Document:

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                                                                    Exhibit 10.9

                            INDEMNIFICATION AGREEMENT

     This Agreement is made this 1st day of June, 1993, by and between Microsoft
Corporation, a Delaware corporation (the "Company") and ______________
("Indemnitee"), a director and/or executive officer of the Company and William
G. Reed, Jr. (the initial "Beneficiaries' Representative").

     WHEREAS, there is a general awareness that competent and experienced
persons are becoming more reluctant to serve as directors or executive officers
of publicly-held corporations unless they are protected by comprehensive
policies of insurance or indemnification, due to the increasing number of
lawsuits against such corporations and their directors and officers, the
attendant expense of defending against such lawsuits, and the exposure of such
directors and officers to unreasonably high damages;

     WHEREAS, present laws and interpretations are frequently too uncertain to
provide such officers and directors with adequate, reliable knowledge of the
legal risks to which they may be exposed as a result of serving the corporation;

     WHEREAS, the Board of Directors has concluded that its directors and
executive officers should be provided with protection against such risks in
order to insure that the most capable persons will be attracted to such
positions; and, therefore, has determined to contractually obligate itself to
indemnify in a reasonable manner its directors and executive

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officers and to assume for itself the liability for expenses and damages in
connection with claims lodged against its directors and executive officers as a
result of their service to the Company.

     WHEREAS, applicable law empowers corporations to indemnify persons serving
as a director, officer, employee, or agent of the corporation or a person who
serves at the request of the corporation as a director, officer, employee, or
agent of another corporation, partnership, joint venture, trust, or other
enterprise, and further empowers a corporation to purchase and maintain
insurance (on behalf of such persons) against liability which may be asserted
against Indemnitee or incurred by Indemnitee in any such capacity, or arising
out of Indemnitee's status as such, whether or not the corporation would have
the power to indemnify against such liability under the provisions of said laws;

     WHEREAS, the Board of Directors has concluded that, due to the high cost
and other negative features of the coverage under presently available directors
and officers liability insurance, at this time it would not be in the best
interest of its shareholders for the Company to purchase and maintain such
insurance in the amounts customarily held by similar corporations and that its
shareholders' interest would be better served by contracting to indemnify its
executive officers and directors thereby reasonably self-insuring against such
potential liabilities;

                                       -2-

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     WHEREAS, the Company desires to have Indemnitee serve or continue to serve
as a director or executive officer of the Company free from undue concern for
damages by reason of Indemnitee being a director and/or executive officer of the
Company or by reason of his or her decision or actions on its behalf, and
Indemnitee is willing to serve, or to continue to serve, only if he or she is
furnished the indemnity provided for hereinafter in one or more of such
capacities; and

     WHEREAS, the parties believe it appropriate to memorialize and reaffirm the
Company's indemnification obligations to Indemnitee and, in addition, to set
forth the agreements contained herein.

     NOW, THEREFORE, in consideration of the promises, conditions,
representations, and warranties set forth herein, including the Indemnitee's
continued service to the Company, the Company and Indemnitee hereby agree as
follows:

     1. Definitions. The following terms, as used herein, shall have the
following respective meanings:

     "Beneficiary" or "Beneficiaries" means an officer or director of the
Company who qualifies as a Beneficiary under Section 1.1 of the Trust Agreement.

     "Beneficiaries' Representative" means a non-employee director of the
Company, or other individual selected in accordance with the procedures set
forth in Section 1.4 of the Trust Agreement.

                                       -3-

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     "Claim or Claims" includes without limitation any threatened, pending, or
completed action, suit, or proceeding whether civil, derivative, criminal,
administrative, investigative, or otherwise, and includes any Claims by or in
the right of the Company.

     "Covered Amount" means Loss and Expenses which, in type or amount, are not
insured under any D&O Insurance.

     "Covered Act" means any act or omission (including without limitation any
breach of duty, neglect, error, misstatement, misleading statement, or
otherwise, or appearing as or preparing to be a witness) by Indemnitee, and any
Claim against Indemnitee, by reason of the fact that Indemnitee is or was a
director or officer of the Company, or of any subsidiary or division, or is or
was serving at the request of the Company as a director, officer, partner,
trustee, employee, or agent of another corporation, partnership, joint venture,
trust, employee benefit plan, or other enterprise.

