Document:

Employment Agreement - Gary M. Fritz

 Exhibit 10.4 

Execution Copy 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between Gary M. Fritz (“Employee”) and Expedia, Inc.,
a Washington corporation (the “Company”), and is effective as of the last date executed by all parties hereto (the “Effective Date”). 

WHEREAS, the Company desires to establish its right to the services of Employee, in the capacity described below, on the terms and
conditions hereinafter set forth, and Employee is willing to accept such employment on such terms and conditions. 
 NOW,
THEREFORE, in consideration of the mutual agreements hereinafter set forth, Employee and the Company have agreed and do hereby agree as follows: 

1A. EMPLOYMENT. The Company agrees to employ the Employee as Co-President, Partner Services Group. Employee shall also remain as an officer of the
Company’s parent corporation, Expedia, Inc. (Delaware). During Employee’s employment with the Company, Employee shall do and perform all services and acts necessary or advisable to fulfill the duties and responsibilities as are
commensurate and consistent with Employee’s position and shall render such services on the terms set forth herein. During Employee’s employment with the Company, Employee shall report directly to the Chief Executive Officer of the Company
(“Reporting Officer”). Employee shall have such powers and duties with respect to the Company as may reasonably be assigned to Employee by the Reporting Officer, to the extent consistent with Employee’s position and status. Employee
agrees to devote all of Employee’s working time, attention and efforts to the Company and to perform the duties of Employee’s position in accordance with the Company’s policies as in effect from time to time. Employee’s principal
place of employment shall be the Company’s offices located in Bellevue, Washington. 
 2A. TERM OF AGREEMENT. The term of this
Agreement shall commence on the Effective Date and shall continue for a period of two years. The period beginning on the date hereof and ending on the second anniversary hereof shall be referred to hereinafter as the “Term.” 

Notwithstanding anything to the contrary in this Section 2A, Employee’s employment hereunder may be terminated in accordance with the
provisions of Section 1 of the Standard Terms and Conditions attached hereto. 
 3A. COMPENSATION. 

(a) BASE SALARY. During the Term, the Company shall pay Employee an annual base salary of $375,000 (the “Base Salary”), payable in equal
biweekly installments or in accordance with the Company’s payroll practice as in effect from time to time. Effective as of January 1, 2010, the Base Salary shall be increased to not less than $400,000. For all purposes under this
Agreement, the term “Base Salary” shall refer to Base Salary as in effect from time to time. 

 (b) DISCRETIONARY BONUS. During the Term, Employee shall be eligible to receive discretionary annual
bonuses. For purposes of the foregoing, Employee’s annual target bonus shall be 75% of Employee’s Base Salary earned for that year (the “Target Bonus Percentage”). The bonus will be made at the same time that bonuses generally
are paid by the Company, currently scheduled to be no later than March 15 for the preceding calendar year. 
 (c) BENEFITS. From the
Effective Date through the date of termination of Employee’s employment with the Company for any reason, Employee shall be entitled to participate in any welfare, health and life insurance and pension benefit and incentive programs as may be
adopted from time to time by the Company on the same basis as that provided to similarly situated employees of the Company. Without limiting the generality of the foregoing, Employee shall be entitled to the following benefits: 

(i) Reimbursement for Business Expenses. During the Term, the Company shall reimburse Employee for all reasonable and necessary expenses incurred
by Employee in performing Employee’s duties for the Company, on the same basis as similarly situated employees and in accordance with the Company’s policies as in effect from time to time, but in no event shall reimbursement occur after
the end of the subsequent calendar year. 
 (ii) Vacation. During the Term, Employee shall be entitled to paid vacation, in accordance
with the plans, policies, programs and practices of the Company applicable to similarly situated employees of the Company generally. 
 (d)
RESIGNATION/TERMINATION OF CO-PRESIDENT. The parties acknowledge that initially there will be two Co-Presidents, Partner Services Group. If the Co-President who is not the Employee ceases to serve as Co-President for any reason, then
(i) the then-current Base Salary shall be increased by not less than 20% and (ii) the Target Bonus Percentage shall be increased to not less than 100%. 

