EXPEDIA INC
AMENDED AND RESTATED SERVICES AGREEMENT
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<DESCRIPTION>AMENDED AND RESTATED SERVICES AGREEMENT
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<P></P>
<P ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Exhibit 10.1</FONT></P>
<P ALIGN="center"> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>AMENDED AND RESTATED SERVICES AGREEMENT
<BR>
</B> </FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>MICROSOFT CORPORATION AND EXPEDIA, INC.</B> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT>THIS AMENDED AND RESTATED AGREEMENT (this &#147;Agreement&#148;) is entered into as of
January 1, 2001 (the &#147;Effective Date&#148;) by and between MICROSOFT CORPORATION, a corporation organized under the laws of the State of Washington (&#147;Microsoft&#148;), and EXPEDIA, INC., a corporation organized under the laws of the State
of Washington (&#147;Expedia&#148;), with reference to the following facts:</FONT> </P>
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<TD WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">A.</FONT></TD>
<TD WIDTH="90%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">On or about October 1, 1999, Microsoft caused the formation of Expedia and transferred certain Microsoft assets to Expedia in return for certain stock in Expedia.</FONT> </TD>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="top">&nbsp;</TD>
<TD WIDTH="90%">&nbsp;</TD>
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<TD WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">B.</FONT></TD>
<TD WIDTH="90%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">To assist Expedia in its day-to-day operations as a new corporate entity, Microsoft and Expedia entered into a Services Agreement dated as of October 1, 1999 (the &#147;Services
Agreement&#148;), pursuant to which Microsoft provided certain transition services to Expedia, and Expedia engaged Microsoft to provide such services.</FONT> </TD>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="top">&nbsp;</TD>
<TD WIDTH="90%">&nbsp;</TD>
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<TD WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">C.</FONT></TD>
<TD WIDTH="90%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;The parties now desire to amend and restate the Services Agreement in its entirety and extend the term of the Services Agreement pursuant to the terms and conditions set forth
herein.</FONT> </TD>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="top">&nbsp;</TD>
<TD WIDTH="90%">&nbsp;</TD>
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<TD WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">D.</FONT></TD>
<TD WIDTH="90%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">All capitalized terms not defined herein shall have the same meanings ascribed them in the Services Agreement.</FONT> </TD>
</TR>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2" FACE="Times New Roman, Times, serif">THEREFORE, the parties hereby agree as follows:</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">I.&nbsp;&nbsp;&nbsp;&nbsp;<U>PROVISION OF SERVICES; PAYMENT OF SERVICES</U> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions of this Agreement, Microsoft shall provide the
services described in Attachment A, attached hereto and incorporated herein by this reference, to Expedia. Such services will be categorized within the following &#147;Blocks&#148;: Real Estate &amp; Facilities Services; Corporate Accounting
Services; Global Cash Mgmt; Risk Mgmt; Human Resource Services; Information Technology Support Services; Corporate Services; and Operations (CCS). In its sole discretion, Microsoft will have the right to cause third party subcontractors to perform
any or all of the services required of Microsoft hereunder, provided that any such delegation by Microsoft will not relieve Microsoft of its obligations hereunder.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Microsoft agrees that it will at all times use its best commercially reasonable efforts to
perform any and all of the services to be provided pursuant to this Section 1 to the reasonable satisfaction of Expedia and will at all times retain and utilize a sufficient number of qualified personnel to perform all of such services.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia shall pay Microsoft for services rendered hereunder according to Attachment A. Except
as expressly provided otherwise in Attachment A, Microsoft shall bill Expedia fifteen (15) days after the end of each fiscal quarter (with partial months prorated on a daily basis). Compensation</FONT> <FONT SIZE="2"
FACE="Times New Roman, Times, serif">payments shall be due within thirty (30) days after the date of the applicable invoice from Microsoft, or as agreed upon from time to time as services are requested. For the purposes hereof, a &#147;fiscal
year&#148; shall end on June 30, and a &#147;fiscal quarter&#148; shall mean one of the four (4) three-month periods in a fiscal year,</FONT></P>

<P></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"> as customarily determined by Microsoft. The rate of interest applicable for overdue accounts shall be the applicable United States interest rate as published from time to time by the Microsoft
Treasury Department.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as may be provided in Attachment A, Microsoft shall not have, nor represent itself as
having, any authority under the terms of this Agreement to make agreements of any kind in the name of or binding upon Expedia, to pledge Expedia&#146;s credit, or to extend credit on Expedia&#146;s behalf.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Services rendered hereunder are &#147;as-is&#148; and are provided assuming that the
services can be provided without material impact or customization of Microsoft&#146;s standard or current processes, systems and policies unless such customization of Microsoft&#146;s current processes, systems or policies is mutually agreed to by
the parties or reflected in the pricing as indicated in each service Block.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions of certain services herein are based on a Microsoft economic ownership level of at
least fifty percent (50%) or greater (the &#147;Microsoft Ownership Percentage&#148;). For purposes of clarity, the Microsoft Ownership Percentage shall collectively be any shares in Expedia held by Microsoft, either directly or indirectly, and any
shares in Expedia held for the benefit of Microsoft.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties acknowledge that Section II relating to Loaned Employees under the Services
Agreement has been deleted in this Agreement and that all payments to be made to Microsoft under the Services Agreement with respect to the Loaned Employees have been fully paid.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">II.&nbsp;&nbsp;&nbsp;&nbsp;<U>TAXES</U> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amounts to be paid by Expedia to Microsoft herein do not include any foreign, U.S.
federal, state, local, municipal or other governmental taxes, duties, levies, fees, excises or tariffs, arising as a result of or in connection with the transactions contemplated under this Agreement including, without limitation, any state or local
sales or use taxes or any value added tax or business transfer tax now or hereafter imposed on the provision of goods and services to Expedia by Microsoft under this Agreement, regardless of whether the same are separately stated by Microsoft. All
such taxes (and any penalties, interest, or other additions to any such taxes), with the exception of taxes imposed on Microsoft&#146;s net income or with respect to Microsoft&#146;s property ownership, shall be the financial responsibility of
Expedia. Expedia agrees to indemnify, defend and hold Microsoft harmless from any such taxes or claims, causes of action, costs (including, without limitation, reasonable attorneys&#146; fees) and any other liabilities of any nature whatsoever
related to such taxes.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia will pay all applicable value added, sales and use taxes and other taxes levied on it
by a duly constituted and authorized taxing authority on the services or other items provided under this Agreement or any transaction related thereto in each country in which the services and/or property are being provided or in which the
transactions contemplated hereunder are otherwise subject to tax, regardless of the method of delivery. Any taxes that are owed by Expedia, (i) as a result of entering into this Agreement and the payment of the fees hereunder, (ii) are required or
permitted to be collected from Expedia by Microsoft under applicable law, and (iii) are based upon the amounts payable under this</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">Agreement (such taxes described in (i), (ii), and (iii)
above are referred to herein as the &#147;Collected Taxes&#148;), shall be remitted by Expedia to Microsoft, whereupon, upon request, Microsoft shall provide to</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">Expedia tax receipts or other
evidence indicating that such Collected Taxes have been collected by Microsoft and remitted to the appropriate taxing authority. Expedia may provide to Microsoft an exemption certificate acceptable to Microsoft and to the relevant taxing authority
(including without </FONT></P>

