<PAGE>   1
                                                                   EXHIBIT 10.13


                           SCOTSMAN INDUSTRIES, INC.
                LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
    (As Amended and Restated by the Board of Directors on February 10, 1998)

1.       Purpose

         The purpose of the Long-Term Executive Incentive Compensation Plan
(the "Plan") is to further the long-term growth of Scotsman Industries, Inc.
(the "Company") and its divisions and subsidiaries by strengthening the ability
of the Company to attract and retain key employees and to provide additional
motivation and incentives for the performance of key employees.

2.       Administration

         The Plan shall be administered by the Compensation Committee of the
Company's Board of Directors (the "Committee").  The Committee shall consist of
at least two such Directors as the Board may from time to time designate.
Membership on the Committee shall be limited to members of the Board of
Directors who meet the definitions of a "non- employee director" under Rule
16b-3 under Section 16 of the Securities Exchange Act of 1934, as amended, and
an "outside director" under Section 162(m) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder.  The Committee shall have
such powers to administer the Plan as are delegated to it by the Plan or the
Board of Directors, including the power to interpret the Plan and any
agreements executed thereunder, to prescribe rules and regulations relating to
the Plan, and to make all other determinations necessary or advisable for
administering the Plan.

3.       Grant of Awards; Shares Subject to Plan

         (a)     The Committee may grant any type of award permitted under the
terms of the Plan (all such awards in the aggregate being hereinafter referred
to as "Awards").  Only employees of the Company and its divisions and
subsidiaries may be selected by the Committee for Awards under the Plan.

         (b)     The maximum number of shares of Common Stock of the Company
that may be issued under the Plan is 1,000,000, all of which shares may be made
subject to Options.  The maximum number of shares of Common Stock with respect
to which Options or Stock Appreciation Rights ("SARs"), or any combination
thereof, may be granted under the Plan to any employee within a calendar-year
period may not exceed 100,000, subject to Paragraph (c) of this Section 3.  The
Common Stock issued pursuant to the Plan may consist of authorized and unissued
shares of the Company's Common Stock or Common Stock held in the Company's
treasury.  If any Award granted under the Plan shall terminate or lapse for any
reason, any shares of Common Stock subject to such Award shall again be
available for the grant of an Award.

         (c)     In the event of corporate changes affecting the Company's
Common Stock or this Plan or Awards granted thereunder (including without
limiting the generality of the foregoing, stock dividends, stock splits,
recapitalizations, reorganizations, mergers, consolidations, or other relevant
changes in capitalization), the Board of Directors or the Committee shall make
appropriate adjustments in price, number and kind of shares of Common Stock or
other consideration subject to such Awards or in the terms of such Awards,
which it deems equitable to prevent dilution or enlargement of rights under the
Awards.  In addition, the Board of Directors or the Committee may from time to
time equitably change the aggregate number or remaining number or kind of
shares which may be issued under the Plan or to any employee under the Plan to
reflect any such corporate changes.
<PAGE>   2
4.       Options

         (a)     The Committee may grant any type of statutory or non-statutory
Option to purchase shares of the Company's Common Stock as is permitted by law
at the time the Option is granted.  The term of each Option shall not be more
than ten years and one day from the date of grant and may be exercised at the
rate set by the Committee.

         (b)     The per share purchase price of the Company's Common Stock
which may be acquired pursuant to an Option shall be at least 100% of the fair
market value of one share of Common Stock of the Company on the date on which
the Option is granted.  Within this limitation such price shall be determined
by the Committee.

         (c)     Notwithstanding sub-section (b) above, the Committee in its
discretion and for Options granted on or prior to April 20, 1989 may grant
Options with a per share purchase price less than 100% of the fair market value
of one share of the Company's Common Stock on the date on which the Option is
granted; however, the Committee may only grant Options pursuant to this
sub-section (c) to former employees of Household Manufacturing, Inc. or its
subsidiaries who have forfeited or will be forfeiting employee stock options
previously granted by Household International, Inc. as a result of termination
of employment.  The exercise price for Options granted pursuant to this
sub-section (c) at less than fair market value on the date of grant will be
determined by the Committee based on the appreciation in value of Household
International, Inc. employee stock options being forfeited.  No Option shall be
granted to an employee pursuant to this sub-section (c) unless such employee
has agreed to forfeit any remaining rights such employee may have in options
granted by Household International, Inc.

