Document:

exv10w2

 

EXHIBIT 10.2

CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

[NRT Incorporated Letterhead]

March 15, 2006

Jim Caulfield, Senior Corporate Counsel

Homestore, Inc.

30700 Russell Ranch Road

Westlake Village, California 91362

Re: Amendment to Master Distribution Agreement

Dear Jim,

Pursuant to Section 25 of the Master Distribution Agreement, dated February 2, 2005, among
Homestore Inc. (“HS”), Move Sales, Inc., formerly known as Homestore Sales Company, Inc. (“HSC”)
(collectively, “Homestore”), and NRT Incorporated (“NRT”) (the “Agreement”), the parties agree to
amend certain provisions of the Agreement effective as of April 1, 2006, as follows:

1. Section 1(b) shall be amended and restated as follows:

Featured Home – thumbnail photograph of a property listing presented on the web page
after a search is entered but before the web page presenting the actual search results. The
current size of the thumbnail photograph is 120 wide by 80 pixels high. Each Featured Home
slot is assigned to a specific zip code (as determined by the United State Postal service) and
is classified into one of four tiers based on the volume of searches on Realtor.com within that
zip code. HSC offers eight (8) Featured Home slots within each tier. When a consumer searches
on Realtor.com for property listings, the geographic areas defined in their search criteria are
compared with the zip codes of all of the property listings designated as a Featured Home. If
four (4) or less Featured Homes exist within an area of the search, those Featured Homes are
displayed. If more than four (4) Featured Homes exists within the area of the search, the
Featured Homes are grouped into sets of four (4) and displayed randomly.

2. Section 1 (c) Featured Company/Companion Advertisements and Section 2 (c)
Companion Advertisements shall each be deleted in their entirety.

 

 

3. Section 2 (b) shall be amended and restated as follows:

Featured Home — NRT will have the ability to designate as a Featured Home any property
listed for sale by NRT within [*] Featured Home zip code slots listed on Exhibit B attached
hereto, subject to a cap on inventory of two (2) Featured Home slots per NRT Local Operating
Company office location per zip code. When purchasing a Featured Home product, (i) if NRT does
not specify a listing to feature, HSC will select the highest priced listing in NRT inventory
that has a photo, (ii) text, individual agent photos or office logos shall not be featured in
the Featured Homes spot, and (iii) in the event NRT does not have any inventory to display, HSC
will place in NRT’s spot a placeholder image that will re-direct to a NRT Local Operating
Company website. [*] If at any time during the Term of this Agreement HSC increases the
number of Featured Home slots per zip code, HSC shall proportionately increase the number of
Featured Home slots provided hereunder, at no additional charge, subject to any required
limitation set forth by the National Association of Realtors® (“NAR”). The Featured Homes
purchased hereunder shall be displayed randomly and equitably based on neutral criteria applied
to all of HSC’s customers.

4. The first paragraph of Section 3 shall be amended and restated as follows:

The term of this Agreement shall commence on April 1, 2005 (the “Effective Date”) and shall
terminate on March 31, 2008 (the “Term”). Pricing for the Term is as set forth in Section 4,
and all other terms and conditions shall remain the same during the Term.

5. Sections 4 (ii) and (iii) shall be amended and restated as follows:

(ii) For April 1, 2006 through March 31, 2007 – [*] Dollars ($[*]) payable in monthly
installments of $[*] per month, payable by the 10th day of each month; and

(iii) For April 1, 2007 through March 31, 2008 – [*] Dollars ($[*]) payable in monthly
installments of $[*], payable by the 10th day of each month.

6. Section 4 shall be amended to include the following term following Section 4 (iii):

HSC agrees that within thirty (30) days after the end of each month it shall pay to NRT an
amount equal to [*] percent ([*]%) of the net sales revenue actually received by HSC during
such month applicable to sales by HSC of products to NRT real estate sales agents during the
Term of this Agreement at special NRT sponsored and coordinated events, as agreed upon by the
parties, which are attended by Homestore

 

 

sales personnel. “Net sales revenue” shall mean amounts actually paid to HSC for

such products sold less all applicable (i) taxes directly related to such sales that HSC
is required to collect, (ii) credit card fees, (iii) cancellations,
refunds and returns, and (iv) sales commissions (such commissions not to exceed [*]% of HSC net
revenue received from such sales). Along with such payment HSC shall also provide NRT with a
monthly report detailing the net sales revenue actually received by HSC from applicable NRT
real estate revenues received during such month.

