Document:

EX-10.27

Exhibit 10.27

Technical Olympic USA, Inc.

Annual and Long-Term Incentive Plan

Director Restricted Stock Grant Agreement

AGREEMENT made as of      , 200     , between Technical Olympic USA, Inc., a Delaware
corporation (the “Company”), and      (“Director”).

To carry out the purposes of the Technical Olympic USA, Inc. Annual and Long-Term Incentive
Plan (the “Plan”) and the Policy for Compensation of Outside Directors, by granting Director an
ownership interest in Technical Olympic USA, Inc. (the “Company”), by aligning the Director’s
financial interests more closely with those of the stockholders of the Company, and in recognition
of Director’s significant duties and responsibilities as a member of the Company Board of
Directors, the Company and Director hereby agree as follows:

1. Awarded Stock. The Company hereby irrevocably grants to Director      shares
of common stock of the Company with a par value of $.01 per share (“Awarded Stock”), on the terms
and conditions set forth herein and in the Plan, which Plan is incorporated herein by reference as
a part of this Agreement. In the event of any conflict between the terms of this Agreement and the
Plan, the Plan shall control. Capitalized terms used but not defined in this Agreement shall have
the meaning attributed to such terms under the Plan, unless the context requires otherwise.

2. Rights of Stock Ownership. As of the date hereof and subject to the restrictions
set forth in sections 3 and 4 of this Agreement, Director shall have full beneficial ownership of,
and rights and privileges of a stockholder as to, the Awarded Stock, including the right to vote
and the right to receive dividends attributable to such Awarded Stock. In the event of a
declaration of dividends payable in stock, such dividends shall be imputed to the awarded Stock.
Any fractional shares shall be redeemed for in cash. In the event of the declaration of a cash
dividend, such dividend shall be paid in cash.

3. Transfer Restrictions. The shares of Awarded Stock received by Director pursuant
to this Agreement may not be sold, transferred, pledged, assigned, or otherwise encumbered or
disposed of by Director until Director ceases to be a director of the Company; provided, however,
that Director may sell, transfer, or assign shares of Awarded Stock to members of his immediate
family (as defined below) sharing the same household (“Immediate Family Members”), or a trust,
partnership, limited liability company, corporation (including a personal holding company), or
similar vehicle established solely for the benefit of, or the partners, members, or stockholders of
which are solely, the Director and/or any such Immediate Family Members. The term “immediate
family” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law, and shall include adoptive relationships.

4. Director’s Representation. By signing this Agreement, Director represents that
such shares are being acquired for Director’s account for investment and not with a view to, or for
sale in connection with, the distribution of any part thereof. Director further acknowledges that
the Awarded Stock may not be sold, transferred, pledged, assigned, or otherwise encumbered or
disposed of except pursuant to an available exemption from the registration requirements of the
Securities Act of 1933, as amended, and therefore agrees that Awarded Stock will not be sold or
otherwise disposed of in any manner which would constitute a violation of any applicable federal or
state securities laws.

5. Government and Other Regulations. The obligation of the Company to

deliver the Awarded Shares shall be subject to all applicable laws, rules, and regulations and such
approvals by any governmental agencies or regulatory authorities as may be required or be deemed
necessary or appropriate by counsel for the Company. Director agrees that (i) the certificates
representing the Awarded Stock may bear such legend or legends as the Company deems appropriate in
order to assure compliance with applicable securities laws and to reflect all the restrictions set
forth in this Agreement, (ii) the Company may refuse to register any transfer of Awarded Stock on
the stock transfer records of the Company if such proposed transfer would, in the opinion of
counsel satisfactory to the Company, constitute a violation of any applicable securities law, and
(iii) the Company may give related instructions to its transfer agent, if any, to stop registration
of the transfer of Awarded Stock.

6. No Right to Continue as Director. Nothing contained in the Plan or this Agreement
shall be deemed to confer upon Director any right to continue as a director of, or to be associated
in any other way with, the Company.

7. Withholding of Tax. To the extent that this award or the disposition of Awarded
Stock acquired hereby results in wages to Director for federal, state, or local tax purposes,
Director shall deliver to the Company at the time of such award or disposition such amount of
money, if any, as the Company may require to meet its minimum withholding obligations under
applicable tax laws or regulations.

8. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Director.

9. Entire Agreement. This Agreement together with the attached Exhibit A constitutes
the entire agreement of the parties with regard to the subject matter hereof, and contains all the
covenants, promises, representations, warranties and agreements between the parties with respect to
the Awarded Stock. Without limiting the scope of the preceding sentence, all prior understandings
and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby
null and void and of no further force and effect. Any modification of this Agreement shall be
effective only if it is in writing and signed by both Director and an authorized officer of the
Company.

10. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and Director has executed this Agreement, all effective as of the day and year
first above written.

TECHNICAL OLYMPIC USA, INC.

By:      

Name:      

Title:      

DIRECTOR

Exhibit A: Change of Control

1

EXHIBIT A

	 	 	“Change of Control” means the occurrence of any of the following events, each of which
shall be determined independently of the others:

(a) any “Person” (as defined below) becomes a “beneficial owner” (as such term is used in Rule
13d-3 promulgated under the Exchange Act) of forty percent (40%) or more of the stock of any member
of the Consolidated Group (as defined below) entitled to vote in the election of directors. For
purposes of this Exhibit A, the term “Person” is used as such term is used in Sections 13(d) and
14(d) of the Exchange Act; provided, however that the term shall not include any member of the
Consolidated Group, any trustee or other fiduciary holding securities under an employee benefit
plan of any member of the Consolidated Group, or any corporation owned, directly or indirectly, by
the stockholders of any member of the Consolidated Group;

(b) stockholders of any member of the Consolidated Group adopt a plan of complete or
substantial (eighty-five percent (85%) or more) liquidation or an agreement providing for the
distribution of all or substantially all of the assets of such member;

(c) any member of the Consolidated Group is party to a merger, consolidation, other form of
business combination or a sale of all or substantially all (eighty-five percent (85%) or more) of
its assets, unless the business of such member is continued following any such transaction by a
resulting entity (which may be, but need not be, such member) and the stockholders of such member
immediately prior to such transaction (the “Prior Stockholders”) hold, directly or indirectly, at
least forty percent (40%) of the voting power of the resulting entity (there being excluded from
the voting power held by the Prior Stockholders, but not from the total voting power of the
resulting entity, any voting power received by Affiliates of a party to the transaction (other than
such member) in their capacities as stockholders of such member); provided, however, that a merger
or consolidation effected to implement a recapitalization of such member (or similar transaction)
in which no Person acquires more than thirty percent (30%) of the combined voting power of such
member’s then outstanding securities shall not constitute a Change in Control; or

(d) any member of the Consolidated Group is a subject of a “Rule 13e-3 transaction” as that
term is defined in Exchange Act Rule 13e-3, and the first purchase has been made pursuant to such
transaction.

Notwithstanding the foregoing, if, immediately after the occurrence of any event enumerated
above, the Continuing Directors control the majority of the Board of Directors of the Company (or,
in the case of any merger or combination in which the Company is not the surviving entity, continue
to constitute a majority of the board of directors of such successor entity), such event shall not
constitute a Change of Control for purposes of this Agreement until such time as the Continuing
Directors no longer constitute a majority of the Board of Directors of the Company (or the
successor entity, if applicable). “Continuing Directors” for this purpose means the members of the
Board of Directors of the Company on the Effective Date, provided that any person becoming a member
of the Board of Directors of the Company subsequent to such date whose election or nomination for
election was supported by a majority of the directors who at the time of the election or nomination
for election comprised the Continuing Directors shall be considered to be a Continuing Director.

“Consolidated Group” shall mean (i) the group of companies composed of Technical Olympic,
Inc. or the Company, and (ii) any successor or surviving company of any of the foregoing entities.

2Exhibit 10.33

SUMMARY DESCRIPTION OF THE DIXIE GROUP, INC

2004 ANNUAL INCENTIVE PLAN

 

The following is a description of the Company's 2004 Incentive Plan ("Plan") for its executive officers (including all individuals who are "named executive officers" for purposes of the Summary Compensation Table disclosures required in the Company's annual Proxy Statement).