4A. NOTICES. All notices and other communications under this Agreement shall be in writing and shall be given by first-class mail, certified or
registered with return receipt requested or hand delivery acknowledged in writing by the recipient personally, and shall be deemed to have been duly given three days after mailing or immediately upon duly acknowledged hand delivery to the respective
persons named below: 
  

					
	 If to the Company:
	  	333
108th Avenue NE	  	
		  	Bellevue,WA 98004	  	
		  	Attention: General Counsel	  	
			
	 If to Employee:
	  	Gary M. Fritz	  	
		  	900
18th Avenue E.	  	
		  	Seattle, WA 98112	  	

 Either party may change such party’s address for notices by notice duly given pursuant hereto. 

5A. GOVERNING LAW; JURISDICTION. This Agreement and the legal relations thus created between the parties hereto shall be governed by and construed
under and in accordance 
  

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with the internal laws of the State of Washington without reference to the principles of conflicts of laws. Any and all disputes between the parties which may arise pursuant to this Agreement
will be heard and determined before an appropriate federal court in Washington, or, if not maintainable therein, then in an appropriate Washington state court. The parties acknowledge that such courts have jurisdiction to interpret and enforce the
provisions of this Agreement, and the parties consent to, and waive any and all objections that they may have as to, personal jurisdiction and/or venue in such courts. 

6A. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. Employee expressly understands and acknowledges that the Standard Terms and Conditions attached hereto are incorporated herein by reference, deemed a part of this Agreement and are binding and
enforceable provisions of this Agreement. References to “this Agreement” or the use of the term “hereof” shall refer to this Agreement and the Standard Terms and Conditions attached hereto, taken as a whole. 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and delivered by its duly authorized officer and Employee has
executed and delivered this Agreement as of the Effective Date. 
  

			
	EXPEDIA, INC.
	
	 /S/ Burke F. Norton

	By:	 	Burke F. Norton
	Title:	 	Executive Vice President, General Counsel
	Dated: March 16, 2009
	
	 /S/ Gary M. Fritz

	Gary M. Fritz
	Dated: March 16, 2009

  

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 STANDARD TERMS AND CONDITIONS 

1. TERMINATION OF EMPLOYEE’S EMPLOYMENT. 

(a) DEATH. In the event Employee’s employment hereunder is terminated by reason of Employee’s death, the Company shall pay
Employee’s designated beneficiary or beneficiaries, within 30 days of Employee’s death in a lump sum in cash, (i) Employee’s Base Salary through the end of the month in which death occurs and (ii) any Accrued Obligations (as
defined in Section 1(g) below). 
 (b) DISABILITY. If, as a result of Employee’s incapacity due to physical or mental illness
(“Disability”), Employee shall have been absent from the full-time performance of Employee’s duties with the Company for a period of four consecutive months and, within 30 days after written notice is provided to Employee by the
Company (in accordance with Section 4A of the attached Employment Agreement), Employee shall not have returned to the full-time performance of Employee’s duties, Employee’s employment under this Agreement may be terminated by the
Company for Disability. During any period prior to such termination during which Employee is absent from the full-time performance of Employee’s duties with the Company due to Disability, the Company shall continue to pay Employee’s Base
Salary at the rate in effect at the commencement of such period of Disability, offset by any amounts payable to Employee under any disability insurance plan or policy provided by the Company. Upon termination of Employee’s employment due to
Disability, the Company shall pay Employee within 30 days of such termination (i) Employee’s Base Salary through the end of the month in which termination occurs in a lump sum in cash, offset by any amounts payable to Employee under any
disability insurance plan or policy provided by the Company; and (ii) any Accrued Obligations (as defined in Section 1(g) below). 

(c) TERMINATION FOR CAUSE. The Company may terminate Employee’s employment under this Agreement with or without Cause at any time prior to
the expiration of the Term. As used herein, “Cause” shall mean: (i) the plea of guilty or nolo contendere to, or conviction for, the commission of a felony offense by Employee; provided, however, that after indictment,
the Company may suspend Employee from the rendition of services, but without limiting or modifying in any other way the Company’s obligations under this Agreement; (ii) a material breach by Employee of a fiduciary duty owed to the Company;
(iii) a material breach by Employee of any of the covenants made by Employee in Section 2 hereof; (iv) the willful or gross neglect by Employee of the material duties required by this Agreement; or (v) a violation by Employee of
any Company policy pertaining to ethics, legal compliance, wrongdoing or conflicts of interest that, in the case of the conduct described in clauses (iv) or (v) above, if curable, is not cured by Employee within 30 days after Employee is
provided with written notice thereof. Upon (A) the termination of Employee’s employment by the Company for Cause or (B) Employee’s resignation prior to the expiration of the Term, the Company shall have no further obligation
hereunder, except for the payment of any Accrued Obligations (as defined in Section 1(g) below). 
  