     "D&O Insurance" means any directors' and officers' liability insurance
issued to the Company the proceeds of which are available for, and are tendered
to, the Indemnitee.

     "Determination" means a determination, based on the facts known at the
time, made by:

          (i) A majority vote of a quorum of disinterested directors; or

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          (ii)  Independent legal counsel in a written opinion prepared at the
request of a majority of a quorum of disinterested directors; or

          (iii) A majority of the disinterested stockholders of the Company; or

          (iv)  A final order by a court of competent jurisdiction from which
there is no further right of appeal.

     "Determined" shall have a correlative meaning.

     "Excluded Claim" means any payment for Losses or Expenses in connection
with any Claim the payment of which is Ultimately Determined to be prohibited by
the Delaware General Corporation Law, public policy, or other applicable law
(including binding regulations and orders of, and undertakings or other
commitments with, any governmental entity or agency) as the same exists or may
hereafter be amended (but, in the case of any such amendment, only to the extent
that such amendment permits the corporation to provide broader indemnification
rights than said law permitted the corporation to provide prior to such
amendment).

     "Expenses" means any reasonable expenses incurred by Indemnitee as a result
of a Claim or Claims made against him for Covered Acts including, without
limitation, counsel fees and costs of investigative, judicial, or administrative
proceedings and any appeals.

     "Fines" shall include any fine, penalty or, with respect to an employee
benefit plan, any excise tax or penalty assessed with respect thereto.

                                       -5-

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     "Loss" means any amount which Indemnitee is legally obligated to pay as a
result of any Claim or Claims made against him or her for Covered Acts
including, without limitation, Fines, damages, judgments, and sums paid in
settlement of any Claim or Claims.

     "Trust Agreement" shall mean the Trust established between the Company and
First Interstate Bank of Washington, N.A. ("Trustee") attached as Exhibit A.

     "Ultimate Determination" means the method of Determination set forth in
clause (i), (ii), or (iii) of the above definition of Determination as selected
by the Company, except that a final order from which there is no further right
of appeal in any action in which Indemnitee seeks indemnification shall
constitute the Ultimate Determination of the Indemnitee's right to
indemnification from the Company "Ultimately Determined" shall have a
correlative meaning.

     2. Indemnification. The Company agrees to indemnify and defend Indemnitee
and hold him or her harmless from and against any and all Losses and Expenses
subject, in each case, to the further provisions of this Agreement.

     3. Excluded Coverage. The Company shall have no obligation to indemnify
Indemnitee for and hold him or her harmless from any Loss or Expense which has
been Ultimately Determined to constitute an Excluded Claim or to the extent that
Indemnitee has received the proceeds of D&O Insurance or to the extent that
Indemnitee has otherwise been indemnified.

                                       -6-

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 4.  Indemnification Procedures.

     4.1  Notice. Promptly after receipt by Indemnitee of notice of the
commencement of or the threat of commencement of any Claim, Indemnitee shall, if
Indemnitee intends to seek indemnification with respect thereto from the Company
under this Agreement, promptly notify the Company and the Beneficiaries,
Representative of the commencement thereof and shall keep the Company generally
informed of, and consult with the Company with respect to, the status of any
such Claim.

     4.2  D&O Insurance Applicable. If, at the time of the receipt of such
notice, the Company has D&O Insurance in effect, the Company shall give prompt
notice of the commencement of such Claim to the insurers in accordance with the
procedures set forth in the respective policies in favor of Indemnitee. The
Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of Indemnitee, all Losses and Expenses payable as a
result of such Claim in accordance with the terms of such policies.

     4.3  Advances of Expenses. The Company agrees to pay the Expenses of any
such Claim in advance of the final disposition thereof to the extent payment for
such Expenses is not promptly received from D&O Insurance or any other source of
indemnity. The Company, if appropriate, shall be entitled to assume the defense
of any Claim, with counsel satisfactory to Indemnitee, upon the delivery to
Indemnitee of written notice of its election to assume the defense. After
delivery of such notice and so long

                                       -7-

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as the Company continues such defense, the Company will not be liable to
Indemnitee under this Aqreement for any legal or other Expenses subsequently
incurred by the Indemnitee in connection with such defense other than Expenses
of investigation and any out-of-pocket personal expenses incurred in preparing
for and participating in the Claim. Indemnitee shall have the right to employ
his or her counsel in any such Claim but the fees and expenses of such counsel
incurred after delivery of notice from the Company of its assumption of such
defense shall be at the Indemnitee's expense provided that if (i) the employment
of counsel by Indemnitee has been previously authorized by the Company, (ii)
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and Indemnitee in the conduct of any such defense
or (iii) the Company shall not, in fact, have employed counsel which has assumed
and continues the defense of such action, the fees and expenses of counsel shall
be at the expense of the Company.

