<PAGE>   1

Subject:          PERFORMANCE INCENTIVE PLAN - C 98                        (REV)
                                                                   Exhibit 10.l

POLICY
------

CERTAIN EXEMPT EMPLOYEES OF THE CORPORATION AND ITS SUBSIDIARIES SHALL BE GIVEN
CONSIDERATION FOR PAYMENT UNDER THE CORPORATION'S PERFORMANCE INCENTIVE PLAN
PROVIDED THEY HAVE COMPLETED SIX (6) MONTHS OF SERVICE BY CALENDAR YEAR END.

PAYMENTS WILL BE CONSIDERED ON THE BASIS OF CORPORATE AND HUFFY
COMPANY FINANCIAL RESULTS AND, FOR SOME POSITIONS, INDIVIDUAL
PERFORMANCE AGAINST OBJECTIVES.

THE SCHEDULES SET FORTH BELOW ARE GUIDELINES ONLY AND PAYMENTS MAY BE MODIFIED
OR OMITTED BY MANAGEMENT, OR BY THE COMPENSATION COMMITTEE OF THE BOARD OF
DIRECTORS, IN THEIR SOLE DISCRETION.

PAYMENTS SHALL BE MADE ONLY TO EMPLOYEES WITH AT LEAST "MEETS SOME BUT NOT ALL
PERFORMANCE REQUIREMENTS" JOB EVALUATION.

<TABLE>
<CAPTION>

FINANCIAL INCENTIVE
-------------------

                                           Incentive opportunity as a % of
I.   Basis and Level of Awards                   Actual Base Salary
     -------------------------             ---------------------------

                                        Thresh.    Target     Max.    (REV.)
                                        -------    ------     -----
                                        
<S>                                       <C>       <C>       <C>     <C>   
A.   Chairman
     --------

     Corporate E.P.S. vs. PP              10.0%     20.0%     40.0%   (REV.)
     Corporate RONA vs. PP                10.0%     20.0%     40.0%   (REV.)
                                        -------    ------     -----
                                          20.0%     40.0%     80.0%   (REV.)
B.   Other Corporate Officers
     ------------------------

     Corporate E.P.S. vs. PP               6.0%     12.0%     24.0%   (REV.)
     Corporate RONA vs. PP                 6.0%     12.0%     24.0%   (REV.)
                                        -------    ------     -----
                                          12.0%     24.0%     48.0%   (REV.)

C.   Huffy Company Heads
     -------------------

     1.  HBC, HSC, HSF TTH and WIS

         Huffy Company RONA vs. PP         6.0%     12.0%     24.0%   (REV.)
         Huffy  Company EBIT vs. PP        6.0%     12.0%     24.0%   (REV.)
                                        -------    ------     -----
                                          12.0%     24.0%     48.0%   (REV.)

</TABLE>


--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 1 of 15

<PAGE>   2
Subject: PERFORMANCE INCENTIVE PLAN - C98
<TABLE>
<CAPTION>

D.   Huffy Company Staffs
     --------------------

1.   HBC, HSC, WIS, TTH and HSF

<S>                                                                  <C>       <C>      <C>     <C>      
         Huffy  Company  RONA vs.  PP                                3.0%      6.0%     12.0%   (REV.)
         Huffy Company EBIT vs. PP                                   3.0%      6.0%     12.0%   (REV.)
                                                                    -----     -----     -----
                                                                     6.0%     12.0%     24.0%   (REV.)

     E.  Corporate Exempt
         ----------------

     1.  Positions with 700 or more Hay points

         Corporate E.P.S. vs. PP                                     3.0%      6.0%     12.0%   (REV.)
         Corporate RONA vs. PP                                       3.0%      6.0%     12.0%   (REV.)
                                                                    -----     -----     -----
                                                                     6.0%     12.0%     24.0%   (REV.)

     2. Positions with less than 700 Hay points

         Corporate E.P.S. vs. PP                                     2.0%      4.0%      8.0%   (REV.)
         Corporate RONA vs. PP                                       2.0%      4.0%      8.0%   (REV.)
                                                                    -----     -----     -----
                                                                     4.0%      8.0%     16.0%   (REV.)


