Exhibit 10.1
W. MICHAEL LONG
2003 EXECUTIVE BONUS PLAN
As per your employment agreement, bonus payout potential for 2003 is 200% of
base salary. Typically, if the AOP is achieved along with all other personal
objectives, it would be expected that a 100% of salary payout would be granted.
Typically a 200% of salary payout would occur if performance significantly
exceeded the AOP as well as personal objectives. However, despite excellent
performance in solving restatement related issues last year, this second year of
your employment continues to contain numerous challenges relating to the
Company's past problems. Therefore, for the year 2003, achievement of the AOP
along with solving legacy issues as well as achieving personal objectives will
permit consideration, but not a guarantee, of a 200% of salary bonus payout. The
financial objectives as well as personal objectives that will be considered for
determining your bonus award are as follows:
CORPORATE FINANCIAL PERFORMANCE ELEMENT:
INCOME OI
VS `02 (000,000) % % % % % % %
- ------ --------- --- --- --- --- --- --- ---
34.50 $(22.50) 86 93 100 107 114 121 128
33.25 $(23.75) 78 86 93 100 107 114 121
31.00 $(25.00) 71 78 86 93 100 107 114
29.75 $(26.25) 64 71 78 86 93 100 107
28.50 $(27.50) 57 64 71 78 86 93 100
27.25 $(28.75) 50 57 64 71 78 86 93
26.00 $(30.00) 43 50 57 64 71 78 86
24.75 $(31.25) 36 43 50 57 64 71 78
23.50 $(32.50) 29 36 43 50 57 64 71
REVENUE 233 240 247 254 261 268 275
(000,000S)
INCREASE 13 20 27 34 41 48 55
VS. `02
NOTES:
(The percentages in the above chart are percentages of your potential bonus, not
percentages of your salary. For example, since your potential bonus is 200% of
your base salary, 50% on the above chart would equate to a bonus payout of 100%
of your base salary (50% of 200% = 100%), multiplied by the element weighting of
70%. Operating Income to be calculated excluding the impact of:
AOL settlement;
Litigation settlements;
Extraordinary traffic buys (i.e. MSN).
INDIVIDUAL PERFORMANCE OBJECTIVES:
1. Manage government regulators, cash flow, capital, industry sponsorships,
AOL, Cendant and the class action plaintiffs such that Homestore at the
end of 2003 remains viable and capable of operating as an independent
company. [Though progress has been made on a number of these items, that
progress can be reversed, if not proactively managed, and threaten the
Company again.]
2. Develop for all Homestore's businesses a strategic plan that describes how
that business can attain reasonable growth prospects or be otherwise
disposed of. Begin the expedient implementation of those plans in order of
priority determined by growth prospects, strategic contribution to market
and shareholder value, and available resources.
3. Create a credible financial plan for 2004 that demonstrates growth in
those businesses that have completed significant refurbishing and
incorporates investment plans for the remaining businesses. This plan
should be supported by an adequate capital structure to finance both the
planned growth and continued investment.
Final determination of a bonus award, if any, will be made by the Compensation
Committee. Payment of any bonus award shall also be based on the Company's
overall financial position at the time the Committee reviews performance. Final
approved bonus will be paid after year-end close (i.e. bonus is annual, not
quarterly).