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 (d) RESIGNATION BY EMPLOYEE FOR GOOD REASON. Upon Employee’s resignation for Good Reason at any
time prior to the expiration of the Term, then (i) the Company shall continue to pay Employee the Base Salary through the longer of (x) the end of the Term and (y) 18 months (such period, the “Salary Continuation Period” and
such payments, the “Cash Severance Payments”), in each case payable in equal biweekly installments in accordance with the Company’s payroll practice as in effect from time to time; (ii) the Company shall pay Employee within 30
days of the date of such termination in a lump sum in cash any Accrued Obligations (as defined in Section 1(g) below); (iii) the Company shall pay in cash to Employee for each month between the date of termination and the end of the Salary
Continuation Period an amount equal to the premiums charged by the Company to maintain COBRA benefits continuation coverage for Employee and Employee’s eligible dependents to the extent such coverage is then in place; and (iv) any
compensation awards of Employee based on, or in the form of, Company equity (e.g. restricted stock, restricted stock units, stock options or similar instruments) (“Equity Awards”) that are outstanding and unvested at the time of such
termination but which would, but for a termination of employment, have vested during the twelve months following such termination (such period, the “Equity Acceleration Period”) shall vest as of the date of such termination of employment;
provided that any outstanding award with a vesting schedule that would, but for a termination of employment, have resulted in a smaller percentage (or none) of the award being vested through the end of such Equity Acceleration Period than if
it vested annually pro rata over its vesting period shall, for purposes of this provision, be treated as though it vested annually pro rata over its vesting period (e.g., if 100 restricted stock units (“RSUs”) were granted 2.7 years prior
to the date of the termination and vested pro rata on each of the first five anniversaries of the grant date and 100 RSUs were granted 1.7 years prior to the date of termination and vested on the fifth anniversary of the grant date, then on the date
of termination 20 RSUs from the first award and 40 RSUs from the second award would vest); provided further that any amount that would vest under this provision but for the fact that outstanding performance conditions have not been
satisfied shall vest only if, and at such point as, such performance conditions are satisfied; and provided further that if any Equity Awards made subsequent to the Effective Date of this Agreement specifies a more favorable
post-termination vesting schedule for such equity, the terms of the award agreement for such Equity Award shall govern. 

“Good Reason” shall mean the occurrence of any of the following without Employee’s prior consent: (A) the
Company’s material breach of any material provision of this Agreement, (B) the material reduction in Employee’s duties, including any change in the reporting structure of the Employee, (C) the material reduction in
Employee’s Base Salary, (D) the relocation of Employee’s principal place of employment more than 50 miles outside the Seattle metropolitan area, or (E) the relocation of the principal place of employment of either (i) a
material portion of the Company’s employees primarily supporting the market management or business intelligence divisions of the Partner Services Group (“PSG”) as of the Effective Date or thereafter and located in the Seattle
metropolitan area immediately prior to such relocation more than 50 miles outside of the Seattle metropolitan area, or (ii) a material portion of the Company’s employees who are vice presidents or more senior and who are primarily engaged
in the management of the market management or business intelligence divisions of PSG as of the Effective Date or thereafter and located in the Seattle metropolitan area immediately prior to such relocation more than 50 miles

  