<P></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">limitation a resale certificate) in which case, after the date upon which such certificate is received in proper form, Microsoft shall not collect the taxes covered by such certificate.</FONT>
</P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia agrees that each payment to be made hereunder shall be free of all withholding imposed
by any jurisdiction, and if any such withholding is required, Expedia shall pay an additional amount such that after deduction of all amounts required to be withheld, the net amount of the payment will equal, on an after tax basis, the amount of the
payment that would be due absent such withholding.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Section II shall govern the treatment of all taxes arising as a result of or in
connection with this Agreement notwithstanding any other section of this Agreement.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the other undertakings of Expedia set forth in this Agreement, Expedia shall be
responsible to reimburse Microsoft for any and all Washington Business and Occupation tax liability imposed on Microsoft with respect to the payments received from Expedia by Microsoft. Such reimbursement shall be paid by Expedia to Microsoft
through a tax reimbursement payment, in addition to the other payments required to be made pursuant to this Agreement, to be made at the time of each payment required under Attachment A. Such tax reimbursement payments shall each be in an amount
such that after Microsoft pays all Business and Occupation taxes imposed with respect to both the payments required elsewhere in this Agreement, and the payments called for in this paragraph, the net amount of the aggregate of all payments made by
Expedia to Microsoft under this agreement will equal, on an after tax basis, the amount of the payment that is due under this Agreement excluding this Section 2.5.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">III.&nbsp;&nbsp;&nbsp;&nbsp;<U>CONFIDENTIAL INFORMATION</U> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties understand and acknowledge that each of them (and their respective employees, consultants and subcontractors) may have disclosed to
it, in connection with the rendition of services and performance of their obligations of this Agreement, confidential and/or proprietary information of the other party. The terms and conditions of that certain Non-Disclosure Agreement between the
parties, dated October 1, 1999, shall apply to all such confidential and proprietary information.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">IV.&nbsp;&nbsp;&nbsp;&nbsp;<U>LIMITATION OF LIABILITY AND INDEMNIFICATION</U> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Microsoft and its subcontractors (if any), and its and their respective officers, directors, agents or designees, shall not be liable for any
loss incurred by Expedia occasioned by acts performed (or not performed) by them, or advice or assistance given by them, in good faith in the performance of their duties hereunder, and in any event shall be liable only for willful wrongdoing or
gross negligence and not for honest errors of judgment; provided, however, that in no event shall Microsoft or such subcontractors be held liable for any consequential damages or for any loss of profits suffered by Expedia or by any third party, and
provided further that the amount of damages claimed in respect of all breaches of contract that may occur during one fiscal year in regard to Expedia shall not exceed the amount of compensation which Expedia owes and/or has paid to Microsoft for the
fiscal year during which the breach of contract has</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">occurred. Expedia agrees to indemnify and hold harmless Microsoft and its subcontractors, and its and their respective officers,
directors, agents and designees, from and against all costs, damages, judgments, attorneys&#146; fees, expenses, obligations and liabilities of every kind and nature which they or any of them may incur, sustain or be required to pay in connection
with or arising out of the performance of their obligations hereunder (unless such costs, damages, judgments, fees, expenses, obligations or liabilities are incurred in connection with or arise out of willful wrongdoing or gross negligence). This
Section IV shall survive the termination of this Agreement.</FONT> </P>

<P></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">V.&nbsp;&nbsp;&nbsp;&nbsp;<U>TERM</U> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall take effect upon the Effective Date and shall continue in full force and
effect through June 30, 2002, subject to the other termination provisions set forth in this Section V. Within thirty (30) days of the expiration of the June 30, 2002 termination date, both parties may mutually agree to extend the term of this
Agreement for additional six (6) month intervals. If there is any adjustment of compensation when this Agreement is extended, such adjustment shall be based on a revised estimate of the actual costs to be incurred by Microsoft in providing the
services hereunder.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Microsoft Ownership Percentage drops below twenty percent (20%) at any time during the
term of this Agreement or any renewal thereof, this Agreement will terminate within ninety (90) days following the effective date of said ownership change.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Section 5.1 of this Agreement, Expedia may terminate this Agreement in whole
or in part, at any time by giving written notice of termination (specifying either the specific service or services or Block(s) being terminated) to Microsoft at least thirty (30) days in advance of the effective date of such termination.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Section 5.1 of this Agreement, Microsoft may terminate this Agreement in
whole, or in part, at any time by giving written notice of termination (specifying either the specific service or services or Block(s) being terminated) to Expedia at least one hundred eighty (180) days in advance of the effective date of such
termination; provided that Microsoft may terminate this Agreement immediately upon written notice to Expedia if Expedia shall have failed to make any payment due hereunder for services rendered hereunder, unless such failure has been cured by
Expedia within sixty (60) days after the original due date for such payment.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the terms of this Section V, certain services or service Block(s) may have
specific termination terms. These terms will be called out in the applicable service Block(s) attached hereto, and such specific termination terms outlined in said Block(s) will supersede the terms of Section 5.4 above.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Microsoft may terminate this Agreement in whole or part, at any time if Expedia poses any
material information technology security threat or material financial exposure to Microsoft (<I>e.g.</I>, computer hacking into the Microsoft network, which originated from any Expedia source, etc.), provided, however, that Microsoft gives Expedia
prior written notice of such threat or exposure. Expedia shall have at least ten (10) business days after receipt of notice in which to cure such threat or exposure. Microsoft may take immediate, independent steps to mitigate an information
technology security risk, up to and</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">including a temporary shutdown of an affected information technology-service block(s), and will work with Expedia in good faith to restore any temporarily
shutdown service blocks in a timely manner.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">VI.&nbsp;&nbsp;&nbsp;&nbsp;<U>GENERAL PROVISIONS</U> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization, Good Standing, and Authority. </U>Microsoft represents and warrants that it
is a corporation duly organized, validly existing, and in good standing under the laws of the State of Washington and has authority to enter into this Agreement and perform its obligations hereunder.</FONT> </P>

