's Payment Date.  Subject to Sections 6.1(c), (d), and
(e) hereof, an optional form of benefit may be elected by the Participant before
the first day of a Plan Year with respect to the contributions (and subsequent
earnings or losses) attributable to that Plan Year, on the form provided by
Company, from among the following:

       

      (1)          A
lump sum distribution to be made on the Participant's Payment Date.

       

      (2)          Substantially
equal annual installments over five (5) years beginning on the Participant's
Payment Date.

       

      (3)          Substantially
equal annual installments over ten (10) years beginning on the Participant's
Payment Date.

       

      (4)          Substantially
equal annual installments over fifteen (15) years beginning on the Participant’s
Payment Date.

       

      Notwithstanding
the above, if a Participant’s distribution (instead of account balance) is less
than $50,000, payment will be in the form of a lump sum.

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      With
respect to the portion of a Participant’s Account that is attributable to
amounts that were deferred before January 1, 2005, a Participant may modify the
form of benefit that he or she has previously elected, provided such
modification (or initial election if none was made previously) occurs at least
one (1) year before the Participant’s Separation from Service. With respect to
the portion of a Participant’s Account that is attributable to amounts that were
deferred on or after January 1, 2005, a Participant may modify the form of
benefit that he or she has previously elected, provided –

       

      (i)         such
modification (or initial election if none was made previously) is filed with the
Committee at least one (1) year prior to the Participant's Separation from
Service;

       

      (ii)        the
new election defers the distribution for at least five (5) years from the first
date the payment would otherwise have been made pursuant to the initial
election; and

       

      (iii)       if
made within one (1) year of the Participant’s Separation from Servicee, such a
new election shall be invalid

       

      In the
case of a Participant incurs a Separation from Service and has a vested Account
balance of less than $50,000, the Distributable Amount shall be paid to the
Participant (and after his or her death to his or her Beneficiary) in a lump sum
distribution on the Participant's Payment Date.  The Participant's
Account shall continue to be credited with earnings pursuant to Section 4.1 of
the Plan until all amounts credited to his or her Account under the Plan have
been distributed.

       

      (b)           Distribution With Scheduled
Withdrawal Date.  In the case of a Participant who has elected
pursuant to the terms set forth in Section 3.1 a Scheduled Withdrawal Date for a
distribution while still in the employ of the Company, such Participant shall
receive his or her Distributable Amount in a lump sum (or, if the Distributable
Amount is more than $25,000, in annual installments over two, three, four, or
five years), but only with respect to those deferrals of Compensation, vested
Company Matching Contribution Amounts and vested Company Discretionary
Contribution Amounts and earnings on such deferrals of Compensation, Company
Matching Contribution Amounts, and Company Discretionary Contribution Amounts as
shall have been elected by the Participant to be subject to the Scheduled
Withdrawal Date in accordance with Section 1.1(dd) of the Plan.  A
Participant's Scheduled Withdrawal Date for Grandfathered Amounts with respect
to deferrals of Compensation, Company Matching Contribution Amounts, and Company
Discretionary Contribution Amounts from a given Plan Year can be no earlier than
two years from the last day of the Plan Year for which the deferrals of
Compensation, Company Matching Contribution Amounts and Company Discretionary
Contribution Amounts are made, and shall be paid no later than the end of the
first quarter following the end of each calendar year for which a distribution
is payable pursuant to the Participant’s election.  For Grandfathered
Amounts a Participant may extend the Scheduled Withdrawal Date for any Plan
Year, provided such extension occurs at least one year before the Scheduled
Withdrawal Date and is for a period of not less than two years from the
Scheduled Withdrawal Date.  The Participant shall have the right to
twice modify any Scheduled Withdrawal Date for Grandfathered
Amounts.

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      (c)           In
the event a Participant incurs a Separation from Service with Company prior to a
Scheduled Withdrawal Date or while receiving installment payments pursuant to
any Scheduled Withdrawal Date, other than by reason of death, the portion of the
Participant's Account associated with a Scheduled Withdrawal Date, which has not
occurred prior to such termination, shall be distributed in a lump sum on the
Participant’s Payment Date for the calendar year in which the Participant’s
Separation from Service occurs.

       

      (d)           Distribution for Separation
from Service due to Death.  In the case of a Participant who
dies while employed by the Company or before receiving a complete distribution
of his or her Account, the remaining balance of the Participant’s Account shall
be distributed, in a lump sum, as soon as practicable to the Participant’s
Beneficiary, but not earlier than 90 days following the date of the
Participant’s death.   During this 90-day period, the Beneficiary
has the right to petition the Committee (subject to approval in the Committee’s
sole discretion) to receive Grandfathered Accounts according to a different
schedule.