F.   Other Exempt
     ------------

     1.  Huffy Company Exempt (except HSF Exempt;
         WIS Field Management (see Policy 128-A for
         WIS Field Management personnel) and Exempt;
         TTH Wood Mills Exempt Employees; and TTH
         Sales Managers)

         Huffy Company EBIT vs.  PP                                  2.5%      5.0%     10.0%   (REV.)
         Huffy Company RONA vs. PP                                   2.5%      5.0%     10.0%   (REV.)
                                                                    -----     -----     -----
                                                                     5.0%     10.0%     20.0%   (REV.)

     2.  HSF District Managers

         District Gross Field Profit % vs. PP                      0.625%      2.5%      5.0%   (REV.)
         District Gross Field Profit $ vs. PP                      0.625%      2.5%      5.0%   (REV.)
         Huffy Company EBIT vs. PP                                 1.25 %      2.5%      5.0%   (REV.)
         Huffy Company RONA vs. PP                                 1.25 %      2.5%      5.0%   (REV.)
                                                                   ------     -----     -----
                                                                   3.75 %     10.0%     20.0%   (REV.)

</TABLE>

--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 2 of 15

<PAGE>   3

<TABLE>
<CAPTION>

Subject:          PERFORMANCE INCENTIVE PLAN - C 98



F.   Other Exempt (Cont'd)
     ---------------------
<S>                                                  <C>        <C>        <C>     <C>   
3.  HSF Area Managers                                                              (REV.)
                                                                                   (REV.)
    Area Gross Field Margin % vs. PP                 0.625%     2.5%       5.0%    (REV.)
    Area Gross Field Margin $ vs.  PP                0.625%     2.5%       5.0%    (REV.)
    Huffy Company EBIT vs. PP                        1.25 %     2.5%       5.0%    (REV.)
    Huffy Company RONA vs. PP                        1.25 %     2.5%       5.0%
                                                     ------     -----     -----          
                                                     3.75 %    10.0%      20.0%

4.  Zone Merchandising Managers

    Zone AGMM*% vs. PP%                              0.625%     2.5%       5.0%    (REV.)
    (*Adjusted Gross Merchandising Margin)
    HSF EBIT vs. PP                                  0.625%     1.25%      2.5%    (REV.)
    HSF RONA vs. PP                                  0.625%     1.25%      2.5%    (REV.)
                                                     ------     -----     -----          
                                                     1.875%     5.00%     10.0%    (REV.)

5.  Merchandising Operations Manager

    Gross Merchandising Profit % vs. PP%             1.25%      5.0%      10.0%    (REV.)
    HSF EBIT vs. PP                                  1.25%      2.5%       5.0%    (REV.)
    HSF RONA vs. PP                                  1.25%      2.5%       5.0%    (REV.)
                                                     ------     -----     -----          
                                                     3.75%     10.0%      20.0%    (REV.)
6.  HSF Other Exempt

    Huffy Company EBIT vs. PP                        2.5%       5.0%      10.0%    (REV.)
    Huffy Company RONA vs. PP                        2.5%       5.0%      10.0%    (REV.)
                                                     ----      -----      -----          
                                                     5.0%      10.0%      20.0%    (REV.)

7.  TTH Wood Mills Exempt

    Huffy Company EBIT vs. PP                        2.5%       5.0%      10.0%*   (REV.)
    Huffy Company RONA vs. PP                        2.5%       5.0%      10.0%*   (REV.)
    Huffy Company Gainsharing Plan                   0.0%        --       12.0%*   (REV.)
                                                     ----      -----      -----          
                                                     5.0%      10.0%      20.0%*   (REV.)


<FN>

*  Either category of incentive payment may pay up to the maximum award shown,
   but the maximum total incentive payable shall not exceed 20.0%.
</FN>

</TABLE>
--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 3 of 15


<PAGE>   4

<TABLE>
<CAPTION>

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

                                                                                           (REV.)
                                                               Thresh.  Target     Max.
                                                               -------  ------     -----          
<S>                                                              <C>       <C>      <C>     <C>   
     9.  All WIS exempt positions with Manager or
         Director titles (excluding WIS National Sales
         Manager and WIS Field Management Personnel)

         Huffy Company EBIT vs. PP                               2.5%      5.0%     10.0%   (REV.)
         Huffy Company RONA vs. PP                               2.5%      5.0%     10.0%   (REV.)
                                                               -------  ------     -----          
                                                                 5.0%     10.0%     20.0%   (REV.)