         (d)     Except as otherwise provided in the Plan or in any stock
option agreement, the optionee shall pay the purchase price of the shares of
Common Stock upon the exercise of any Option (i) in cash, (ii) in cash received
from a broker-dealer to whom the optionee has submitted an exercise notice
consisting of a fully endorsed Option (however in the case of an optionee
subject to Section 16 of the Securities Exchange Act of 1934, this payment
option shall only be available to the extent such payment procedures comply
with Regulation T issued by the Federal Reserve Board), (iii) by delivering
shares of Common Stock having an aggregate fair market value on the date of
exercise equal to the option purchase price, (iv) by directing the Company to
withhold such number of shares of Common Stock otherwise issuable upon exercise
of such Option having an aggregate fair market value on the date of exercise
equal to the option purchase price, (v) by such other medium of payment as the
Committee, in its discretion, shall authorize at the time of grant, or (vi) by
any combination of (i), (ii), (iii), (iv) and (v).  In the case of an election
pursuant to (i) or (ii) above, cash shall mean cash or check issued by a
federally insured bank or savings and loan association, and made payable to
Scotsman Industries, Inc.  In the case of payment pursuant to (ii), (iii) or
(iv) above, the optionee's election must be made on or prior to the date of
exercise and shall be irrevocable.  In lieu of a separate election governing
each exercise of an Option, an optionee may file a blanket election with the
Committee which shall govern all future exercises of Options until revoked by
the optionee.  The Company shall issue, in the name of the optionee, stock
certificates representing the total number of shares of Common Stock issuable
pursuant to the exercise of any Option as soon as reasonably practicable after
such exercise, provided that any shares of Common Stock purchased by an
optionee through a broker-dealer pursuant to clause (ii) above, shall be
delivered to such broker-dealer in accordance with 12 C.F.R.Section
220.3(e)(4), or other applicable provision  of law.

         (e)     Whenever the Company proposes or is required to issue or
transfer shares of Common Stock to an employee under the Plan, the Company
shall have the  right to require the employee to remit
<PAGE>   3
to the Company an amount sufficient to satisfy all federal, state and local
withholding tax requirements prior to the delivery of any certificate or
certificates for such shares of Common Stock.  If such certificates have been
delivered prior to the time a withholding obligation arises, the Company shall
have the right to require the employee to remit to the Company an amount
sufficient to satisfy all federal, state or local withholding tax requirements
at the time such obligation arises and to withhold from other amounts payable
to the employee, as compensation or otherwise, as necessary.  Whenever payments
under the Plan are to be made to an employee in cash, such payment shall be net
of any amount sufficient to satisfy all federal, state and local withholding
tax requirements.  In lieu of requiring an employee to make a payment to the
Company in an amount related to the withholding tax requirement, the Committee
may, in its discretion, provide that, at the employee's election, the tax
withholding obligation shall be satisfied by the Company's withholding a
portion of the shares of Common Stock otherwise distributable to the employee,
such shares of Common Stock being valued at their fair market value at the date
of exercise, or by the employee's delivering to the Company shares of Common
Stock previously owned by the employee, such shares of Common Stock being
valued at their fair market value as of the date of delivery of such shares of
Common Stock by the employee to the Company.  For this purpose, the amount of
required withholding shall be a specified rate not less than the statutory
minimum federal, state and local (if any) withholding rate, and not greater
than the maximum federal, state and local (if any) marginal tax rate applicable
to the employee and to the particular transaction.  Notwithstanding any
provision of the Plan to the contrary, an employee's election pursuant to the
preceding sentences (i) must be made on or prior to the date as of which income
is realized by the recipient in connection with the particular exercise
transaction, and (ii) must be irrevocable.  In lieu of a separate election on
each effective date of each exercise transaction, an employee may file a
blanket election with the Committee which shall govern all future exercise
transactions until revoked by the employee.