       

      (e)           Distribution for Separation
from Service due to Disability.  In the case of a Participant
whose employment by the Company terminates due to Disability, the vested balance
of the Participant’s Account shall be distributed, in a lump sum, as soon as
practicable, provided the payment is made by the later of the end of the
Participant’s taxable year or the 15th day of the third month following the date
the Participant incurs the disability.    The Company will
hold the Participant harmless from any reduction in Company-provided Disability
insurance benefits that results from Plan distributions hereunder.

       

      (f)           Discretionary
Cash-outs.   If a Participant’s employment terminates for
a reason other than the Participant’s death, Disability, or retirement pursuant
to any retirement plan that the Company sponsors, the Committee may in its sole
discretion unilaterally accelerate any, some, or all payments due hereunder, but
only to the extent the payments relate to the portion of the Participant’s
Account that is attributable to amounts deferred before January 1,
2005.

       

      (g)           Special Rule for Delayed
Distributions. If, at the time of Executive's “separation from
service” (within the meaning of Code Section 409A), Executive is a
"specified employee" (within the meaning of Code Section 409A), the Company
will not pay or provide any "Specified Benefits" (as defined herein) until after
the end of the sixth calendar month beginning after Executive’s separation
from service (the "409A Suspension Period"). For purposes of this Agreement,
"Specified Benefits" are any amounts or benefits that would be
subject to Section 409A penalties if the Company were to pay or otherwise settle
such amounts or benefits, pursuant to this Agreement, on account
of Executive's separation from service. Within 14 calendar days after the
end of the 409A Suspension Period, Executive shall be paid a lump sum
payment in cash equal to any Specified Benefits delayed because of the
preceding sentence, without interest.  Thereafter, Executive
shall receive any remaining payments or other benefits as if there had not been
an earlier delay.

       

      Specified
Employee.

       

      6.2           Early
Non-Scheduled Distributions for Pre-2005 Deferrals.

       

      A
Participant shall be permitted to elect an Early Distribution from his or her
Account prior to the Payment Date, subject to the following
restrictions:

       

      (a)           The
election to take an Early Distribution shall be made by filing a form provided
by and filed with the Committee prior to the end of any calendar
month.

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

         

      

      (b)           The
amount of the Early Distribution shall equal up to 90% of his or her vested
Account balance, and be not less than $25,000 (or, if less, 90% of the
Participant’s accumulated vested Account balance).

       

      (c)           The
amount described in Section 6.2(b) above shall be paid in a single cash lump sum
as soon as practicable after the end of the calendar month in which the Early
Distribution election is made.

       

      (d)           If
a Participant requests an Early Distribution of his or her entire vested
Account, the remaining balance of his or her Account (10% of the Account) shall
be permanently forfeited and the Company shall have no obligation to the
Participant or his Beneficiary with respect to such forfeited
amount.  If a Participant receives an Early Distribution of less than
his or her entire vested Account, such Participant shall forfeit 10% of the
gross amount to be distributed from the Participant's Account and the Company
shall have no obligation to the Participant or his or her Beneficiary with
respect to such forfeited amount.

       

      6.3           Hardship
Distribution.

       

      A
Participant shall be permitted to elect a Hardship Distribution from his or her
vested Accounts in accordance with Section 1.1(v) of the Plan prior to the
Payment Date, subject to the following restrictions:

       

      (a)           The
amount distributed to the Participant may not exceed the amount reasonable
necessary to satisfy the emergency need, including amounts necessary to pay any
Federal, state, local or foreign income taxes or penalties reasonably resulting
from the distribution.

       

      (b)           The
election to take a Hardship Distribution shall be made by filing a form provided
by and filed with Committee prior to the end of any calendar month.

       

      (c)           The
Committee shall have made a determination that the requested distribution
constitutes a Hardship Distribution in accordance with Section 1.1(w) of the
Plan.

       

      (d)           The
amount determined by the Committee as a Hardship Distribution shall be paid in a
single cash lump sum as soon as practicable after the end of the calendar month
in which the Hardship Distribution election is made and approved by the
Committee.

       

      (e)

       

      6.4           Inability to Locate
Participant.

       

      In the
event that the Committee is unable to locate a Participant or Beneficiary within
two years following the required Payment Date, the amount allocated to the
Participant's Deferral Account shall be forfeited.

