EXHIBIT 10.7
STIPULATION AND AGREEMENT OF SETTLEMENT
This stipulation and agreement of settlement dated as of August 12th, 2003 is made and entered into by and
between lead Plaintiff, California State Teachers' Retirement System ("CalSTRS" or "Lead Plaintiff"), on behalf of
itself and the Class (as defined below), and defendant Homestore, Inc. ("Homestore").
WHEREAS:
A. Commencing in December 2001, multiple class action complaints were filed against Homestore and other
individuals and entities on behalf of persons who purchased shares of Homestore common stock during the
period January 1, 2000 until December 21, 2001;
B. The United States District Court for the Central District of California consolidated these actions in a
proceeding entitled In re Homestore.com, Inc. Securities Litigation, Case No. CV 01-11115 MJP ("the Action")
and approved the appointment of CalSTRS as Lead Plaintiff for the putative Class;
C. On November 15, 2002, Lead Plaintiff filed the operative First Amended Consolidated Complaint in the
Action ("the Complaint") that alleges, among other things, that in a scheme to artificially inflate the value of
Homestore common stock, Homestore's financial statements were materially misstated during the Class Period
(as defined herein) and that Homestore and the other defendants caused these material misstatements to be
issued;
D. The Complaint further alleges that Lead Plaintiff and the other members of the Class purchased or otherwise
acquired Homestore common stock during the Class Period at prices that were artificially inflated as a result of
the dissemination of Homestore's materially false and misleading financial statements in violation of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder;
E. Homestore has filed an Answer in the Action denying liability on its part with respect to the claims asserted in
the Action against them by Lead Plaintiff and the Class. Nevertheless, Homestore has determined that settlemen