    10.  Other WIS Exempt and WIS Service
         Managers, and WIS Managers in
         Training (excluding WIS Field
         Management and WIS National Sales
         Manager

         Huffy Company EBIT vs.  PP                             1.25%      2.5%      5.0%   (REV.)
         Huffy Company RONA vs. PP                              1.25%      2.5%      5.0%   (REV.)
                                                               -------  ------     -----          
                                                                2.50%      5.0%     10.0%   (REV.)
</TABLE>

II.  Corporate Internal Audit Staff
     ------------------------------

     Corporate Internal Audit staff are members of the Corporate Exempt category
     and incentive recommendations will generally be made on that basis. Such
     incentive recommendations will be subject to approval by the Audit
     Committee of the Board of Directors.

III.  Award Scales(1)
      ---------------
<TABLE>
<CAPTION>

     Huffy Company (excluding HSF) RONA vs. Plan

     Huffy Company EBIT vs. Plan         % of Targeted
     Corporate RONA vs. Plan             Award Earned(2)
     ---------------------------         -------------

<S>            <C>                             <C>
         Under 90%                            -0-
               90% Threshold                  50
               95%                            75
              100% Target                    100
              105%                           133 1/3
              110%                           166 2/3
              115% Maximum                   200
</TABLE>
--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 4 of 15

<PAGE>   5

<TABLE>
<CAPTION>

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

     Corporate RONA vs. Plan        % of Targeted
     Corporate EPS vs. Plan         Award Earned(2)
     -----------------------        ---------------            (REV.)

<S>            <C>                        <C>
         Under 90%                       -0-
               85% Threshold             25
               90%                       50                    (REV.)
               95%                       75                    (REV.)
              100% Target               100
              110%                      150
              120% Maximum              200                    (REV.)
                                                               (REV.)
                                    % of Targeted
     HSF RONA vs. Plan              Award Earned(2)
     -----------------              --------------

<S>            <C>                        <C>
        Under  90%                       -0-
               90% Threshold             50
               95%                       75
              100% Target               100
              105%                      150
              110% Maximum              200



     HSF District Gross             % of Targeted
     Field Profit $ vs. PP          Award Earned(2)
     ---------------------          --------------

<S>            <C>                        <C>
         Under 90%                       -0-
               90                        25
              100                       100
              110+                      200

     HSF Area Gross Field           % of Targeted
     Margin $  vs.  PP              Award Earned
     --------------------           ------------

<S>            <C>                        <C>
       Under   90%                       -0-
               90                        25
              100                       100
              110+                      200
</TABLE>

--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 5 of 15

<PAGE>   6

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

<TABLE>
<CAPTION>

     HSF District Gross Field Profit % vs. PP                  % of Targeted
     HSF Area Gross Field Margin % vs. PP                       Award Earned
     ------------------------------------                       ------------

       <S>                           <C>                           <C>
       Greater than  -1.00% below                                  -0-
                     -1.00           Threshold                      25
                     -0.67                                          50
                     -0.33                                          75
              Profit Plan%           Target                        100
                      +0.5                                         133
                      +1.0                                         167
                      +1.5           Maximum                       200

</TABLE>



<TABLE>
<CAPTION>




      HSF Merchandising Actual Gross Field Profit Percent vs. PP%
      -----------------------------------------------------------

       <S>                            <C>                           <C>
       Greater than 1.00% below                                      0
                    1.00             Threshold                      25
                    0.67                                            50
                    0.33                                            75
             Profit Plan %           Target                        100
                     +0.5                                          133
                     +1.0                                          167
                     +1.5            Maximum                       200
</TABLE>

<TABLE>
<CAPTION>

     Zone AGMM*% vs. PP%
     -------------------

<S>                                  <C>                           <C>
       Greater than 1.00% below                                      0
                  --1.00             Threshold                      25
                  --0.67                                            50
                  --0.33                                            75
           Profit Plan %             Target                        100
                    +0.5                                           133
                    +1.0                                           167
                    +1.5             Maximum                       200

     1.      The scales are sliding. When actual performance falls between the
             points on the scale, it will be adjusted to the nearest 1/10th of
             1% and interpolated to determine the award level.

