HOMESTORE INC
EXHIBIT 10.3
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<TYPE>EX-10.3
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<FILENAME>v94177exv10w3.txt
<DESCRIPTION>EXHIBIT 10.3
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                                                                    Exhibit 10.3


LEWIS R. BELOTE, III
                           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:

<TABLE>
<CAPTION>
INCOME       OI
VS `02    (000,000)       %       %       %       %       %       %       %
------    ---------      ---     ---     ---     ---     ---     ---     ---
<S>       <C>            <C>     <C>     <C>     <C>     <C>     <C>     <C>
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
</TABLE>

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:

      -     Maintain revenue quality in 2003 so outside auditors are very
            comfortable with our policies and recorded revenues (as communicated
            to the Audit Committee)
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      -     Continue to challenge cost structure of each business unit to manage
            to the AOP net loss.

      -     Provide analysis of new revenue streams approved by Action Committee
            to support the appropriate accounting.

      -     Develop relationship with targeted buyside investors and sellside
            analysts to position the company post shareholder litigation

      -     Assist in future strategic plan for Wyldfyre and CFT by providing
            financial analysis

      -     Obtain subleases on all remaining office space to improve future
            cash flow

      -     Provide financial support to manage a settlement of shareholder
            litigation

      -     Complete the documentation of internal controls and improvements in
            them for Sarbanes-Oxley 404 requirements so the company is
            positioned to be compliant in 2004, including informal acceptance by
            the outside auditors.

      -     Oversee the ERP implementation and successful
            installation/conversion of Phase I and IA in 2003.

      -     Improve upon the Company's Director and Officer Liability Insurance
            and work to keep premium increase to less than 10%.

      -     Provide the Company's Board of Directors with timely and insightful
            reports that enable directors to understand the Company's
            performance.

      -     Meet the current objectives (to be inserted) of improving the timing
            of the monthly and quarterly close.

      -     Monitor outside auditor fees at conclusion of each "Q" to insure
            adherence to proposed fees, and report results to Audit Committee.

      -     Meet all objectives of the human resource management system with
            regard to performance reviews, appraisals, code of conduct
            education/acceptance.

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).

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