Document:

EXHIBIT 10.7

                                  EXPEDIA, INC.
                           ASSOCIATE PROGRAM AGREEMENT

     This agreement ("Agreement") contains the complete terms and conditions for
your  participation  in the Expedia, Inc. Associate Program ("Program"), and the
establishment  of  links  from  your  Web  site(s)  to our domestic Web site, as
defined  below.  As  used  in this Agreement, "you" means (and "your" refers to)
the  applicant seeking to participate as an Associate in the Program, "we" means
(and  "us",  "our"  and  "ours"  refer  to)  Expedia,  Inc.

THIS  IS  A  LEGAL  AGREEMENT  BETWEEN YOU AND EXPEDIA, INC.  BY CLICKING ON THE
"ACCEPT"  BUTTON  AT  THE  END  OF  THIS  AGREEMENT,  YOU  AGREE  THAT  YOU  ARE
AFFIRMATIVELY  STATING THAT YOU HAVE CAREFULLY READ AND UNDERSTAND THE TERMS SET
FORTH  IN  THIS  AGREEMENT  AND  YOU  AGREE  TO  BE  BOUND  BY THE TERMS OF THIS
AGREEMENT.

1.     DEFINITIONS

     1.1     "ACCOMMODATION  TRANSACTION"  means the Commencement Date of a stay
in  one  or  more rooms or suites in a single hotel for an uninterrupted stay of
any  duration  or  any  accommodations  available for reservation or purchase on
Expedia for an uninterrupted stay of any duration, and where such reservation or
purchase  is  completed  by  a User who has Linked directly to Expedia from your
Associate  Site via one of the EI Icons or Links with the purpose of shopping or
buying  travel  during  a  single  browser  session.

     1.2  "AFFILIATE"  means any person, partnership, joint venture, corporation
or  other  form of enterprise, domestic or foreign, including but not limited to
subsidiaries,  that  directly  or indirectly, control, are controlled by, or are
under  common  control  with  a  party.

     1.3 "AIR TRANSACTION" means the Commencement Date of a trip (round-trip, or
one-way  if  no  round-trip  is purchased) by one person or more, and where such
purchase  of  one  air  ticket  or  more  is  completed by a User who has Linked
directly  to  Expedia  from your Associate Site via one of the EI Icons or Links
with  the  purpose of shopping or buying travel during a single browser session.

     1.4 "ASSOCIATE SITE" means one or more of your web sites, and any successor
web  site  to  those  sites,  once  you  have  been  accepted  into the Program.

     1.5  "BANNER  ADVERTISEMENTS"  means  those  certain  rotating or permanent
banner advertisements created and provided by us to you containing a Linking URL
that are located on your Associate Site, and are no larger than 468 pixels by 60
pixels  (or  such  other  dimensions  as the parties may from time to time agree
upon), which permits Users to navigate directly to a page on Expedia as selected
by  us.  You  agree  not  to  revise,  change or modify any Banner Advertisement
provided  by  us  to  you  for  placement  on  your  Associate  Site.

     1.6     "CAR  TRANSACTION"  means  the Commencement Date of a car rental by
one  person,  and  where  such transaction is completed by a User who has Linked
directly  to  Expedia  from your Associate Site via one of the EI Icons or Links
with  the  purpose of shopping or buying travel during a single browser session.

     1.7  "CLICK-THROUGH"  means  each instance in which a User navigates to and
fully  loads  a  page  on Expedia. As used herein, a page "fully loads" when the
entire  page  is  displayed on the electronic device that has accessed the page.

     1.8  "COMMENCEMENT  DATE"  means  the  date  upon which the air travel, car
rental,  accommodation  stay,  cruise  trip  or  any  travel package combination
thereof  commences.

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     1.9  "CRUISE  TRANSACTION" means the Commencement Date of one cruise by one
person  or  more,  for  a  stay  of  any duration, and where such transaction is
completed  by a User who has Linked directly to Expedia from your Associate Site
via  one  of the EI Icons or Links with the purpose of shopping or buying travel
during  a  single  browser  session.

     1.10  "EI  ICONS"  means  any  graphical  or  text link, including, without
limitation,  Banner  Advertisements  and persistent hyperlinks in the form of an
Expedia  logo  or  Expedia  storefront  booking  form,  that  is located on your
Associate  Site  through which Users may directly Link to a location on Expedia.

     1.11  "EXPEDIA" means the software code, informational databases, products,
and  other  components  that  make  up  our service which is marketed for use by
individual  end  users in the United States, Canada, Germany, the United Kingdom
and/or  such  other  locales  as we may elect to market our service, at our sole
discretion, to enable such end users to shop for, reserve, book (including, at a
minimum,  air  travel, accommodations, travel packages, and car rentals) and pay
for  certain  travel  services  via  a  personal  computer (or other interactive
device) connected to the Internet or any other network. We currently offer these
services  on  the  Web under the name "Expedia," but we may change the name from
time to time, and the term "Expedia" as we use it in this Agreement is deemed to
refer to all future versions of our online services described in this Agreement,
regardless of the name under which it is offered from time to time, and includes
without  limitation  any and all additional, follow-on, successor or replacement
versions  of  these  services.

     1.12     "LINK"  means  either,  (i)  one or more hyperlinks located on the
applicable areas of your Associate Site or Expedia, (ii) any "keywords", such as
"Travel", "Air", "Hotel", "Car", etc. that invokes your software program on your
Associate  Site  and  returns  an EI Icon, or (iii) any other alternative method
that  enables  a User to access Expedia or return to your Associate Site.  Links
also  include  any connection to Expedia through the Internet, email, broadband,
Internet  II, wireless and handheld devices, cell phones, digital appliances, or
other  digital  interactive  means, networks, devices, or transmissions (whether
existing  now  or  in  the  future).

     1.13     "LOOK  AND  FEEL" means the distinctive and particular elements of
graphics,  design,  organization,  presentation,  layout,  user  interface,
navigation,  trade dress, colors and stylistic convention (including the digital
implementations  thereof) within a World Wide Web site, and the total appearance
and  impression  substantially  formed  by  the  combination,  coordination  and
interaction  of  such  elements,  and  any  derivative  works.
     1.14     "MERCHANT  ACCOMMODATION  TRANSACTION"  means the reservation of a
single  room  or  suite  in  a  single  hotel  for  an uninterrupted stay of any
duration, or any accommodations available for reservation or purchase on Expedia
for  an  uninterrupted  stay  of any duration, where an Expedia Affiliate is the
Merchant  of Record for the transaction, and where such transaction is completed
by a User who has Linked directly to Expedia from your Associate Site via one of
the  EI  Icons  or  Links with the purpose of shopping or buying travel during a
single  browser  session.

     1.15     "MERCHANT  NET REVENUE" means the net revenue that the Merchant of
Record  receives as a direct result of Users effectuating Merchant Accommodation
Transactions  and/or  Travel  Package  Transactions  on  Expedia,  after  taking
deductions for: (i) amounts collected by the Merchant of Record for sales taxes,
duties,  handling,  and  similar  charges,  (ii)  3% of the total amount of each
transaction  for  credit  card  fees, and (iii) .05% of the total amount of each
transaction  for amounts due to suppliers due to credit card fraud and bad debt.

     1.16     "MERCHANT  OF  RECORD"  means  an  Affiliate  of  ours, whose name
appears on the credit card charge and to whom the applicable credit card company
shall  reimburse  for  the  amount  of  the  credit  card  charge.

