DOMINION HOMES INC
STOCK OPTION AGREEMENT
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>dex101.txt
<DESCRIPTION>STOCK OPTION AGREEMENT
<TEXT>
<PAGE>

                                                                    EXHIBIT 10.1

                              DOMINION HOMES, INC.
                             STOCK OPTION AGREEMENT
                     (Directors' 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:  May 7, 2003

Name of Optionee:  Pete A. Klisares

Optionee's Social Security Number:  ###-##-####

Number of Shares Covered by Option:  2,500

Exercise Price per Share: $17.34, 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 is
immediately vested.

        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/ Pete A. Klisares
               -------------------------
                   Pete A. Klisares

Company:  By:    /s/ Robert A. Meyer, Jr.

         Its:    Senior Vice President

                                      - 1 -

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

The Plan and                       The text of the Plan, as it may be amended
Other Agreements                   from time 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 may be exercised at any time.

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 your directorship ("Service") Terminates,
                                   as described below.

Regular Termination                If your Service Terminates for any reason,
                                   other than because of your death or
                                   Disability 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 date (or, if earlier,
                                   the expiration date specified in the cover
                                   sheet).

Terminated for                     If your Service is Terminated for Cause, then
Cause                              this Option will immediately expire and you
                                   will immediately forfeit all rights to this
                                   Option.

                                      - 2 -

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Death                              If your Service Terminates because of your
                                   death, 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 your Service Terminates 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 date (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 or the sale of Shares
                                   acquired under this Option.

                                      - 3 -

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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 Rights to Continue as           Neither this Option nor this Agreement gives
Director                           you the right to continue as a Company
                                   director.

                                      - 4 -

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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 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.

                                      - 5 -

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