<P></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization, Good Standing, and Authority. </U>Expedia represents and warrants that it is
a corporation duly organized, validly existing, and in good standing under the laws of the State of Washington and has authority to enter into this Agreement and perform its obligations hereunder.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>. This Agreement constitutes the entire agreement of the parties with
respect to the subject matter hereof, and supersedes and terminates any and all prior agreements or contracts, oral or written, entered into between the parties relating to the subject matter hereof (although the parties acknowledge that on or about
the Effective Date they may execute separate agreements dealing with, for example, software licenses, internet data center hosting services, and the &#147;distribution&#148; of expedia.com in msn.com, and nothing contained in this Agreement will be
deemed to nullify any provisions of such license, internet service provider or carriage or other agreements). Each party acknowledges that there are no warranties, representations, covenants or understandings of any kind, manner or description
whatsoever by either party to the other with respect to the premises except as expressly set forth herein.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments</U>. This Agreement shall not be amended or otherwise modified except by a
written agreement dated subsequent to the date of this Agreement and signed on behalf of Microsoft and Expedia by their respective duly authorized representatives.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>. This Agreement shall be governed by and construed in accordance with the
laws of the State of Washington.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment.</U> Neither party hereto may assign this Agreement without the prior written
consent of the other party signed by such other party&#146;s duly authorized representative, which consent may be given or withheld in the sole discretion of the applicable party whose consent is requested.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>. All notices in connection with this Agreement shall be deemed given as of the
day they are sent by electronic transmission, sent by facsimile or deposited with a commercial courier for delivery to other party at the following addresses:</FONT> </P>
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<TD WIDTH="136"><FONT SIZE=2 FACE="serif">Microsoft:</FONT></TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Microsoft Corporation</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">One Microsoft Way</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Redmond, Washington</FONT> <FONT SIZE=2 FACE="serif">98052-6399</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282">&nbsp;</TD>
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<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Tel: (425) 882-8080</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Fax: (425) 936-7329</FONT></TD>
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<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282">&nbsp;</TD>
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<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Attention: Chief Financial Officer &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasurer</FONT></TD>
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<TD WIDTH="282">&nbsp;</TD>
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<TD WIDTH="282"><FONT SIZE=2 FACE="serif">With copy to:</FONT> <FONT SIZE=2 FACE="serif">Law and Corporate Affairs</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">With copy to:</FONT> <FONT SIZE=2 FACE="serif">Service Agreement VI Program Mgr</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282">&nbsp;</TD>
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<TD WIDTH="136"><FONT SIZE=2 FACE="serif">Expedia:</FONT></TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Expedia, Inc</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">13810 SE Eastgate Way, Suite 400</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Bellevue WA, 98005</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282">&nbsp;</TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Tel: (425) 564-7200</FONT></TD>
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<TD WIDTH="65">&nbsp;</TD>
<TD WIDTH="136">&nbsp;</TD>
<TD WIDTH="282"><FONT SIZE=2 FACE="serif">Fax:</FONT> <FONT SIZE=2 FACE="serif">(425) 564-7240</FONT></TD>
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<TD WIDTH="28%"><FONT SIZE=2 FACE="serif">Attention:</FONT></TD>
<TD WIDTH="58%"><FONT SIZE=2 FACE="serif">Chief Executive Officer</FONT></TD>
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<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="28%">&nbsp;</TD>
<TD WIDTH="58%"><FONT SIZE=2 FACE="serif">Chief Financial Officer</FONT></TD>
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<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="28%">&nbsp;</TD>
<TD WIDTH="58%">&nbsp;</TD>
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<TD WIDTH="28%"><FONT SIZE=2 FACE="serif">With copy to:</FONT></TD>
<TD WIDTH="58%"><FONT SIZE=2 FACE="serif">General Counsel</FONT></TD>
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<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="28%"><FONT SIZE=2 FACE="serif">With copy to:</FONT></TD>
<TD WIDTH="58%"><FONT SIZE=2 FACE="serif">Vice President, Operations</FONT></TD>
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</TABLE>
<FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT>
<P>&nbsp; </P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">or to such other address and/or telex and facsimile number as the party to receive the notice or request so designates by written notice to the other.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Waiver</U>. No waiver of any breach of any provision of this Agreement shall constitute
a waiver of any prior, concurrent or subsequent breach of the same or any other provisions hereof, and no waiver shall be effective unless made in writing and signed by an authorized representative of the waiving party.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Savings Clause</U>. If any provision of this Agreement shall be held by a court of
competent jurisdiction to be illegal, invalid or unenforceable, the remaining provisions shall remain in full force and effect.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Confidentiality</U>. Microsoft and Expedia each agree that the terms and conditions of this Agreement,
including its attachments, will be deemed to constitute, and be treated as, confidential information pursuant to Section III above.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further Assurances</U>. Each party agrees to take such further action and execute, deliver and/or file
such documents or instruments as are necessary to carry out the terms and purposes of this Agreement.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section Headings</U>. The section headings used in this Agreement are intended for convenience only
and shall not be deemed to supersede or modify any provisions.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Relationship of Parties</U>. This Agreement is intended solely as a services agreement, and no
partnership, joint venture, employment, agency, franchise, or other form of agreement or relationship is intended. Each party agrees to be responsible for all of its federal and state taxes, withholding, social security, insurance, and other
benefits, and all salaries, benefits, and other costs of its employees, except as otherwise specifically contemplated by the provisions of this Agreement (e.g., where Expedia has</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">agreed to
reimburse Microsoft for its costs). From time to time, in connection with the services referred to in Attachment A, Microsoft may act as Expedia&#146;s agent if Expedia requests Microsoft to do so and</FONT> <FONT SIZE="2"
FACE="Times New Roman, Times, serif">Microsoft, in its sole discretion, agrees.</FONT> </P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">6.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Third Party Beneficiaries</U>. This
Agreement is not intended to create any rights in any person or entity who is not a party to this Agreement, and no such rights are created hereunder.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">IN WITNESS WHEREOF, the
parties have executed this Agreement as of the Effective Date.</FONT> </P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="50%"><FONT SIZE=2 FACE="serif">MICROSOFT CORPORATION</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2 FACE="serif">EXPEDIA, INC.</FONT></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="50%"><FONT SIZE=2 FACE="serif">By <U>/s/ Mark Jonas</U></FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2 FACE="serif">By<U> /s/ Mike Day</U></FONT></TD>
</TR>
<TR>
<TD WIDTH="50%">&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2 FACE="serif">its authorized representative</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2 FACE="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;its authorized representative</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></P>
<P ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>ATTACHMENT A</B> </FONT> </P>
<P ALIGN="center"> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>SERVICES AGREEMENT</B> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Parties</U>: MICROSOFT CORPORATION and EXPEDIA, INC.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Effective Date</U>: January 1<SUP>st</SUP>
, 2001</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>General</U>: All capitalized terms in this Attachment A shall have the same meanings ascribed them in the Agreement unless otherwise noted herein.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Accounting Principles</U>: Where the terms of the Agreement or this Attachment A require the application of accounting principles, United States Generally Accepted Accounting Principles
shall apply.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Policies and Procedures:</U> From time to time Expedia and Microsoft may establish one or more Policies and Procedures document(s) that set forth in further detail the agreed upon services
provided under this Agreement with respect to a particular Block of services.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Headcount</U>: Compensation to Microsoft for certain services hereunder will be based on the &#147;Headcount&#148; for Expedia. &#147;Headcount&#148; will be computed monthly, based on the
average daily aggregate number of the following personnel, unless specifically stated otherwise within a specific service block: (i) employees of Expedia; plus (ii) all other individuals employed by third parties who are rendering services
substantially full-time for Expedia. The number of personnel described in clause (ii) may be referred to herein as &#147;Contingent Staff&#148;; and the number of personnel described in clause (i) may be referred to as &#147;Non-Contingent
Staff.&#148;</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Condition Precedent</U>: Services provided hereunder are contingent on Expedia using Microsoft internal systems.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Direct Expenses</U>: Direct expenses incurred by Microsoft with third parties in connection with Microsoft&#146;s performance hereunder will be reimbursed by Expedia to Microsoft, or billed
directly to Expedia, in addition to any fees payable to Microsoft hereunder. The scope and terms of any work performed by third parties shall be set forth in a statement of work mutually agreed to by the parties.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Compensation for Work Performed outside of the terms of the Agreement</U>: If Microsoft performs, at the request of Expedia, any work that is not within scope of this Agreement, including
work performed to assist Expedia in transitioning services or customizing services to meet Expedia&#146;s requirements, such work will be billed to Expedia (a) at a rate of $67.00 per hour if performed by a Microsoft full time employee (FTE) or (b)
at Microsoft&#146;s cost in the event that a Microsoft third party or contingent staff person is performing the work directly or is replacing a Microsoft FTE performing such work.</FONT> </P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Travel Expenses:</U> All reasonable travel-related expenses incurred by Microsoft in connection with Microsoft&#146;s performance hereunder will be reimbursed by Expedia to Microsoft,
provided that such expenses are approved in writing in advance by Expedia.</FONT> </P>
<FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Fiscal Year Recalculation</U>: Some of the rates set forth herein are based on the current Microsoft fiscal year calculations. Such calculations may change over fiscal years, and Microsoft
reserves the right to recalculate these rates based on new accounting policies. However, Microsoft will notify Expedia in writing as soon as reasonably possible regarding such rate recalculations (if applicable) and the parties will negotiate in
good faith to arrive at a reasonable new rate to be charged.</FONT>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
<B><U>CORPORATE ACCOUNTING SERVICES BLOCK
<BR>
</U></B></FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Microsoft Corporate Accounting shall provide Expedia with services for transactions and reporting. Such services include
the following:</FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"> <B>Transaction Support
<BR>
</B></FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"> <U>Accounting and Analysis:</U></FONT> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Microsoft will provide Expedia and its Subsidiaries with policy and control, as follows: </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;a.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">SAP security profiles &amp; segregation of duties </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;b.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Access to financial &amp; headcount information </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;c.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Accounting system data integrity </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">2.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Microsoft will integrate Expedia and its Subsidiaries into Microsoft&#146;s month end closing processes. This includes providing: </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;a.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Finance calendar &#150; Microsoft fiscal period calendar including timing of all finance functions &amp; cutoffs </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;b.</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Issue tracking &#150; live update and tracking of all issues related to close </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;c.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Controller online signoff &#150; signoff of P&amp;L&#146;s prior to finalization </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;d.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Subsidiary report card &#150; report summarizing the amount and type of errors for each co involved in Microsoft close </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">3.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Microsoft will integrate Expedia and its Subsidiaries into the Microsoft centralized functions: </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;a.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">SAP: </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">i. </FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE="2" FACE="Times New Roman, Times, serif">General Ledger </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif"> ii.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Consolidation</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">iii.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Master data maintenance &#150; maintenance of profit centers, cost centers, internal orders, chart of accounts</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">iv.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Exchange rate control &amp; maintenance &#150; control and maintenance of all foreign currency exchange rates including updating of SAP modules</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;b.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Revenue Accounting &#150; posting of revenue to the general ledger &#150; tie out with Microsoft sales database </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;c.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Allocations </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">i.</FONT></DIV>
</TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Alfred &#150; allocation of various costs</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;d.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Fixed Asset accounting </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">4.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Microsoft will provide accounting support to Expedia and its Subsidiaries: </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;a.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">serve as accounting liaison within Corporate </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;b.
<BR>
</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Transition management &#150; acquisitions &amp; divestitures </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;c.</FONT></TD>
<TD COLSPAN=3><FONT SIZE="2" FACE="Times New Roman, Times, serif">Inter-company accounting</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="29"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;d.</FONT></TD>
<TD COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Subsidiary service agreement compliance</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">5.</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Finance Tools</FONT></TD>
</TR>
</TABLE>
<FONT SIZE=2 FACE="serif"></FONT>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE=2 FACE="serif">a.</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE=2 FACE="serif">SAP input</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">i.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">WebJE</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">ii.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">Master data</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">iii.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">Asset Management Tool (AMT)</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE=2 FACE="serif">b.</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE=2 FACE="serif">Reporting &amp; Allocation tools</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23">&nbsp;</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">i.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">Alfred &#150; allocation of various costs</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">ii.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">PSS Upload</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">iii.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">ACP upload</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">iv.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">Hierarchy lookup/change requests</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29">&nbsp;</TD>
<TD VALIGN="top" WIDTH="23"> <DIV ALIGN="right"><FONT SIZE=2 FACE="serif">v.</FONT></DIV>
</TD>
<TD VALIGN="top" WIDTH="15">&nbsp;</TD>
<TD VALIGN="top" WIDTH="879"><FONT SIZE=2 FACE="serif">Corporate Accounting Excel Toolbar</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="29"><FONT SIZE=2 FACE="serif">c.</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT SIZE=2 FACE="serif">Reconciliation Manager</FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">For purposes of this Section, &#147;Subsidiaries&#148; shall mean any other entity that, directly or indirectly, is controlled by or is under common control with Expedia. As used herein,
&#147;control&#148; means the beneficial ownership of fifty percent (50%) or more of the voting securities or interests of the entity, in each case.</FONT> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD VALIGN="top" COLSPAN="5"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Customer Service</U>:</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Training</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="79">&nbsp;</TD>
<TD VALIGN="top" WIDTH="31">&nbsp;</TD>
<TD VALIGN="top" WIDTH="22">&nbsp;</TD>
