Document:

Form of Notice of Eligibility and Participation Agreement for Douglas G. Borror

 Exhibit 10.1 
  
 DOMINION HOMES, INC. 
  
 AMENDED AND RESTATED INCENTIVE GROWTH PLAN 
  
 NOTICE OF ELIGIBILITY AND PARTICIPATION AGREEMENT - 2005 
  

			
	 To:
	 	 Douglas G. Borror

		
	 From:
	 	 Dominion Homes, Inc., Compensation Committee

		
	 Re:
	 	 Dominion Homes, Inc. Incentive Growth Plan

  
 The Compensation Committee has
designated you as a participant in the Dominion Homes, Inc. Incentive Growth Plan (“Plan”). 
  
 Our shareholders adopted the Plan [1] to provide incentive compensation to our most senior officers and [2] to ensure that the Company may deduct that incentive compensation when calculating its taxable
income. To achieve these objectives, both you, as a Plan participant, and the Company must comply with procedures imposed by the IRS. This Notice describes those procedures. Please read this Notice carefully to ensure that you completely understand
what must happen if you are to earn incentive compensation for 2005 and when this compensation, if earned, will be paid. 
  
 Note: As a condition of eligibility, you must return a signed copy of this form (see Section 3.00) to the Company’s Compensation Committee at the address shown in
Section 3.00. 
  
 1.00 Your incentive compensation will be paid if certain
conditions are met . . . 
  
 The Plan (and the IRS) require that the
Compensation Committee establish: 
  

	 	•	 	The conditions that must be met if you are to receive incentive compensation under the Plan (“Performance Criteria”); 

  

	 	•	 	The period over which the Performance Criteria are to be met (“Performance Cycle”); and 

  

	 	•	 	The amount you will receive if the Performance Criteria are met. 

  
 1.01 The Company must achieve certain financial goals 
  
 Your incentive compensation for 2005 will depend on the Company’s net income and customer satisfaction for the 2005 Performance Cycle. As described in Section 1.03,
your incentive compensation has been allocated between each of these two elements. 

 1.02 And, these goals must be met during a limited period of time . . . 
  
 The Performance Cycle will be the Company’s 2005 fiscal year. 
  
 1.03 If these conditions are met, you will receive incentive compensation . . .

  
 If the Performance Criteria described in Section 1.03[1] are met at
any time during the 2005 Performance Cycle (see Section 1.02), you will receive the incentive compensation described in this section, subject to forfeiture as described in Section 1.03[4]. 
  
 If the Performance Criteria described in Section 1.03[2] are met at the end of the 2005
Performance Cycle (see Section 1.02), you will receive the incentive compensation described in this section. 
  
 [1] Net Income Performance Criteria 
  
 If the Net Income Performance Criteria is met, you will receive incentive compensation in the following amount: 
  

						
	 Category

	  	Net Income Achieved

	 	Incentive Compensation Paid

	 Target
	  	100% of Target Net Income	 	$	0
	 Stretch
	  	180% of Target Net Income	 	$	480,000
	 Exceptional
	  	300% of Target Net Income	 	$	720,000

  
 [2] Customer Satisfaction
Performance Criteria 
  
 If the Customer Satisfaction Performance
Criteria (as measured by affirmative customer survey responses to the question “Would you recommend us to a friend?”) is met at the end of the Performance Cycle, you will receive incentive compensation in the following amount: 

 

						
	 Category

	  	Customer Satisfaction Achieved

	 	Incentive Compensation Paid

	 Target
	  	94%	 	$	0
	 Stretch
	  	95%	 	$	120,000
	 Exceptional
	  	96%	 	$	180,000

  

 -2- 

 [3] Limitation 
  
 If the Company’s net income or customer satisfaction fall between the levels specified in Section 1.03[1] or [2], you will receive the amount associated with the
next lowest stated increment (no incremental bonus amounts will be paid). 
  
 [4] Forfeiture 
  
 If, after you have been paid your
incentive compensation for 2005, the Company restates its net income such that the Net Income Performance Criteria specified in Section 1.03[1] was not met during the Performance Period (or the Compensation Committee otherwise determines that the
Net Income Performance Criteria was not met during the Performance Period), you must repay to the Company the incentive compensation you received pursuant to Section 1.03[1] within 30 days of the restatement or the Compensation Committee’s
determination. 
  