     2.      Percent of targeted award earned is used as a multiple of incentive
             target which varies by level of employee. Refer to Section I.
</TABLE>

--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 6 of 15

<PAGE>   7

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

 IV.   Positions Covered

       A.  Corporate Officers and Huffy Company Presidents

           Corporate Officers
           ------------------
           Chairman, President and CEO                                    (REV.)
           Vice President - Finance and CFO
           Vice President - Controller
           Vice President - General Counsel and Secretary
           Vice President - Treasurer and Director, Investor Relations


           Huffy Company Presidents
           ------------------------
           President and General Manager - Huffy Bicycle Company
           President and General Manager - Huffy Sports Company
           President and General Manager - Washington Inventory Service
           President and General Manager - Huffy Service First, Inc.
           President and General Manager - True Temper Hardware Company

       B.  Huffy Company Staff

           *   HBC
               ---

               V.P./G.M. - Celina
               V.P. Marketing
               V.P. Controller
               V.P. Global Sourcing and Logistics
               V.P. Human Resources
               V.P. Sales
               V.P. Engineering
               V.P. Operations                                            (REV.)

           *   HSC
               ---

               V.P. Sales
               V.P. Controller
               V.P. Materials Management
               V.P. Global Operations
               V.P. Marketing & New Business Development                  (REV.)

           *   HSF
               ---

               V.P. Operations
               V.P. Controller
               V.P. Sales/Marketing
               V.P. Human Resources
               General Counsel
               V.P. Merchandising

--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 7 of 15

<PAGE>   8

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

           *   WIS
               ---

               V.P. Operations
               V.P. Finance and Controller
               V.P. Technology & Information Systems
               V.P. Sales and Account Management
               V.P. Human Resources

           *   TTH
               ---

               V.P. Sales and Service                              (REV)
               V.P. Operations
               V.P. Controller
               V.P. Human Resources
               Managing Director, TT Ireland
               Director, Marketing                                 (REV)
               Director, Information Services and Technology       (REV)


  V.   Individual Personal Objectives
       ------------------------------
<TABLE>
<CAPTION>

                                                      Incentive Opportunity as a % of
                                                            Actual Base Salary
                                                      -------------------------------

                                                Below
                    Position                  Threshold        Threshold      Maximum
                    --------                  ---------        ---------      -------

<S>                                              <C>              <C>            <C>  
       A.  Chairman, President & CEO             0%               10.0%          20.0%
           ------------------------

       B.  Corporate Officers and
           ----------------------
           Huffy Company Heads                   0%                6.0%          12.0%
           ----------------------

</TABLE>

<TABLE>
<CAPTION>

                                                      Incentive Opportunity as a % of
                                                            Actual Base Salary
                                                      -------------------------------

                                                Below
                    Position                  Threshold        Threshold      Maximum
                    --------                  ---------        ---------      -------

<S>                                              <C>               <C>            <C> 
       D.  Huffy Company Staff                   0%                3.0%           6.0%
           -------------------

       E.  Corporate Exempt
           ----------------

           1.   Positions with 700 or
                more Hay Points                  0%                3.0%           6.0%

           2.   Positions with less than
                700 Hay Points                   0%                2.0%           4.0%

</TABLE>

For those individuals who have a portion of their incentive measured on this
basis, the following implementation procedure will be used:

--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 8 of 15

<PAGE>   9

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

       1.  Each individual will draw up objectives covering the calendar year
           based on supporting the supervisor's objectives and his own.

 2. These objectives should have the following characteristics:

     a)    Not be associated with EBIT or RONA goals in the Profit Plan.
           (Financial goals for such things as cost reduction or similar
           projects are appropriate goals.)

     b)    Be as specific and as measurable as to successful attainment as
           possible. (A project need not be completed in the calendar year. The
           objective can be to obtain a specific status in the project by
           calendar year end.)

     c)    1)    Chairman shall develop no more than 7 to 8 objectives.   (REV.)

           2)    Other Corporate Officers and Huffy Company Presidents shall
                 each develop no more than 6 objectives.

           3)    Huffy Company Staff and Corporate Officer Direct Reports in
                 positions with 700 or more Hay points and Other Corporate
                 Exempt shall each develop no more than 3 objectives.

     d)    A "degree of difficulty" should be assigned to each objective on the
           basis of 1 to 10.