     4.4 Payment of Expenses. All payments on account of the Company's
indemnification obligations under this Agreement shall be made within sixty
(60) days of Indemnitee's written request therefor unless an Ultimate
Determination is made that the claims giving rise to Indemnitee's request are
Excluded Claims or otherwise not payable under this Agreement, provided that
all payments on account of the Company's obligations under Section 4.3 of this
Agreement prior to the final disposition of any Claim shall be made within 20
days of Indemnitee's written

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request therefor and such obligation shall not be subject to any such Ultimate
Determination but shall be subject to this Agreement.

     4.5 Indemnitee's Obligation to Reimburse. Indemnitee agrees that he will
reimburse the Company for all Losses and Expenses paid by the Company, or any
Trustee of a Trust created by the Company, in connection with any Claim against
Indemnitee in the event and only to the extent that an Ultimate Determination
shall have been made that the Indemnitee is not entitled to be indemnified by
the Company for such Expenses because the claim is an Excluded Claim or because
Indemnitee is otherwise not entitled to payment under this Agreement.

     5.  Settlement. The Company shall have no obligation to indemnify
Indemnitee under this Agreement for any amounts paid in settlement of any Claim
effected without the Company's prior written consent except to the extent it is
Ultimately Determined that such settlement is reasonable and in good faith. The
Company shall not settle any Claim in any manner which would impose any Fine or
any obligation on Indemnitee without Indemnitee's written consent. Neither the
Company nor Indemnitee shall unreasonably withhold their consent to any proposed
settlement.

     6.  Partial Indemnification. If Indemnitee is entitled under any provisions
of this Agreement to indemnification by the Company for some or a portion of
Expenses and Losses but not, however, for the total amount thereof, the Company
shall

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nevertheless indemnify Indemnitee for the portion of such Expenses and Losses to
which Indemnitee is entitled.

     7.   Enforcement.

          7.1  Burden of Proof. Indemnitee's right to indemnification shall be
enforceable by Indemnitee in any court of competent jurisdiction and shall be
enforceable notwithstanding any adverse Determination (pursuant to clauses (i),
(ii) or (iii) but not (iv) of the definition of Determination in Section 1). In
any action in which Indemnitee seeks indemnification, the Company shall have the
burden of proving that indemnification is not required under this Agreement. The
termination of any Claim by judgment, order, settlement, conviction, or upon a
plea of nolo contendere or its equivalent, shall not of itself create a
presumption that Indemnitee did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his conduct was unlawful.

          7.2  Enforcement Expenses. In the event that any action is instituted
in which Indemnitee or the Beneficiaries' Representative seeks indemnification
of Indemnitee under this Agreement, or to enforce or interpret any of the terms
of this Agreement, Indemnitee shall be entitled to be paid all costs and
expenses, including reasonable attorneys' fees and costs, incurred by Indemnitee
with respect to such action, unless the

                                       -10-

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court determines that such action was not brought in good faith or was
frivolous.

          8.   Severability. In the event that any provision of this Agreement
is determined by a court to require the Company to do or to fail to do an act
which is in violation of applicable law, such provision shall be limited or
modified in its application to the minimum extent necessary to avoid a violation
of law, and, as so limited or modified, such provision and the balance of this
Agreement shall be enforceable in accordance with their terms.

          9.   Choice of Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware.

          10.  Successors and Assigns. This Agreement shall be (i) binding upon
all successors and assigns of the Company (including any transferee of all or
substantially all of its assets and any successor by merger or otherwise by
operation of law) and of the Beneficiaries' Representative and (ii) shall be
binding on and inure to the benefit of the spouses, heirs, personal
representatives, and estate of Indemnitee. The Company shall not effect any sale
of substantially all of its assets, merger consolidation, or other
reorganization unless the surviving entity agrees in writing to assume all the
obligations of the company under this Agreement and to indemnify Indemnitee and
advance Expenses in accordance with this Agreement.