     1.17  "NET  REVENUE" means the net revenue we receive as a direct result of
Users  effectuating  Accommodation  Transactions  and/or  Car  Transactions  on

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Expedia,  excluding:  (i)  amounts we collect for sales taxes, duties, handling,
and  similar  charges,  (ii)  .05%  of  the total amount of each transaction for
amounts  due  to suppliers due to credit card fraud and bad debt, and (iii) .25%
of  the  total  amount  of  each  transaction  for  credits due to suppliers for
cancellations  or  returns.

1.18     "TRAVEL PACKAGE TRANSACTION" means: (i) a combination of two or more of
the  following  transactions  that  have  been  effectuated by one User during a
single  browser session: an Air Transaction, an Accommodation Transaction, a Car
Transaction,  a  Cruise Transaction, or a Merchant Accommodation Transaction; or
(ii)  a  combination of two or more transactions identified in this Section 1.18
which have either a common Commencement Date or proximately related Commencement
Dates,  and  which  may be effectuated by the same User in more than one browser
session,  and  where  such  transaction  is  completed  by a User who has Linked
directly  to  Expedia  from your Associate Site via one of the EI Icons or Links
with  the  purpose of shopping or buying travel during a single browser session.

1.19     "USER"  means individuals or entities that access Expedia directly from
your Associate Site.  For purposes of clarification, the meaning of "User" shall
not  include any software program or routine that generates a Click-Through with
no  individual  person  actually present, such as shoppingbots or other computer
programming  routines  that  are  intended  to  scrape,  mine,  surreptitiously
intercept or expropriate any information for the purpose of comparison shopping.

2.     INELIGIBLE  PARTY;  LIQUIDATED  DAMAGES

If  you  are  an  employee or agent of a Competitor of ours, a travel agent or a
travel  supplier  (collectively,  "Ineligible  Party"),  you are not eligible to
enroll  in the Expedia Associate Program.  For the purposes of this Agreement, a
"Competitor"  includes,  but  isn't  limited  to,  Travelocity,  Orbitz,  Hotel
Reservation Network, Mark Travel, Cheap Tickets, Priceline, Biz Travel, Hotwire,
Last  Minute,  American  Express,  Rosenbluth,  Carlson  Wagonlit,  Site59,  any
airline, any car rental, any cruise operator and any hotel company.  If you fall
into  any  of  these  categories  and  you still wish to enroll in the Associate
Program,  you  must obtain prior written approval from us for your participation
as  an  Associate.  IF  YOU  HAVE  ANY  QUESTIONS  WHETHER YOU ARE OR ARE NOT AN
INELIGIBLE  PARTY,  PLEASE  CONTACT  US  BEFORE  YOU EXECUTE THIS AGREEMENT.  In
addition,  you  agree to: (i) terminate this Agreement immediately if you become
an Ineligible Party following your enrollment in the Associate Program; and (ii)
keep  confidential  any  Confidential Information, as defined in this Agreement,
which  we  have provided to you during your enrollment in the Associate Program.
You specifically agree that the obligation for confidentiality in this Agreement
survives  any termination of this Agreement.  YOU ACKNOWLEDGE AND AGREE TO THESE
RESTRICTIONS  AND  SPECIFICALLY AGREE THAT ANY BREACH OF THIS SECTION 2 SHALL BE
DEEMED  A  MATERIAL  BREACH  OF  THIS  AGREEMENT.

IF  YOU  ARE AN INELIGIBLE PARTY AND ENROLL IN THE ASSOCIATE PROGRAM, YOU AND WE
AGREE  THAT  WE  WILL  BE  MATERIALLY DAMAGED BY YOUR ACCESS TO OUR CONFIDENTIAL
INFORMATION  IN  AN AMOUNT THAT IS DIFFICULT TO ASCERTAIN.  ACCORDINGLY, YOU AND
WE  AGREE  THAT  IF  YOU  ARE  AN  INELIGIBLE  PARTY AND ENROLL IN THE ASSOCIATE
PROGRAM,  THAT  YOU WILL PAY FIVE HUNDRED THOUSAND DOLLARS (US$500,000.00) TO US
AS LIQUIDATED DAMAGES.  NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS PROVISION
SHALL  PREVENT  US  FROM  PURSUING EQUITABLE REMEDIES RESULTING FROM A BREACH OF
THIS  AGREEMENT.

IF  FOLLOWING  YOUR ENROLLMENT IN THE ASSOCIATE PROGRAM YOU BECOME AN INELIGIBLE
PARTY  AND  DO  NOT  IMMEDIATELY TERMINATE THIS AGREEMENT, YOU AND WE AGREE THAT
YOUR  CONTINUED  ACCESS  TO  OUR  CONFIDENTIAL  INFORMATION WILL PUT US AT RISK.
FURTHER,  YOU  AND  WE AGREE THAT ANY USE BY YOU OF THE CONFIDENTIAL INFORMATION
OBTAINED  PRIOR  TO  TERMINATION  OF  THE  AGREEMENT  WILL  PUT  US  AT  RISK.
ACCORDINGLY,  YOU  AND  WE  AGREE  THAT IF: (I) YOU DO NOT KEEP CONFIDENTIAL THE
CONFIDENTIAL  INFORMATION YOU OBTAINED PRIOR TO BECOMING AN INELIGIBLE PARTY; OR
(II)  YOU  DO  NOT TERMINATE THE AGREEMENT AS REQUIRED AND THEREFORE CONTINUE TO

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ACCESS  OUR  CONFIDENTIAL INFORMATION, THAT WE WILL BE MATERIALLY DAMAGED BY YOU
IN  AN  AMOUNT  THAT  IS  DIFFICULT  TO  ASCERTAIN AND YOU WILL PAY FIVE HUNDRED
THOUSAND  DOLLARS  (US$500,000.00) TO US AS LIQUIDATED DAMAGES.  NOTWITHSTANDING
THE  FOREGOING,  NOTHING  IN  THIS  PROVISION  SHALL  PREVENT  US  FROM PURSUING
EQUITABLE  REMEDIES  RESULTING  FROM  A  BREACH  OF  THIS  AGREEMENT.

3.     YOUR  OBLIGATIONS

3.1     To  begin  the  enrollment  process, you will submit a completed program
application  ("Program Application") via Expedia.  We will evaluate your Program
Application  and  will  notify  you  of your acceptance or rejection in a timely
manner.  We  may  reject  your  Program Application if we determine, in our sole
discretion, that you are an Ineligible Party, or your site is unsuitable for the
Program for any reason, including, but not limited to, if your site incorporates
images or content that is in any way unlawful, harmful, threatening, defamatory,
obscene,  harassing  or  racially,  ethically or otherwise objectionable such as
sites  that  depict  sexually  explicit  images;  promotes  violence,  illegal
activities,  or  unlawfully discrimination of any kind; promotes or incorporates
any  materials  which  infringe  or  assist  others to infringe the intellectual
property  rights  of others (collectively "Content Restrictions").  If we reject
your Program Application, you are welcome to reapply to the Associate Program at
any  time.

