1 EXHIBIT 10.3 M/I SCHOTTENSTEIN HOMES, INC. PERFORMANCE BASED BONUS PROGRAM SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE JANUARY 1, 1998 The Senior Vice President and Chief Financial Officer is eligible to receive up to 125% of December 31 base salary as per the following criteria: ACTUAL PRE-TAX NET INCOME: Provided the actual pre-tax net income of the Corporation equals $16,000,000, the Senior Vice President and Chief Financial Officer will receive a designated percentage of December 31 base salary as indicated by the following schedule: PRE-TAX NET INCOME PERCENTAGE OF DECEMBER 31 BASE SALARY ------------------ ------------------------------------- $16,000,000 - $18,999,999 40% ------------------------- $19,000,000 - $20,999,999 50% ------------------------- $21,000,000 - $23,999,999 60% ------------------------- $24,000,000 - $24,999,999 70% ------------------------- $25,000,000 - $25,999,999 80% ------------------------- $26,000,000 - $27,999,999 85% ------------------------- $28,000,000 - $28,999,999 90% ------------------------- $29,000,000 - $29,999,999 100% ------------------------- ---- $30,000,000 - $30,999,999 115% ------------------------- ---- $31,000,000 - $31,999,999 120% ------------------------- ---- $32,000,000.00 + 125% ---------------- PAYMENT Bonuses are 50% payable at the end of January and 50% payable by March 15 of the following year the bonus is earned. The individual must be employed in this capacity with the Company on the date bonuses are distributed to receive a bonus. In the event of a promotion or transfer, the bonus will be allocated to time employed with each position. No amounts are considered due or payable if the employment relationship with the Company is terminated. THE COMPANY RESERVES THE RIGHT TO REVISE THIS PROGRAM AS IT CONSIDERS NECESSARY. ACKNOWLEDGED: - ------------------------------------- --------------------------- Name Date