5.       Stock Appreciation Rights

         (a)     The Committee may grant SARs in tandem with the grant of an
Option under the Plan or with respect to a previously granted Option under the
Plan.  In either case the number of shares of Common Stock in respect of which
SARs are granted by the Committee shall not be greater than the number of
shares subject to the related Option.  In exchange for the surrender in whole
or in part of the right to exercise the related Option, such SAR shall entitle
the employee to payment of an amount equal to the appreciation in value of the
surrendered Options (the excess of the fair market value of such Common Stock
subject to Options at the time of surrender over their aggregate option price).
An SAR granted pursuant to this subsection (a) shall be exercisable to the
extent and only to the extent that the related Option is exercisable, but if an
SAR is granted with respect to a previously-granted Option, the SAR will not be
exercisable for a period of twelve months from the date of grant of such SAR.
No such SAR shall be exercisable except upon surrender of the related Option,
and to the extent such Option is surrendered, the shares covered by such Option
shall again be available for purposes of the Plan to the extent that payment of
such SAR is not made in shares of Common Stock of the Company.  The exercise of
any Option shall result in the cancellation of any related SAR.

         (b)     The Committee may also grant units of SARs on a stand-alone
basis which are not issued in tandem with Options.  The term of each such SAR
shall not be more than ten years from the date of grant and may be exercised at
the rate set by the Committee; provided, however, that no such SAR shall be
exercised less than one year from the date of grant.  The "base price" of each
unit of a "stand-alone" SAR shall be at least 100% of the fair market value of
one share of Common Stock of the Company on the date on which such SAR is
granted.  Within this limitation the base price shall be determined by the
Committee.  Each unit of a "stand-alone" SAR entitles the holder, upon
exercise, to payment of an amount





                                       3
<PAGE>   4
equal to the difference between the base price of such SAR unit and the fair
market value on the date of exercise of a share of Common Stock of the Company.

         (c)     At the discretion of the Committee, payment upon exercise of
SARs may be made in cash, in shares of Common Stock of the Company valued at
their fair market value as of the date of exercise of the SAR, or partly in
cash and partly in shares of Common Stock of the Company.

         (d)     The Committee may establish a maximum appreciation value
payable under an SAR.

6.       Transfer of Options and Stock Appreciation Rights; Exercise of Options
         and Stock Appreciation Rights Following Termination of Employment

         (a)     Except as otherwise provided in subsections (b) and (c) of
this Section 6, Options and SARs may not be transferred except by will or the
laws of descent and distribution, and during the lifetime of the holder may be
exercised only by him.  If the holder of an Option or SAR shall cease to be an
employee of the Company, a division, or a subsidiary, and unless otherwise
provided by the Committee or as provided for in Section 8, all rights under
such Option or SAR shall, subject to sub-section (b), terminate, as set forth
below:

                 (i)      in the event of termination of a holder who is
                 retirement-eligible under the terms of a pension plan of the
                 Company or a subsidiary, the Option or SAR may be exercised
                 within three years following the date of termination of
                 employment

                 (ii)     in the event of termination of employment due to
                 permanent and total disability of a holder who is not
                 retirement-eligible under the terms of a pension plan of the
                 Company or a subsidiary, the Option or SAR may be exercised
                 within three years following the date of such termination of
                 employment.

                 (iii)    in the event of death during employment, the Option
                 or SAR may be exercised by the executor, administrator, or
                 other personal representative of the holder within three years
                 succeeding death if such holder was retirement-eligible under
                 the terms of a pension plan of the Company or a subsidiary, or
                 twelve months if such holder was not retirement-eligible under
                 the terms of a pension plan of the Company or a subsidiary.

