1 Exhibit (10)(ii) EXECUTIVE AUTOMOBILE POLICY --------------------------- POLICY - ------ IT IS THE POLICY OF HUFFY CORPORATION AND ITS SUBSIDIARY CORPORATIONS (THE "CORPORATION") TO PROVIDE A MONTHLY AUTOMOBILE ALLOWANCE TO ITS OFFICERS AND HUFFY COMPANY PRESIDENTS TO: 1. RECOGNIZE THEIR SENIOR EXECUTIVE STATUS WITHIN THE CORPORATION; 2. ASSIST THEM FINANCIALLY WITH THE PURCHASE OR LEASE OF AN AUTOMOBILE SUITED TO THE EXECUTIVE'S INDIVIDUAL TASTES; AND 3. ENABLE THE EXECUTIVE TO REGULARLY REPLACE THEIR CURRENT AUTOMOBILE WITH A NEW VEHICLE. Implementation - -------------- 1. AUTOMOBILE SELECTION GUIDELINES -- Any American or foreign made automobile. -- However, the factory suggested retail price ("sticker price") for the automobile selected must not be less than the sticker price of the following automobile of the same model year. -- Chairman and President: Buick Park Avenue 4 door sedan. -- Other Corporate Officers and Huffy Company Presidents: Buick Century Limited 4 door sedan. 2. ADMINISTRATION -- The individual Corporate Officer or Huffy Company President shall be responsible for purchasing or leasing the automobile, for which he will receive a monthly allowance in an amount to be determined from time to time by the Company. -- Service and maintenance, insurance, and oil and gas shall be paid for by the individual Corporate Officer or Huffy Company President, but he shall be reimbursed at a rate per mile to be determined from time to time by the Company for mileage related to Company business or participation in civic and cultural affairs in the community. -- Automobiles must be replaced as frequently as the executive chooses but in no event not less frequently than 60 months. 2 3. USAGE -- The Company shall have no responsibility for any executive's obligations or liabilities with respect to any automobile except for the allowances and mileage reimbursement specifically described herein. -- The interior and exterior of the car shall be kept in a clean, presentable condition at all times. Distribution of this Policy - --------------------------- Restricted to Corporate Officers and Huffy Company Presidents. /s/ George A. Plotner /s/ Gary E. Morin - ------------------------------- ---------------------------------------- Vice President - Human Executive Vice President Resources /s/ Richard L. Molen ---------------------------------------- President and Chief Executive Officer