<TD VALIGN="top" WIDTH="814">&nbsp;</TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)</FONT></TD>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Self service - //finweb/Corpacct portal </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="79">&nbsp;</TD>
<TD VALIGN="top" WIDTH="31"><FONT SIZE="2" FACE="Times New Roman, Times, serif">a.</FONT></TD>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"> &#147;I need to..&#148;</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="79">&nbsp;</TD>
<TD VALIGN="top" WIDTH="31"><FONT SIZE="2" FACE="Times New Roman, Times, serif">b. </FONT></TD>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">FAQ&#146;s</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="79">&nbsp;</TD>
<TD VALIGN="top" WIDTH="31"><FONT SIZE="2" FACE="Times New Roman, Times, serif">c.</FONT></TD>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Search</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="42">&nbsp;</TD>
<TD VALIGN="top" WIDTH="79">&nbsp;</TD>
<TD VALIGN="top" WIDTH="31"><FONT SIZE="2" FACE="Times New Roman, Times, serif">d.</FONT></TD>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Site Index</FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>Corporate Accounting &#150; Reporting and Decision Support</B></FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR>
<TD VALIGN="top" WIDTH="8%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="5%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Tools &#150; Reporting and Decision Support provides Expedia access to MARS, MS People and Calypso. Microsoft will allow Expedia users of these tools access to online
and live training courses that are offered by Microsoft. Additional or customer training may be provided, at the discretion of Microsoft. Microsoft reserves the right to modify or enhance these tools at any time. Any changes or enhancement requests
by Expedia will be at the full discretion of Microsoft. </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="8%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="5%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)</FONT></TD>
<TD VALIGN="top" COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Reports and Services &#150; Reporting and Decision Support will provide Expedia with the following reports and services. </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" COLSPAN="2">&nbsp;</TD>
<TD VALIGN="top" WIDTH="10%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;a.</FONT></TD>
<TD VALIGN="top" WIDTH="77%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Master data maintenance </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" COLSPAN="2">&nbsp;</TD>
<TD VALIGN="top" WIDTH="10%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;b.</FONT></TD>
<TD VALIGN="top" WIDTH="77%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Access requests </FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>Finance and Procurement Systems</B></FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">From time to time, Expedia may require additional modifications to or implementations of Microsoft Finance and Procurement Systems. At its sole discretion, Microsoft may entertain such requests.
Project requests will be prioritized in the same manner as internal Microsoft requests.</FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR>
<TD VALIGN="top" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Compensation</U>: For the services in this block rendered by Microsoft personnel, Expedia shall pay Microsoft the following monthly fixed rates:</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="8%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="5%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD VALIGN="top" COLSPAN="2" WIDTH="87%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Transaction Support &#150; $6,250/month</FONT></TD>
</TR>
</TABLE>
<FONT FACE="Times New Roman, Times, serif"> </FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><U></U></B></FONT>
<P></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR>
<TD VALIGN="top" WIDTH="8%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="5%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)</FONT></TD>
<TD VALIGN="top" COLSPAN="2" WIDTH="87%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Corporate Accounting &#150; Reporting and Decision Support - $6,667/month</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="8%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="5%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(c)</FONT></TD>
<TD VALIGN="top" COLSPAN="2" WIDTH="87%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Finance and Procurement Systems &#150; As a maintenance and support charge relating to the Microsoft systems that Expedia currently utilizes, Expedia shall
pay a monthly fee of $12,500.</FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><U>GLOBAL CASH MANAGEMENT SERVICES BLOCK</U></B></FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Services</U>: &nbsp;&nbsp;&nbsp;&nbsp;The Global Cash Management department
of Microsoft shall provide the following services to Expedia:
<BR>
</FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR>
<TD VALIGN="top" WIDTH="11%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="3%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD VALIGN="top" COLSPAN="2" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Global Cash Management will, as agreed, provide certain cash management services as per the attached table. Microsoft compensation for these services is
outlined in section (a) of the compensation portion of this service block. If, at any time, Expedia elects to assume control over their own cash management operations then the policies and Microsoft services outlined in section (c) and (d) of this
service block will apply. All services pertain only to Expedia's existing bank and legal entity account structure at the time of this agreement renewal and are available only if the request is consistent with current Microsoft practice and
vendor.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE WIDTH="70%" BORDER=0 CELLSPACING=0 CELLPADDING=0 ALIGN="center">
<TR>
<TD COLSPAN="2"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;<B>Service Area</B></FONT></DIV>
</TD>
<TD WIDTH="68%"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Service Provided</B></FONT></DIV>
</TD>
</TR>
<TR>
<TD COLSPAN=3> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Bank Account</FONT></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Account Administration &#150; Opening/closing accounts;</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Administration</FONT></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">adding/updating services/signatories; overseeing</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">documentation; coordinating with Legal; integrating new</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">accounts within the existing account structure</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Daily Cash </FONT></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Managing daily cash positions &#150; reviewing daily activity in</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP><FONT SIZE="2" FACE="Times New Roman, Times, serif">Operations</FONT></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">concentration, collection, accounts payable and payroll</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">accounts; moving funds between accounts as needed;</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp; </TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">executing one-off wire transfers; investigating random</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" NOWRAP VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">banking inquiries (e.g. bank codes, unusual account activity, etc)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Investment </FONT></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Investing/withdrawing from AIM Investment Account as</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP><FONT SIZE="2" FACE="Times New Roman, Times, serif">Management </FONT></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">needed</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Foreign Currency</FONT></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#147;Buying&#148; foreign currency, as needed, to fund European</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">accounts, executing inter-company trades with other</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Microsoft entities</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Credit Card</FONT></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Setting up Merchant IDs; investigating random inquiries</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Consulting</FONT></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Consultation for enhancements to existing banking structure</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Credit Support</FONT></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Letters of Credit and other types of credit support for Expedia</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" NOWRAP>&nbsp;</TD>
<TD WIDTH="25%" VALIGN="top" NOWRAP></TD>
<TD WIDTH="68%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Inc. as approved by Microsoft management</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 NOWRAP> <HR NOSHADE SIZE=1> </TD>
</TR>
</TABLE>
<FONT FACE="Times New Roman, Times, serif">
<BR>
</FONT>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR>
<TD VALIGN="top" WIDTH="11%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="3%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="2" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">It is the long-term intent of Global Cash Management to transition the above services to Expedia by December 31, 2001.</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="11%">&nbsp;</TD>
<TD VALIGN="top" WIDTH="3%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(c)</FONT></TD>
<TD VALIGN="top" COLSPAN="2" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">If</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">the Microsoft Ownership Percentage falls below fifty percent (50%) at any time during the term
of the Agreement, then MS Treasury and Expedia will determine a mutually agreed upon date for the termination of any Microsoft-supported bank accounts and facilities. This does not supersede Article 5.4 of the Agreement, which allows Microsoft to
terminate the Agreement at any time with</FONT></TD>
</TR>
</TABLE>
<P> </P>
<FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT>
<P></P>
<P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD COLSPAN="5"><FONT SIZE="2" FACE="Times New Roman, Times, serif">180 days prior written notice to Expedia. If the Microsoft Ownership Percentage falls below twenty percent (20%) at any time during the term of the Agreement,then Microsoft has the
option to request that Expedia provide Microsoft with any necessary guarantees and/or cash collateral required by Microsoft for continued Microsoft support of bank accounts and facilities on behalf of Expedia in accordance with the terms of the
Agreement. The change in financial institutional will affect other service blocks such as Corporate Services and CCS</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD COLSPAN="5"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(d)</FONT></TD>
<TD COLSPAN="5"><FONT SIZE="2" FACE="Times New Roman, Times, serif">At any time during the term of this Agreement, Expedia may elect to take over management of their Global Cash Management function and Microsoft will terminate any services provided
in section (a) of this service Block. Upon election to assume management over their Global Cash Management function and as long as Microsoft is required to consolidate Expedia&#146;s Balance Sheet with its own, Expedia must adhere to the following
policies:</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD COLSPAN="5"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;1.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Bank accounts will be maintained at financial institutions approved by Microsoft Global Cash Management that provide online access to information reporting. </FONT></TD>
</TR>
<TR>
<TD WIDTH="7%" HEIGHT="18"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%" HEIGHT="18"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD HEIGHT="18" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;2.&nbsp;</FONT></DIV>
</TD>
<TD HEIGHT="18" COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Bank account resolutions will include authorized officers from both Microsoft and Expedia &#150; all account openings and requests for account services will require the
approval of one Microsoft officer and one Expedia officer.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;3.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Portfolio investments will be maintained with a MS Treasury approved outside fund manager, and Microsoft will be copied on the account statements.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;4.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Microsoft internal audit and control procedures, as required to conform with GAAP will be maintained.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;5.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Any Microsoft funding will be pre-approved by the appropriate business unit. </FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;6.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Monthly cash flow forecasts will be provided to Global Cash Management.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;7.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Expedia will be responsible for establishing appropriate signing/approval limits that are in accordance with the Microsoft Accounting Policies set forth on Appendix 1
hereto.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;8.&nbsp;</FONT></DIV>
</TD>
<TD COLSPAN="4"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Expedia will be responsible establishing appropriate signing/approval limits for hedging foreign exchange currency that are in accordance with the Microsoft General Policy
Guidelines set forth on Appendix 2 hereto.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD COLSPAN="5"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"></FONT></TD>
<TD WIDTH="5%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(e)</FONT></TD>
<TD COLSPAN="5"><FONT SIZE="2" FACE="Times New Roman, Times, serif">If Expedia elects to take over their Global Cash Management function, Microsoft will assist with the transition, upon request, as follows:</FONT></TD>
</TR>
</TABLE>
<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="17%"><FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="80%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="17%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;Recommend optimal bank account structures and financial institution partners (i.e. the bank(s) that will provide services to Expedia on &#147;stand-alone&#148;
bases)</FONT></TD>
</TR>
<TR>
<TD WIDTH="17%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1</FONT><FONT FACE="Times New Roman, Times, serif">.</FONT></TD>
<TD WIDTH="80%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Advise on control; audit, foreign currency hedging, and short-term investment policies</FONT></TD>
</TR>
<TR>
<TD WIDTH="17%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">2</FONT><FONT FACE="Times New Roman, Times, serif">.</FONT></TD>
<TD WIDTH="80%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Consult regarding appropriate officer limits for cash management transactions</FONT></TD>
</TR>
<TR>
<TD WIDTH="17%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">3</FONT></TD>
<TD WIDTH="80%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">When necessary, assist with the extension of bank credit</FONT></TD>
</TR>
</TABLE>
<FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Compensation:</U> </FONT>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD ROWSPAN="3" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ROWSPAN="3" WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD COLSPAN="4" ROWSPAN="3" WIDTH="85%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">For the services in section (a) of this services block rendered by Microsoft personnel, Expedia shall pay Microsoft the fixed rate of $22,750 per month, plus
any bank fees incurred by Microsoft while administering Expedia accounts.</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR><TD> </TD></TR>
<TR>
<TD ROWSPAN="6" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ROWSPAN="6" WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)</FONT></TD>
<TD COLSPAN="4" ROWSPAN="6" WIDTH="85%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">For administration and oversight by Microsoft personnel over the policies outlined in section (c) of this services block, there will be no charge. For the
services in this services block, there will be no charge for initial consultation up to 40 hours. For services in excess of 40 hours, Expedia shall pay Microsoft pursuant to the &#147;Compensation for Work Performed Outside of the Terms of the
Agreement&#148; section at the beginning of this Appendix A</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR><TD> </TD></TR>
<TR><TD> </TD></TR>
<TR><TD> </TD></TR>
<TR><TD> </TD></TR>
<TR>
<TD ROWSPAN="3" WIDTH="9%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD ROWSPAN="3" WIDTH="6%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(c)</FONT></TD>
<TD COLSPAN="4" ROWSPAN="3" WIDTH="85%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">For services subcontracted by Microsoft to third parties (e.g. banks), Expedia will reimburse Microsoft at cost and/or Microsoft may request such third
parties to bill Expedia directly</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR><TD> </TD></TR>
</TABLE>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><U>RISK MANAGEMENT SERVICES BLOCK</U></B></FONT></P>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Services</U>: Until approximately April 30, 2001 or such other date as mutually agreed upon by Expedia&#146;s Controller and the
Manager of the Risk Management Department at Microsoft, Microsoft shall provide the following services to Expedia:</FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0">
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Consultation</U> &#150; Help Expedia identify, analyze and quantify strategies to mitigate or finance its business risks </FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)
<BR>
</FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Risk Financing</U> &#150; Help Expedia effect placement of insurance or other business risk financing programs. Service does not include the cost of such programs,
which cost is born directly by Expedia at market price. </FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Compensation</U>: For the services in this block rendered by Microsoft personnel, Expedia shall pay Microsoft the fixed rate of $1,875 per month.</FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"> <B><U>HUMAN RESOURCES SERVICES BLOCK</U></B>
<BR>
</FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Services</U>: The Human Resources department of Microsoft shall provide the following services to Expedia:</FONT> </P>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(a)</FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>HRIS Services</U>: Microsoft will track and maintain all employee data in the HR SAP</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">System.</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(b)</FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Stock Option Administration</U>: Expedia employees retain vested stock options as part of</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">their
participation in the Stock Option program of Microsoft. Microsoft will facilitate exercise of Microsoft options for Expedia employees and provide the appropriate reporting to the employees. Expedia will be responsible for updating the employee
records in HR SAP until a satisfactory interface has been created between PeopleSoft and the Stock system.</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top" WIDTH="9%" ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(c)</FONT></TD>
<TD VALIGN="top" WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD VALIGN="top" WIDTH="86%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">In the event that the Microsoft Ownership Percentage falls below 50%, then the Expedia employees would no longer be eligible to be Participants in the Stock Option
program. At that time, the employees would be permitted to exercise their rights under any </FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>