 3.  The objectives and degrees of difficulty shall be reviewed between the
     individual and his supervisor and agreement reached on:

                                     a)   Completeness of list
                                     b)   State of objectives
                                     c)   Degree of difficulty

     It is the supervisor's responsibility to ensure that there is some
     consistency in the measurement of "degree of difficulty" among all his
     subordinates, and the Corporate Officer's responsibility to review for
     consistency in measurement of "degree of difficulty" among Huffy Company
     Staff personnel within his function.

--------------------------------------------------------------------------------
Part No. TS 136                                                     Page 9 of 15

<PAGE>   10

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

4.   Personal Objectives Schedule
     ----------------------------

        Upon Approval by   The CEO's objectives shall be communicated to
        Compensation       the Corporate Officers and Huffy Company
        Committee          Presidents promptly following approval
                           by Compensation Committee of the Board of
                           Directors.

        15 days later      Corporate Officers and Huffy Company Presidents
                           shall develop their objectives and submit them
                           to their respective supervisor.

        10 days later      Corporate Officers' and Huffy Company
                           Presidents' objectives shall be approved by the
                           CEO. Corporate Officers and Huffy Company
                           Presidents shall communicate their approved    (REV.)
                           objectives to their respective Corporate
                           Officer Direct Reports in positions with 700 or
                           more Hay points ("Corporate Staff") and Other
                           Corporate Exempt and Huffy Company Staffs
                           ("Huffy Staff").

        30 days later      Huffy Staff personnel shall have submitted and
                           received approval of their objectives from their
                           respective Huffy Company President. Corporate Staff
                           shall have submitted and received approval of their
                           objectives from their respective Corporate Officer.
                           Other Corporate Exempt shall have submitted and
                           received approval of their objectives from their
                           respective Corporate Staff supervisor or, if
                           applicable, supervising Corporate Officer.

        5. Personal Objectives Results Schedule
           ------------------------------------

          First Friday in  Corporate Staff and Other Corporate Exempt shall
          December         submit their results for the year ending for
                           evaluation to the appropriate Corporate Officer and
                           immediate supervisor, respectively, and, with respect
                           to Huffy Staff, to their Huffy Company President.

--------------------------------------------------------------------------------
Part No. TS 136                                                    Page 10 of 15

<PAGE>   11

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

        10 days later      Personal objective results for Corporate Staff,
                           Other Corporate Exempt and Huffy Company Staff shall
                           have been reviewed and have received comments as
                           follows:
                           *          Corporate Officers shall
                                      comment to their Corporate Staff
                                      and Other Corporate Exempt, if
                                      immediately supervised.
                           *          Supervisors of Other Corporate
                                      Exempt.
                           *          Huffy Company Presidents to
                                      Huffy Staff.

        10 days later      CEO provides Compensation Committee of Board of
                           Directors with results for evaluation and      (REV.)
                           approval.

        5 days later       Corporate Staff and Other Corporate Exempt and
                           personnel results shall be approved by their
                           immediate supervisors. Huffy Staff personnel results
                           shall be approved by Huffy Company Presidents.
                           Corporate Officers and Huffy Company Presidents shall
                           submit their results for the year ending to the CEO
                           for evaluation and approval.                   (REV.)

        Feb. 1             The evaluation and approval of personal objectives
                           results are to be completed.

       6.     The participant shall evaluate his own performance and then submit
              the evaluation to his supervisor who shall review and approve the
              evaluation.

              This score is not binding. The supervisor shall use his judgment
              to arrive at a final rating. However, ONLY performance on the
              written objectives shall be evaluated, not performance on any
              other matters.

       7.     Each individual shall be informed by his supervisor of his
              performance rating but only AFTER all approvals have been secured.