If  you  are  accepted  into  the  Program:

     3.2     You shall prominently display and maintain the EI Icons provided to
you  by  us, or any addition to or substitute thereof that we may provide to you
from  time-to-time  during  the  term  of this Agreement, on your Associate Site
which  shall  Link  directly to Expedia.  You agree not to place the EI Icons on
the  same  page  on  your  Associate  Site  with  the  logos  or trademarks from
Travelocity.com Inc., Hotel Reservations Network, Inc., Hotwire and Mark Travel.
In  the  event  we  provide  you  with  new  or  modified EI Icons, you agree to
implement  the  new  EI  Icons  within thirty (30) days following receipt of the
update  from  us.  You  agree  to comply with the EI Icon Guidelines for Linking
that  we  provide to you or any other replacement guidelines that we may provide
to  you  in writing from time-to-time during the term of this Agreement.  The EI
Icon  Guidelines  are  available  at
http://www.expedia.com/daily/associates/EI_Icon_Guidelines.htm.  Additionally,
we  encourage  (but  do  not  require) you to include a Link to the home page of
Expedia.

     3.3     In  no  event  shall  you  or  your  agents  make  or  extend  any
representation or warranty on our behalf with respect to Expedia or the services
available  therein.

     3.4     You warrant and represent to us that your Associate Site: (i) is in
compliance  with  all applicable laws and regulations; (ii) does not contain any
material that is fraudulent, defamatory or obscene; and (iii) is suitable in all
respects  to be Linked to from Expedia.  You agree that your Associate Site will
not,  in  any  way,  copy  or resemble the Look and Feel of Expedia nor will you
create an impression that your Associate Site is Expedia or part of Expedia, nor
will you frame any page on Expedia being viewed by a User of your Associate Site
who  links  to  Expedia  through a Link.  You agree that during the term of this
Agreement, your Associate Site shall not contain any of the Content Restrictions
described in Section 3.1 above, nor shall it disparage Expedia or us in any way.
We may test your Associate Site's URL, and if such URL is not in compliance with
the  terms  and  conditions of Section 3.2 and this Section 3.4, we, in our sole
discretion  may  (i)  remove such non-conforming URL; and/or (ii) terminate this
Agreement.

4.     EXPEDIA'S  OBLIGATIONS

     4.1     We  shall  provide you with one or more EI Icons, or any substitute
thereof  that  we,  in our sole discretion, may provide to you from time to time
during the term of this Agreement for use on your Associate Site.  Additionally,

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we  shall provide you with EI Icon Linking guidelines, or such other replacement
guidelines as we may provide to you in writing from time-to-time during the term
of  this  Agreement.

     4.2     We shall provide customer support and fulfillment services to Users
in  accordance  with our then-current standard terms and conditions and standard
customer service policies and procedures applying generally to users of Expedia.
You  acknowledge  that  we  reserve  the  right  to  refuse  to  provide
customer/fulfillment  services to a User for a variety of reasons, including but
not  limited  to:  (a) purchase rejection by applicable credit card company; (b)
inability  to  authenticate  credit  card;  (c)  inability  to authenticate card
holder;  and  (d)  User's  purchase  history  with  us  and/or  our  Affiliates.

     4.3     We shall make available to you monthly reports that set forth, at a
minimum, the number of Users to Expedia from your Associate Site, and the number
of  Accommodation  Transactions,  Air  Transactions,  Car  Transactions,  Cruise
Transactions,  Merchant  Accommodation  Transactions  and  Travel  Package
Transactions  completed by Users Linking directly to Expedia from your Associate
Site  during  the  applicable  month.

     4.4     The parties acknowledge that a third party reporting agent, such as
"Be  Free,  Inc."  ("Reporting Agent") will assist us in fulfilling our tracking
and  reporting  requirements hereunder.  To ensure that reporting begins as soon
as  possible,  you  agree  to  register  with  the  Reporting  Agent  as soon as
practicable  and  to  provide  us with the SiteID or other necessary information
assigned  by  the  Reporting  Agent.

5.     USE  OF  TRADEMARKS

You  agree  that  we may include your logos, trademarks, trade names and similar
identifying material ("Your Marks") on Expedia in a listing of companies who are
participating  in  the  Program;  provided however, that in no event shall we be
required  to  include Your Marks in any such listing.  You represent and warrant
that  you  are the sole and exclusive owner of Your Marks and have the right and
power to grant to us the license to use them in the manner described herein, and
such  grant  does not or will not breach, conflict with, or constitute a default
under  any  agreement or other instrument applicable to you or binding upon you;
or  infringe  upon  any trademark, trade name, service mark, copyright, or other
proprietary right of any other person or entity.  We will remove Your Marks from
any  such lists upon the effective date of the expiration or termination of this
Agreement.

6.     OWNERSHIP  OF  EXPEDIA

     6.1     We  shall  own  all intellectual property rights (including without
limitation  all copyrights, patents, trademarks and trade secrets) in connection
with  and  in  all  versions  of  Expedia.

     6.2     We  will own all data generated by Users of Expedia, and all of the
terms  and  conditions,  rules,  policies  and  operating  procedures of Expedia
(including  but not limited to policies relating to the use of customer personal
identification  information,  customer  orders,  customer  service  and  ticket
fulfillment)  will  apply  to such Users of Expedia; and we reserve the right to
change  such  terms  and conditions, rules, policies and operating procedures at
any  time.

7.     FEE  STRUCTURE

You  are  eligible to earn Transaction Fees on all sales during the term of this
Agreement,  where  the  User follows a Link from your Associate Site directly to
Expedia  and  that  User,  using  Expedia's  online  travel  and booking system,
successfully  effectuates  an  Accommodation  Transaction,  Air Transaction, Car
Transaction,  Cruise  Transaction,  Merchant Accommodation Transaction or Travel
Package  Transaction,  which  is  completed during the term of this Agreement on
either  a  "Flat  Rate",  "Net  Revenue"  or  "Merchant  Net Revenue" basis (the
"Transaction  Fees"), as applicable.  The Transaction Fee for an Air Transaction
will not be awarded in the event of credit card fraud, bad debt, and credits due
for  cancellations  or  returns.  We  will pay you a Transaction Fee only if the
User is tracked on our internal online ordering system from the time the Link is

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initiated  on  your  Associate  Site to the time of the sale.  You agree that no
Transaction  Fees  will  be  paid  if the User cannot be tracked by our internal
ordering  system.  Transaction  Fees  shall  be  paid  as  follows:

     7.1  Air  Transaction  Fees.  We  will  pay  you  Two Dollars (US$2.00) for
          ----------------------
each  Air  Transaction  ("Air  Transaction  Fees").

     7.2  Accommodation  Transaction  Fees.  We  will  pay  you  three  percent
          --------------------------------
(3%)  on  Net Revenue, per Accommodation Transaction ("Accommodation Transaction
Fees").

     7.3  Car Transaction Fees. We will pay you two percent (2%) on Net Revenue,
          ---------------------
per  Car  Transaction  ("Car  Transaction  Fees").

     7.4  Cruise Transaction Fees. We will pay you Twenty Dollars (US$20.00) for
          ------------------------
each  Cruise  Transaction  ("Cruise  Transaction  Fees").

     7.5  Merchant  Accommodation Transaction Fees. We will pay you five percent
          -----------------------------------------
(5%)  on  Merchant  Net Revenue, per Merchant Hotel Transaction ("Merchant Hotel
Transaction  Fees").

