Exhibit 10.4
ALLAN D. DALTON
2003 EXECUTIVE BONUS PLAN
You are eligible for an annual bonus of 100% of your annual base salary, subject
to achievement of certain goals and objectives, with the ability to earn a bonus
of up to 200% of your annual base salary, subject to exceeding such goals and
objectives. Your 2003 bonus award will be based on the following:
CORPORATE FINANCIAL PERFORMANCE ELEMENT: 70% WEIGHT
Corporate financial performance element calculated pursuant to the following
chart:
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
(000,000)
INCREASE 13 20 27 34 41 48 55
VS. `02
NOTES:
Target Bonus (100%) is achieved at original AOP.
Current forecast produces a 50% payout.
For results better than those depicted on the above chart, Compensation
Committee may increase bonuses at its discretion.
For results worse than those depicted on the above chart, Compensation Committee
may decrease or eliminate bonuses at its discretion.
Eligibility for 200% bonus requires $325 million of revenue (25% improvement
over plan), Operating Income better than $(20 million) for the year, and
positive 4th Quarter Operating Income.
Operating Income to be calculated excluding the impact of:
AOL settlement;
Litigation settlements;
Extraordinary traffic buys (i.e. MSN).
INDIVIDUAL PERFORMANCE OBJECTIVES: 30% WEIGHT
- Achieve REALTOR.com OI target.
- Successfully introduce and implement channel management function.
- Introduce and implement plan to reduce, and ultimately eliminate,
MLS royalties.
- Gain continued support from NAR.
- Create major broker support through marketing partnerships.
- Establish REALTOR.com broker council.
- Drive success of MLS Seminar Series.
- Enhance messaging and results of WLV Account Executives and Major
Accounts team.
- Develop business plan for REALTOR.com convention in January.
- Generate additional advertising revenue through recruiting program.
- Speak and create revenue from dozens of appearances at state,
national and brand conventions and trade shows.
Final determination of bonus award if any is subject to Compensation Committee
approval. Payment of any bonus award shall be based on the Company's overall
financial position at the time performance is reviewed by the Committee. Final
approved bonus will be paid after year-end close (i.e. bonus is annual, not
quarterly).