          11.  Amendment. No amendment, modification, termination, or
cancellation of this Agreement shall be effective unless made in

                                      -11-

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a writing signed by each of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision of this Agreement (whether or not similar) nor shall such waiver
constitute a continuing waiver.

     12. Deposit in Trust. The Company has created a Trust (the "Trust") for the
benefit of the Indemnitee and others (Collectively, including Indemnitee, the
"Beneficiaries") in the form of Exhibit A (the 'Trust Agreement"). Indemnitee is
specifically acknowledqed as a third party beneficiary of the Trust Agreement,
and therefore, in addition to Indemnitee's rights under this Agreement and any
applicable insurance policy, Indemnitee shall also have the right to receive
indemnification from the Trust in accordance with the terms of this Agreement
and of the Trust Agreement. The Company agrees to fund and maintain the Trust
Fund in accordance with the procedures set forth in Article II of the Trust
Agreement and to discharge all its other ,obligations pursuant to the Trust
Agreement.

     13. Procedure for Making Demand. Indemnitee shall first make demand upon
the Company in accordance with the Indemnification Procedures of Section 4 to
honor its indemnity obligation under this Agreement. If the Company shall fail
to indemnify on a timely basis, the Beneficiary shall deliver a certificate to
the Beneficiaries' Representative settinq forth the information required
pursuant to Section 2.7 of the Trust Agreement. Indemnitee shall not be required
to institute a

                                      -12-

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lawsuit or take other actions against the Company or any insurer to recover the
unpaid amount prior to the Beneficiaries' Representative making a demand and
receiving payment from the Trustee on his or her behalf.

     14.  Duties and Responsibilities of Beneficiaries' Representative. The
Beneficiaries' Representative (and any successor Beneficiaries' Representative)
shall have the following affirmative duties and responsibilities:

          14.1 to demand deposits from the Company so as to maintain the
Minimum Balance and make any Additional Contribution as required by Sections 2.3
and 2.4 of the Trust Agreement;

          14.2 to demand payments by the Trustee to Indemnitee upon demand by
Indemnitee where, in the good faith judgment of the Beneficiaries'
Representative, the Indemnitee has satisfied the conditions for indemnification
as set forth in this Agreement and the Trust Agreement.

          14.3 to generally cause the Company and Trustee to discharge their
respective responsibilities under this Agreement and the Trust Agreement,
including the bringing of legal actions and proceedings to enforce such
Agreement.

     15.  Other Indemnity. The provisions in this Agreement are intended to
be nonexclusive of indemnity granted pursuant to the Company's Certificate of
Incorporation, Bylaws, other agreements, vote of stockholders or disinterested
directors, or otherwise. All applicable indemnity shall be interpreted and
applied so as

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to provide Indemnitee with the broadest but nonduplicative indemnity to which he
or she is entitled.

     16.   Notices, Consents, and Other Communications. All notices, consents,
or other communications required or contemplated by this Agreement shall be in
writing and shall be deemed to have been given when delivered either by (a)
personal delivery, (b) overnight courier, or (c) postage prepaid return receipt
requested certified mail to the last address given to the Trustee by each
respective Beneficiary. Notice by personal delivery shall be effective upon the
date service is made and notice by certified mail or overnight courier shall be
effectiive on the date it is recorded as delivered by the U.S. Postal Service or
the overnight courier, respectively.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

Attest:                              MICROSOFT CORPORATION

BY __________________________        By _____________________________
   Secretary                            Chairman

                                     ________________________________
                                     Indemnitee

                                     Indemnitee's Address:

                                     ________________________________
                                     ________________________________

                                     ________________________________
                                     WILLIAM G. REED, JR.,
                                     Beneficiaries' Representatives

                                       -14-<PAGE>

                                                                   Exhibit 10.10

                              Resignation Agreement

     RESIGNATION AGREEMENT dated as of July 23, 2002, between Richard Belluzzo
("Belluzzo") residing at 1622 38/th/ Avenue East, Seattle, Washington and
Microsoft Corporation ("Microsoft") ("Agreement").