     7.6  Travel  Package  Transaction Fees. We will pay you two percent (2%) on
          ----------------------------------
Merchant  Net  Revenue,  per  Travel  Package  Transaction  ("Travel  Package
Transaction  Fees."),

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8.     PAYMENTS

Within  forty-five  (45) days after the end of each month during the term of the
Agreement with respect to which we owe you any Transaction Fees, we will furnish
you  a statement together with payment for any amount due to you.  The statement
will contain information sufficient to discern how the payment was computed.  In
the  event  that  the total monthly Transaction Fees payable to you is less than
Fifty Dollars (US$50.00) for the applicable month ("Monthly Minimum Threshold"),
we  will  hold  the  payment  until the aggregate total Transaction Fees meet or
exceed the Monthly Minimum Threshold.  We will remit all payments owed to you to
your  address  provided  in the Program Application submitted in accordance with
Section  3.

9.     MODIFICATION

We  may  modify  any of the terms and conditions contained in this Agreement, at
any  time in our sole discretion. Notification to you of any change by e-mail or
posting of a change notice on Expedia and/or the Internet site of any designated
Reporting Agent, as described in Section 4.4 above, at our sole option, shall be
considered  sufficient  notice  to  you  of  a  modification  to  the  terms and
conditions  of  this  Agreement.  Modifications may include, but are not limited
to,  changes  in  the  scope of available commission fees, commission schedules,
payment  procedures,  and Program rules.  If any modification is unacceptable to
you, your recourse is to terminate this Agreement.  Your continued participation
in  the  Program  following our posting of a change notice or a new agreement on
Expedia  will  constitute  binding  acceptance  of  the  change.

10.     EFFECT  OF  ECONOMIC  CONDITIONS

In  the  event  we  deem,  in  our  sole  discretion,  that  military  action or
extraordinary political, economic, or other conditions or occurrences beyond our
control  significantly  impacts  the  travel business, our businesses, access or
navigation  to  Expedia  from  you  or your business(es) and alters our exposure
under  this  Agreement,  we  may,  at  any time, suspend performance (in part or
whole) of any or all terms and conditions of this Agreement, suspend payment due
hereunder  (in  part or whole) or terminate the Agreement (in part or whole), in
our  sole  discretion.  We  will  provide  you with written notice five (5) days
prior  to  the  effective  date  of  such  change(s).

11.     TERM  AND  TERMINATION

This  Agreement  shall  commence upon our acceptance of your Program Application
and shall continue until terminated by either party.  Either party may terminate
this  Agreement  at  any  time, with or without cause, by giving the other party
written notice of termination.  Written notice can be in the form of mail, email
or  fax.  You  are  only  eligible to earn Transaction Fees occurring during the
term  of  the  Agreement, and commissions earned through the date of termination
will  remain  payable  in  accordance  with  Section  7.  If  this  Agreement is
terminated  because  (i)  you have violated the terms of this Agreement, or (ii)
your  Associate  Site  becomes  subject to the Content Restrictions set forth in
Section  3,  you  are  not eligible to receive any commission payments, even for
commissions  earned prior to termination.  We reserve the right to withhold your
final  payment  for a reasonable time to ensure that the correct amount is paid.
Upon  termination  or  expiration  of  this  Agreement for any reason, you shall
immediately  remove  any  EI  Icon  or  Link  from  your  Associate  Site.

12.     REPRESENTATIONS  AND  WARRANTIES

You represent and warrant to us that you are not an Ineligible Party, as defined
in  Section 2, and that this Agreement has been duly and validly executed by you
by  virtue  of your clicking on the "Accept" button at the end of this Agreement
and  constitutes  your  legal, valid and binding obligation, enforceable against
you  in  accordance  with  its  terms;  and  that  the  execution, delivery, and
performance  by  you of this Agreement are within your legal capacity and power,
have  been  duly  authorized  by  all requisite action on your part, require the
approval  or  consent  of no other persons; and neither violate nor constitute a
default  under  the  provision  of any law, rule, regulation, order, judgment or
decree  to  which  you are subject or which is binding upon you, or the terms of

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any  other  agreement,  document or instrument applicable to you or binding upon
you.  The  representations  and  warranties in this Section 12 are continuous in
nature  and  shall  be deemed to have been given by you upon your acceptance via
the  "Accept"  button  at  the  end  of  this  Agreement  and  at  each stage of
performance hereunder.  These representations and warranties and covenants shall
survive  termination  or  expiration  of  this  Agreement.

13.     INDEMNIFICATION

You  hereby agree to indemnify, defend, and hold harmless us and our Affiliates,
and  their  directors,  officers,  employees,  agents,  shareholders,  partners,
members,  and  other  owners,  against  any  and  all  claims, actions, demands,
liabilities,  losses,  damages,  judgments,  settlements,  costs,  and  expenses
(including  reasonable  attorneys'  or other professionals' fees) (any or all of
the  foregoing  hereinafter  referred to as "Losses") insofar as such Losses (or
actions  in respect thereof) arise out of or are based on (i) any claim that our
use  of  Your  Marks  infringe  on  any  trademark,  trade  name,  service mark,
copyright,  license,  intellectual property, or another proprietary right of any
third  party,  (ii)  any  misrepresentation  of  a representation or warranty or
breach  of  a  covenant  and  agreement  made  by you herein, or (iii) any claim
related  to  your  Associate Site including, without limitation, content therein
not  attributable  to  us.

14.     DISCLAIMERS  AND  LIMITATION  OF  LIABILITY

We  make no express or implied warranties or representations with respect to the
Program  or  any  service,  product  or  other  items  sold through the Program,
including  implied  warranties  of  merchantability,  fitness  for  a particular
purpose  or  freedom  from patent, trademark or copyright infringements, whether
arising  by law, custom or conduct, or as to the accuracy or completeness of the
information  provided  by  us.  In  addition, we make no representation that the
operation  of  Expedia  will  be uninterrupted or error-free, and we will not be
liable  for  the  consequences  of  any  interruptions  or  errors.

WE  WILL  NOT  BE LIABLE FOR INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES, OR ANY
LOSS  OF REVENUE, PROFITS, OR DATA, ARISING IN CONNECTION WITH THIS AGREEMENT OR
THE  PROGRAM,  EVEN  IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
FURTHER, OUR AGGREGRATE LIABILITY ARISING WITH RESPECT TO THIS AGREEMENT AND THE
PROGRAM  WILL NOT EXCEED THE TOTAL COMMISSIONS PAID OR PAYABLE TO YOU UNDER THIS
AGREEMENT.  THE  FOREGOING  LIMITATION  SHALL  APPLY  REGARDLESS OF THE CAUSE OF
ACTION  UNDER  WHICH  SUCH  DAMAGES  ARE  SOUGHT.

15.     CONFIDENTIALITY;  MEDIA  COMMUNICATIONS

     15.1     If  you  have entered into a Non-Disclosure Agreement with us, you
agree  that  the  terms  of  that  agreement  shall be deemed to be incorporated
herein.  If  you  have not entered into a Non-Disclosure Agreement with us, then
you  understand  and agree that the following terms and conditions will apply to
certain  information  that  we  may  disclose  to  you  as  a  result  of  your
participation  in  the  Program  information that we consider to be confidential
(the  "Confidential  Information").  For  purposes  of  this Agreement, the term
"Confidential  Information",  shall include, but not be limited to, the terms of
this  Agreement,  any modifications to the terms and provisions of the Agreement
made  specifically  for your Associate Site and not generally available to other
members  of the Program, business and financial information, customer and vendor
lists, and pricing and sales information, concerning us or you, respectively, or
any members of the Program, other than you.  Confidential Information shall also
include  any  information  that  we designate as confidential during the term of
this  Agreement.