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outside of the Seattle metropolitan area, unless, in each case, Employee has approved of such relocations; provided that in no event shall Employee’s resignation be for “Good
Reason” unless (x) an event or circumstance set forth in clauses (A) through (E) shall have occurred and Employee provides the Company with written notice thereof within 30 days, after the Employee has knowledge of the occurrence
or existence of such event or circumstance, which notice specifically identifies the event or circumstance that Employee believes constitutes Good Reason, (y) the Company fails to correct the circumstance or event so identified within 30 days
after receipt of such notice, and (z) the Employee resigns within 90 days in the case of an event or circumstance set forth in clauses (A) through (D), or 30 days in the case of an event or circumstance set forth in clause (E), after the
expiration of the period referred to in clause (y) above. The payment to Employee of the severance benefits described in Section 1(d), except for Section 1(d)(ii), shall be subject to Employee’s execution and non-revocation of a
general release of the Company and its affiliates, within 30 days of the date of termination of Employee’s employment, in a form substantially similar to that attached as Exhibit A, subject to modifications by the Company to comply with
applicable law, the mitigation and offset provisions in Section 1(f), and Employee’s compliance with the restrictive covenants set forth in Section 2. Employee acknowledges and agrees that the Company’s payment of severance
benefits, except those described in Section 1(d)(ii), constitutes good and valuable consideration for such release. 
 (e) TERMINATION
BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE. Upon termination of Employee’s employment prior to the expiration of the Term by the Company for any reason other than Employee’s death or Disability or for Cause, then
(i) the Company shall continue to pay Employee the Base Salary through the end of the Salary Continuation Period over the course of such period, such Cash Severance Payments payable in equal biweekly installments in accordance with the
Company’s payroll practice as in effect from time to time; (ii) the Company shall pay Employee within 30 days of the date of such termination in a lump sum in cash any Accrued Obligations (as defined in Section 1(g) below);
(iii) the Company shall pay in cash to Employee for each month between the date of termination and the end of the Salary Continuation Period an amount equal to the premiums charged by the Company to maintain COBRA benefits continuation coverage
for Employee and Employee’s eligible dependents to the extent such coverage is then in place; and (iv) any Equity Awards that are outstanding and unvested at the time of such termination but which would, but for a termination of
employment, have vested during the Equity Acceleration Period shall vest as of the date of such termination of employment; provided that any outstanding award with a vesting schedule that would, but for a termination of employment, have
resulted in a smaller percentage (or none) of the award being vested through the end of such Equity Acceleration Period than if it vested annually pro rata over its vesting period shall, for purposes of this provision, be treated as though it vested
annually pro rata over its vesting period (e.g., if 100 RSUs were granted 2.7 years prior to the date of the termination and vested pro rata on each of the first five anniversaries of the grant date and 100 RSUs were granted 1.7 years prior to the
date of termination and vested on the fifth anniversary of the grant date, then on the date of termination 20 RSUs from the first award and 40 RSUs from the second award would vest); provided further that any amount that would vest
under this provision but for the fact that outstanding performance conditions have not been satisfied shall vest only if, and at such point as, such performance conditions are satisfied; and 

 

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provided further that if any Equity Award made subsequent to the Effective Date of this Agreement specifies a more favorable post-termination vesting schedule, the terms of the
award agreement for such Equity Award shall govern. 
 Notwithstanding the preceding provisions of Section 1(d) or this
Section 1(e), in the event that Employee is a “specified employee” (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, including any regulations and guidance issued thereunder (“Section
409A”)) on the date of termination of Employee’s employment with the Company and the Cash Severance Payments to be paid within the first six months following such date (the “Initial Payment Period”) exceed the amount referenced
in Treas. Regs. Section 1.409A-l(b)(9)(iii)(A) (the “Limit”), then (1) any portion of the Cash Severance Payments that is a “short-term deferral” within the meaning of Treas. Regs. Section 1.409A-l(b)(4)(i) shall
be paid at the times set forth in Section 1(d), (2) any portion of the Cash Severance Payments (in addition to the amounts contemplated by the immediately preceding clause (1)) that is payable during the Initial Payment Period that
does not exceed the Limit shall be paid at the times set forth in Section 1(d) as applicable, (3) any portion of the Cash Severance Payments that exceeds the Limit and is not a “short-term deferral” (and would have been payable
during the Initial Payment Period but for the Limit) shall be paid, with Interest, on the first business day of the first calendar month that begins after the six-month anniversary of Employee’s “separation from service” (within the
meaning of Section 409A of the Code) and (4) any portion of the Cash Severance Payments that is payable after the Initial Payment Period shall be paid at the times set for the in Section 1(d). For purposes of this Agreement,
“Interest” shall mean interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code, from the date on which payments would otherwise have been made but for any required delay through the date of payment.