 2.00 There are a few other rules . . .

  
 The Plan imposes a few additional rules that may affect your
incentive compensation: 
  

	 	•	 	If you die, Retire (i.e., terminate employment after age 55) or become disabled (as defined in the Company’s disability plan) during the 2005 Performance Cycle, you may receive
Plan incentive compensation but only to the extent the Performance Criteria described in Section 1.03[1] are met at any time during the 2005 Performance Cycle. In this case, you (or your beneficiary) will receive the amount described in Section
1.03[1] reduced to reflect the number of whole months that you worked during the 2005 Performance Cycle (e.g., if you worked only 50 percent of the 2005 Performance Cycle, you (or your beneficiary) would receive only 50 percent of the amount
described in Section 1.03[1]). 

  

	 	•	 	If you die, Retire (i.e., terminate employment after age 55) or become disabled (as defined in the Company’s disability plan) during the 2005 Performance Cycle, you may receive
Plan incentive compensation but only to the extent the Performance Criteria described in Section 1.03[2] are met at the end of the 2005 Performance Cycle. In this case, you (or your beneficiary) will receive the amount described in Section 1.03[2]
reduced to reflect the number of whole months that you worked during the 2005 Performance Cycle (e.g., if you worked only 50 percent of the 2005 Performance Cycle, you (or your beneficiary) would receive only 50 percent of the amount described in
Section 1.03[2]). 

  

	 	•	 	If you terminate employment before the end of the 2005 Performance Cycle for any reason other than death, retirement or disability, you will not receive any incentive compensation
for the 2005 Performance Cycle, even if the Performance Criteria described in Section 1.03 are met. 

  

 -3- 

	 	•	 	If a “change in control” (as defined in the Plan) occurs during the 2005 Performance Cycle, you will receive 100 percent of your Stretch bonus amount regardless of whether
(1) the Performance Criteria for the 2005 Performance Cycle have been met and (2) the 2005 Performance Cycle has been completed. 

  

	 	•	 	As of the end of the 2005 Performance Cycle, the Compensation Committee will review the extent to which Performance Criteria have been met and whether (and how much) incentive
compensation is due under the Plan. The Compensation Committee will certify its conclusions to the Board. 

  

	 	•	 	Any incentive compensation you earn for 2005 will be paid in a lump sum no later than 90 days after the end of the 2005 Performance Cycle. However, if there is a change in control
during the 2005 Performance Cycle, 100 percent of your Stretch bonus amount will be paid no later than 60 days after the change in control occurs. 

  

	 	•	 	You may designate a beneficiary to receive any Plan incentive compensation that becomes due after your death. This can be done by completing the attached beneficiary designation
form. If you do not complete this form, any Plan incentive compensation due at your death will be paid to your surviving spouse or, if you leave no surviving spouse, to your estate. 

  
 3.00 You must sign this form . . . 
  
 Note: You will not receive any Plan incentive compensation unless you return a signed
copy of this Notice to the Compensation Committee, c/o Christine A. Murry, Corporate Counsel and Assistant Secretary of the Company, at the Company’s corporate offices, 5000 Tuttle Crossing Boulevard, Dublin, Ohio no later than March 31, 2005.

  
 By signing below, I acknowledge that I understand the terms of the
Dominion Homes, Inc. Incentive Growth Plan and the conditions that must be met before I can receive any incentive compensation from that plan. 
  

			
	 EMPLOYEE:
	 	 
		
	  

	 	  

	 Douglas G. Borror
	 	                                        
     (Date)

		
	 RECEIVED BY:
	 	 
		
	  

	 	  

	 (Authorized Dominion Homes, Inc. representative)
	 	                                        
     (Date)

		
	  

	 	 
	 Print Name
	 	 

  

 -4- 

 ATTACHMENT 
 TO 
 DOMINION HOMES, INC. 
 INCENTIVE GROWTH PLAN 
 NOTICE OF PARTICIPATION AND ELGIBILITY 

 
 Beneficiary Designation 
  
 Primary Beneficiary Designation. I designate the following persons as my Primary
Beneficiary or Beneficiaries to receive any amounts payable on my death under this Agreement. This benefit will be paid, in the proportion specified, to: 
  

							
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 

  
 Note: You are not required to
name more than one Primary Beneficiary but if you do, the sum of these percentages may not be larger than 100 percent. 
  