     15.2     You  agree  not  to disclose any Confidential Information and that
such  Confidential  Information shall remain strictly confidential and shall not
be  utilized,  directly  or indirectly, by you for your own business purposes or
for  any other purpose except and solely to the extent that any such information
is  generally  known or available to the public or if same is required by law or
legal  process.

16.     INDEPENDENT  INVESTIGATION

                                      E-10
<PAGE>

YOU ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT AND AGREE TO ALL ITS TERMS AND
CONDITIONS.  YOU  UNDERSTAND  THAT  WE  MAY AT ANY TIME (DIRECTLY OR INDIRECTLY)
ENGAGE  IN SIMILAR ARRANGEMENTS ON TERMS THAT MAY DIFFER FROM THOSE CONTAINED IN
THIS  AGREEMENT  OR  OPERATE  WEB SITES THAT ARE SIMILAR TO OR COMPETE WITH YOUR
ASSOCIATE  SITE.  YOU  HAVE  INDEPENDENTLY  EVALUATED  THE  DESIRABILITY  OF
PARTICIPATING  IN  THE  PROGRAM  AND  ARE  NOT  RELYING  ON  ANY REPRESENTATION,
GUARANTEE,  OR  STATEMENT  OTHER  THAN  AS  SET  FORTH  IN  THIS  AGREEMENT.

17.     GOVERNING  LAW

This  Agreement  will be governed by the laws of the United States and the State
of  Washington, without reference to rules governing choice of laws.  Any action
relating  to  this  Agreement  must  be  brought  in the federal or state courts
located  in  Washington State and you irrevocably consent to the jurisdiction of
such  courts.  If  either  party employs attorneys to enforce any rights arising
out  of or relating to this Agreement, the prevailing party shall be entitled to
recover  reasonable  attorneys'  fees  and costs, including expert witness fees.

18.     ASSIGNABILITY

You may not assign this Agreement, by operation of law or otherwise, without our
prior  written  consent.  Subject  to  that  restriction, this Agreement will be
binding  on  and enforceable against the parties and their respective successors
and  assigns.  This  Agreement is the complete Agreement between the parties and
supersedes  any  prior  oral  or written agreement concerning the subject matter

19.     NO  WAIVER

Our  failure  to  enforce  your  strict  performance  of  any  provision of this
Agreement will not constitute a waiver of our right to subsequently enforce such
a  provision  or  any  other  provision  of  this  Agreement.

                                      E-11
<PAGE>Microsoft Corporation 2001 Stock Plan, as amended and restated

 Exhibit 10.1 
  
 MICROSOFT CORPORATION 
  
 2001 STOCK PLAN 
 (as amended and restated effective June 12, 2003) 
  
 1.    Purpose of the Plan.  The purposes
of this Stock Plan are to attract and retain the best available individuals for positions of substantial responsibility, to provide additional incentive to such individuals, and to promote the success of the Company’s business by aligning the
financial interests of Employees and Consultants providing personal services to the Company or to any Parent or Subsidiary of the Company with long-term shareholder value. 
  
 Awards granted hereunder may be Incentive Stock Options, Nonqualified Stock Options, Stock Awards, or SARs, at the
discretion of the Board and as reflected in the terms of the Award Agreement. 
  
 2.    Definitions.  As used herein, the following definitions shall apply: 
  
 (a)    “Award” shall mean any award or benefits granted under the Plan, including Options, Stock
Awards, and SARs. 
  
 (b)    “Award Agreement” shall mean a written or electronic agreement between the Company and the Awardee setting forth the terms of the Award. 
  
 (c)    “Awardee” shall
mean the holder of an outstanding Award. 
  
 (d)    “Board” shall mean (i) the Board of Directors of the Company or (ii) both the Board and the Committee, if a Committee has been appointed in accordance with Section 4(a) of the Plan. 
  
 (e)    “Code” shall mean
the Internal Revenue Code of 1986, as amended. 
  
 (f)    “Committee” shall mean the Compensation Committee appointed by the Board of Directors in accordance with Section 4(a) of the Plan, if one is appointed; provided, however, if the Board of Directors
appoints more than one Committee pursuant to Section 4(a), then “Committee” shall refer to the appropriate Committee, as indicated by the context of the reference. 
  
 (g)    “Common Shares” shall mean the common shares of Microsoft
Corporation. 
  
 (h)    “Company” shall mean Microsoft Corporation, a Washington corporation and any successor thereto. 

 (i)    “Consultant” shall mean any person, except an
Employee, engaged by the Company or any Parent or Subsidiary of the Company, to render personal services to such entity, including as an advisor. 
  
 (j)    “Continuous Status as a Participant” shall mean (1) for Employees, the absence of any
interruption or termination of service as an Employee, and (2) for Consultants, the absence of any interruption, expiration, or termination of such person’s consulting or advisory relationship with the Company or the occurrence of any
termination event as set forth in such person’s Award Agreement. Continuous Status as a Participant shall not be considered interrupted (i) for an Employee in the case of sick leave, maternity leave, infant care leave, medical emergency leave,
military leave, or any other leave of absence authorized in writing by a Vice President of the Company prior to its commencement, and (ii) for a Consultant, in the case of any temporary interruption in such person’s availability to provide
services to the Company which has been authorized in writing by a Vice President of the Company prior to its commencement. 
  
 (k)    “Conversion Options” shall mean the Options described in Section 6(c) of the Plan. 

 
 (l)    “Employee”
shall mean any person, including an officer, who is a common law employee of, receives remuneration for personal services to, is reflected on the official human resources database as an employee of, and is on the payroll of the Company or any Parent
or Subsidiary of the Company. A person is on the payroll if he or she is paid from the payroll department of the Company, or any Parent or Subsidiary of the Company. Persons providing services to the Company, or to any Parent or Subsidiary of the
Company, pursuant to an agreement with a staff leasing organization, temporary workers engaged through or employed by temporary or leasing agencies, and workers who hold themselves out to the Company, Parent, or Subsidiary to which they are
providing services as being independent contractors, or as being employed by or engaged through another company while providing the services are not Employees for purposes of this Plan, whether or not such persons are, or may be reclassified by the
courts, the Internal Revenue Service, the U. S. Department of Labor, or other person or entity as, common law employees of the Company, Parent, or Subsidiary, either solely or jointly with another person or entity. 
  
 (m)    “Effective Date”
shall mean January 1, 2001. 
  
 (n)    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (o)    “FLSA” shall mean the Fair Labor Standards Act of 1938, as amended. 
  
 (p)    “Incentive Stock
Option” shall mean any Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  

 2 

 (q)    “Maximum Annual Participant Award” shall have
the meaning set forth in Section 5(b). 
  
 (r)    “Nonqualified Stock Option” shall mean an Option not intended to qualify as an Incentive Stock Option. 
  
 (s)    “Option” shall mean a stock option granted pursuant to Section 6 of the Plan. 
  
 (t)    “Parent” shall
mean a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (u)    “Participant” shall mean an Employee or Consultant. 
  
 (v)    “Plan” shall mean
this 2001 Stock Plan, including any amendments thereto. 
  
 (w)    “Share” shall mean one Common Share, as adjusted in accordance with Section 14 of the Plan. 
  
 (x)    “SAR” shall mean a stock appreciation right awarded pursuant to
Section 8 of the Plan. 
  
 (y)    “Stock Award” shall mean a grant of Shares or of a right to receive Shares or their cash equivalent (or both) pursuant to Section 7 of the Plan. 
  