<P></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD>&nbsp;</TD>
<TD WIDTH="8%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="89%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">outstanding awards to the extent exercisable on the date of termination of eligibility status.</FONT></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
<TD WIDTH="8%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="89%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
<TD WIDTH="8%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">(d)</FONT></TD>
<TD WIDTH="89%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Contingent </U></FONT><FONT FACE="Times New Roman, Times, serif"><U><FONT SIZE=2>Staff Services</FONT></U><FONT SIZE=2>: Microsoft will provide workforce
consultation and procurement of contingent staff services and necessary reporting as requested by Expedia.</FONT></FONT></TD>
</TR>
</TABLE>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2 FACE="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;</FONT></FONT><FONT FACE="Times New Roman, Times, serif"><U><FONT
SIZE=2>Compensation</FONT></U><FONT SIZE=2>: Expedia shall pay Microsoft the fixed rate of $6,875 monthly for HRIS Services and Stock Option Administration. The compensation for Contingent Staff Services will be $1,250 per month. In the event that
an Interface solution is required between PeopleSoft and the Microsoft Stock System, Expedia will pay a one-time development cost of $70,000.</FONT></FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif"><B><U>CORPORATE SERVICES BLOCK (US Only)</U></B> </FONT></P>
<TABLE WIDTH="100%" BORDER=1 CELLSPACING=0 CELLPADDING=2>
<TR>
<TD WIDTH="12%"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><B>Service&nbsp;Area</B></FONT></DIV>
</TD>
<TD WIDTH="69%"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><B>Description of Service Provided</B></FONT></DIV>
</TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT FACE="Times New Roman, Times, serif"><B>Pricing</B></FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Mail/Courier</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Interoffice Mail:
<BR>
</FONT> <LI></LI>

