<PAGE>

                                                                    Exhibit 10.3



                         FORSYTH CAPITAL MORTGAGE CORP.
                        BONUS INCENTIVE COMPENSATION PLAN

         The Board of Directors of Forsyth Capital Mortgage Corp. (the
"Company") hereby establishes a bonus incentive compensation plan for the
Company's executive officers. This program permits the Company's Board of
Directors, in its discretion, to grant annual awards to executive officers out
of a predetermined bonus pool. Such awards can be paid in cash or in
equity-based incentives under the Company's 2002 Long-Term Incentive Plan or a
combination thereof. The Company's Board of Directors can change or terminate
the bonus incentive compensation plan at any time.

         The purpose of the Company's bonus incentive compensation plan is to
reward the Company's executive officers for growing and preserving the Company's
stockholders' equity while limiting related increases in general and
administrative expenses. Accordingly, for any given year, the funds available
under the Company's annual bonus pool will be the remainder, if any, available
after subtracting all general and administrative expenses from a specified
percentage of the Company's average stockholders' equity. The percentages
decline as our average stockholders' equity increases. The bonus pool is
calculated using an amount determined by the formula set forth in this table.
<TABLE>
<CAPTION>
---------------------------------------------------------- ----------------------------------------------------
Percent to Apply to Average Stockholders' Equity           Amount of Average Stockholders' Equity
---------------------------------------------------------- ----------------------------------------------------
<S>                                                       <C>
---------------------------------------------------------- ----------------------------------------------------
                          2.50%                            First $75,000,000
---------------------------------------------------------- ----------------------------------------------------
                          2.25%                            Next $25,000,000 (i.e., $75,000,001 to $100,000,000
---------------------------------------------------------- ----------------------------------------------------
                          2.00%                            Next $25,000,000
---------------------------------------------------------- ----------------------------------------------------
                          1.75%                            Next $25,000,000
---------------------------------------------------------- ----------------------------------------------------
                          1.50%                            Amounts above $150,000,000
---------------------------------------------------------- ----------------------------------------------------
</TABLE>

         To determine the amount of the bonus pool, there shall be subtracted
from the amount arrived at by applying the formula in the table above, an amount
equal to all of our general and administrative expenses for the year.

         The compensation committee will have the authority under the bonus plan
to allocate all or a portion of the amount available in the bonus pool to
executive officers in relative proportions as the compensation committee
determines based on each individual executive officer's performance, experience
and responsibility and our relative overall performance.