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                                                                    EXHIBIT 10.4
                              DOMINION HOMES, INC.
                             STOCK OPTION AGREEMENT
                      (Employee Nonqualified Stock Option)

     Dominion Homes, Inc., an Ohio corporation (the "Company"), hereby grants an
option (this "Option") to purchase its common shares, without par value (the
"Shares"), to the Optionee named below. The terms and conditions of this Option
are set forth in this Agreement (which includes this cover sheet), in the
Dominion Homes, Inc. 2003 Stock Option and Incentive Equity Plan (the "Plan")
and in the Plan prospectus. Copies of the Plan and the Plan prospectus are
attached.

Option Grant Date:  July 1, 2003

Name of Optionee:  Robert A. Meyer, Jr.

Number of Shares Covered by Option:  15,000

Exercise Price per Share: $24.24, which is intended to be not less than 100
percent of the Fair Market Value of the Shares on the Option Grant Date

Vesting Schedule: Subject to all of the terms and conditions set forth in this
Agreement and the Plan, your right to purchase Shares under this Option shall
vest as follows: 1/3 of the Shares on each of the 1st, 2nd and 3rd Anniversaries
of the Option Grant Date. No Shares shall vest in any event after your
employment with the Company and all Subsidiaries ("Service") has Terminated for
any reason.

     By signing the cover sheet of this Agreement, you agree to all of the terms
and conditions described in this Agreement and in the Plan.

Optionee:                  /s/ Robert A. Meyer, Jr.
           ---------------------------------------------
                           Robert A. Meyer, Jr.


Company:   By:      /s/ Jon M. Donnell
               -----------------------------------------
                    Jon M. Donnell, President

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                              DOMINION HOMES, INC.
                             STOCK OPTION AGREEMENT
                     (Employees' Nonqualified Stock Option)

The Plan and               The text of the Plan, as it may be amended from time
Other Agreements           to time, is incorporated in this Agreement by
                           reference. This Agreement (which includes the cover
                           sheet) and the Plan constitute the entire
                           understanding between you and the Company regarding
                           this Option. Any prior agreements, commitments or
                           negotiations concerning this Option are superseded.
                           In the event that any provision in this Agreement
                           conflicts with any term in the Plan, the term in the
                           Plan shall be deemed controlling. Certain capitalized
                           terms used in this Agreement are defined in the Plan.

Nonqualified Stock Option  This Option is not intended to qualify as an
                           Incentive Stock Option under section 422 of the Code
                           and shall be interpreted accordingly.

Vesting                    This Option is only exercisable before it expires
                           and then only with respect to the vested portion of
                           this Option. This Option will vest according to the
                           Vesting Schedule on the cover sheet.

Term                       This Option will expire in any event at the close of
                           business at Company headquarters on the day before
                           the ten (10) year anniversary of the Option Grant
                           Date, as shown on the cover sheet. This Option will
                           expire earlier if you Terminate, as described below.

Regular Termination        If you Terminate for any reason, other than because
                           of your death, Disability or Retirement or because
                           you were Terminated for Cause, then this Option will
                           expire at the close of business at the Company's
                           headquarters on the ninetieth (90th) day after your
                           Termination (or, if earlier, the expiration date
                           specified in the cover sheet). This Option will not
                           continue to vest during such ninety (90) day period
                           but you may exercise any Shares which were vested as
                           of your Termination during such ninety (90) day
                           period.

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Terminated for             If you are Terminated for Cause, as determined by the
Cause                      Committee in its sole discretion,then this Option
                           will immediately expire and you will immediately
                           forfeit all rights to this Option.

Death                      If you Terminate because of your death, then this
                           Option will expire at the close of business at the
                           Company's headquarters on the date twelve (12) months
                           after the date of death (or, if earlier, the
                           expiration date specified in the cover sheet). Your
                           estate or heirs may exercise this Option at any time
                           during this period.

Disability                 If you Terminate because of your Disability, this
                           Option will expire at the close of business at
                           Company headquarters on the date twelve (12) months
                           after your Termination (or, if earlier, the
                           expiration date specified in the cover sheet).

Retirement                 If you Terminate because of your Retirement, this
                           Option will expire at close of business at Company
                           headquarters on the date twelve (12) months after
                           your Termination (or, if earlier, the expiration date
                           specified in the cover sheet).