Very truly yours,

/s/ Bruce Zipf

Please indicate your agreement with the above by obtaining the required signatures below and
returning this letter to my attention at the address above.

	 	 	 	 	 	 	 	 	 
	Move Sales, Inc.	 	 	 	Homestore, Inc.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jack Dennison
	 	 	 	By:
	 	/s/ Allan Dalton
	 

	 	 
	 	 	 	 	 	 
	Name: Jack Dennison
	 	 	 	Name: Allan Dalton
	Title: COO
	 	 	 	Title: REALTOR.com CEO

 

			
	[*] 	
CERTAIN INFORMATION IN THIS
EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
	 
	[*]	
CERTAIN INFORMATION IN THIS
EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

EXHIBIT B

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Billing	 	 	 	 	 	 	 	 	 	 
	Group	 	Spots	 	 	LOC Name	 	 	 	 	 
	BOP1224
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP793
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP21
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1263
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1056
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1204
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP869
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1262
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1243
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1035
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1355
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1187
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1226
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1211
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1202
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1194
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1269
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1212
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1356
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP1062
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	BOP867
	 	 	[*]	 	 	 	[*]	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	[*]	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Unassigned Featured Home slots	 	 	[*]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Featured Home slots	 	 	[*]	 
	 
	 	 	 	 	 	 	 	 	 	 	 

 

			
	[*]	
CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Zip	 	State	 	County	 	Community	 	Tier	 	Rank	 	Value	 	Slots	 	OracleLoc	 	OfficeName
	 
	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]
	 	[*]

 

			
	[*]	
CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.exv10w3

 

Exhibit 10.3

W. Michael Long

2006 Executive Bonus Plan

For 2006, you will be eligible to receive a performance bonus based upon achievement of performance
objectives. Your bonus may be up to the following amounts:

Sixty Percent (60%) of your 2006 bonus award will be based on Corporate Financial Performance (as
outlined below). Forty Percent (40%) of your 2006 bonus award will be based on Individual
Performance Objectives (as outlined below). Your Target Bonus for 2006 is $500,000. Your Target
Bonus is your expected bonus amount assuming successful achievement of all of your performance
objectives. If you significantly exceed your performance objectives, you may receive a bonus in
excess of your Target Bonus, up to a maximum of 200% of your Target Bonus.

	 	 	 
	At Threshold Performance Level:

	 	0% of Target Bonus
	 
	 	 
	At Target Performance Level:

	 	100% of Target Bonus (60% for Corporate
Financial Performance; 40% for Individual
Performance)
	 
	 	 
	At Growth Performance Level:

	 	200% of Target Bonus (120% for Corporate
Financial Performance; 80% for Individual
Performance)

Achievement in between levels will be calculated according to a bonus formula described below.

Corporate Financial Performance Element

The Corporate Financial Performance element will be determined based on a financial matrix that
includes Cash Operating Income and Revenue components. For purposes of this Bonus Plan, “Cash
Operating Income” means Operating Income less non-cash charges, corporate branding, former officer
legal costs and other extraordinary, non-recurring items, calculated before payment of executive
bonuses. A copy of the matrix for your 2006 bonus, as approved by the Compensation Committee, is
being provided to you in connection with this Bonus Plan.

Individual Performance Objectives

Your maximum potential bonus award for the Individual Performance element is 80% of your Target
Bonus (for extraordinary performance). Your expected bonus for the Individual Performance Element
is 40% of your Target Bonus (at acceptable satisfaction of your objectives). A copy of your
individual performance objectives is being provided to you in connection with this Bonus Plan.

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