       

      ARTICLE
VII

       

      ADMINISTRATION

       

      7.1           Committee.

       

      A
Committee shall be appointed by, and serve at the pleasure of, the Board of
Directors.  The number of members comprising the Committee shall be
determined by the Board, which may from time to time vary the number of
members.  A member of the Committee may resign by delivering a written
notice of resignation to the Board.  The Board may remove any member
by delivering a certified copy of its resolution of removal to such
member.  Vacancies in the membership of the Committee shall be filled
promptly by the Board.

       

      
        
          
          

        

        
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      7.2           Committee
Action.

       

      The
Committee shall act at meetings by affirmative vote of a majority of the members
of the Committee.  Any action permitted to be taken at a meeting may
be taken without a meeting if, prior to such action, a written consent to the
action is signed by all members of the Committee and such written consent is
filed with the minutes of the proceedings of the Committee.  A member
of the Committee shall not vote or act upon any matter which relates solely to
himself or herself as a Participant.  The Chairman or any other member
or members of the Committee designated by the Chairman may execute any
certificate or other written direction on behalf of the Committee.

       

      7.3           Powers and Duties of the
Committee.

       

      The
Committee, on behalf of the Participants and their Beneficiaries, shall enforce
the Plan in accordance with its terms, shall be charged with the general
administration of the Plan, and shall have all powers necessary to accomplish
its purposes, including, but not by way of limitation, the
following:

       

      (a)           To
select the Funds in accordance with Section 3.2(b) hereof;

       

      (b)           To
compute and certify to the amount and kind of benefits payable to Participants
and their Beneficiaries;

       

      (c)           To
maintain all records that may be necessary for the administration of the
Plan;

       

      (d)           To
provide for the disclosure of all information and the filing or provision of all
reports and statements to Participants, Beneficiaries or governmental agencies
as shall be required by law;

       

      (e)           To
make and publish such rules for the regulation of the Plan and procedures for
the administration of the Plan as are not inconsistent with the terms
hereof;

       

      (f)           To
appoint a Plan administrator or any other agent, and to delegate to them such
powers and duties in connection with the administration of the Plan as the
Committee may from time to time prescribe; and

       

      (g)           To
take all actions necessary for the administration of the Plan.

       

      7.4           Construction and
Interpretation.

       

      The
Committee shall have full discretion to construe and interpret the terms and
provisions of this Plan, which interpretations or construction shall be final
and binding on all parties, including but not limited to the Company and any
Participant or Beneficiary.  The Committee shall administer such terms
and provisions in a uniform and nondiscriminatory manner and in full accordance
with any and all laws applicable to the Plan. The Committee shall interpret the
terms of the Plan and their intended meanings, shall have the discretion to make
any findings of fact needed in the administration of the Plan, and shall have
the discretion to interpret or construe ambiguous, unclear or implied (but
omitted) terms in any fashion deemed to be appropriate in its sole judgment. The
validity of any such finding of fact, interpretation, construction or decision
shall not be given de novo review if challenged in court, by arbitration or in
any other forum, and shall be upheld unless clearly arbitrary or capricious. To
the extent the Committee has been granted discretionary authority under the
Plan, the Committee's prior exercise of such authority shall not obligate it to
exercise its authority in a like fashion thereafter. If, due to errors in
drafting, any Plan provision does not accurately reflect its intended meaning,
as demonstrated by consistent interpretations or other evidence of intent, or as
determined by the Committee in its sole and exclusive judgment, the provision
shall be considered ambiguous and shall be interpreted by the Committee in a
fashion consistent with its intent, as determined by the Committee in its sole
discretion. The Committee, acting as a non-fiduciary settlor and without the
need for the Board's approval, may amend the Plan retroactively to cure any such
ambiguity, notwithstanding anything in the Plan to the contrary. This Section
may not be invoked by any person to require the Plan to be interpreted in a
manner which is inconsistent with its interpretation by the Committee. All
actions taken and all determinations made in good faith by the Committee shall
be final and binding upon all persons claiming any interest in or under the
Plan.

       

      
        
          
          

        

        
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      7.5           Information.

       

      To enable
the Committee to perform its functions, the Company shall supply full and timely
information to the Committee on all matters relating to the Compensation of all
Participants, their death or other events which cause termination of their
participation in this Plan, and such other pertinent facts as the Committee may
require.

       

      7.6           Compensation, Expenses and
Indemnity.

       

      (a)           The
members of the Committee shall serve without compensation for their services
hereunder.