 (z)    “Subsidiary”
shall mean (i) in the case of an Incentive Stock Option a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, and (ii) in the case of a Nonqualified Stock Option, a Stock Award or an SAR,
in addition to a subsidiary corporation as defined in (i), a limited liability company, partnership or other entity in which the Company controls 50 percent or more of the voting power or equity interests. 
  
 3.    Shares Subject to the
Plan.  Subject to the provisions of Sections 14 and 16 of the Plan, the maximum aggregate number of Shares (increased, proportionately, in the event of any stock split or stock dividend with respect to the Shares) which may be awarded
and delivered under the Plan shall not exceed the sum of (a) any Shares available for future awards, as of the Effective Date, under the Microsoft Corporation 1991 Stock Option Plan, as amended (“1991 Stock Plan”) and (b) any Shares that
are represented by awards under the 1991 Stock Plan which, after the Effective Date, are forfeited, expire, are cancelled without delivery of Shares, or otherwise result in the return of Shares to the Company. The Shares may be authorized, but
unissued, or reacquired Common Shares. 
  

 3 

 If an Award should expire or become unexercisable for any reason without having been exercised in full,
the undelivered Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for future Awards under the Plan. 
  
 4.     Administration of the Plan. 
  
 (a)    Procedure.  The Plan shall be administered by the Board of Directors of the Company.

  
 (i)    The Board of
Directors may appoint one or more Committees each consisting of not less than two members of the Board of Directors to administer the Plan on behalf of the Board of Directors, subject to such terms and conditions as the Board of Directors may
prescribe. Once appointed, such Committees shall continue to serve until otherwise directed by the Board of Directors. 
  
 (ii)    From time to time the Board of Directors may increase the size of the Committee(s) and appoint additional
members thereof, remove members (with or without cause) and appoint new members in substitution therefor, or fill vacancies however caused. 
  
 (b)    Powers of the Board.  Subject to the provisions of the Plan, the Board shall have the
authority, in its discretion: (i) to grant Incentive Stock Options, Nonqualified Stock Options, Stock Awards, and SARs; (ii) to determine, in accordance with Section 11(b) of the Plan, the fair market value of the Shares; (iii) to determine, in
accordance with Section 11(a) of the Plan, the exercise price per share of Awards to be granted; (iv) to determine the Participants to whom, and the time or times at which, Awards shall be granted and the number of Shares to be represented by each
Award; (v) to interpret the Plan; (vi) to prescribe, amend, and rescind rules and regulations relating to the Plan; including the form of Award Agreement, and manner of acceptance of an Award, (vii) to determine the terms and provisions of each
Award to be granted (which need not be identical) and, with the consent of the Awardee, modify or amend each Award; (viii) to authorize conversion or substitution under the Plan of any or all Conversion Options; (ix) to accelerate or defer (with the
consent of the Awardee) the exercise date of any Option; (x) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by the Board; and (xi) to make all other
determinations deemed necessary or advisable for the administration of the Plan. 
  
 (c)    Effect of Board’s Decision.  All decisions, determinations, and interpretations of the
Board shall be final and binding on all Participants and Awardees. 
  
 5.    Eligibility. 
  
 (a)    Awards may be granted to Participants and to persons to whom offers of employment as an Employee have been extended; provided that Incentive Stock Options may 
  

 4 

 only be granted to Employees. For avoidance of doubt, directors are not eligible to participate in the
Plan unless they are Employees or Consultants. 
  
 (b)    The maximum number of Shares with respect to which an Award or Awards may be granted to any Participant in any one taxable year of the Company (the “Maximum Annual Participant Award”) shall not exceed
20,000,000 Common Shares (increased, proportionately, in the event of any stock split or stock dividend with respect to the Shares). If an Option is in tandem with an SAR, such that the exercise of the Option or SAR with respect to a Share cancels
the tandem SAR or Option right, respectively, with respect to each Share, the tandem Option and SAR rights with respect to each Share shall be counted as covering but one Share for purposes of the Maximum Annual Participant Award. 
  
 6.    Options. 
  
 (a)    Each Option shall be designated in
the written or electronic option agreement as either an Incentive Stock Option or a Nonqualified Stock Option. However, notwithstanding such designations, to the extent that the aggregate fair market value of the Shares with respect to which Options
designated as Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company) exceeds $100,000, such Options shall be treated as Nonqualified Stock Options. 
  
 (b)    For purposes of Section 6(a),
Options shall be taken into account in the order in which they were granted, and the fair market value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 
  
 (c)    Options converted or substituted
under the Plan for any or all outstanding stock options and stock appreciation rights held by employees, consultants, advisors or other option holders granted by entities subsequently acquired by the Company (“Conversion Options”) shall be
effective as of the close of the respective mergers and acquisitions of such entities by the Company. The Conversion Options may be Incentive Stock Options or Nonqualified Stock Options, as determined by the Committee; provided, however, that stock
appreciation rights in the acquired entity shall only be converted to or substituted with Nonqualified Stock Options. The Conversion Options shall be options to purchase the number of Common Shares determined by multiplying the number of shares of
the acquired entity’s common stock underlying each such stock option or stock appreciation right immediately prior to the closing of such merger or acquisition by the number specified in the applicable merger or acquisition agreement for
conversion of each share of such entity’s common stock to a Common Share (the “Merger Ratio”). Such Conversion Options shall be exercisable at an exercise price per Common Share (increased to the nearest whole cent) equal to the
exercise price per share of the acquired entity’s common stock under each such stock option or stock appreciation right immediately prior to closing divided by the Merger Ratio. No fractional Common Shares will be issued upon exercise of
Conversion Options. In lieu of such issuance, the Common Shares issued pursuant to each such exercise shall be rounded to the closest whole Share. All other 
  

 5 

 terms and conditions applicable to such stock options and stock appreciation rights prior to closing of
the acquisition, including vesting, shall remain unchanged under the Conversion Options. 
  
 7.    Stock Awards. 
  
 (a)    Stock Awards may be granted either alone, in addition to, or in tandem with other Awards granted under the Plan. The maximum aggregate number of Shares underlying all such Stock Awards shall
not exceed 80,000,000 Common Shares (increased, proportionately, in the event of any stock split or stock dividend with respect to the Shares). Any Stock Award granted to an Employee who is non-exempt for purposes of the FLSA shall include a vesting
period of not less than six (6) months. After the Committee determines that it will offer a Stock Award, it will advise the Awardee in writing or electronically, by means of an Award Agreement, of the terms, conditions and restrictions, including
vesting, if any, related to the offer, including the number of Shares that the Awardee shall be entitled to receive or purchase, the price to be paid, if any, and, if applicable, the time within which the Awardee must accept the offer. The offer
shall be accepted by execution of an Award Agreement in the manner determined by the Committee. 
  
 (b)    Unless the Committee determines otherwise, the Award Agreement shall provide for the forfeiture of the
non-vested Common Shares underlying such Stock Award upon the Awardee ceasing to be a Participant. To the extent that the Awardee purchased the Shares granted under such Stock Award and any such Shares remain non-vested at the time the Awardee
ceases to be a Participant, the cessation of Participant status shall cause an immediate sale of such non-vested Shares to the Company at the original price per Common Share paid by the Awardee. 
  