<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Expedia to overnight shipments to MS for interoffice
<BR>
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;mail processing at Expedia&#146;s expense.
<BR>
<LI></LI>
&nbsp;&nbsp;&nbsp;&nbsp;MS will overnight interoffice mail to Expedia at a
<BR>
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;mutually agreed upon frequency. At MS&#146; expense.</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">No charge for MS services</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Communications
<BR>
and Support</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Training on Corporate Services tools provided on an as requested basis through MS Market.</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Will be charged at MS cost for actual usage.</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%" HEIGHT="74"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Output Devices</FONT></TD>
<TD WIDTH="69%" HEIGHT="74">
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">Expedia will continue to have copier and printer equipment provided at MS contract rates. Expedia will be billed directly by the vendors for equipment and servicing costs.MS will not charge
Expedia for vendor management</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">services.</FONT></P>

<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">As soon as Expedia is no longer on the corporate network, Expedia must pursue their own lease agreements for this equipment.</FONT> </TD>
<TD WIDTH="18%" HEIGHT="74"> <DIV ALIGN="center">
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">Actual usage billed directly
<BR>
by vendor(s).</FONT></P>

<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"> No charge for MS services</FONT> </DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Accounts Payable</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Providing payables and employee reimbursement services.</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$120/head/year</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Procard</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Provide card servicing and payment processing.</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Included in Accounts Payable charge above</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">TMM</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Hardware fulfillment and PC Recycle</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">8% of purchases through MZI</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Company Store</FONT> </TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Access provided</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">at this time to all &#147;blue badges&#148;.</FONT> </TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">No charge for MS services</FONT> </DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Travel</FONT> </TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Provide ticketing</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">services for Expedia employees, T&amp;E card servicing, recruiting travel, and employee relocation
services.</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Actual fees for services purchased are billed directly to Expedia by the vendor(s)</FONT> </DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Expedia will be contracting with its own vendors for these services NLT 3/31/01.</FONT></TD>
<TD WIDTH="18%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">In addition, the following charges will be applied:</FONT></DIV>
</TD>
</TR>
</TABLE>
<FONT SIZE=2 FACE="serif"></FONT>
<TABLE WIDTH="100%" BORDER=1 CELLSPACING=0 CELLPADDING=2>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="69%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="17%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1/1/01</FONT><FONT FACE="Times New Roman, Times, serif">-<FONT SIZE=2>2/28/01:
<BR>
Charged </FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">at $60 per transaction/ticket
<BR>

<BR>
3/1/01-3/31/01:
<BR>
Charged at $90 per transaction/ticket
<BR>

<BR>
After 3/31/01, if required on an exception basis only while Expedia negotiates for its own service provider(s): Charged at $120 per transaction/ticket</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Event&nbsp;Planning</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Coordination of events. Expedia can utilize the MS event coordination vendor at any time and will be charged directly for that service.</FONT></TD>
<TD WIDTH="17%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Actual usage billed directly by
<BR>
vendor(s).</FONT></DIV>
</TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="12%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">MS&nbsp;Studios</FONT></TD>
<TD WIDTH="69%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Production, compression, and duplication services provided as requested by Expedia. MS Studios cross-charges for all services provided.</FONT></TD>
<TD WIDTH="17%"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Charged at MS Studios&#146; then current rates for actual usage.</FONT></DIV>
</TD>
</TR>
</TABLE>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2 FACE="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Times New Roman, Times, serif">&nbsp;Within 180 days after the termination</FONT></FONT><FONT SIZE="2"
FACE="Times New Roman, Times, serif"> of any Microsoft-supported bank account or facility under Paragraph (c) of the Global Cash Management Services Block, access by Expedia to MS Market, MS Expense, MS Invoice, or other internal tools provided by
Corporate Services may be terminated.</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif"><B><U>INFORMATION TECHNOLOGY SUPPORT SERVICES BLOCK</U></B> </FONT></P>
<P> <FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Services</U>: &nbsp;The ITG department of</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">
Microsoft shall provide substantially the same level of service as is being delivered to Microsoft end users. Such services include the following:</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">-Network, Data-center, Email
Operation and Telecom: Includes the basic services (hardware and labor) to give the user access to the Microsoft corporate network and infrastructure/back-office services, including the telephony infrastructure. This does not include the
costs</FONT><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2> </FONT></B><FONT SIZE=2> of</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"> any additional circuits between Expedia sites and Microsoft hubs, nor does it
include IT equipment located at Expedia sites nor does this include any circuits or equipment located on Microsoft premises that is only for the direct and dedicated use by Expedia. Additionally</FONT><FONT
FACE="Times New Roman, Times, serif"><I><FONT SIZE=2>, </FONT></I><FONT SIZE=2>Cost of Services that</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"> are historically billed/budgeted by departments are not included (e.g. isdn lies,
long distance, cell phones).</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2>Corporate</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Helpdesk: This support service
includes both Helpdesk phone support (x65000), Desk-side Support, and Warranty parts replacement for standard equipment. Additional costs will be added for non-standard and non-warranty equipment on a per incident basis).</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2>IDC </FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">Services: Includes the full range of the
service and support model that ITG has historically provided (e.g., Facilities, Networking, Monitoring, Data Center Operations, Release Management, Reporting, Planning, Administration, Hardware, Data Management, and Core Technologies).</FONT> </P>

<P> </P>
<P> <U><FONT SIZE=2 FACE="serif"><FONT FACE="Times New Roman, Times, serif">Compensation</FONT></FONT></U><FONT SIZE="2" FACE="Times New Roman, Times, serif">:&nbsp;Expedia shall pay Microsoft the monthly rate $600 per headcount for corporate
services as listed above excluding IDC services.</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expedia shall pay</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"> Microsoft for rendering IDC
Services (Website Hosting) that will be calculated monthly based on the formulas below. The parties contemplate that the fees may increase substantially based on projected Expedia usage during the Term. In addition, the allocation calculation
formulas are subject to change. If the allocation formulas are changed, Expedia will be given at least a 60-day notification.</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Micr</FONT></FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif">osoft and Expedia will, in good faith,
revisit the headtrax cost and how heads that should be included in this calculation. Any agreed changes will take effect July 1, 2001 (aka FY02 for Microsoft). Microsoft ITG does acknowledge that Expedia does have and is providing their own IT
resources and capital in addition to Microsoft&#146;s services, and thus, it can be concluded that Expedia does not consume the same level of Microsoft resources that a typical Microsoft department would consume. However Microsoft ITG is currently
set-up from a fiscal standpoint to view ITG services as either &#147;On or Off&#148;.</FONT> </P>
<P> <FONT FACE="Times New Roman, Times, serif"><B><U><FONT SIZE=2>IDC Pricing Chart</FONT></U></B> </FONT></P>
<TABLE WIDTH="100%" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="35%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Billing Category</FONT></B></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>New Price</FONT></B></FONT></TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Unit of Measure</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%" HEIGHT="17"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Egress</FONT></B></FONT></TD>
<TD WIDTH="2%" HEIGHT="17"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="4%" HEIGHT="17"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="18%" HEIGHT="17"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%" HEIGHT="17"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Peak Mbps</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;USA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">348</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;EMEA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1,111</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;ASIA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1,053</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Managed Services</FONT></B></FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Quantity of Servers</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;US - SO1</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">110</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;US - SO2</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">449</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;US - SO3</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">529</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;EMEA - SO1</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">450</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;EMEA - SO2</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">950</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;EMEA - SO3</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1,030</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;ASIA - SO1</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">450</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;ASIA - SO2</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">950</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;ASIA - SO3</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1,030</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Floor Space</FONT></B></FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Quantity of Rack Units</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">USA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">21</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">EMEA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">32</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">ASIA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">42</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Network</FONT></B></FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Qty of Network Ports Deployed</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">USA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">75</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">EMEA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">75</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">ASIA</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">75</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Special Services</B></FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman, Times, serif"></FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Partner Connections</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">917</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Qty of Connections</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Server Builds</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">350</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Qty of Builds</FONT></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="35%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">SQL Support</FONT></TD>
<TD WIDTH="2%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">$</FONT></DIV>
</TD>
<TD WIDTH="4%"> <DIV ALIGN="right"><FONT SIZE="2" FACE="Times New Roman, Times, serif">41</FONT></DIV>
</TD>
<TD WIDTH="18%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="41%"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>Qty of SQL DBs Supported</FONT></B></FONT></TD>
</TR>
</TABLE>