       

      (b)           The
Committee is authorized at the expense of the Company to employ such legal
counsel as it may deem advisable to assist in the performance of its duties
hereunder.  Expenses and fees in connection with the administration of
the Plan shall be paid by the Company.

       

      (c)           To
the extent permitted by applicable state law, the Company shall indemnify and
hold harmless the Committee and each member thereof, the Board of Directors and
any delegate of the Committee who is an employee of the Company against any and
all expenses, liabilities and claims, including legal fees to defend against
such liabilities and claims arising out of their discharge in good faith of
responsibilities under or incident to the Plan, other than expenses and
liabilities arising out of willful misconduct.  This indemnity shall
not preclude such further indemnities as may be available under insurance
purchased by the Company or provided by the Company under any bylaw, agreement
or otherwise, as such indemnities are permitted under state law.

       

      7.7           Quarterly
Statements.

       

      Under
procedures established by the Committee, a Participant shall receive a statement
with respect to such Participant's Accounts on a quarterly basis.
Disputes.

       

      (a)           Claim.

       

      A person
who believes that he or she is being denied a benefit to which he or she is
entitled under this Plan (hereinafter referred to as "Claimant") must file a
written request for such benefit with the Company, setting forth his or her
claim.  The request must be addressed to the President of the Company
at its then principal place of business.

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

         

      

      (b)           Claim
Decision.

       

      Upon
receipt of a claim, the Company shall advise the Claimant that a reply will be
forthcoming within ninety (90) days and shall, in fact, deliver such reply
within such period.  The Company may, however, extend the reply period
for an additional ninety (90) days for special circumstances.

       

      If the
claim is denied in whole or in part, the Company shall inform the Claimant in
writing, using language calculated to be understood by the Claimant, setting
forth:  (A) the specified reason or reasons for such denial; (B) the
specific reference to pertinent provisions of this  Plan on which such
denial is based; (C) a description of any additional material or information
necessary for the Claimant to perfect his or her claim and an explanation of why
such material or such information is necessary; (D) appropriate information as
to the steps to be taken if the Claimant wishes to submit the claim for review;
and (E) the time limits for requesting a review under Section
7.8(c).

       

      (c)           Request For
Review.

       

      Within
sixty (60) days after the receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Committee review
the determination of the Company.  Such request must be addressed to
the Secretary of the Company, at its then principal place of
business.  The Claimant or his or her duly authorized representative
may, but need not, review the pertinent documents and submit issues and comments
in writing for consideration by the Committee.  If the Claimant does
not request a review within such sixty (60) day period, he or she shall be
barred and estopped from challenging the Company's determination.

       

      (d)           Review of
Decision.

       

      Within
sixty (60) days after the Committee's receipt of a request for review, after
considering all materials presented by the Claimant, the Committee will inform
the Participant in writing, in a manner calculated to be understood by the
Claimant, the decision setting forth the specific reasons for the decision
containing specific references to the pertinent provisions of this Plan on which
the decision is based.  If special circumstances require that the
sixty (60) day time period be extended, the Committee will so notify the
Claimant and will render the decision as soon as possible, but no later than one
hundred twenty (120) days after receipt of the request for review.

       

      ARTICLE
VIII

       

      MISCELLANEOUS

       

      8.1           Unsecured General
Creditor.

       

      Participants
and their Beneficiaries, heirs, successors, and assigns shall have no legal or
equitable rights, claims, or interest in any specific property or assets of the
Company.  No assets of the Company shall be held in any way as
collateral security for the fulfilling of the obligations of the Company under
this Plan.  Any and all of the Company's assets shall be, and remain,
the general unpledged, unrestricted assets of the Company.  The
Company's obligation under the Plan shall be merely that of an unfunded and
unsecured promise of the Company to pay money in the future, and the rights of
the Participants and Beneficiaries shall be no greater than those of unsecured
general creditors.  It is the intention of the Company that this Plan
be unfunded for purposes of the Code and for purposes of Title 1 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA").