 (f) The payment to Employee of the severance benefits described in Section 1(e), except for Section l(e)(ii), shall be subject to
Employee’s execution and non-revocation of a general release of the Company and its affiliates in a form substantially similar to that attached as Exhibit A, subject to modifications by the Company to comply with applicable law, the mitigation
and offset provisions in Section 1(f), and Employee’s compliance with the restrictive covenants set forth in Section 2. Employee acknowledges and agrees that the Company’s payment of severance benefits described in
Section 1(e), except for Section 1(e)(ii), constitutes good and valuable consideration for such release. 
 (g) MITIGATION;
OFFSET. In the event of termination of Employee’s employment prior to the end of the Term, Employee shall use his reasonable best efforts to seek other employment and to take other reasonable actions to mitigate the amounts payable under
Section 1(d), except for Section 1(d)(ii), and/or Section 1(e), except for Section 1(e)(ii) hereof, if any. If Employee obtains other employment during the Salary Continuation Period, the amount of any payment or benefit provided
to Employee under Sections 1(d) and 1(e), except for Sections l(d)(ii) and 1(e)(ii) hereof, which has been paid to Employee shall be refunded to the Company by Employee in an amount equal to any compensation earned by Employee as a result of
employment with or services provided to another employer during the Salary Continuation Period. In addition, all future amounts payable by the Company under Sections 1(d) and 1(e) to Employee during the Salary Continuation Period, except for
Sections l(d)(ii) and 1(e)(ii) hereof, shall be offset by the amount earned by Employee from another employer. For purposes of this Section 1(f), 

 

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Employee shall have an obligation to inform the Company regarding Employee’s employment and benefits status following termination and during the period encompassing the Term (including,
without limitation, the Salary Continuation Period). 
 (h) ACCRUED OBLIGATIONS. As used in this Agreement, “Accrued
Obligations” shall mean the sum of (i) any portion of Employee’s accrued but unpaid Base Salary through the date of death or termination of employment for any reason, as the case may be; and (ii) any compensation previously
earned by Employee (together with any interest or earnings thereon) that has not yet been paid and that is not otherwise paid at a later date pursuant to any deferred compensation arrangement of the Company to which Employee is a party, if any
(provided, that any election made by Employee pursuant to any deferred compensation arrangement that is subject to Section 409A of the Code regarding the schedule for payment of such deferred compensation shall prevail over this
Section 1(h) to the extent inconsistent herewith). 
 (i) CHANGE IN CONTROL. The 23,544 restricted stock units granted to Employee
by IAC/InterActiveCorp (“IAC”) on February 10, 2005 pursuant to the IAC (formerly, USA Networks, Inc.) 1997 Stock and Annual Incentive Plan shall vest upon a Change in Control (as defined in Exhibit A to the related Restricted Stock
Unit Agreement) in accordance with Section 11(a) of such Plan. 
 (j) SECTION 409A. This Agreement is intended to comply with
Section 409A of the Internal Revenue Code of 1986, as amended, including any regulations and guidance issued thereunder (“Section 409A”), to the extent Section 409A is applicable to this Agreement. Notwithstanding any other
provision of this Agreement to the contrary, this Agreement shall be interpreted, operated and administered by the Company in a manner consistent with such intention and to avoid the pre-distribution inclusion in income of amounts deferred under
this Agreement and the imposition of any additional tax or interest with respect thereto. Without limiting the generality of the foregoing, to the extent required in order to comply with Section 409A, amounts that would otherwise be payable
under this Agreement during the six-month period immediately following the date of termination of the Employee’s employment shall instead be paid on the first business day after the date that is six months following the Employee’s
“separation from service” within the meaning of Section 409A. 
 2. CONFIDENTIAL INFORMATION; DUTY OF LOYALTY;
NON-SOLICITATION; AND PROPRIETARY RIGHTS. 
 (a) CONFIDENTIALITY. Employee acknowledges that while employed by the
Company Employee will occupy a position of trust and confidence. The Company has provided and shall continue to provide Employee with Confidential Information. Employee shall hold in a fiduciary capacity for benefit of the Company and its
subsidiaries and affiliates, and shall not, except as may be required to perform Employee’s duties hereunder or as required by applicable law, without limitation in time, communicate, divulge, disseminate, disclose to others or otherwise use,
whether directly or indirectly, any Confidential Information. “Confidential Information” shall mean information about the Company or any of its subsidiaries or affiliates, 

 