 8.    SARs. 
  
 (a)    The Committee shall have the full
power and authority, exercisable in its sole discretion, to grant SARs to selected Awardees. The Committee is authorized to grant both tandem stock appreciation rights (“Tandem SARs”) and stand-alone stock appreciation rights
(“Stand-Alone SARs”) as described below. 
  
 (b)    Tandem SARs. 
  
 (i)    Awardees may be granted a Tandem SAR, exercisable upon such terms and conditions as the Committee shall establish, to elect between the exercise of the underlying Section 6 Option for Common Shares or the
surrender of the Option in exchange for a distribution from the Company in an amount equal to the excess of (A) the fair market value (on the Option surrender date) of the number of Shares in which the Awardee is at the time vested under the
surrendered Option (or surrendered portion thereof) over (B) the aggregate exercise price payable for such vested Shares. 
  

 6 

 (ii)    No such Option surrender shall be effective unless it is
approved by the Committee, either at the time of the actual Option surrender or at any earlier time. If the surrender is so approved, then the distributions to which the Awardee shall become entitled under this Section 8(b) may be made in Common
Shares valued at fair market value on the Option surrender date, in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate. 
  
 (iii)    If the surrender of an Option is not approved by the Committee, then the Awardee shall retain whatever rights
he or she had under the surrendered Option (or surrendered portion thereof) on the Option surrender date and may exercise such rights at any time prior to the later of (A) five (5) business days after the receipt of the rejection notice or (B) the
last day on which the Option is otherwise exercisable in accordance with the terms of the instrument evidencing such Option, but in no event may such rights be exercised more than ten (10) years after the date of the Option grant. 
  
 (c)    Stand-Alone SARs.

  
 (i)    An Awardee may be
granted a Stand-Alone SAR not tied to any underlying Option under Section 6 of the Plan. The Stand-Alone SAR shall cover a specified number of Common Shares and shall be exercisable upon such terms and conditions as the Committee shall
establish. Upon exercise of the Stand-Alone SAR, the holder shall be entitled to receive a distribution from the Company in an amount equal to the excess of (A) the aggregate fair market value (on the exercise date) of the Common Shares underlying
the exercised right over (B) the aggregate base price in effect for those Shares. 
  
 (ii)    The number of Common Shares underlying each Stand-Alone SAR and the base price in effect for those Shares
shall be determined by the Committee at the time the Stand-Alone SAR is granted. In no event, however, may the base price per Share be less than the fair market value per underlying Common Share on the grant date. 
  
 (iii)    The distribution with respect to
an exercised Stand-Alone SAR may be made in Common Shares valued at fair market value on the exercise date, in cash, or partly in Shares and partly in cash, as the Committee shall deem appropriate. 
  
 (d)    The Common Shares underlying any
SARs exercised under this Section 8 shall not be available for subsequent issuance under the Plan. 
  
 9.    Term of Plan.  The Plan shall become effective as of the Effective Date. It shall continue in effect until
terminated under Section 17 of the Plan. 
  
 10.    Term of Award.  The term of each Award shall be no more than ten (10) years from the date of grant. However, in the case of an Incentive Stock Option granted to a 
  

 7 

 Participant who, at the time the Option is granted, owns Shares representing more than ten percent (10%) of the voting
power of all classes of shares of the Company or any Parent or Subsidiary, the term of the Option shall be no more than five (5) years from the date of grant. 
  

11.    Exercise Price and Consideration. 
  
 (a)    The per Share exercise price under each Award shall be such price as is
determined by the Board, subject to the following: 
  
 (i)    In the case of an Incentive Stock Option 
  
 (A)    granted to an Employee who, at the time of the grant of such Incentive Stock Option, owns shares representing more than ten percent (10%) of the voting power of all classes of shares of the
Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the fair market value per Share on the date of grant. 
  
 (B)    granted to any other Employee, the per Share exercise price shall be no less than 100% of the fair market
value per Share on the date of grant. 
  
 (ii)    Except for Conversion Options under Section 6(c), the per Share exercise price under a Nonqualified Stock Option or SAR shall be no less than seventy-five percent (75%) of the fair market value per Share on the
date of grant. Notwithstanding the foregoing (or any other provision of the Plan), Options and SARs that are granted to Employees who are non-exempt for purposes of the FLSA, shall satisfy the requirements for exclusion from regular rate of pay for
purposes of the FLSA and shall have an exercise price that is at least eighty-five percent (85%) of the fair market value of the underlying Shares at the time of grant; furthermore, such Options or SARs shall not be exercisable within the six (6)
month period immediately following the date of grant, except, if so provided in the Award Agreement, in the event of the Awardee’s death, disability, or retirement, upon a change in corporate control of the Company, or under such other
circumstances as are permitted under the FLSA or rules and regulations thereunder. 
  
 (iii)    The maximum aggregate number of Shares underlying all Nonqualified Stock Options and SARs with a per Share
exercise price of less than fair market value on any grant date that may be granted under this Plan is 50,000,000 Shares (increased, proportionately, in the event of any stock split or stock dividend with respect to the Shares). 
  
 (iv)    The maximum aggregate number of
Shares underlying all Stock Awards with a per Share price of less than fair market value on any grant date that may be granted under this Plan is 80,000,000 Shares (increased, proportionately, in the event of any stock split or stock dividend with
respect to the Shares). 
  

 8 

 (b)    The fair market value per Share shall be the closing price per
share of the Common Share on the Nasdaq Stock Market (“Nasdaq”) on the date of grant. If the Shares cease to be listed on Nasdaq, the Board shall designate an alternative method of determining the fair market value of the Shares.

  
 (c)    The consideration
to be paid for the Shares to be issued upon exercise of an Award, including the method of payment, shall be determined by the Board at the time of grant and may consist of cash and/or check. Payment may also be made by delivering a properly executed
exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale proceeds necessary to pay the exercise price. If the Awardee is an officer of the Company within the meaning of Section 16 of
the Exchange Act, he may, in addition, be allowed to pay all or part of the purchase price with Shares which, as of the exercise date, the officer has owned for six (6) months or more. If the Awardee is a participant in the 1998 Microsoft
Corporation Stock Option Gain And Bonus Deferral Program, he may in addition be allowed to pay all or part of the purchase price of any deferred Option with Shares. Shares used by officers to pay the exercise price shall be valued at their fair
market value on the exercise date. 
  
 (d)    Prior to issuance of the Shares upon exercise of an Award, the Awardee shall pay any federal, state, and local income and employment tax withholding obligations applicable to such Award. If an Awardee is an
officer of the Company within the meaning of Section 16 of the Exchange Act, he may elect to pay such withholding tax obligations by having the Company withhold Shares having a value equal to the amount required to be withheld, and any Award under
the Plan may permit or require that such withholding tax obligations be paid by having the Company withhold Shares having a value equal to the amount required to be withheld. The value of the Shares to be withheld shall equal the fair market value
of the Shares on the day the Award is exercised. The right of an officer to dispose of Shares to the Company in satisfaction of withholding tax obligations shall be deemed to be approved as part of the initial grant of an Award, unless thereafter
rescinded, and shall otherwise be made in compliance with Rule 16b-3 and other applicable regulations. 
  
 12.    Exercise of Award. 
  
 (a)    Procedure for Exercise; Rights as a Shareholder.  Any Award granted hereunder shall be
exercisable at such times and under such conditions as determined by the Board at the time of grant, and as shall be permissible under the terms of the Plan. 
  
 An Award may not be exercised for a fraction of a Share. 
  