1.   Resignation. Belluzzo hereby acknowledges his voluntary and irrevocable
resignation from the offices of President and Chief Operating Officer effective
May 1, 2002. In addition, Belluzzo voluntarily and irrevocably resigns his
employment with Microsoft effective August 23, 2002 ("Resignation Date"). Except
as expressly modified by paragraphs 2, 3 and 4 of this Agreement, Belluzzo's
existing compensation and benefits shall remain in place until the Resignation
Date. In the event that Belluzzo elects to resign his employment prior to the
Resignation Date, any and all compensation and stock option vesting will cease
on the last day of his employment with Microsoft except as set forth below in
paragraph 2. In consideration of Belluzzo signing this Agreement and his
executing a general release of claims in a form acceptable to Microsoft
("Release"), Microsoft has agreed to undertake the commitments described in
Paragraphs 2 and 3 below, some or all to which Belluzzo would not otherwise be
entitled.

2.   Bonus and Other Consideration. In consideration of Belluzzo irrevocably
resigning his employment and office as set forth in Section 1, signing this
Agreement, delivering an effective and timely Release and honoring the
commitments undertaken herein, and conditioned upon each of the foregoing events
having occurred, Microsoft agrees to: (1) take the actions described in
Paragraph 3 below; and (2) award Belluzzo a bonus under the Partner Bonus Plan
for the fiscal year ending June 30, 2002 in the amount of $350,000, which
amount exceeds the amount to which Belluzzo would be entitled as of right under
the Partner Bonus Plan. This bonus shall be payable on August 15, 2002 in
accordance with Microsoft's  regular payroll procedures for payment of such
bonuses (including tax withholding). Belluzzo acknowledges and agrees that he is
not eligible for and waives any and all rights to a bonus under the Partner
Bonus Plan for the fiscal year beginning July 1, 2002 and ending June 30, 2003.
Nothing in this Agreement represents a waiver by Belluzzo of any rights he might
otherwise have, including to be paid accrued vacation, receive health or other
insurance, or exercise his stock options in accordance with Microsoft's stock
option plans except as set forth in Paragraph 3.

3.   Cancellation of Options. In connection with option grants made September 1,
1999 for 1,000,000 shares, March 6, 2000 for 1,000,000 shares, May 30, 2000 for
500,000 shares and May 30, 2000 for 1,000,000 shares (the "99/00 Options"), on
December 12, 2000 Microsoft and Belluzzo entered into an arrangement whereby
Belluzzo was advanced the sum of $15,000,000 which represented a minimum benefit
to be received from the potential exercise of the 99/00 Options unless Microsoft
terminated his employment with cause or Belluzzo terminated without good reason.
The advance was acknowledged by a promissory note a copy of which is attached as
Exhibit A (the "Note"). In lieu of the provisions in the Note, the parties have
parties have agreed that the 99/00 Options shall be cancelled as of the
Resignation Date and Belluzzo shall retain all funds previously advanced.
Microsoft shall forgive the remaining unpaid balance of interest and principal
owing under the Note. Microsoft will thereafter promptly cancel the Note and
return it to Belluzzo. Belluzzo will execute such instruments as are reasonably
requested by Microsoft to evidence surrender and cancellation of the 99/00
Options. The forgoing arrangements shall supercede any conflicting terms of the
Note or any other oral or written agreement between the parties. Belluzzo
understands that forgiveness of the Note and cancellation of the 99/00 Options
will constitute ordinary income taxable to him, and which will be reported by
Microsoft as income to him. Accordingly, Belluzzo agrees to pay to Microsoft not
later than October 1, 2002, and Microsoft shall timely pay to the United States
Treasury the amount of federal tax and employment withholding Microsoft is
required to withhold with respect to the debt forgiven. The parties will execute
such instruments and documentation as is reasonably necessary to evidence
withholding and payment of the withheld sum.

                                       1.