       

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

         

      

      8.2           Restriction Against
Assignment.

       

      The
Company shall pay all amounts payable hereunder only to the person or persons
designated by the Plan and not to any other person or corporation.  No
part of a Participant's Accounts shall be liable for the debts, contracts, or
engagements of any Participant, his or her Beneficiary, or successors in
interest, nor shall a Participant's Accounts be subject to execution by levy,
attachment, or garnishment or by any other legal or equitable proceeding, nor
shall any such person have any right to alienate, anticipate, sell, transfer,
commute, pledge, encumber, or assign any benefits or payments hereunder in any
manner whatsoever.  If any Participant, Beneficiary or successor in
interest is adjudicated bankrupt or purports to anticipate, alienate, sell,
transfer, commute, assign, pledge, encumber or charge any distribution or
payment from the Plan, voluntarily or involuntarily, the Committee, in its
discretion, may cancel such distribution or payment (or any part thereof) to or
for the benefit of such Participant, Beneficiary or successor in interest in
such manner as the Committee shall direct.

       

      8.3           Taxes.

       

      There
shall be deducted from each payment made under the Plan or any other
Compensation payable to the Participant (or Beneficiary) all taxes which are
required to be withheld by the Company in respect to such payment or this
Plan.  The Company shall have the right to reduce any payment (or
compensation) by the amount of cash sufficient to provide the amount of said
taxes.

       

      While the
Plan is intended to provide tax deferral for Participants, the Plan is not a
guarantee that the intended tax deferral will be
achieved.  Participants are solely responsible and liable for the
satisfaction of all taxes and penalties that may arise in connection with this
Plan (including any taxes arising under Section 409A of the
Code).  Neither the Company nor its Affiliates nor any of their
directors, officers or employees shall have any obligation to indemnify or
otherwise hold any Participant harmless from any such taxes.

       

      The
Committee shall have the sole discretion to interpret and apply the requirements
of the Code, including Section 409A, for purposes of the Plan and all payments
made hereunder.

       

      8.4           Amendment, Modification,
Suspension or Termination.

       

      The
Committee may amend, modify, suspend or terminate the Plan in whole or in part,
except that no amendment, modification, suspension or termination shall have any
retroactive effect to reduce any amounts allocated to a Participant's
Accounts.  In the event that this Plan is terminated, the amounts
allocated to a Participant's Accounts shall be distributed to the Participant
or, in the event of his or her death, his or her Beneficiary in a lump sum
within ninety (90) days following the date of termination.

       

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

         

      

      8.5           Governing
Law.

       

      This Plan
shall be construed, governed and administered in accordance with the laws of the
State of Georgia, except where pre-empted by federal law.

       

      8.6           Receipt or
Release.

       

      Any
payment to a Participant or the Participant's Beneficiary in accordance with the
provisions of the Plan shall, to the extent thereof, be in full satisfaction of
all claims against the Committee and the Company.  The Committee may
require such Participant or Beneficiary, as a condition precedent to such
payment, to execute a receipt and release to such effect.

       

      8.7           Payments on Behalf of
Persons Under Incapacity.

       

      In the
event that any amount becomes payable under the Plan to a person who, in the
sole judgment of the Committee, is considered by reason of physical or mental
condition to be unable to give a valid receipt therefore, the Committee may
direct that such payment be made to any person found by the Committee, in its
sole judgment, to have assumed the care of such person.  Any payment
made pursuant to such determination shall constitute a full release and
discharge of the Committee and the Company.

       

      8.8           Limitation of Rights and
Employment Relationship.

       

      Neither
the establishment of the Plan and Trust nor any modification thereof, nor the
creating of any fund or account, nor the payment of any benefits shall be
construed as giving to any Participant, or Beneficiary or other person any legal
or equitable right against the Company or the trustee of the Trust except as
provided in the Plan and Trust; and in no event shall the terms of employment of
any Employee or Participant be modified or in any way be affected by the
provisions of the Plan and Trust.

       

      8.9           Headings.

       

      Headings
and subheadings in this Plan are inserted for convenience of reference only and
are not to be considered in the construction of the provisions
hereof.

       

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the Company, by its duly authorized officer, has caused this
Plan to be executed, and its corporate seal affixed on this __st day of
________, 200_.

       

      
        
          	 	BEAZER HOMES USA,
      INC.	 
	 	 	 	 
	
                   

                	
                  By

                	 	 
	 	 	 	 
	 	Its	 	 

        

      

       

       

      [The
Compensation Committee approved this by each member signing a Unanimous Consent
from January 7 – January 8, 2008 with an effective date of January 1,
2008.]

       

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

       

      BEAZER
HOMES USA, INC.

