1
                                                                    Exhibit 10.2

                                                   M/I SCHOTTENSTEIN HOMES, INC.
                                                   BONUS PROGRAM
                                                   DIVISION MANAGER
                                                   EFFECTIVE JANUARY 1, 1996


BONUS CRITERIA:

A Vice President - Division Manager is eligible to receive up to two times his
December 31 base salary as per the following criteria:

GOAL:

1.       If Actual Net Income is at least $500,000, the percentage of Net Income
         to Revenue is at least .5% and the respective Division achieves a 92%
         affirmative response level or better, a graduating cents per dollar
         amount will be awarded to a maximum of the prior years Net Income, as
         indicated on ATTACHMENT A.

2a.      If the Division was profitable in the prior year, Actual Net Income in
         excess of the prior year Net Income is at least $100,000, the
         percentage of Net Income to Revenue is 1.50% or higher and the
         respective Division affirmative response percentage is 92% or better, a
         graduating cents per dollar amount will be awarded as indicated on
         ATTACHMENT B.

2b.      If the Division was NOT profitable in the prior year, but actual
         results are equal to or greater than $250,000, the percentage of Net
         Income to Revenue is at least 1.5% and the respective Division
         affirmative response percentage is 92% or better, a graduating cents
         per dollar will be awarded as indicated on ATTACHMENT C.

3.       If the Division achieves $50,000 of Net Income and receives at least a
         92% affirmative response level to question #16 on the related customer
         questionnaire of the respective Division, the Division Manager will
         receive 17% of his December 31 base salary. The percentage of December
         31 base salary increases proportionally for each increase in customer
         responses over 92%, up to 25% of December 31 base salary at a 100%
         "yes" response level. In the event the respective Division achieves a
         99% "yes" response level, an additional $2500.00 will be awarded. An
         additional $5,000.00 lump sum amount will be awarded if a 100% "yes"
         response level is attained.

THE NET INCOME DEFINITION INCLUDES THE PERFORMANCE OF THE RESPECTIVE LAND
DEPARTMENTS FOR THE FOLLOWING DIVISIONS: COLUMBUS (NOT INCLUDING FAB 10),
HORIZON, SHOWCASE, CINCINNATI, INDIANAPOLIS, CHARLOTTE, RALEIGH, TAMPA, ORLANDO
AND WEST PALM BEACH. NET INCOME ALSO INCLUDES CORPORATE CHARGES, DIVISION
MANAGER BONUSES AND 1995 PERFORMANCE WILL BE RESTATED TO REFLECT ACCOUNTING
CHANGES FOR CORPORATE CHARGES, DIVISION MANAGER'S BONUS, CAPITALIZED INTEREST
AND GENERAL CONDITIONS TO ASSURE COMPARABILITY.

PAYMENT:

The bonus is 50% payable at the end of January and 50% payable prior to March 15
of the following year the bonus is earned. The individual must be employed in
this capacity with the Company on the date the bonuses are distributed to
receive a bonus. However, in the event of a promotion or transfer, the bonus
amount will be allocated to time employed in each position. No amounts are
considered due or payable in the event the employment relationship with the
Company is terminated.

THE COMPANY RESERVES THE RIGHT TO REVISE THIS PROGRAM AS IT CONSIDERS NECESSARY.

ACKNOWLEDGED:



- ------------------------------------------------  ------------------------------
         (Name)                                             Date