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4.   Miscellaneous.  This Agreement and the Release contain the entire
agreements and all the promises and covenants exchanged by the parties and merge
any and all prior written and oral communications concerning the financial terms
relating to Belluzzo's resignation. In executing this Agreement, each party
warrants that he or it is relying solely upon his or its own judgment and
knowledge, and that he or it is signing in the absence of any caercion or duress
whatsoever. The parties agree that the provisions of this Agreement are
severable. In the event that any provision is found to be unlawful or
unenforceable, the remaining provisions shall remain in full force and effect.
The parties further agree that all questions with respect to the construction of
this Agreement and the rights and liabilities under it shall be governed by the
laws of the State of Washington, and any dispute arising in connection with the
execution and/or operation of this Agreement shall be determined in a Washington
court of competent jurisdiction, to whose personal jurisdiction Belfuzzo
consents to submit. In the event suit is commenced to enforce this Agreement,
the substantially prevailing party shall be entitled to an award of his or its
reasonable attorneys' fees and costs. This Agreement shall bind the heirs,
successors, representatives, and assigns of each party.

                                        Microsoft Corporation

/s/ Richard Belluzzo                    By /s/ Steven A. Ballmer
--------------------                       ----------------------------------
Richard Belluzzo                           Steven A. Ballmer, Chief Executive
                                               Officer

                                       1.

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                                    EXHIBIT A
                                 PROMISSORY NOTE

$15,000,000.00                 Redmond, Washington             December 12, 2000

     Subject to the terms and conditions herein, MICROSOFT CORPORATION
("Company") agrees to lend RICHARD BELLUZZO ("Maker") the principal amount to
Fifteen Million Dollars (U.S.) ($15,000,000.00) (the "Principal") and, for value
received, Maker promises to pay Company, or its assigns or order ("Payee"), the
principal sum of Fifteen Million Dollars (U.S.)($15,000,000.00), with interest
as provided herein. Unless otherwise provided herein, both Principal and
Interest, defined below, shall be payable in lawful money of the United States
of America, which shall be legal tender for public and private debts.

1.   Interest. Interest shall accrue from the date of payment on the unpaid
Principal outstanding, and shall be compounded annually until this Note is paid
in full, at the lowest applicable federal interest rate available in the month
of December 2000 (i.e., 5.87%)(the "Interest"). Interest will be calculated
based on a 365 day year and applied to the actual number of days elapsed. The
sum of Principal and Interest accrued as of any date shall constitute the "Total
Obligations" as of such date.

2.   Maturity Date. Absent a Default Event, and subject to the terms limiting
the Company's recourse hereunder, the Total Obligation, if not sooner paid,
shall be due and payable in a single installment on the fifth (5/th/)
anniversary of the date hereof, or the date on which Maker's employment with the
Company terminates, whichever is earlier ("Maturity Date"). Maker and any
endorsers of this Note hereby waive demand, grace, notice, presentment for
payment, and protest, and agree and consent that the Company may renew this
Note, and extend the time of payment, without notice, and without releasing any
party hereto.

3.   Prepayment. Maker may prepay the Total Obligation, in whole or in part ,at
any time before the Maturity Date, in cash, without being required to pay any
penalty or premium for such priviledge.

4.   Payment Method.

     4.1  On or after the Maturity Date, the payment of amounts owed under this
Note may be made, at Maker's discretion, in cash and/or by forefeiting vested
Company stock options subject to the 99/00 Grants having an aggregate Vested
Value (defined below in Subsection 6.1) equal to the amount being repaid. For
purposes of this Note, the term of September 1, 1999 for 1,000,000 shares; (ii)
grant of March 6, 2000 for 1,000,000 shares; (iii) grant of May 30, 2000 for
500,000 shares; and (iv) grant of May 30, 2000 for 1,000,000 shares.

     4.2  If Maker fails to repay the Adjusted Total Obligation (defined in
Subsection 6.2) within one hundred twenty (120) days after the Maturity Date,
Company may thereafter obtain repayment utilizing, at its discretion, any of the
applicable repayment methods or combinations thereof as set forth in Section 5.
In the event that the Company elects to cancel options subject to the 99/00
Grants in order to satisfy any part of the Adjusted Total Obligation, Company
shall use the Vested Value of such options as defined in Subsection 6.1 to
determine the aggregate pre-tax value of said options.

     4.3  If the Company forgives any portion of the Total Obligation, pursuant
to the terms limiting recourse hereunder, then such amount shall be treated as a
forgiveness of debt owed by Maker, and shall be reported by the Company as
income to Maker.