<P></P>
<P><B><U><FONT FACE="serif"><FONT FACE="Times New Roman, Times, serif">Operations</FONT></FONT></U></B><FONT FACE="Times New Roman, Times, serif"><B><U> Services Block:</U></B> </FONT></P>
<P> <FONT FACE="Times New Roman, Times, serif"><B><U><FONT SIZE=2>CCS Service Description</FONT></U></B> </FONT></P>
<P> <FONT SIZE="2" FACE="Times New Roman, Times, serif">Credit Card Services is a payment gateway to Microsoft's payment processor (FDC) that offers the following services:</FONT> </P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="top">
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">has direct link to FDC for real-time authorizations</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT></LI>
</TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">performs settlement and reconciliation with FDC</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT></LI>
</TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">offers 24x7 production support (see detail below)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT></LI>
</TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">provides high availability</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT></LI>
</TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">offers simple APIs for real time authorization</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT></LI>
</TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">keeps enhancing the system and adds new features that benefit all subscribers</FONT></TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD COLSPAN="3"><FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN="3"><FONT FACE="Times New Roman, Times, serif"><B><FONT SIZE=2>24x7 production support (3rd bullet above) include:</FONT></B></FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Capacity planning</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Hardware ordering and quality checks</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Hosting central service</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Monitoring - setup, configuration, and maintenance</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Setting up and maintaining environments (UAT (for subscriber testing), ACE (performance &amp; stress testing), &amp; Production)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Measuring performance and tuning as needed</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Ensuring security is not compromised</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Troubleshooting and responding to escalations and issues</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Planning and executing upgrades and new releases - ensuring minimum downtime and customer impact</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Evaluating and performing technology upgrades as it makes sense</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Communicating planned and unplanned system outages which affect the subscribers</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Coordinating with teams we are dependent upon or work with (i.e. DB Operations, PSS, DC Operations, ITG GNS, Tier 3 (Dev), etc.)</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Hiring and/or training team members</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Consulting - to the project team - avoid common pitfalls in advance</FONT></TD>
</TR>
<TR VALIGN="top">
<TD WIDTH="4%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"> <LI><FONT FACE="Times New Roman, Times, serif"></FONT> </LI>
</TD>
<TD WIDTH="94%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Leverage Support Lead, Production Manager, and other team members in Redmond, EOC, and APOC to ensure 24x7 coverage (no additional cost)</FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Compensation</U>: $8,000 per month</FONT></P>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">Within 180 days after the termination of any Microsoft-supported bank account or facility under Paragraph (c)</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">of the Global Cash
Management Services Block, Expedia shall arrange for its own merchant acquiring relationships with American Express and Discover. CCS will continue to deliver services to Expedia as long as Chase Merchant Services continues to be their
acquirer.</FONT><FONT FACE="Times New Roman, Times, serif">
<BR>
</FONT></P>
<P><FONT FACE="Times New Roman, Times, serif"><U><B>REAL ESTATE &amp; FACILITIES SERVICES BLOCK</B></U> </FONT></P>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT> </TD>
<TD WIDTH="96%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Services</U>:</FONT> </TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;<U>US</U>: No services provided.</FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;<U>International &#147;Distant&#148; Employees</U>: Microsoft UK and Germany subsidiaries shall continue to provide
facilities space and office support services comparable to those provided in CY2000. Expedia requests for space and office support services in other Microsoft subsidiaries shall be accommodated on a space available basis.</FONT></TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;From time to time Expedia may request RE&amp;F to provide any of the following additional services: Office space programming and
planning; office space design and construction; office moving, lease auditing; lease consulting and changes; lease administration and enforcement; site and vendor service planning and interior office maintenance consultation.</FONT></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compensation:</U> For each Expedia employee located in a Microsoft facility, Expedia will reimburse Microsoft for all reasonable costs
of providing such facilities for Expedia employee&#146;s use as follows:</FONT></TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;United Kingdom: &nbsp;50,000 GBP per month for up to 65 employees
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Germany: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,461 DM per month for up to 15 employees.</FONT></TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional services shall be agreed upon in advance by RE&amp;F and Expedia and paid pursuant to the &#147;Compensation for Work Performed
Outside of the Terms of the Agreement&#148; section at the beginning of this Appendix A. If the services lead to a lease and/or capital project, the charge for RE&amp;F project management shall be 5% of the total cost to Expedia, subject to a
minimum of $5,000 and maximum of $150,000 per project.</FONT></TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="2%">&nbsp;</TD>
<TD COLSPAN="2">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="2%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Leased Personal Property</U>: If Microsoft purchases or leases on behalf of Expedia any furniture, equipment or other personal property
for the New Offices, then Expedia will reimburse in full for the purchased items and the applicable lease costs; provided that if a lease permits assignment to Expedia, Microsoft will assign the lease to Expedia and Expedia will assume all of
Microsoft's obligations hereunder. However, Microsoft shall not purchase, or enter into any lease for, any such personal property without Expedia's prior consent. Expedia will comply with all terms and conditions of all applicable leases.</FONT></TD>
</TR>
</TABLE>

<P ALIGN="center"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>APPENDIX 1</B>
<BR>
</FONT></P>
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>CHECK SIGNING POLICY</B></FONT></P>
<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">A signature authorization limit of $10,000.00 USD has been established for subsidiary authorized signers. Microsoft's global signature authorization limit rule is: </FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;One signature is required for amounts under the USD equivalent of $10,000 or below</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;Two signatures are required for amounts over the USD equivalent of $10,000</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">The General Manager or Controller may impose stricter limits, but these limits cannot be exceeded.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory Designation</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Each bank account requires either an authorized signatory designation letter or a unique Banking Resolution specifically naming the authorized signers for that account, along with
the signature authorization limit. Because banking documentation and signature cards are binding legal documents, an English language translation of all banking documentation is required. Copies of banking documents, signature cards and the banking
resolutions in effect are maintained in the Microsoft Treasury Department. Changes/updates in such documentation shall be delivered to the Microsoft Treasury Department as well.</FONT></TD>
</TR>
</TABLE>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
<B>FUNDS TRANSFER POLICY</B></FONT></P>
<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="49"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="641"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Below are the respective hierarchies and signing limit categories, employee levels and acceptable dual signers in cases where expedited handling of significant transactions is
necessary. These hierarchies define the upper value limits only and do not infer automatic approval of signing limits for a given employee. Employee levels are based on title name. In cases where a given employee&#146;s title is not listed, the
Controller of the organization in which the employee is a member will determine a representative equivalent.</FONT></TD>
</TR>
</TABLE>
<FONT SIZE=2 FACE="serif"></FONT>
<P><FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
</FONT></P>
<TABLE WIDTH="690" BORDER="1" CELLSPACING="0" CELLPADDING="2" ALIGN="center">
<TR>
<TD COLSPAN="3"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Expedia</FONT><FONT FACE="Times New Roman, Times, serif">&nbsp;</FONT></DIV>
</TD>
</TR>
<TR>
<TD ROWSPAN="2"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Single</FONT><FONT FACE="Times New Roman, Times, serif">
<BR>
<FONT SIZE=2>Transaction/Obligation
<BR>
Signing Limit
<BR>
($USD) (a)</FONT></FONT></DIV>
</TD>
<TD COLSPAN="2"> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Employee Level</FONT></DIV>
</TD>
</TR>
<TR>
<TD> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Acceptable
<BR>
Single
<BR>
Signers</FONT></DIV>
</TD>
<TD> <DIV ALIGN="center"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Acceptable
<BR>
Dual Signers (b)</FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $500,000,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">CEO</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">CFO
<BR>
Exec Vice President
<BR>
President</FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $50,000,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">CFO
<BR>
Exec VP
<BR>
President</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Group Vice President</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
Senior Vice President</FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $10,000,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Group VP
<BR>
Senior VP</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Vice President
<BR>
Corporate Controller
<BR>
Senior Controller
<BR>
Treasurer </FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $5,000,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Vice President</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $3,000,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Corporate Controller
<BR>
Senior Controller
<BR>
Treasurer</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $1,000,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">General Manager</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $500,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Senior Director</FONT><FONT FACE="Times New Roman, Times, serif">
<BR>
<FONT SIZE=2>Director</FONT></FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
Controller</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">
<BR>
Group Manager
<BR>
Corporate Attorney</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $50,000</FONT></TD>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Manager
<BR>
Senior Manager
<BR>
Supervisor</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Up to $25,000 with Manager Approval</FONT></TD>
<TD><FONT SIZE="2" FACE="Times New Roman, Times, serif">Paralegal or administrator</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
</TABLE>