      DEFERRED
COMPENSATION PLAN

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        
        

         

        
          	 	
                  TABLE OF
      CONTENTS

                	 

        

         

        
          
            	 
      	 
      	 
      	
                    Page

                  	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    ARTICLE
      I DEFINITIONS

                  	 
      	
                    1

                  	 
      
	 	 	 	 
	
                    1.1

                  	
                    Definitions

                  	 
      	
                    1

                  	 
      
	 	 	 	 	 
	
                    ARTICLE
      II PARTICIPATION

                  	 
      	
                    6

                  	 
      
	 	 	 
	
                    ARTICLE
      III DEFERRAL ELECTIONS

                  	
                    6

                  	 
      
	 	 	 	 
	
                    3.1

                  	
                    Elections
      to Defer Compensation

                  	
                    6

                  	 
      
	 	 	 	 	 
	
                    3.2

                  	
                    Investment
      Elections

                  	 
      	
                    7

                  	 
      
	 	 	 
	
                    ARTICLE
      IV DEFERRAL ACCOUNTS, COMPANY CONTRIBUTION ACCOUNT, AND

                  	 
      	 
      
	 
      	
                    TRUST

                  	 
      	 
      	 
      
	 
      	
                    FUNDING

                  	 
      	
                    8

                  	 
      
	 	 	 	 	 
	
                    4.1

                  	
                    Deferral
      Accounts

                  	 
      	
                    7

                  	 
      
	 	 	 	 
	
                    4.2

                  	
                    Company
      Contribution Account

                  	
                    8

                  	 
      
	 	 	 	 	 
	
                    4.3

                  	
                    Trust
      Funding

                  	 
      	
                    8

                  	 
      
	 	 	 	 
	
                    ARTICLE
      V VESTING

                  	 
      	
                    9

                  	 
      
	 	 	 	 
	
                    ARTICLE
      VI DISTRIBUTIONS

                  	 
      	
                    9

                  	 
      
	 	 	 	 
	
                    6.1

                  	
                    Distribution
      of Deferred Compensation and Discretionary Company
      Contributions

                  	
                    9

                  	 
      
	 	 	 	 
	
                    6.2

                  	
                    Early
      Non-Scheduled Distributions

                  	
                    11

                  	 
      
	 	 	 	 	 
	
                    6.3

                  	
                    Hardship
      Distribution

                  	 
      	
                    12

                  	 
      
	 	 	 	 
	
                    6.4

                  	
                    Inability
      to Locate Participant

                  	
                    12

                  	 
      
	 	 	 
	
                    ARTICLE
      VII ADMINISTRATION

                  	
                    12

                  	 
      
	 	 	 	 	 
	
                    7.1

                  	
                    Committee

                  	 
      	
                    12

                  	 
      
	 	 	 	 	 
	
                    7.2

                  	
                    Committee
      Action

                  	 
      	
                    13

                  	 
      
	 	 	 	 
	
                    7.3

                  	
                    Powers
      and Duties of the Committee

                  	
                    13

                  	 
      
	 	 	 	 
	
                    7.4

                  	
                    Construction
      and Interpretation

                  	
                    13

                  	 
      
	 	 	 	 	 
	
                    7.5

                  	
                    Information

                  	 
      	
                    14

                  	 
      

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          
            	
                    7.6

                  	
                    Compensation,
      Expenses and Indemnity

                  	
                    14

                  	 
      
	 	 	 	 
	
                    7.7

                  	
                    Quarterly
      Statements

                  	
                    14

                  	 
      
	 	 	 
	
                    ARTICLE
      VIII MISCELLANEOUS

                  	
                    15

                  	 
      
	 	 	 	 
	
                    8.1

                  	
                    Unsecured
      General Creditor

                  	
                    15

                  	 
      
	 	 	 	 
	
                    8.2

                  	
                    Restriction
      Against Assignment

                  	
                    16

                  	 
      
	 	 	 	 
	
                    8.3

                  	
                    Withholding

                  	
                    16

                  	 
      
	 	 	 	 
	
                    8.4

                  	
                    Amendment,
      Modification, Suspension or Termination

                  	
                    16

                  	 
      
	 	 	 	 
	
                    8.5

                  	
                    Governing
      Law

                  	
                    16

                  	 
      
	 	 	 	 
	
                    8.6

                  	
                    Receipt
      or Release

                  	
                    17

                  	 
      
	 	 	 	 
	
                    8.7

                  	
                    Payments
      on Behalf of Persons Under Incapacity

                  	
                    17

                  	 
      
	 	 	 	 
	
                    8.8

                  	
                    Limitation
      of Rights and Employment Relationship

                  	
                    17

                  	 
      
	 	 	 	 
	
                    8.9

                  	
                    Headings

                  	
                    17

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