EXHIBIT 10.30

     
TousaLogo [g94611g9461101.gif]
  4000 Hollywood Blvd., Suite 500-N
Hollywood, FL 33021
(954) 364-4000 (main voice)
(954) 364-4037 (fax)

 

 

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POLICY FOR COMPENSATION
OF OUTSIDE DIRECTORS

 

 

 

 

 

             
Department: Legal
    Policy Number: 007
Policy Owner: Patricia M. Petersen    
Frequency of Review: Annually
Date of Next Review: January 1, 2006
    Last Reviewed: March 3, 2005
Effective Date: January 1, 2005    

 

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TECHNICAL OLYMPIC USA, INC.
Policy for Compensation of Outside Directors
Policy Effective Date: 1 January 2003

1.0   PURPOSE       In order to attract and retain the very best director talent
available, the company strives to provide a market-competitive and strategically
aligned total compensation package that reflects current market practices and
trends in the U.S. for similar roles in similar organizations.   2.0   SCOPE  
    This policy applies to the Outside directors (each an “Outside Director”)
serving on the Board of Directors of Technical Olympic USA, Inc. (TOUSA).  
3.0   POLICY

  3.1   The Board of Directors and its designees will administer the Outside
Director compensation program described and authorized by this policy. Any
equity compensation awards to Outside Directors will be administered under the
terms and conditions of the Company’s Annual and Long-Term Incentive Plan.    
3.2   Outside Directors shall be eligible to receive compensation consisting of
the following elements, each of which is described in greater detail in 3.2.1 to
3.2.5:

  •   Annual Retainer     •   Audit Committee Member Fee     •   Human
Resources, Compensation and Benefits Committee Member Fee     •   Reimbursed
Board Meeting Expenses     •   Annual Equity Award

  3.2.1   The Annual Retainer will be set at $60,000, and will be paid in equal
quarterly installments during each fiscal year. The amount of the Annual
Retainer will be evaluated periodically to ensure that it remains competitive
with market practices and trends in the U.S.     3.2.2   The Outside Director
who serves as Chairperson of the Audit Committee shall receive an annual
committee fee in the amount of $20,000 payable upon confirmation of committee
assignments by the Board of Directors.     3.2.3   The Outside Director who
serves as Chairperson of the Human Resources, Compensation and Benefits
Committee shall receive an annual committee fee in the amount of $10,000 payable
upon confirmation of committee assignments by the Board of Directors.

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  3.2.4   All reasonable Board Meeting Expenses will be reimbursed upon proper
submission and documentation. These fees include but are not limited to travel,
accommodations, meals, telephone charges, and other related out-of-pocket
expenses.     3.2.5   An Annual Equity Award will be provided during the first
quarter of each year during which the individual continues to serve as an
Outside Director. The Annual Equity Award will be valued at $60,000 and will be
delivered via either (a) Non-Qualified Stock Options (NSO’s), or (b) Restricted
Stock.

  (a)   In the case of NSO’s, the NSO’s will have an exercise price equal to the
FMV of the stock on the date of grant, will vest ratably over a 12 month period,
and have a 10-year term.     (b)   In the case of Restricted Stock, the
restrictions will lapse when the Director ceases to be a Director of the
Company. In the event of a declaration of cash dividends, any such cash dividend
payable with respect to the Restricted Stock shall be paid directly to the
Director holding such Restricted Stock. In the event of the declaration of a
stock split or stock dividend, the outstanding Restricted Stock shall be
adjusted in the same manner as all other outstanding shares of Common Stock.

  3.3   The Senior Outside Director (as designated by the Board of Directors)
shall also serve as Director of the Board Executive Committee. The Senior
Outside Director shall receive an Annual Retainer of $120,000, relevant
Committee fees, reimbursement of Board Meeting Expenses, and an Annual Equity
Award valued at $120,000, granted in accordance with the terms set forth in
3.2.1 to 3.2.5 above.     3.4   Calculation of the Annual Equity Award levels
shall be as follows:

  3.4.1   In the case of NSO’s, the number of Non-Qualified Stock Options
granted will be equal to the Annual Equity Award Value divided by the
Black-Scholes Value of a single stock option. The same assumptions will be used
for this calculation of option value as is used for purposes of FAS 123
disclosure requirements.     3.4.2   In the case of Restricted Stock, the number
of shares granted will be equal to the Annual Equity Award Value divided by the
Fair Market Value of the stock on the date of grant. No discounts to the fair
market value will be considered in calculating the number of Restricted Stock
shares that comprise the award.     3.4.3   See Appendix A and B for
illustrations of these calculations.

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  3.5   The determination of whether the Annual Equity Award will be delivered
via NSO’s or Restricted Stock shall be made by election of the Outside Director.
    3.6   In the event of death, disability, or incapacity of an Outside
Director, or a change in control of TOUSA, such event shall cause the immediate
vesting of any non-vested NSO’s and/or the immediate lapsing of restrictions on
any Restricted Stock then held by such Outside Director.

4.0   POLICY CHANGES       TOUSA, by and through its Board of Directors, may
modify this policy at any time and without prior notice.

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APPENDIX A
SAMPLE FORMULAS

Annual Equity Award Paid in Options

         
Targeted Award Value

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Black-Scholes Option Value
  =   # Stock Options

Annual Equity Award Paid in Restricted Stock

         
Annual Retainer Amount

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FMV of Stock
  =   # Shares

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APPENDIX B
SAMPLE CALCULATIONS

                 
Assumptions:
             
Fair Market Value (FMV) of Stock
    $ 10.00      
Black-Scholes Option Value (estimate)
    $ 4.00      
Annual Equity Award Target Value
    $ 60,000      

Annual Equity Award in Options

         
$60,000

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$4.00
  =   15,000 Stock Options

Annual Equity Award Paid in Restricted Stock

         
$60,000

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$10.00
  =   6,000 Shares

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APPENDIX C
SIDE BY SIDE COMPARISON OF PLANS
FOR OUTSIDE DIRECTORS

                       
 
    FORMER PLAN     2005 PLAN BASICS    
Annual Retainer
    $40,000*     $ 60,000*      
Board Meeting Fee
    None     None    
Audit Committee
Chairperson Fee
    None     $ 20,000      
Human Resources,
Compensation and
Benefits Committee
Chairperson Fee
    None     $ 10,000      
Reimbursed Expenses
    Board Meetings Attended     Board Meetings Attended    
Annual Equity Award
    $40,000* (Options or
Restricted Stock)     $60,000* (Options or
Restricted Stock)    

* Senior Outside Director at 2x.

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