Pursuant to the Plan, each executive officer's compensation for the year will consist of his or her Base Salary, plus the opportunity to earn two separate bonus components calculated in accordance with the terms of the Plan - an Annual Incentive Award and a Long-Term Incentive Award.  The Plan is administered by the Compensation Committee of the Board of Directors, which determines the range of potential Annual and Long-Term Incentive Award payments that may be earned, the performance criteria for determining the amount earned by each executive, and the form in which Long-Term Incentive Awards will be paid.  In order to receive any payout pursuant to either Annual Incentive Awards or Long-Term Incentive Awards under the Plan, an executive must be an employee of the Company at the time when the award is paid.

Annual Incentive Awards

For executive officers whose responsibilities are primarily related to the operations of one or more business units, and for the Chief Executive Officer, the Annual Incentive Award component provides each participant with the opportunity to earn a cash bonus payment ranging from 16.7% to 100% of such participant's Base Salary.  For executive officers in this category (other than the CEO), 50% of the amount of the Annual Incentive Award is determined based on the achievement of specified levels of annual business unit earnings before interest and taxes from continuing operations ("EBIT"), 20% of the Annual Incentive Award is determined based on the achievement of specified levels of annual corporate EBIT, and 30% of the Annual Incentive Award is determined based on the achievement of qualitative individual performance goals set by the Compensation Committee.  For the CEO, 70% of the amount of the Annual Incentive Award is determined based on the achievement of specified levels of annual corporate EBIT and 30% of the Award is determined based on qualitative individual performance goals set by the Compensation Committee.

For executive officers whose responsibilities are primarily related to corporate-level administration, the Annual Incentive Award component provides each participant with the opportunity to earn a cash bonus payment ranging from 7.5% to 60% of such participant's Base Salary, with 70% of the amount of the Annual Incentive Award determined based on the achievement of specified levels of annual corporate EBIT and 30% of the Award based on the achievement of qualitative individual performance goals set by the Compensation Committee.

For all participants, the Compensation Committee will condition the payment of any Annual Incentive Award compensation on the achievement of specified minimum "threshold" levels for one or more elements of the applicable bonus formula.  Annual Incentive Awards earned under the Plan will be paid to participants in cash not later than March 15, 2005.

Long-Term Incentive Awards

In the event that an executive achieves at least the performance levels required to receive a minimum "threshold" payout under the Annual Incentive Award component of the Plan, he or she also will receive an additional Long-Term Incentive Award, the value of which will be equal to either (a) 2 times the amount of the Annual Incentive Award earned for executive officers whose responsibilities are primarily related to the operations of one or more business units, and for the Chief Executive Officer, or (b) 0.5 to 1.5 times the amount of the Annual Incentive Award earned for executive officers whose responsibilities are primarily related to corporate-level administration.

The Company's present intention is that one-half of the amount of the Long-Term Incentive Award for each participant will be paid in the form of a restricted stock award issued under the Company's Stock Incentive Plan (valued based on the market price at the time of issue and vesting in three equal annual installments) and the other half of the amount of the Long-Term Incentive Award will be paid in the form of a stock option issued under the Stock Incentive Plan and having a six-year term (with the number of shares determined based on a valuation using the Black-Scholes method at the date of grant and vesting in four equal annual installments, beginning on the second anniversary of the date of grant).  Long-Term Incentive Awards earned under the Plan will be paid to participants not later than March 15 of the following year.  The Compensation Committee retains discretion to provide for the payout of Long-Term Incentive Awards in any other form of consideration, including cash payments, that the Compensation Committee may determine at the time of such payout.

2004 Base Salary Levels for Named Executive Officers

The following are the base salary levels that will be used in calculating any incentive awards under the Plan for each of the executive officers required to be named in the Summary Compensation Table of the Company's annual Proxy Statement:

	
Officer's Name and Title
	 	
2004 Base Salary

	
Daniel K. Frierson 

  Chairman of the Board and

  Chief Executive Officer

	 	
$500,000

	
Kenneth L. Dempsey

  Vice President and President,

  Masland Carpets

	 	
$215,000

	
David E. Polley

  Vice President, Marketing

	 	
$215,000

	
Gary A Harmon

  Vice President and Chief Financial Officer

	 	
$195,000

	
Royce R. Renfroe

  Vice President and President,

  Fabrica International

	 	
$215,000

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