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and their respective businesses, employees, consultants, contractors, suppliers, clients and customers that is not disclosed by the Company or any of its subsidiaries or affiliates for financial
reporting purposes and that was learned by Employee in the course of employment by the Company or any of its subsidiaries or affiliates, including (without limitation) any proprietary knowledge, trade secrets, data, formulae, processes, methods,
research, secret data, costs, names of users or purchasers of their respective products or services, business methods, operating procedures or programs or methods of promotion and sale, information relating to accounting or tax strategies and data,
information and client and customer lists and all papers, resumes, and records (including computer records) of the documents containing such Confidential Information. For purposes of this Section 2(a), information shall not cease to be
Confidential Information merely because it is embraced by general disclosures for financial reporting purposes or because individual features or combinations thereof are publicly available. Notwithstanding the foregoing provisions, if Employee is
required to disclose any such confidential or proprietary information pursuant to applicable law or a subpoena or court order, Employee shall promptly notify the Company in writing of any such requirement so that the Company may seek an appropriate
protective order or other appropriate remedy or waive compliance with the provisions hereof. Employee shall reasonably cooperate with the Company to obtain such a protective order or other remedy. If such order or other remedy is not obtained prior
to the time Employee is required to make the disclosure, or the Company waives compliance with the provisions hereof, Employee shall disclose only that portion of the confidential or proprietary information which he is advised by counsel that he is
legally required to so disclose. Employee acknowledges that such Confidential Information is specialized, unique in nature and of great value to the Company and its subsidiaries or affiliates, and that such information gives the Company and its
subsidiaries or affiliates a competitive advantage. Employee agrees to deliver or return to the Company, at the Company’s request at any time or upon termination or expiration of Employee’s employment, all documents, computer tapes and
disks, plans, initiatives, strategies, records, lists, data, drawings, prints, notes and written information (and all copies thereof) created by or on behalf of the Company or its subsidiaries or affiliates or prepared by Employee in the course of
Employee’s employment by the Company and its subsidiaries or affiliates. As used in this Agreement, “subsidiaries” and “affiliates” shall mean any company controlled by, controlling or under common control with the Company.

 (b) DUTY OF LOYALTY. In consideration of the Company’s promise to disclose, and disclosure of, its Confidential Information and
other good and valuable consideration provided hereunder, the receipt and sufficiency of which are hereby acknowledged by Employee, Employee hereby agrees and covenants that: Until the longer of (i) the last day of the Term and (ii) a
period which includes the last day of the month of the 18 month period following the Employee’s date of termination of employment for any reason, including the expiration of the Term (the “Restricted Period”), Employee shall not,
directly or indirectly, engage in, assist or become associated with a Competitive Activity. For purposes of this Section 2(b): (i) a “Competitive Activity” means, at the time of Employee’s termination, any business or other
endeavor in any jurisdiction of a kind being conducted by the Company or any of its subsidiaries or affiliates (or demonstrably anticipated by the Company or its subsidiaries or affiliates), including, without limitation, those that are engaged in
the provision of any lodging or travel related services (including, without limitation, corporate travel services), in any jurisdiction as of 

 

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the Effective Date or at any time thereafter (such affiliates including, without limitation, Hotels.com, Hotwire, Inc. and TripAdvisor); and (ii) Employee shall be considered to have become
“associated with a Competitive Activity” if Employee becomes directly or indirectly involved as an owner, principal, employee, officer, director, independent contractor, representative, stockholder, financial backer, agent, partner,
advisor, lender, or in any other individual or representative capacity with any individual, partnership, corporation or other organization that is engaged in a Competitive Activity. Notwithstanding the foregoing, Employee may make and retain
investments during the Restricted Period, for investment purposes only, in less than five percent (5%) of the outstanding capital stock of any publicly-traded corporation engaged in a Competitive Activity if stock of such corporation is either
listed on a national stock exchange or on the NASDAQ National Market System if Employee is not otherwise affiliated with such corporation. 

(c) NON-SOLICITATION OF EMPLOYEES. Employee recognizes that he or she will possess Confidential Information about other employees, officers,
directors, agents, consultants and independent contractors of the Company and its subsidiaries or affiliates relating to their education, experience, skills, abilities, compensation and benefits, and inter-personal relationships with suppliers to
and customers of the Company and its subsidiaries or affiliates. Employee recognizes that the information he or she will possess about these employees, officers, directors, agents, consultants and independent contractors is not generally known, is
of substantial value to the Company and its subsidiaries or affiliates in developing their respective businesses and in securing and retaining customers, and will be acquired by Employee because of Employee’s business position with the Company.
Employee agrees (i) that, during the Restricted Period, Employee will not, directly or indirectly, hire or solicit or recruit the employment or services of (i.e., whether as an employee, officer, director, agent, consultant or independent
contractor), or encourage to change such person’s relationship with the Company or any of its subsidiaries or affiliates, any employee, officer, director, agent, consultant or independent contractor of the Company or any of its subsidiaries or
affiliates provided, however, that a general solicitation of the public for employment shall not constitute a solicitation hereunder so long as such general solicitation is not designed to target, or does not have the effect of
targeting, any employee, officer, director, agent, consultant or independent contractor of the Company or any of its subsidiaries or affiliates and (ii) that Employee will not convey any Confidential Information or trade secrets about any
employees, officers, directors, agents, consultants and independent contractors of the Company or any of its subsidiaries or affiliates to any other person except within the scope of Employee’s duties hereunder. 