 -5- 

 Contingent Beneficiary Designation. If one or more of my Primary Beneficiaries dies before I die, I direct that
any amounts payable on my death under this Agreement benefit that might otherwise have been paid to that Beneficiary: 
  

							
	 	  	Be paid to my other named Primary Beneficiaries in proportion to the allocation given above (ignoring the interest allocated to the deceased Primary Beneficiary);
or
	 	  
		
	 	  	Be distributed among the following Contingent Beneficiaries
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 

  
 Note: You are not required to
name more than one Contingent Beneficiary but if you do, the sum of these percentages may not be larger than 100 percent. 
  

			
	  

	 	  

	 (Signature)
	 	(Date)                                
		
	  

	 	 
	 (Print Name)
	 	 
		
	  

	 	 
	 (Address)
	 	 
		
	 RECEIVED BY:
	 	 
		
	  

	 	  

	 (Authorized Dominion Homes, Inc. representative)
	 	(Date)Form of Performance Share Award Agreement for Douglas G. Borror

 Exhibit 10.2 
  
 DOMINION HOMES, INC. 
 2003 STOCK OPTION AND INCENTIVE EQUITY PLAN 
  
 PERFORMANCE SHARE AWARD AGREEMENT FOR 
 DOUGLAS G. BORROR 
  
 1.00 Description of Your Award 
  
 You have been granted Performance Shares through which you may acquire common shares of
Dominion Homes, Inc. (“Company”) but only if the conditions described in this Award Agreement are met (“Award”). This Award is issued through (and is subject to all the terms of) the Dominion Homes, Inc. 2003 Stock Option and
Incentive Equity Plan (“Plan”). Federal income tax rules apply to your Award. These rules and other terms affecting your Award are described in this Award Agreement, the Plan and the Plan’s prospectus, all of which you should read
carefully. 
  
 No later than March 31, 2005, you must return a signed copy of this
Award Agreement to: 
  
 Christine A. Murry 
 Corporate Counsel and Assistant Secretary 
 Dominion Homes, Inc. 
 5000 Tuttle Crossing Boulevard 
 Post Office Box 5000 
 Dublin, Ohio 43016-5555 
  
 If you do not do this, your Award will be revoked automatically as of the Grant Date. 
  
 2.00 Terms and Conditions of Your Award 
  
 2.01 Grant Date: Your Award was issued on March 21, 2005. 
  
 This is the date you begin to earn the right to acquire common shares of the Company
through your Award. On the Settlement Date (see below) these shares will be distributed to you or forfeited depending on whether or not you satisfy the terms and conditions described in this Award Agreement. 
  
 2.02 Number of Shares Subject to Your Award: You have been granted an opportunity to
earn common shares of the Company having a value up to $300,000 on the Settlement Date (see below). 
  
 If you satisfy the terms and conditions described in this Award Agreement, you will receive common shares of the Company having a value of up to $300,000 on the Settlement Date (see below). 
  
 2.03 Performance Period and Settlement Date: The period beginning on January 1, 2005
and ending on the Settlement Date (i.e., December 31, 2005). 
  
 This is the
date over which the Plan’s Committee will determine whether or not you have met the terms and conditions imposed on your Award. 

 3.00 When Your Award Will Be Settled 
  
 3.01 Vesting: Subject to Section 3.02 and 3.03, your Award either will be forfeited or converted to common shares of the Company if
you are actively employed by the Company (or a Company Subsidiary as defined in the Plan) on the Settlement Date and if the following criteria are met. 
  
 [1] Net Income Performance Criteria 
  
 If the Net Income Performance Criteria is met at any time during the Performance Period, you will receive common shares of the Company having the following
value on the Settlement Date: 
  

				
	 Net Income Achieved at Anytime
 During the
Performance Period

	  	 Value of Shares Earned
 at Settlement Date

	 Less than 100% of Target Net Income
	  	$	0
	 100% to Less than 180% of Target Net Income
	  	$	240,000
	 180% or greater of Target Net Income
	  	$	0

  
 [2] Customer Satisfaction
Performance Criteria 
  
 If the Customer Satisfaction Performance Criteria
(as measured by affirmative customer survey responses to the question “Would you recommend us to a friend?”) is met at the Settlement Date, you will receive common shares of the Company having the following value on
the Settlement Date: 
  

				
	 Customer Satisfaction Achieved
 at
Settlement Date

	  	Value of Shares Earned

	 Less than 94 percent
	  	$	0
	 94 percent – Less than 95 percent
	  	$	60,000
	 95 percent or greater
	  	$	0

  
 3.02 How Your Award May Be Earned
Earlier: Regardless of the regular settlement criteria, your Award will be earned: 
  

	 	•	 	If you die, Retire (i.e., terminate employment after age 55) or become disabled (as defined in the Company’s disability plan) during the Performance Period, you (or your
beneficiary) will receive the shares attributable to the Net Income Performance Criteria but only if net income is at least 100% of target net income at any period during the Performance Period and never reaches 180% of target net income at any time
during the Performance Period. 

