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EXHIBIT 10.2
M/I SCHOTTENSTEIN HOMES, INC.
PERFORMANCE-BASED BONUS PROGRAM
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
EFFECTIVE JANUARY 1, 1998
BONUS CRITERIA:
The President and the Senior Executive Vice President are eligible to receive up
to three times their December 31 base salary as per the following criteria:
1. If the pre-tax income of the Company is at least $16,000,000 a
graduating cents per dollar amount will be awarded as
indicated on ATTACHMENT A.
2. If the actual pre-tax net income of the Company is at least
50% of Budgeted Net Income and the Corporation achieves at
least a 92% affirmative response to Question Number 14 on the
Homeowner Questionnaire, the President and the Senior
Executive Vice President will receive 17% of their December 31
base salary, increasing proportionally for each increase in
homeowner affirmative responses over 92%, to a maximum of 25%
of December 31 base salary at a 100% "yes" response level.
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:
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NAME DATE
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ATTACHMENT A - PRESIDENT AND SENIOR EXECUTIVE VICE PRESIDENT
Actual Net Income Results Over $16,000,000
NET INCOME BEFORE TAXES AS A PERCENTAGE OF REVENUE
=========================== ========== ========== ============= ============ ============ ============ ============ ============
Pre-Tax
Net Income 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50%
=========================== ========== ========== ============= ============ ============ ============ ============ ============
$16,000,000 - $17,999,999 $0.00250 $0.00500 $0.00750 $0.01000 $0.01750 $0.02500 $0.03250 $0.04000
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$18,000,000 - $19,999,999 $0.00750 $0.01000 $0.01250 $0.01500 $0.02250 $0.03000 $0.03750 $0.04500
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$20,000,000 - $21,999,999 $0.01500 $0.01750 $0.02000 $0.02250 $0.03000 $0.03750 $0.04500 $0.05250
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$22,000,000 - $23,999,999 $0.02250 $0.02500 $0.02750 $0.03000 $0.03750 $0.04500 $0.05250 $0.06000
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$24,000,000 - $25,999,999 $0.04000 $0.04250 $0.04500 $0.04750 $0.05500 $0.06250 $0.07000 $0.07750
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$26,000,000 - $27,999,999 $0.01000 $0.01250 $0.01500 $0.01750 $0.02500 $0.03250 $0.04000 $0.04750
- --------------------------- ---------- ---------- ------------- ------------ ------------ ------------ ------------ ------------
$28,000,000 - $29,999,999 $0.01500 $0.01750 $0.02000 $0.02250 $0.03000 $0.03750 $0.04500 $0.05250
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$30,000,000 - $30,999,999 $0.00125 $0.00250 $0.00375 $0.00500 $0.00625 $0.00750 $0.00875 $0.01000
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$31,000,000 - $31,999,999 $0.00250 $0.00375 $0.00500 $0.00625 $0.00750 $0.00875 $0.01000 $0.01125
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$32,000,000 + $0.00250 $0.00500 $0.00750 $0.01000 $0.01250 $0.01500 $0.01750 $0.02000
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=========================== ============ ============ ============ ============ ============ ============ ============ ============
Pre-Tax
Net Income 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50%
=========================== ============ ============ ============ ============ ============ ============ ============ ============
$16,000,000 - $17,999,999 $0.04125 $0.04250 $0.04375 $0.04500 $0.04625 $0.04750 $0.04875 $0.05000
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$18,000,000 - $19,999,999 $0.04625 $0.04750 $0.04875 $0.05000 $0.05125 $0.05250 $0.05375 $0.05500
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$20,000,000 - $21,999,999 $0.05375 $0.05500 $0.05625 $0.05750 $0.05875 $0.06000 $0.06125 $0.06250
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$22,000,000 - $23,999,999 $0.06125 $0.06250 $0.06375 $0.06500 $0.06625 $0.06750 $0.06875 $0.07000
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$24,000,000 - $25,999,999 $0.07875 $0.08000 $0.08125 $0.08250 $0.08375 $0.08500 $0.08625 $0.08750
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$26,000,000 - $27,999,999 $0.04875 $0.05000 $0.05125 $0.05250 $0.05375 $0.05500 $0.05625 $0.05750
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$28,000,000 - $29,999,999 $0.05375 $0.05500 $0.05625 $0.05750 $0.05875 $0.06000 $0.06125 $0.06250
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$30,000,000 - $30,999,999 $0.01125 $0.01250 $0.01375 $0.01500 $0.01625 $0.01750 $0.01875 $0.02000
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$31,000,000 - $31,999,999 $0.01250 $0.01375 $0.01500 $0.01625 $0.01750 $0.01875 $0.02000 $0.02125
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$32,000,000 + $0.02250 $0.02500 $0.02750 $0.03000 $0.03250 $0.03500 $0.03750 $0.04000
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