Notice of Exercise         When you wish to exercise this Option, you must
                           notify the Company by filing an appropriate "Notice
                           of Exercise" form at the Company's headquarters. Your
                           notice must specify how many Shares you wish to
                           purchase (which may not be less than 100 shares or,
                           if smaller, the number of remaining Shares subject to
                           this Option) and how your Shares should be registered
                           (in your name only or in your and your spouse's names
                           as joint tenants or as joint tenants with right of
                           survivorship). Your notice will be effective when it
                           is received by the Company. If someone else wants to
                           exercise this Option after your death, that person
                           must prove to the Company's satisfaction that he or
                           she is entitled to do so.


Form of Payment            When you submit your notice of exercise, you must
                           include payment of the Exercise Price per Share for
                           the Shares you are purchasing. Payment may be made in
                           cash, a cashier's check or a money order or, you may
                           exercise this Option by tendering Shares you already
                           have owned for at least six months and that have a
                           fair market value equal to the Exercise Price per
                           Share for the Shares you are purchasing.

Withholding Taxes          You will not be allowed to exercise this Option
                           unless you make acceptable arrangements to pay any
                           withholding or other taxes that may be due as a
                           result of the exercise of this Option

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                               or the sale of Shares acquired under this Option.

Restrictions on Exercise and   By signing this Agreement, you agree not to
Resale                         exercise this Option or sell any Shares acquired
                               under this Option at a time when applicable laws,
                               regulations or Company or underwriter trading
                               policies prohibit exercise, sale or issuance of
                               Shares. The Company will not permit you to
                               exercise this Option if the issuance of Shares at
                               that time would violate any law or regulation.
                               The Company shall have the right to designate one
                               or more periods of time, each of which shall not
                               exceed one hundred eighty (180) days in length,
                               during which this Option shall not be exercisable
                               if the Committee determines in its sole
                               discretion that such limitation on exercise could
                               in any way facilitate a lessening of any
                               restriction on transfer pursuant to the
                               Securities Act of 1933, as amended (the
                               "Securities Act"), or any state securities laws
                               with respect to any issuance of securities by the
                               Company, facilitate the registration or
                               qualification of any securities by the Company
                               under the Securities Act or any state securities
                               laws, or facilitate the perfection of any
                               exemption from the registration or qualification
                               requirements of the Securities Act or any state
                               securities laws for the issuance or transfer of
                               any securities. Such limitation on exercise shall
                               not alter the Vesting Schedule set forth on the
                               cover page other than to limit the periods during
                               which this Option shall be exercisable.

Transfer of Option             Prior to your death, only you may exercise this
                               Option and you may not transfer or assign this
                               Option except to the Company. For instance, you
                               may not sell this Option or use it as security
                               for a loan. If you attempt to do any of these
                               things, this Option will immediately become
                               invalid. You may, however, dispose of this Option
                               in your will and, if the Company agrees, you may
                               transfer this Option to a revocable trust for the
                               benefit or your family or to a charitable
                               organization but only if you contact the Company
                               before this transfer is made. Regardless of any
                               marital property settlement agreement, the
                               Company is not obligated to honor a notice of
                               exercise from your spouse, nor is the Company
                               obligated to recognize your spouse's interest in
                               this Option in any other way.

No Employment Rights           Neither this Option nor this Agreement gives you
                               the right to continue in the employment of the
                               Company or any Subsidiary. The Company and each
                               Subsidiary reserves the right to Terminate you at
                               any time and for any reason.

No Shareholder Rights          Neither you, nor your estate or heirs, shall have
                               any rights as a shareholder of the Company until
                               this Option has been exercised and a certificate
                               for the Shares being acquired has

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                           been issued. No adjustments will be made for
                           dividends or other rights if the applicable record
                           date occurs before the certificate for the Shares is
                           issued, except as described in the Plan.

Adjustments                The Committee may adjust the number of Shares covered
                           by this Option and the exercise price per Share under
                           certain circumstances as provided in the Plan.
                           Notwithstanding anything to the contrary contained in
                           this Agreement, this Option (and the vesting thereof)
                           shall be subject to the terms of the agreement of
                           merger, liquidation or reorganization in the event
                           the Company becomes subject to such corporate
                           activity.

Applicable Law             This Agreement shall be interpreted and enforced
                           under the laws of the State of Ohio.

     By signing the cover sheet of this Agreement, you agree to all of the terms
and conditions described above and in the Plan.

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