  

 -2- 

	 	•	 	If you die, Retire (i.e., terminate employment after age 55) or become disabled (as defined in the Company’s disability plan) during the Performance Period, you (or your
beneficiary) will receive a portion of the shares attributable to the Customer Satisfaction Criteria but only if positive customer satisfaction levels are at least 94 percent but not 95 percent or greater on the Settlement Date. In this case, you
(or your beneficiary) will receive the shares attributable to the Customer Satisfaction Criteria reduced to reflect the number of whole months that you worked during the Performance Period (e.g., if you worked only 50 percent of the Performance
Period, you (or your beneficiary) would receive only 50 percent of the shares attributable to the Customer Satisfaction Criteria. 

  
 3.03 How Your Award May Be Forfeited: Regardless of the regular settlement criteria, you will forfeit your Award: 
  

	 	•	 	If the Compensation Committee reduces the number of common shares you may receive at the Settlement Date; 

  

	 	•	 	If you terminate employment before the end of the Performance Period for any reason other than death, Retirement or disability; 

  

	 	•	 	If a “change in control” (as defined in the Plan) occurs during the Performance Period; 

  

	 	•	 	If you violate the noncompetition covenant described in Section 10.05 of the Plan; 

  

	 	•	 	If, after the Settlement Date, the Company restates its net income such that the Net Income Performance Criteria was not met during the Performance Period; or

  

	 	•	 	If, after the Settlement Date, the Compensation Committee otherwise determines that the Net Income Performance Criteria was not met during the Performance Period.

  
 4.00 Settling Your Award 
  
 If all applicable terms and conditions have been met, your Award will be fully settled
automatically on the Settlement Date; you are not required to do anything on the Settlement Date. 
  
 5.00 Other Rules Affecting Your Award 
  
 5.01 Rights During the Performance Period: During the Performance Period, you will not be entitled to exercise any voting rights associated with or dividends associated with the shares underlying your Award.

  

 -3- 

 5.02 Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any shares that might be
distributable after you die. This may be done only on the attached Beneficiary Designation Form and by following the rules described in that form. If you have not made an effective beneficiary designation, your beneficiary will be your surviving
spouse or, if you do not have a surviving spouse, your estate. 
  
 5.03
Tax Withholding: Income taxes will be withheld from your other compensation payable on the Settlement Date (or, if you are not entitled to other compensation on the Settlement Date, by withholding a number of shares have a value equal to the
taxes required to be withheld). The amount withheld will be based on the value of the shares earned on the Settlement Date. This will happen automatically; there is nothing you need to do. 
  
 5.04 Governing Law: This Award Agreement will be construed in accordance with and
governed by the laws (other than laws governing conflicts of laws) of the United States and of the State of Ohio. 
  
 5.05 Other Agreements: Your Award is subject to the terms of any other written agreements between you and the Company. 
  
 5.06 Adjustments to Award: Your Award will be adjusted, if appropriate, to reflect any
change to the Company’s capital structure. 
  
 5.07 Other Rules: Your
Award also is subject to more rules described in the Plan and in the Plan’s prospectus. You should read both these documents carefully to ensure you fully understand all the terms and conditions of this Award. 
  
 5.08 Amount of Forfeiture: In the event that all or a portion of your Award is
forfeited due to a restatement of net income for the Performance Period or a determination by the Compensation Committee the Net Income Performance Criteria was not met during the Performance Period, you must repay the Company $240,000, (either in
cash or in common shares valued at the time such repayment is made) within 30 days of the date of the restatement or the Compensation Committee’s determination. 
  
 6.00 Tax Treatment of Your Award 
  
 The federal income tax treatment of your Award is discussed in the Plan’s prospectus. 
  
 ***** 
  
 You may contact Christine A. Murry at (614) 356-5000 or at the address given below if you have any questions about your Award
or this Award Agreement. 
  
 ***** 
  
 7.00 Your Acknowledgment of Award Conditions 
  
 Note: You must sign and return a copy of this Award Agreement no later than March
31, 2005. 
  

