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Exhibit 10.h
HUFFY CORPORATE SECTION: HUMAN RESOURCES
CORPORATION POLICY
POLICY NO.: 129 (RESTRICTED)
ISSUE DATE: 02/16/01
SUPERSEDES: 10/01/98
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SUBJECT: LONG TERM INCENTIVE PLAN - REVISED
POLICY
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HUFFY CORPORATE OFFICERS AND HUFFY COMPANY PRESIDENTS SHALL PARTICIPATE IN A
LONG TERM INCENTIVE COMPENSATION PLAN TO PROVIDE A FOCUS CONSISTENT WITH
SHAREHOLDERS' LONGER TERM EXPECTATIONS AND WITH MARKET COMPETITIVE COMPENSATION
LEVELS.
Award as a % of Base Salary
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I. Participants Target Maximum
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A. Chairman, President and Chief 50% 100%
Executive Officer
B. Vice President-Finance, 25% 50%
Chief Financial Officer and Treasurer
Vice President and Controller
Vice President-General Counsel &
Secretary
Vice President-Human Resources
and Organization Development
President & General Manager - HBC
President & General Manager - HSC
President & General Manager - HSF
II. Measurement
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Awards shall be based on performance of measures weighted as follows:
Corporate Officers Huffy Company Presidents
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1. Corporate RONA - 33-1/3% 1. Huffy Company RONA - 50%
2. EPS - 33-1/3% 2. Corporate EPS - 25%
3. TSR - 33-1/3% 3. Corporate TSR - 25%
A. Award Cycle
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Each award cycle shall be a three calendar year performance period.
B. Salary Basis
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Awards under this plan are to be based upon the participant's
actual base salary as of December 31st at the end of each award
cycle.
C. Definitions
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CORPORATE RONA: Consolidated Return On Net Assets as defined in
Policy Number 128.
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Part No. TS 136 Page 1 of 4
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HUFFY CORPORATE SECTION: HUMAN RESOURCES
CORPORATION POLICY
POLICY NO.: 129 (RESTRICTED)
ISSUE DATE: 02/16/01
SUPERSEDES: 10/01/98
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SUBJECT: LONG TERM INCENTIVE PLAN - REVISED
HUFFY CORPORATE RONA: As defined in Policy Number 128.
EPS: Earnings per common share.
TSR: Total Shareholder Return is the annual average rate of growth calculated as:
(STOCK PRICE EOY + DIVIDENDS DECLARED) - STOCK PRICE BOY = TSR;
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Stock Price BOY
adding such TSR increases and/or decreases for each calendar
year in the LTIP cycle; and dividing the result by 3 (the
number of calendar years in the LTIP cycle).
STOCK PRICE BOY: Beginning Of Year stock price means the
arithmetic average of the closing price of Huffy Common
Stock on each Friday during the final calendar quarter of
the preceding year.
STOCK PRICE EOY: End Of Year stock price means the
arithmetic average of the closing price of Huffy common
stock on each Friday during the final calendar quarter of
the year.
D. GOALS: Goals for each measure shall be the goals set for the final
year of the award cycle, approved by the Compensation
Committee of the Board of Directors. (NOTE: TSR results for
any performance period shall be calculated as defined in
II.C. above).
E. Award Scales(1)
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Actual Huffy/Corporate % of Award
Results versus Goal Earned
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Less than 90% 0%
90% Threshold 50%
95% 75%
100% Target 100%
105% 133-1/3%
110% 155-2/3%
115% Maximum 200%
III. Payment Forms and Manner
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100% of the award earned in each award cycle shall be paid in cash as
soon as practicable following completion of an award cycle subject to
approval of such payments by the Compensation Committee of the Board of
Directors.
IV. Implementation
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Individuals in an eligible position as of the first business day of the
calendar year will be eligible for 100% of the award cycle beginning in
such year and a pro-rated portion of other award cycles currently in
process.
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Part No. TS 136 Page 2 of 4
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HUFFY CORPORATE SECTION: HUMAN RESOURCES
CORPORATION POLICY
POLICY NO.: 129 (RESTRICTED)
ISSUE DATE: 02/16/01
SUPERSEDES: 10/01/98
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SUBJECT: LONG TERM INCENTIVE PLAN - REVISED
Generally, individuals newly hired or newly promoted to an eligible
position after the first business day of the year will be eligible for a
pro-rated award for the award cycle commencing in the year of hire and
other award cycles currently in process based on the number of full
calendar quarters remaining in the award cycles. However, no individual
who becomes an eligible participant after June 30 will be eligible for
any award for the award cycle ending in the year of hire or promotion
from an ineligible to an eligible position.
Currently participants who are transferred or promoted to another
position will be eligible for pro-rated awards based on the number of
full and partial quarters worked in the old and new position for award
cycles in progress. However, transfers and promotions occurring after
June 30 for an award cycle ending in the year of transfer or promotion
will be treated as having worked in the old position for 100% of that
award cycle.
Employees who are transferred to a non-eligible position for any reason
other than health will not be eligible for payment of any award cycle. If
an employee is transferred to a non-eligible position due to health
reasons, deemed acceptable to the Chief Executive Officer in his sole
discretion, the employee will be eligible for a pro-rated award based on
the number of full calendar quarters during which the employee was in
eligible position. However, no award will be earned for an award cycle in
which the employee was not an eligible participant for at least two full
calendar quarters.
Employees who terminate employment by reason of disability (as deemed
disabled by the Corporation's long-term disability insurance carrier),
early or normal retirement or by death shall be eligible for a pro-rated
award based on the number of full calendar years completed for any award
cycle.
Payment due to participants who are deceased will be made to the estate
of deceased participants.
V. Distribution
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Distribution shall be limited to Corporate Officers and Huffy Company
Presidents.
Interpretation and Exceptions
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Interpretation and exceptions to this policy will be the responsibility of the
Corporate Vice President, Human Resources and Organization Development.
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Part No. TS 136 Page 3 of 4
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HUFFY CORPORATE SECTION: HUMAN RESOURCES
CORPORATION POLICY
POLICY NO.: 129 (RESTRICTED)
ISSUE DATE: 02/16/01
SUPERSEDES: 10/01/98
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SUBJECT: LONG TERM INCENTIVE PLAN - REVISED
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Vice President, Human Resources Chairman, President and
and Organization Development Chief Executive Officer
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Part No. TS 136 Page 4 of 4