                 (iv)     in the event of termination of employment other than
                 as set forth in subsections (i), (ii) or (iii) above, the
                 Option or SAR may be exercised within three months following
                 the date of termination.

                 (v)      in the event of death of a holder of an Option or SAR
                 following termination of employment, the Option or SAR may be
                 exercised by the executor, administrator, or other personal
                 representative of the holder, notwithstanding the time period
                 specified in (i), (ii), (iii) or (iv) above, within (a) twelve
                 months following death or (b) the remainder of the period in
                 which the holder was entitled to exercise the Option or SAR,
                 whichever period is longer.

                 If the Committee determines that the termination is for cause,
                 the Option or SAR will not under any circumstances be
                 exercisable following termination of employment.





                                       4
<PAGE>   5
         (b)     Notwithstanding the provisions of sub-section (a), an Option
or SAR may not be exercised pursuant to this Section after the expiration of
the term of such Option or SAR and may be exercised only to the extent that the
holder is entitled to exercise such Option or SAR on the date of termination of
employment.

         (c)     Notwithstanding the provisions of subsection (a) of this
Section 6, an employee who is the holder of a non-statutory Option, at any time
prior to his death, may assign all or any portion of the Option to (i) his
spouse or any lineal descendant, (ii) the trustee of a trust for the primary
benefit of his spouse or any lineal descendant, or (iii) a tax-exempt
organization as described in Section 501(c)(3) of the Internal Revenue Code of
1986, as amended.  In such event the spouse, lineal descendant, trustee or
tax-exempt organization will be entitled to all of the rights of the employee
with respect to the assigned portion of such Option, and such portion of the
Option will continue to be subject to all of the terms, conditions and
restrictions applicable to the Option as set forth herein, and in the related
stock option agreement, immediately prior to the effective date of the
assignment.  Any such assignment will be permitted only if (i) the employee
does not receive any consideration therefor, and (ii) the assignment is
expressly approved by the Committee.  Any such assignment shall be evidenced by
an appropriate written document executed by the employee, and a copy thereof
shall be delivered to the Committee on or prior to the effective date of the
assignment.  This subsection (c) shall apply to all non-statutory stock options
granted under the Plan at any time.

7.       Restricted Stock and Restricted Stock Rights

         (a)     The Committee from time to time may grant shares of Common
Stock of the Company to any employee selected by the Committee, subject to the
forfeiture of such stock to the Company if such employee fails to remain an
employee of the Company or a division, or any subsidiary for the period of time
established by the Committee ("Restricted Stock").  The Committee may also
grant Restricted Stock Rights ("RSRs") to any employee selected by the
Committee, which would entitle such employee to receive a stated number of
shares of Common Stock of the Company, subject to forfeiture of such RSRs if
such employee fails to remain continuously an employee of the Company, a
division, or any subsidiary for the period of time established by the
Committee.

         (b)     Restricted Stock and RSRs shall be subject to the following
restrictions and limitations:

                 (i)      Restricted Stock and RSRs may not be transferred
                 except by will or the laws of descent and distribution;

                 (ii)     Except as otherwise provided in Paragraphs (d) and
                 (e) of this Section 7, or as provided in Section 8, Restricted
                 Stock and RSRs and the shares subject to such RSRs shall be
                 forfeited and all rights of a grantee of such Restricted Stock
                 and RSRs and shares subject to RSRs shall terminate without
                 any payment of consideration by the Company if the employee
                 fails to remain continuously as an employee of the Company, a
                 division, or any subsidiary for the period of time established
                 by the Committee (the "Restricted Period").  A grantee shall
                 not be deemed to have terminated his period of continuous
                 employment with the Company, a division, or any subsidiary if
                 he leaves the employ of the Company or any subsidiary for
                 immediate reemployment with the Company, a division, or any
                 subsidiary.