 -4- 

 By signing below, I acknowledge and agree that: 
  

	 	•	 	I either have received a copy of the Plan or have had an opportunity to receive a copy of the Plan; 

  

	 	•	 	I have received a copy of the Plan’s prospectus; 

  

	 	•	 	I understand and accept the terms and conditions placed on my Awards and understand what I must do to earn my Award; 

  

	 	•	 	I understand that the Compensation Committee may reduce the number of common shares I may receive at the Settlement Date; 

  

	 	•	 	I understand that if, after the Settlement Date, the Company restates its net income such that the Net Income Performance Criteria was not met during the Performance Period (or the
Compensation Committee otherwise determines that the Net Income Performance Criteria was not met during the Performance Period), I must repay the Company $240,000 (either in cash or in common shares valued at the time such repayment is made) within
30 days of the date of the restatement or the Compensation Committee’s determination; 

  

	 	•	 	I will consent (without any further consideration) to any change to my Award or this Award Agreement so I can avoid paying penalties under Section 409A of the Internal Revenue Code,
even if those changes affect the terms and conditions of my Award and reduce its value or potential value; and 

  

	 	•	 	If I do not return a signed copy of this Award Agreement to the address shown below not later than March 31, 2005, my Award will be retroactively withdrawn as of the Grant Date and
I will not be entitled to receive any shares on account of the retroactively revoked Award. 

  

	
	 Douglas G. Borror

	  

	 (signature)

	
	 Date signed:
                    

  

 -5- 

 A signed copy of this form must be sent to the following address no later than March 31, 2005: 
  
 Christine Murry 
 Corporate Counsel and Associate Secretary 
 Dominion Homes, Inc. 
 5000 Tuttle Crossing Boulevard 
 Post Office Box 5000 
 Dublin, Ohio 43016-5555 
  
 After it is received, the Dominion Homes, Inc. Compensation Committee will acknowledge receipt of your signed agreement. 
  
 ***** 
  
 8.00 Committee’s Acknowledgment of Receipt 
  
 A signed copy of this Award Agreement was received on
                    . 
  

			
	 By:
	 	  

	
	 Douglas G. Borror:

  
              Has complied with the conditions imposed on the grant and the Award and the Award Agreement remain in effect; or 
  
              Has not complied with the conditions imposed on the grant and the Award and the Award Agreement is retroactively revoked as of the Grant Date because

  

	
	 
	describe deficiency

  
 Dominion Homes, Inc. Compensation
Committee 
  

			
	By:	 	  

	
	Date:                     

  
 Note: Send
a copy of this completed form to the grantee and keep a copy as part of the Plan’s permanent records. 
  

 -6- 

 ATTACHMENT 
 TO 
 DOMINION HOMES, INC. 
 2003 STOCK OPTION AND INCENTIVE EQUITY PLAN 
 PERFORMANCE SHARE AWARD AGREEMENT

  
 Beneficiary Designation 
  
 Primary Beneficiary Designation. I designate the following persons as my Primary
Beneficiary or Beneficiaries to receive any shares payable on my death under this Award Agreement. This benefit will be paid, in the proportion specified, to: 
  

							
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 

  
 Note: You are not required to
name more than one Primary Beneficiary but if you do, the sum of these percentages may not be larger than 100 percent. 
  

 -7- 

 Contingent Beneficiary Designation. If one or more of my Primary Beneficiaries dies before I die, I direct that
any shares payable on my death under this Award Agreement that might otherwise have been paid to that Beneficiary: 
  

							
	 	  	Be paid to my other named Primary Beneficiaries in proportion to the allocation given above (ignoring the interest allocated to the deceased Primary Beneficiary);
or
	 	  
		
	 	  	Be distributed among the following Contingent Beneficiaries.
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 
			
	 	  	% to  	  	 
	 	  	 	  	(Name)	  	(Relationship)                    
		
	 Address:  
	  	 

  
 Note: You are not required to
name more than one Contingent Beneficiary but if you do, the sum of these percentages may not be larger than 100 percent. 
  

			
	  

	 	  

	 (Signature)
	 	(Date)                                
		
	  

	 	 
	 (Print Name)
	 	 
		
	  

	 	 
	 (Address)
	 	 
		
	 RECEIVED BY:
	 	 
		
	  

	 	  

	 (Authorized Dominion Homes, Inc. representative)
	 	(Date)                                

  

 -8-

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