<PAGE>

5.   Recourse. The Company's recourse against Maker for repayment of the
Principal and Interest shall be only as follows:

     5.1 If Maker is still in the employ of Company on the fifth anniversary of
this Note, or if Maker's employment is terminated by the Company without Cause
or Maker resigns for Good Reason at any time, the Company may obtain repayment
of the Adjusted Total Obligation by one or a combination of the following
methods: (i) by canceling the minimum necessary number of options subject to the
99/00 Grants to cover the amount being repaid, and (ii) through limited personal
recourse against Maker to the extent Maker has exercised any part of the 99/00
Grants; namely, the excess aggregate fair market value (i.e. the closing price
on the date of exercise) of the Company common stock obtained as a result of
such exercise over the aggregate exercise price thereof. For purposes of this
Note, the term "Cause" shall mean Maker's commission of a felony, or gross
negligence or willfull misconduct resulting in material damage to the Company;
and "Good Reason" shall mean that: (i) Maker's responsibilities to Company were
significantly diminished; (ii) Makers job location is moved by Company out of
King Country, Washington; (iii) the Company is split into two or more
independent companies for any reason, whether or not pursuant to a final,
non-appealable judgment or settlement in the Company's pending action with the
Department of Justice or otherwise; or (iv) there is a change in control of the
Company, which for the purposes of this Note means the acquisition, directly or
indirectly, by any person or related group of persons of beneficial ownership of
securities possessing more than fifty (50%) percent of the total combined voting
power of the Company's outstanding securities, or a merger or consolidation in
which securities possessing at least fifty (50%) percent of the total combined
voting power of the Company's outstanding securities are transferred to a person
or persons different from the persons holding those securities immediately prior
to such transaction or sale, or the sale transfer or other disposition of
seventy-five(75%) percent or more of the Company's assets in liquidation or
dissolution of the Company.

     5.2 If Maker is not in the employ of the Company and has been terminated by
the Company for Cause, or resigned without Good Reason, the Company may obtain
repayment of the Adjusted Total Obligation by one or a combination of the
following methods, at its discretion: (i) by canceling the minimum necessary
number of options subject to the 99/00 Grants to cover the amount being repaid,
and (ii) through full personal recourse against Maker.

     5.3 If Maker's employment is terminated by the Company due to death or
Disability prior to the fifth anniversary of this Note, the Company may obtain
repayment of the Total Obligation by one or a combination of the following
methods, at its discretion: (i) by canceling the minimum necessary number of
options subject to the 99/00 Grants to cover the amount being repaid, and (ii)
through full personal recourse against Maker or Maker's estate, as the case may
be; provided, however, that if the after-tax value of the 99/00 Grants, minus
the Total Obligation, is less than Five Million Dollars ($5,000,000), the
Company will forgive such portion of the Adjusted Total Obligation as is
necessary to leave Maker or Maker's estate, respectively, with a net amount of
Five Million Dollars ($5,000,000) after repayment to the Company. For purposes
of this Note, "Disability" has the meaning set fourth in the Company's 1991
Stock Option Plan

6.   Valuation Payment Mechanism. The Vested Value of the 99/00 Grants shall
be determined in accordance with the following "Valuation Payment Mechanism":

     6.1 Vested Value Determination: As soon as practicable after the Maturity
Date, the Company shall determine the Vested Value of the 99/00 Grants. The
"Vested Value" of the 99/00 Grants shall equal the sum of the Vested Values of
each respective option grant comprising the 99/00 Grants. The "Vested Value" of
any stock option grant shall be equal to: (i) the excess of) (y) the average
closing price of Company stock on the twenty (20) trading days immediately
preceding the Maturity Date

                                        2

<PAGE>

over (z) the exercise price of the respect grant, multiplied by (ii) the number
of shares of the respective grant that are then vested; provided that the Vested
Value of any options that have been exercised shall be equal to the excess of
the closing price (as of the date of exercise) of Company common stock obtained
as a result of such exercise over the exercise price thereof.

         6.2 Adjusted Total Obligation Determination: Effective on the Maturity
Date, the Total Obligation shall be adjusted and repaid in accordance with the
following terms (as so adjusted, the "Adjusted Total Obligation"):

         (a) If Maker's employment is terminated on or before the second
         anniversary of the Note, Maker shall immediately repay the Total
         Obligation in full.

