BEAZER HOMES USA, INC.
EMPLOYEE BONUS PLAN
1. Effective Date; Purpose of Plan.
1.1 Effective Date . Beazer Homes USA, Inc. and its wholly-owned subsidiaries (the
“Company”) adopt this Discretionary Employee Bonus Plan (the “Plan”) effective for fiscal year 2007 and future
1.2 Purpose . The Plan is a component of the Company’s overall strategy to pay its employees
for performance. The purposes of the Plan are to attract and retain top performing employees, motivate
employees by tying compensation to performance, and reward exceptional performance that supports overall
2. Administration of the Plan.
2.1 Administrator . The Plan will be administered by the Compensation Committee of the
Company’s Board of Directors (the “Committee”); provided, however, that the Committee may delegate to any
officer or officers of the Company the responsibility (in whole or in part) for Plan administration with respect to
participants who are not executive officers of the Company.
2.2 Powers of the Committee . The interpretation and construction of the Plan and the adoption
of rules and regulations for administering the Plan will be made by the Committee. The Committee will have all
powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but
not limited to, the power to (i) determine which employees will be granted awards, (ii) prescribe the applicable
period, terms and conditions of bonuses, (iii) determine whether awards will be paid in cash or by the issuance of
an equity-based instrument pursuant to the Company’s 1999 Stock Incentive Plan or any replacement equity
incentive plan (collectively, an “Equity Plan”) adopted by the Company from time to time, (iv) interpret the Plan,
(v) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and