Exhibit 10.2
JACK D. DENNISON
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:
- Refine strategy for HAR (including low density strategy)
- Refine strategy for HB (including 2nd and 3rd tier strategy)
- Develop frameworks and business plans for new revenue streams
approved by Action Committee. Apply specific focus on creating and
testing consumer direct model and data products initiatives.
- Launch Welcome Wagon Realtor/MLS product
- Define future strategic plan for Wyldfyre and CFT
- Define future strategic plan for Top Producer
- Effectively manage shareholder litigation
- Effectively manage Cendant dispute
- Negotiate AOL settlement
- Establish effective Broker centric sales team for Realtor.com
- Establish effective agent centric sales team for Realtor.com.
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).