                                       5
<PAGE>   6
         (c)     A holder of RSRs shall not be entitled to any of the rights of
a holder of the Common Stock with respect to the shares subject to such RSRs
prior to the issuance of such shares pursuant to the Plan.  At the Committee's
discretion, during the Restricted Period, for each share subject to RSRs, the
Company may pay the holder an amount in cash equal to the cash dividend
declared on a share of Common Stock of the Company during the Restricted Period
on or about the date the Company pays such dividend to its stockholders of
record.

         (d)     The Committee in its sole discretion may accelerate the
termination of the Restricted Period with respect to any Restricted Stock and
RSRs.

         (e)     In the event that the employment of a holder terminates by
reason of death or permanent and total disability, (i) a holder of Restricted
Stock shall be entitled to have the risk of forfeiture removed from the number
of shares of Restricted Stock multiplied by a fraction (x) the numerator of
which shall be the number of full months between the date of grant of such
Restricted Stock and the date of such termination of employment, and (y) the
denominator of which shall be the number of full months in the Restricted
Period; and (ii) a holder of RSRs shall be entitled to receive the number of
shares subject to such RSRs multiplied by a fraction (x) the numerator of which
shall be the number of full months between the date of such RSRs and the date
of such termination of employment, and (y) the denominator of which shall be
the number of full months in the Restricted Period; provided, however, that any
fractional share shall not be awarded.  A holder of Restricted Stock or RSRs
whose employment terminates for reasons other than those listed in this
paragraph will forfeit his rights under any outstanding shares of Restricted
Stock or RSRs.  This automatic forfeiture may be waived in whole or in part by
the Committee in its sole discretion.

         (f)     When a grantee shall be entitled to receive shares of Common
Stock pursuant to RSRs, the Company shall issue the appropriate number of
shares registered in the name of the grantee.

8.       Change in Control

         The following provisions shall apply in the event of a "Change in
Control":

         (a)     In the event of a Change in Control, as defined in this
Section 8:

                 (i)      any SARs outstanding for at least 6 months and any
                 Options not previously exercisable and vested shall become
                 fully exercisable and vested;

                 (ii)     the restrictions applicable to any Restricted Stock
                 shall lapse and such Restricted Stock shall be deemed fully
                 vested; and

                 (iii)    each holder of RSRs shall be entitled to receive the
                 number of shares subject to such RSRs.

         (b)     For purpose of this Section 8, "Change in Control" means:

                 (1)      the acquisition by any individual, entity or group (a
"Person"), including any "person" within the meaning of Sections 13(d) (3) or
14(d) (2) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), of beneficial ownership within the meaning of Rule 13d-3 promulgated
under the Exchange Act, of 20% or more of either (i) the then outstanding
shares of Common Stock of the





                                       6
<PAGE>   7
Company (the "Outstanding Company Common Stock") or (ii) the combined voting
power of the then outstanding securities of the Company entitled to vote
generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that the following acquisitions shall not
constitute a Change in Control: (A) any acquisition directly from the Company
(excluding any acquisition resulting from the exercise of a conversion or
exchange privilege in respect of outstanding convertible or exchangeable
securities), (B) any acquisition by the Company, (C) any acquisition by an
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company or (D) any acquisition by any
corporation pursuant to a reorganization, merger or consolidation involving the
Company, if immediately after such reorganization, merger or consolidation,
each of the conditions described in clauses (i), (ii) and (iii) of subsection
(3) of this Section 8(b) shall be satisfied; and provided further that, for
purposes of clause (B), if any Person (other than the Company or any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company shall become the beneficial owner of 20%
or more of the Outstanding Company Common Stock or 20% or more of the
Outstanding Company Voting Securities by reason of an acquisition by the
Company and such person shall, after such acquisition by the Company, become
the beneficial owner of any additional shares of the Outstanding Company Common
Stock or any additional Outstanding Company Voting Securities and such
beneficial ownership is publicly announced, such additional beneficial
ownership shall constitute a Change in Control;