       8.     Notwithstanding the foregoing, payments for personal objectives
              performance are expressly conditioned upon and made subject to the
              following base financial criteria:

--------------------------------------------------------------------------------
Part No. TS 136                                                    Page 11 of 15

<PAGE>   12

Subject:          PERFORMANCE INCENTIVE PLAN - C 98

All Corporate Exempt
--------------------

     Corporate E.P.S. less than                -  No bonus shall be paid for
     50% of Target E.P.S.                         for performance of personal
     Corporate bonus purposes                     objectives

     Corporate E.P.S. at least                 -  50% of calculated bonus for
     50%, but less than 75%, of                   performance of personal
     Target E.P.S. for Corporate bonus            objectives shall be paid
     purposes

     Corporate E.P.S. 75% or                   -  100% of calculated bonus for
     greater of Target E.P.S.                     performance of personal
     for Corporate bonus purposes                 objectives

Huffy Companies
---------------

     Huffy Company EBIT less than 50% of       - No bonus shall be paid for 
     approved Huffy Company Profit Plan          performance of personal 
                                                 objectives

     Huffy Company EBIT at least 50%, but      -  50% of calculated bonus for
     less than 75%,  of approved Huffy            performance of personal
     Company Profit Plan                          objectives shall be paid

     Huffy Company EBIT 75% or greater of       -  100% of calculated bonus for
     approved Huffy company Profit Plan            performance of personal
                                                   objectives shall be paid

VI.           Implementation
              --------------

                1.  Eligibility
                    -----------

                    All exempt employees on the payroll on or before the first
                    business day of the calendar year shall be eligible for
                    consideration for a full incentive opportunity.

              New Hires:        Employee coming on the payroll after the
                                first business day of the calendar year but on
                                or before the first business day of July will be
                                eligible for consideration for one-half the
                                annual incentive opportunity.

              Exception:      HSF Regional Operations, District and Area
                              Managers, and eligible WIS personnel hired after
                              January 1 of the calendar year shall be eligible
                              for consideration for the percentage of annual
                              incentive opportunity shown below:

--------------------------------------------------------------------------------
Part No. TS 136                                                    Page 12 of 15

<PAGE>   13



Subject:          PERFORMANCE INCENTIVE PLAN - C 98

                                                       Percentage  of  Annual
                 Hire Date                             Incentive Opportunity
                 ---------                             ---------------------

                 During  1st  quarter                          75%
                 During  2nd  quarter                          50%
                 During  3rd  quarter                          25%
                 During  4th  quarter                           0%




        Transfers, Promotions or Demotions: Individuals transferred, promoted or
        demoted during the calendar year shall have incentive opportunity as
        follows:

                                                     Calculation Based on
                                                     --------------------
                                                 Old Oppor.        New Oppor.
                                                 ----------        ----------
                                                 Old Actual        New Actual
                                                 ----------        ----------
                                                 Base Salary      Base Salary
                                                 -----------      -----------
                                               Old. Opp. Level    New Opp. Level
                                               ---------------    --------------

        Transferred, Promoted or Demoted
                During 1st   Quarter             25%             75%
                During 2nd  Quarter              50%             50%
                During 3rd   Quarter             75%             25%
                During 4th   Quarter            100%              0%




        Note:   Non-exempt and/or hourly employees promoted to exempt positions
                are eligible for incentive consideration as above but only for
                those quarters in which they held exempt positions. Also, status
                changes (including transfers, promotions and demotions, but
                excluding new hires) for incentive eligible employees at WIS
                which are effective for the first pay period beginning on or
                after the first day of the quarter shall be treated for
                incentive purposes as if they were effective the last day of the
                prior quarter.

 Terminations:  To be eligible to receive the Profit Sharing payment for a
                calendar year, an employee must be on the active payroll at the
                time payment for that calendar year is made (date check is
                issued) OR HAVE BEEN TERMINATED DUE TO A CURTAILMENT OF
                PRODUCTION BETWEEN JULY 1 OF THAT CALENDAR YEAR AND THE DATE OF
                BONUS PAYMENT, HAVING MET ALL ELIGIBILITY REQUIREMENTS OF THE
                PLAN AND HAVING PERFORMED ALL DUTIES AND RESPONSIBILITIES IN AT
                LEAST AN AVERAGE MANNER. UNDER THESE CIRCUMSTANCES, SUCH
                EMPLOYEES MUST HAVE BEEN ON THE PAYROLL AT THE BEGINNING OF THE
                CALENDAR YEAR IN ORDER TO QUALIFY FOR INCENTIVE FOR THAT
                CALENDAR YEAR. APPROVAL OF THE CEO IS REQUIRED IN ALL SUCH
                CASES. EXEMPT EMPLOYEES TERMINATED DUE TO A CURTAILMENT OF
                PRODUCTION SHALL BE ELIGIBLE FOR INCENTIVE OPPORTUNITY AS
                FOLLOWS:

--------------------------------------------------------------------------------
Part No. TS 136                                                    Page 13 of 15

<PAGE>   14


Subject:          PERFORMANCE INCENTIVE PLAN - C 98

                                                    Incentive as percent payment
                                                    ----------------------------
                     Termination Date              of full Incentive opportunity
                     ----------------              -----------------------------
                     July 1 - September 30                   50%
                     ---------------------
                     October I - December 31                 75%
                     -----------------------
                     January 1 - date of payment            100%
                     ---------------------------

   Death or Retirement:      Employees who retired or died during
                             or after the calendar year for which incentive is
                             being calculated and who met the requirement of
                             being on the active payroll during the year will be
                             given consideration for an incentive payment on
                             basis of the following percentage of full incentive
                             opportunity: retired or died in 1st Qtr - 25%; 2nd
                             Qtr - 50%; 3rd Qtr - 75%; 4th Qtr - 100%.

                             Payment for deceased employees shall be made to the
                             beneficiary designated under the Salaried Employees
                             Group Term Life Insurance Plan.

Active payroll is defined as receiving wages (recorded on the Federal W-2 form)
from the Corporation or one of the Huffy Companies. Except for those terminated
or retiring or deceased employees described above, employees absent for any
reason and not receiving wages (as defined above) are not considered on the
active payroll.

                     Exception to the eligibility requirements must be approved
                     by the CEO (in particular, requests for exceptions
                     involving transfers and new hires when approval for such
                     transfer or new hire has been obtained).

   2.                Payment
                     -------

                     Except as noted below, payment for Performance Incentive
                     shall be annual and shall occur in March of each year for
                     the prior calendar year's results.

   3.                Calculations
                     ------------

                     All incentive calculations will be rounded up to the
                     nearest $25.00 increment and the minimum incentive payment
                     to be paid will be $125.00 per employee, provided employee
                     is eligible for incentive and such incentive is approved.
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Part No. TS 136                                                    Page 14 of 15

<PAGE>   15
Subject:          PERFORMANCE INCENTIVE PLAN - C 98

                     Definitions
                     -----------

                     Consolidated  RONA          Profit after tax after cost
                     ------------------          of plan plus tax affected
                                                 interest expense divided by the
                                                 twelve (12) month rolling
                                                 average of total assets less
                                                 current liabilities excluding
                                                 all interest bearing debt.
                                                

                     E.P.S.                       Earnings per common share.
                     ------

                     Huffy Company RONA           Earnings before
                     ------------------           interest and taxes, tax
                                                  affected at the current profit
                                                  plan tax rate, divided by the
                                                  twelve (12) month rolling
                                                  average of total assets other
                                                  than goodwill less current
                                                  liabilities excluding all
                                                  interest bearing debt.
                                                  

                     EBIT                         Earnings before interest and
                     ----                         taxes.
                                                  

                     Actual                       Base Salary Employee's actual
                     ------                       base salary as of the January
                                                  1 of the calendar year for
                                                  which bonus is calculated.
                                                  

                     Promotion                    15% upward difference in Hay
                     ---------                    points (see Corporate Policy
                                                  113).
                                                  

                     Demotion                     15% downward difference in Hay
                     --------                     points (see Corporate Policy
                                                  113).
                                                  

                     Transfer                     A change in position with
                     --------                     substantially different duties
                                                  and responsibilities which
                                                  does not constitute a
                                                  promotion or demotion.

                                                  
Distribution of This Policy
---------------------------

   Restricted to Corporate Officers, Huffy Company Presidents, Huffy Company
   Staff, and Corporate Officers Direct Reports in positions with 700 or more
   Hay points, except for Policy 128-A, 128-B and 128-C which is restricted to
   Corporate Officers, President and General Manager of WIS, and President and
   General Manager of HSF.                                                (REV.)


    /s/ Stanley H. Davis                    /s/ Don R. Graber
------------------------------------    -----------------------------------
Vice President, Human Resources and     Chairman, President And Chief Executive
Organization Development                Officer

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Part No. TS 136                                                    Page 15 of 15