 An Award shall be deemed to be exercised when written or electronic notice of such exercise has been given
to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised has been received by the Company. Full payment may, as authorized by
the 
  

 9 

 Board, consist of any consideration and method of payment allowable under Section 11(c) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the share certificate evidencing such Shares, no right to vote or receive dividends or any other rights
as a shareholder shall exist with respect to the Shares subject to the Award, notwithstanding the exercise of the Award. The Company shall issue (or cause to be issued) such share certificate promptly upon exercise of the Award. In the event that
the exercise of an Award is treated in part as the exercise of an Incentive Stock Option and in part as the exercise of a Nonqualified Stock Option pursuant to Section 6(a), the Company shall issue a share certificate evidencing the Shares treated
as acquired upon the exercise of an Incentive Stock Option and a separate share certificate evidencing the Shares treated as acquired upon the exercise of a Nonqualified Stock Option, and shall identify each such certificate accordingly in its share
transfer records. No adjustment will be made for a dividend or other right for which the record date is prior to the date the share certificate is issued, except as provided in Section 14 of the Plan. 
  
 Exercise of an Award in any manner and delivery of the Shares
subject to such Award shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Award, by the number of Shares as to which the Award is exercised. 
  
 (b)    Termination of Status as a
Participant.  In the event of termination of an Awardee’s Continuous Status as a Participant, such Awardee may exercise his or her rights under any outstanding Awards to the extent exercisable on the date of termination (but in no
event later than the date of expiration of the term of such Award as set forth in the Award Agreement). To the extent that the Awardee was not entitled to exercise his or her rights under such Awards at the date of such termination, or does not
exercise such rights within the time specified in the individual Award Agreements, the Awards shall terminate. 
  
 (c)    Disability of Awardee.  Notwithstanding the provisions of Section 12(b) above, in the event of
termination of an Awardee’s Continuous Status as a Participant as a result of total and permanent disability (i.e., the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of twelve (12) months), the Awardee may exercise the Award, but only to the extent of the right to exercise that would have
accrued had the Awardee remained in Continuous Status as a Participant for a period of twelve (12) months after the date on which the Participant ceased performing services as a result of the total and permanent disability. Such exercise must occur
within eighteen (18) months (or such shorter time as is specified in the grant) from the date on which the Participant ceased performing services as a result of the total and permanent disability (but in no event later than the date of expiration of
the term of such Award as set forth in the Award Agreement). To the extent that the Awardee was not entitled to exercise such Award within the time specified herein, the Award shall terminate. 
  

 10 

 (d)    Death of Awardee.  Notwithstanding the
provisions of Section 12(b) above, in the event of the death of an Awardee: 
  
 (i)    who is at the time of death a Participant, the Award may be exercised, at any time within twelve (12) months following the date of death, by the Awardee’s estate or by a person who
acquired the right to exercise the Award by bequest or inheritance, but only to the extent of the right to exercise that would have accrued had the Awardee continued living and remained in Continuous Status as a Participant twelve (12) months after
the date of death; or 
  
 (ii)    whose Award has not yet expired but whose Continuous Status as a Participant terminated prior to the date of death, the Award may be exercised, at any time within twelve (12) months following the date of death,
by the Awardee’s estate or by a person who acquired the right to exercise the Award by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination. 
  
 (e)    Notwithstanding subsections (b),
(c), and (d) above, the Board shall have the authority to extend the expiration date of any outstanding option in circumstances in which it deems such action to be appropriate (provided that no such extension shall extend the term of an Award beyond
the date on which the Award would have expired if no termination of the Employee’s Continuous Status as a Participant had occurred). 
  
 13.    Non-Transferability of Awards.  An Award may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Awardee, only by the Awardee; provided that the Board may permit further transferability, on a general or
specific basis, and may impose conditions and limitations on any permitted transferability. 
  
 14.    Adjustments to Shares Subject to the Plan. 
  
 The number of Shares covered by each outstanding Award, the Maximum Annual Employee Award and the number of Shares which have been authorized for issuance
under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award, as well as the price per Share covered by each such outstanding Award, shall be proportionately
adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination, or reclassification of the Shares, or any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall
be made by the Board, whose determination in that respect shall be final, binding, and conclusive. Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Award. 
  

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 In the event of the proposed dissolution or liquidation of the Company, the Award will terminate
immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such instances, declare that any Award shall terminate as of a date fixed by the Board
and give each Awardee the right to exercise an Award as to all or any part of the Shares subject to an Award, including Shares as to which the Award would not otherwise be exercisable. In the event of a proposed sale of all or substantially all of
the assets of the Company, or the merger of the Company with or into another corporation, each Award shall be assumed or an equivalent award shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation,
unless such successor corporation does not agree to assume the Award or to substitute an equivalent award, in which case the Board shall, in lieu of such assumption or substitution, provide for the Awardee to have the right to exercise the Award as
to all of the Shares subject to Awards, including Shares as to which the Award would not otherwise be exercisable. If the Board makes an Award fully exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the
Board shall notify the Awardee that the Award shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Award will terminate upon the expiration of such period. 
  
 15.    Time of Granting Awards.  The
date of grant of an Award shall, for all purposes, be the date on which the Company completes the corporate action relating to the grant of such Award and all conditions to the grant have been satisfied, provided that conditions to the exercise of
an Award shall not defer the date of grant. Notice of a grant shall be given to each Participant to whom an Award is so granted within a reasonable time after the determination has been made. 
  
 16.    Substitutions and
Assumptions.  The Board shall have the right to substitute or assume Awards in connection with mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies, provided such substitutions and
assumptions are permitted by Section 424 of the Code and the regulations promulgated thereunder. The number of Shares reserved pursuant to Section 3 may be increased by the corresponding number of Awards assumed and, in the case of a substitution,
by the net increase in the number of Shares subject to Awards before and after the substitution. 
  
 17.    Amendment and Termination of the Plan. 
  
 (a)    Amendment and Termination.  The Board may amend or terminate the
Plan from time to time in such respects as the Board may deem advisable (including, but not limited to amendments which the Board deems appropriate to enhance the Company’s ability to claim deductions related to stock option exercises);
provided that any increase in the number of Shares subject to the Plan, other than in connection with an adjustment under Section 14 of the Plan, shall require approval of or ratification by the shareholders of the Company. 
  

 12 

 (b)    Participants in Foreign Countries.  The Board
shall have the authority to adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or its Subsidiaries may operate to assure the viability
of the benefits from Awards granted to Participants performing services in such countries and to meet the objectives of the Plan. 
  
 (c)    Effect of Amendment or Termination.  Any such amendment or termination of the Plan shall not
affect Awards already granted and such Awards shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Awardee and the Board, which agreement must be in writing and signed
by the Awardee and the Company. 
  
 18.    Conditions Upon Issuance of Shares.  Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares pursuant thereto
shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the
Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 19.    Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 20.    No Employment/Service Rights.  Nothing in the Plan shall confer upon any Participant the right to an Award or
to continue in service as an Employee or Consultant for any period of specific duration, or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining such person), or of any
Participant or Awardee, which rights are hereby expressly reserved by each, to terminate such person’s services at any time for any reason, with or without cause. 
  
 21.    Shareholder Approval.  The Plan is subject to approval by the shareholders of
the Company at the Annual Meeting of Shareholders to be held on November 9, 2000. 
  
 *All share numbers in the Plan reflect the 2-for-1 stock split effected February 2003. 
  

 13

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