         (b) If Maker's Employment terminates after the second and on or before
         the third anniversaries of the Note, repayment shall be as follows: If
         the Vested Value of the 99/00 Grants exceeds the Total Obligation,
         Maker shall immediately repay the Total Obligation in full. If the
         Vested Value of the 99/00 Grants is less than the Total Obligation, the
         company shall forgive that portion of the Total Obligation that exceeds
         the Vested Value of the 99/00 Grants, provided, however, that the
         amount of forgiveness shall not exceed Four Million Dollars
         ($4,000,000) plus interest to the date of repayment, and Maker shall
         immediately repay the balance of the Total Obligation not forgiven.

         (c) If Maker's Employment terminates after the third and on or before
         the fourth anniversaries of the Note, repayment shall be as follows: If
         the Vested Value of the 99/00 Grants exceeds the Total obligation,
         Maker shall immediately repay the Total Obligation in full. If the
         Vested Value of the 99/00 Grants is less than the Total Obligation, the
         Company shall forgive that portion of the Total Obligation that exceeds
         the Vested Value of the 99/00 Grants, provided, however, that the
         amount of forgiveness shall not exceed Nine Million Dollars
         ($9,000,000) plus interest to the date of repayment, and Maker shall
         immediately repay the balance of the Total Obligation not forgiven.

         (d) If Maker's employment terminates after the fourth and on or before
         the fifth anniversaries of the Note, repayment shall be as follows: If
         the Vested Value of the 99/00 Grants exceeds the Total Obligation,
         Maker shall immediately repay the Total Obligation in full. If the
         Vested Value of the 99/00 Grants is less than the Total Obligation, the
         Company shall forgive that portion of the Total Obligation that exceeds
         the Vested Value of the 99/00 Grants, provided, however, that the
         amount of forgiveness shall not exceed Twelve Million Dollars
         ($12,000,000) plus interest to the date of repayment, and Maker shall
         immediately repay the balance of the Total Obligation not forgiven.

         (e) If Maker remains employed by Company on the fifth anniversary of
         the date of the Note, repayment shall be as follows: If the Vested
         Value of the 99/00 Grants exceeds the Total Obligation, Maker shall
         immediately repay the Total Obligation in full. If the Vested Value of
         the 99/00 Grants is less than the Total Obligation, the Company shall
         forgive that portion of the Total Obligation that exceeds the Vested
         Value of the 99/00 Grants, and Maker shall immediately repay the
         balance of the Total Obligation not forgiven.

7.       Default. Upon the commencement of any proceedings under any bankruptcy
or insolvency laws by or against Maker ("Default Event"), the Company, or other
holder or owner of this Note, may at its option accelerate the Maturity Date of
this Note, including all Principal and Interest thereon, without presentment,
demand, or notice to Maker or to any person obligated hereon: Upon the
occurrence of a Default Event and acceleration of the Maturity Date, the amount
of the Adjusted Total Obligation shall

                                       3

<PAGE>

become due and payable immediately. Interest shall accrue at the same rate of
Interest specified above until this Note is paid in full, regardless of any
Default Event.

8.    Attorneys' Fees. If this Note is placed in the hands of an attorney for
collection or collected through bankruptcy or other judicial proceedings, or if
suit is brought hereon, Maker agrees to pay, in addition to all other amounts
owing hereunder, all expenses and costs of collection, including reasonable
attorneys' fees incurred by the Company.

9.    Governing Law/Severability. All terms, obligations, and provisions of this
Note are to be determined and governed by the laws of the State of Washington,
excluding its choice of law provisions. Should any term or provision of this
Note be declared invalid, such determination shall not affect the remaining
provisions hereof, which shall remain in full force and effect. Notwithstanding
any provision contained herein to the contrary, the holder shall not be entitled
to receive, collect, or apply as interest on the obligation evidenced hereby,
any amount in excess of the maximum rate of interest permitted by applicable
law.

      Maker is on notice that ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY,
EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.

                                     "Maker"

                                      /s/ Richard Belluzzo
                                      --------------------
                                      Richard Belluzzo

                                       4

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