<P></P>
<FONT FACE="Times New Roman, Times, serif" SIZE="2"> </FONT>
<P ALIGN="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>APPENDIX 2</B> </FONT></P>
<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Foreign Exchange Risk Management Program</B> </FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><I><U>Statement of Objectives</U></I></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">The objective of the foreign exchange risk management program is to:</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif">&#149;</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">understand the impact of potential foreign exchange fluctuations on the Company&#146;s financial results and its economic well being</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif">&#149;</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">measure and prioritize the impact of those exposures</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif">&#149;</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">take steps to mitigate the impact of those exposures to an acceptable level using operational as well as financial instrument techniques, as approved herein.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">This program will be carried out in a prudent and ethical manner, consistent with a Board of Directors&#146; resolution.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="91%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif"><I><FONT SIZE=2><U>Definition of F/X Risk &amp; Program Goals</U></FONT></I></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">The following risk management efforts within the program articulate the philosophy the Company has taken toward foreign exchange risk management:</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">1.</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>The Net Revenue Hedging Program</U> will mitigate the impact of foreign exchange fluctuations on reported earnings of the company. This effort is to reduce the impact of such
fluctuations to support the corporate objective of increasing shareholder value through meeting investor and analysts earnings expectations.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">2.</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>The Cash flow Hedging Program</U> will mitigate the impact of foreign exchange fluctuations on foreign currency cash flows, such as accounts receivable, commissions, royalties,
working capital funding, tax payments, intercompany dividends, etc.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">3.</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Balance Sheet Translation Exposures</U> The risk management program will monitor the impact of foreign exchange fluctuations reported in the Company&#146;s balance sheet; however
there is no current strategic reason to mitigate these exposures. To the extent the assets or liabilities giving rise to these exposures represent future foreign cash flows, the company will consider the exposure within program 2. above.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">4.</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Economic Exposures</U> The risk management program will monitor and measure, where applicable, competitive and economic exposures created by the company&#146;s operations and its
competitive environment. However, at this time, the company will mitigate these exposures only through operational decisions, such as pricing and geographic sourcing.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">5.</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Operational Risk Management Techniques</U> Where feasible, non-financial techniques, such as operational changes and pricing adjustments will be utilized to mitigate
exposures.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT SIZE="2" FACE="Times New Roman, Times, serif">6.</FONT></TD>
<TD WIDTH="91%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><U>Centralized Exposure Management</U> The risk management efforts of these exposures will continue to be centralized in the Corporate Treasury function.</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%" VALIGN="top"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top">&nbsp;</TD>
<TD WIDTH="91%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif"><I><FONT SIZE=2>Exposure Measurement</FONT></I></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Measurement of exposures involves the budgeting process and the use of monthly sales information. For each program, the exposures will be measured as follows:</FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="91%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><U>Net Revenue Hedging Program</U>-- exposures are measured annually in the budgeting process employing offsets for commissions and other expenses and adjusted after the mid-year
review. Exposures beyond the budgeted fiscal year will employ the use of other relevant forecasts.</FONT></TD>
</TR>
</TABLE>
<FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I></I></B></FONT>
<P></P>
<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><U>Cash flow Hedging Program</U>-- Net foreign cash flows are measured monthly using existing reporting systems, and netted against identified outflows. Adjustments are made for
product launches, extended terms, known collection problems, returns, etc. Other known cash flows will periodically be incorporated in the net exposure.</FONT> <FONT FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="78%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="3"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>F/X Risk Management Guidelines</B> </FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="3"><FONT SIZE="2" FACE="Times New Roman, Times, serif">The program will be conducted under the following overall guidelines:</FONT> </TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I>Risk Reduction--</I></B>The goal of the risk management strategies is to reduce Microsoft&#146;s risk to fluctuations in foreign exchange rates. It is recognized, however,
that Microsoft cannot completely eliminate its exposure to adverse rate movements and that there is always a quantifiable trade-off involved in any hedging decision(s).</FONT> </TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2">
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I>Time Horizon&#151;</I></B>The time horizon of the hedging strategies will mirror the timeframe of the underlying exposures. Recognizing that effective risk management strategies will only
be effective if implemented prior to rate moves, the time horizon selected will be consistent with the objectives of the risk management program.</FONT> </P>
</TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%" VALIGN="top">
<P><FONT FACE="Times New Roman, Times, serif" SIZE="2"><U>Net Revenue Hedging Program</U> - The company will manage risk covering periods of up to 12 months into the future, on a rolling basis. Generally, Microsoft&#146;s Net Revenues will be hedged
in the 9-15 months timeframe. Below is the recommended time horizon and risk percentages for this program. Note that the goal is to be 100% hedged for the next 12 months net revenue exposure at the point in time that each fiscal year&#146;s
budgeting cycle would provide Treasury with a revenue forecast. The further out quarters are initially hedged at a lower percentage of forecast and gradually adjusted over time.</FONT> </P>
</TD>
</TR>
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="top">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><U>Cash flow Hedging Programs</U> - The short term nature of foreign receivable indicates a short term horizon for hedging. Therefore, the focus of the cash flow hedging program is
to occur in the 30-90 day timeframe. Because of the materiality of the 30 day flows, the general strategy will be to hedge 100% of the 30 day forecast and between 0-100% of the 60-90 day exposures. Foreign currency funding requirements of
subsidiaries could be longer in duration and therefore will be managed to a horizon in which the exposure identified can be measured and considered probable of occurring.</FONT> </TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I>Management Reporting&#151;</I></B>The F/X Risk Management Program is to be carried out with full and complete disclosure of strategies/techniques employed and performance
results.</FONT> </TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I>Instruments&#151;</I></B>In order to preserve the maximum amount of flexibility, Treasury will generally utilize risk management instruments, which are liquid (that is, able
to be easily disposed of or offset through banks, brokers, or an organized exchange without unduly impacting the desired transaction price).</FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2">Instruments will only be utilized to the extent a thorough analysis of the instrument&#146;s possible outcomes has been performed, and to the extent the product can be valued
internally by Treasury. Treasury will, where appropriate, also sell options to reduce the</FONT></TD>
</TR>
<TR>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="8%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="78%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
</TABLE>

<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT FACE="Times New Roman, Times, serif" SIZE="2">total option premium cost. The program will generally focus on the following instruments:</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&#149;&nbsp;&nbsp;&nbsp;&nbsp;Spots</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;Forwards</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;Swaps</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;Options, including: simple, average rate, basket, combination strategies, etc.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="87%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Instruments that would result in mark-to-market accounting recognition through Microsoft&#146;s income statement will only be used to the extent a full and complete analysis of
possible outcomes has been performed and only when this type of instrument has been specifically approved by senior management. Treasury will, in the majority of cases, avoid this type of instrument.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="6%">&nbsp;</TD>
<TD WIDTH="87%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Financial instruments with unusual leverage features or exotic payoff profiles will be avoided unless:</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2">an underlying exposure has a similar and offsetting leverage or exotic payoff profile</FONT></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2">there is an absence of more liquid, yet economically feasible alternatives.</FONT></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="87%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I>Speculation --- </I></B>Within Microsoft&#146;s currency risk management program, Treasury will not undertake any strategy, which serves to increase Microsoft's currency
exposure beyond that which the Corporation would have in a fully unhedged position. Any such transactions would be placed in the Family of Funds "Strategic        Opportunity Fund" and governed by existing investment policy and
guidelines.</FONT></TD>
</TR>
</TABLE>
<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="88%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I><U>Credit Risk</U></I></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Primary relationships are in place with counter parties that maximize the Company&#146;s ability to receive premier service and attractive pricing. Overall credit exposure to any
one counter party is also considered and monitored. Credit risk will be measured as the total amount of any unrealized positive mark-to-market gains on all outstanding derivatives contracts, recognizing netting for counter parties and products where
it is legally prudent to do so.</FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="88%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>Risk Management Process</B></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I><U>Organization of the Currency Hedging Program</U></I></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">The foreign currency risk management program will be centralized in the Corporate Treasury function, and all foreign currency risk management decisions should be coordinated by this
group. Subsidiaries should therefore not be responsible and are not authorized to enter into foreign currency risk management contracts without coordination with Corporate Treasury.</FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><I><U>Controls and Procedures</U></I></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD COLSPAN="2"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Within headcount and systems resource constraints, the program will operate with an effective control environment to ensure:</FONT></TD>
</TR>
<TR>
<TD WIDTH="5%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="88%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
</TABLE>
<FONT SIZE="2" FACE="Times New Roman, Times, serif"> </FONT><FONT SIZE="2" FACE="Times New Roman, Times, serif"></FONT>
<TABLE WIDTH="690" BORDER="0" CELLSPACING="0" CELLPADDING="0">
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<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;adequate segregation of duties</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;accuracy of reported results</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2">integrity of the program</FONT></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2">protection of the assets of the Company</FONT></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B>V. Program monitoring and Evaluation</B></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif"><B><I><U>Evaluation Criteria</U></I></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">In order to assess the success of the currency risk management efforts, periodic evaluations will be made. These evaluations will be made by the Treasury Controllers group, based on
monthly performance reports.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">The performance of the hedging programs will be based on the stated objectives of this policy, and will be evaluated based on the following benchmarks:</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2"><U>Net Revenue Program </U>- comparison of the budgeted/forecasted earnings at actual translation rate versus a
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100% benchmark forward rate</FONT></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="2"><U>Cash flow Program </U>- comparison of forecasted cash flows at actual transacted rate versus a benchmark of a
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50% forward rate and a 50% unhedged rate</FONT></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">The results of the performance evaluation will allow Treasury to assess any changes necessary for future risk management efforts, to assess accuracy of forecasting information and
to understand the impact of any residual risk, which was unhedged over the exposure horizon.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">The risk management activities described in this policy have not been developed with the intention of creating profits and therefore will not be evaluated against that objective.
The evaluation, is therefore intended as a means to further improve risk management activities and to provide information as to level of currency risk the corporation is assuming.</FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Program Responsibilities:</B></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B><I><U>Program Oversight</U></I></B></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif" SIZE="2">The Treasurer of Microsoft has direct responsibility for the foreign currency risk management program, policy, strategies and for internal controls. The Treasurer will review the
program on an</FONT> <FONT SIZE="2" FACE="Times New Roman, Times, serif">annual basis, or more frequently if required by changes in Microsoft&#146;s business. The Finance Committee of the Board of Directors has general oversight responsibility and
the Treasurer will report to the committee periodically regarding the strategies and results of the programs.</FONT> </TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Treasury personnel have daily management, operational, reporting and execution responsibilities for this program.</FONT> </TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
</TR>
<TR>
<TD WIDTH="7%">&nbsp;</TD>
<TD WIDTH="93%">&nbsp;</TD>
</TR>
<TR>
<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, serif"></FONT></TD>
<TD WIDTH="93%"><FONT SIZE="2" FACE="Times New Roman, Times, serif">Accounting, Tax and Legal departments will provide support to the Treasury function to ensure activities of the risk management program are in compliance with the various
regulations, laws and prudent practices governing such activities.</FONT> </TD>
</TR>
</TABLE>
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