<PAGE>
                                                                    EXHIBIT 10.f


POLICY

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.



<TABLE>
<CAPTION>
                                                      Award as a % of Base Salary
                                                      ---------------------------
  I.  Participants                                      Target        Maximum
      ------------                                      ------        -------
<S>                                                   <C>            <C>              <C>
      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
          President & General Manager - HBC
          President & General Manager - HSC
          President & General Manager - HSF

      C.  Group President & General Manager - HSG          30%            60%         (REV)
          Group President & General Manager - Gen-X
</TABLE>

II.   Measurement

      Awards shall be based on performance of measures weighted as follows:

<TABLE>
<CAPTION>
          Corporate Officers                       Huffy Company Presidents
          ------------------                       ------------------------
        <S>                                       <C>
          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%
</TABLE>

      A.  Award Cycle

          Each award cycle shall be a three calendar year performance period.

      B.  Salary Basis

          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

          Corporate RONA:  Consolidated Return On Net Assets as defined in
            Policy Number 128.
          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     + Dividends Declared) - Stock Price
                              EOY                                     BOY = TSR;
                 --------------------------------------------------------   ----
                                 Stock Price
                                             BOY

                 adding such TSR increases and/or decreases for each calendar
                 year in the LTIP cycle;


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                 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)


<TABLE>
<CAPTION>
          Actual Huffy/Corporate                        % of Award
           Results versus Goal                              Earned
         ------------------------                      ------------
<S>                                                     <C>
               Less than 90%                                   0%
               90% Threshold                                  50%
               95%                                            75%
               100% Target                                   100%
               105%                                      133-1/3%
               110%                                      155-2/3%
               115% Maximum                                  200%
</TABLE>

III.  Payment Forms and Manner

      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

      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.

      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

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      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

      Distribution shall be limited to Corporate Officers, Huffy Company
      Presidents and Vice President Human Resources.

Interpretation and Exceptions

Interpretation and exceptions to this policy will be the responsibility of the
Vice President - General Counsel and Secretary.


-------------------------------------              -----------------------------
Vice President - General Counsel                   Chairman, President and
and Secretary                                      Chief Executive Officer

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Part No. TS 136                                                     Page 3 of 4