(d) NON-SOLICITATION OF CUSTOMERS, SUPPLIERS, PARTNERS. During the Restricted Period, Employee shall not, without the prior written consent of the
Company, directly or indirectly, solicit, attempt to do business with, or do business with any customers of, suppliers (including providers of travel inventory) to, business partners of or business affiliates of the Company or any of its
subsidiaries or affiliates (collectively, “Trade Relationships”) on behalf of any entity engaged in a Competitive Activity, or encourage (regardless of who initiates the contact) any Trade Relationship to use the services of any competitor
of the Company or its subsidiaries or affiliates, or encourage any Trade Relationship to change its relationship with the Company or its subsidiaries or affiliates. 

 

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 (e) PROPRIETARY RIGHTS; ASSIGNMENT. All Employee Developments shall be made for hire by the Employee
for the Company or any of its subsidiaries or affiliates. “Employee Developments” means any idea, discovery, invention, design, method, technique, improvement, enhancement, development, computer program, machine, algorithm or other work or
authorship that (i) relates to the business or operations of the Company or any of its subsidiaries or affiliates, or (ii) results from or is suggested by any undertaking assigned to the Employee or work performed by the Employee for or on
behalf of the Company or any of its subsidiaries or affiliates, whether created alone or with others, during or after working hours. All Confidential Information and all Employee Developments shall remain the sole property of the Company or any of
its subsidiaries or affiliates. The Employee shall acquire no proprietary interest in any Confidential Information or Employee Developments developed or acquired during the Term. To the extent the Employee may, by operation of law or otherwise,
acquire any right, title or interest in or to any Confidential Information or Employee Development, the Employee hereby assigns to the Company all such proprietary rights. The Employee shall, both during and after the Term, upon the Company’s
request, promptly execute and deliver to the Company all such assignments, certificates and instruments, and shall promptly perform such other acts, as the Company may from time to time in its discretion deem necessary or desirable to evidence,
establish, maintain, perfect, enforce or defend the Company’s rights in Confidential Information and Employee Developments. 
 (f)
COMPLIANCE WITH POLICIES AND PROCEDURES. During the Term, Employee shall adhere to the policies and standards of professionalism set forth in the Company’s Policies and Procedures as they may exist from time to time. 

(g) REMEDIES FOR BREACH. Employee expressly agrees and understands that Employee will notify the Company in writing of any alleged breach of this
Agreement by the Company, and the Company will have 30 days from receipt of Employee’s notice to cure any such breach. 

Employee expressly agrees and understands that the remedy at law for any breach by Employee of this Section 2 will be inadequate and
that damages flowing from such breach are not usually susceptible to being measured in monetary terms. Accordingly, it is acknowledged that upon Employee’s violation of any provision of this Section 2 the Company shall be entitled to
obtain from any court of competent jurisdiction immediate injunctive relief and obtain a temporary order restraining any threatened or further breach as well as an equitable accounting of all profits or benefits arising out of such violation.
Nothing in this Section 2 shall be deemed to limit the Company’s remedies at law or in equity for any breach by Employee of any of the provisions of this Section 2, which may be pursued by or available to the Company. 

(h) SURVIVAL OF PROVISIONS. The obligations contained in this Section 2 shall, to the extent provided in this Section 2, survive the
termination or expiration of the Term and/or Employee’s employment with the Company and, as applicable, shall be fully enforceable thereafter in accordance with the terms of this Agreement. If it is determined by a court of competent
jurisdiction in any state that any restriction in this Section 2 is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or
amended by the court to render it enforceable to the maximum extent permitted by the law of that state. 
  