                 (2)      individuals who, as of October 25, 1991, constitute
the Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of such Board; provided, however, that any individual who becomes a
director of the Company subsequent to the date hereof whose election, or
nomination for election by the Company's stockholders, was approved by the vote
of at least a majority of the directors then comprising the Incumbent Board
shall be deemed to have been a member of the Incumbent Board; and provided
further, that no individual who was initially elected as a director of the
Company as a result of an actual or threatened election contest, as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act,
or any other actual or threatened solicitation of proxies or consents by or on
behalf of any Person other than the Board shall be deemed to have been a member
of the Incumbent Board;

                 (3)      approval by the stockholders of the Company of a
reorganization, merger or consolidation unless, in any such case, immediately
after such reorganization, merger or consolidation, (i) more than 60% of the
then outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation and more than 60% of the combined
voting power of the then outstanding securities of such corporation entitled to
vote generally in the election of directors is then beneficially owned,
directly or indirectly, by all or substantially all of the individuals or
entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and the Outstanding Company Voting Securities immediately
prior to such reorganization, merger or consolidation and in substantially the
same proportions relative to each other as their ownership, immediately prior
to such reorganization, merger or consolidation, of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities, as the case may be,
(ii) no Person (other than the Company, any employee benefit plan (or related
trust) sponsored or maintained by the Company or the corporation resulting from
such reorganization, merger or consolidation (or any corporation controlled by
the Company) and any Person which beneficially owned, immediately prior to such
reorganization, merger or consolidation, directly or indirectly, 20% or more of
the Outstanding Company Common Stock or the Outstanding Company Voting
Securities, as the case may be) beneficially owns, directly or indirectly, 20%
or more of the then outstanding shares of common stock of such corporation or
20% or more of the combined voting power of the then outstanding securities of
such corporation entitled to vote generally in the election





                                       7
<PAGE>   8
of directors and (iii) at least a majority of the members of the board of
directors of the corporation resulting from such reorganization, merger or
consolidation were members of the Incumbent Board at the time of the execution
of the initial agreement or action of the Board providing for such
reorganization, merger or consolidation; or

                 (4)      approval by the stockholders of the Company of (i) a
plan of complete liquidation or dissolution of the Company or (ii) the sale or
other disposition of all or substantially all of the assets of the Company
other than to a corporation with respect to which, immediately after such sale
or other disposition, (A) more than 60% of the then outstanding shares of
common stock thereof and more than 60% of the combined voting power of the then
outstanding securities thereof entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such sale or other
disposition and in substantially the same proportions relative to each other as
their ownership, immediately prior to such sale or other disposition, of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (B) no Person (other than the Company, any employee benefit
plan (or related trust) sponsored or maintained by the Company or such
corporation (or any corporation controlled by the Company) and any Person which
beneficially owned) immediately prior to such sale or other disposition,
directly or indirectly, 20% or more of the Outstanding Company Common Stock or
the Outstanding Company Voting Securities, as the case may be, beneficially
owns, directly or indirectly, 20% or more of the then outstanding shares of
common stock thereof or 20% or more of the combined voting power of the then
outstanding securities thereof entitled to vote generally in the election of
directors and (C) at least a majority of the members of the board of directors
thereof were members of the Incumbent Board at the time of the execution of the
initial agreement or action of the Board providing for such sale or other
disposition.

9.       Amendment and Termination of the Plan

         The Board of Directors or the Committee may amend the Plan or any
Award granted thereunder at any time, except that the Board of Directors or the
Committee may not, except as permitted by Section 3(c), (i) without stockholder
approval, increase the number of shares of Common Stock of the Company which
may be issued pursuant to the Plan, change the purchase price of an Option or
base price of a "stand-alone" SAR, or make any other amendment to the Plan
which is required by law to be approved by the stockholders of the Company;
(ii) amend an Award granted thereunder in a manner materially and adversely
affecting the rights of the holder thereof without such holder's consent.  The
Board of Directors may terminate the Plan at any time, but such termination
shall not affect Awards previously granted under the Plan.





                                       8