 11 

 3. TERMINATION OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement between the
parties and terminates and supersedes any and all prior agreements and understandings (whether written or oral) between the parties with respect to the subject matter of this Agreement. Employee acknowledges and agrees that neither the Company nor
anyone acting on its behalf has made, and is not making, and in executing this Agreement, the Employee has not relied upon, any representations, promises or inducements except to the extent the same is expressly set forth in this Agreement. Employee
hereby represents and warrants that by entering into this Agreement, Employee will not rescind or otherwise breach an employment agreement with Employee’s current employer prior to the natural expiration date of such agreement. 

4. ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and none of the parties hereto shall, without the consent of the others,
assign or transfer this Agreement or any rights or obligations hereunder, provided that, in the event of a transfer of Employee to any entity affiliated with the Company and/or the merger, consolidation, transfer, or sale of all or substantially all
of the assets of the Company with or to any other individual or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the
promises, covenants, duties, and obligations of the Company hereunder, and all references herein to the “Company” shall refer to such successor. 

5. WITHHOLDING. The Company shall make such deductions and withhold such amounts from each payment and benefit made or provided to Employee
hereunder, as may be required from time to time by applicable law, governmental regulation or order. 
 6. HEADING REFERENCES. Section
headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. References to “this Agreement” or the use of the term “hereof” shall refer
to these Standard Terms and Conditions and the Employment Agreement attached hereto, taken as a whole. 
 7. WAIVER; MODIFICATION.
Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of, or failure to insist upon strict compliance
with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times. This Agreement shall not be modified in any respect, or extended beyond expiration of the Term
(regardless of continued employment), except by a writing executed by each party hereto. Notwithstanding anything to the contrary herein, neither the assignment of Employee to a different Reporting Officer due to a reorganization or an internal
restructuring of the Company or its affiliated companies nor a change in the title of the Reporting Officer shall constitute a modification or a breach of this Agreement. 

8. SEVERABILITY. In the event that a court of competent jurisdiction determines that any portion of this Agreement is in violation of any law or
public policy, only the portions of this Agreement that violate such law or public policy shall be stricken. All portions of this Agreement that do not violate any statute or public policy shall continue in full force and effect.

  

 12 

 
Further, any court order striking any portion of this Agreement shall modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties under
this Agreement. 
 9. INDEMNIFICATION. The Company shall indemnify and hold Employee harmless for acts and omissions in Employee’s
capacity as an officer, director or employee of the Company to the maximum extent permitted under applicable law; provided, however, that neither the Company, nor any of its subsidiaries or affiliates shall indemnify Employee for any
losses incurred by Employee as a result of acts described in Section 1(c) of this Agreement. 
 ACKNOWLEDGED AND AGREED AS OF THE EFFECTIVE
DATE: 
  

			
	EXPEDIA, INC.
	
	 /S/ Burke F. Norton

	By:	 	Burke F. Norton
	Title:	 	Executive Vice President, General Counsel
	Dated:	 	March 16, 2009
	
	 /S/ Gary M. Fritz

	Gary M. Fritz
		
	Dated:	 	March 16, 2009

  

 13Stock Option Agreement - Gary M. Fritz

 Exhibit 10.5 

EXPEDIA, INC. STOCK OPTION AGREEMENT 

THIS AGREEMENT (this “Agreement”), dated as of the Grant Date specified on the Summary of Award (as defined
below), by and between Expedia, Inc., a Delaware corporation (the “Corporation”), and Gary M. Fritz (the “Eligible Individual”). 

All capitalized terms used herein, to the extent not defined, shall have the meanings set forth in the Corporation’s Amended and
Restated 2005 Stock and Annual Incentive Plan (as amended from time to time, the “Plan”). Reference is made to the Summary of Award (the “Summary of Award”) issued to the Eligible Individual, which may
be found on the Smith Barney Benefit Access System at www.benefitaccess.com (or any successor system selected by the Corporation). This Agreement relates to the option to purchase shares of Common Stock described in the Summary of Award (the
“Stock Option”). 
  

	1.	Award of Stock Option 

Subject to the provisions of this Agreement, the Summary of Award and the Plan, the Corporation hereby grants the Stock Option to
the Eligible Individual pursuant to Section 6 of the Plan. Vesting of the Stock Option is subject to approval by the Corporation’s stockholders of an amendment to the Plan to increase the number of shares of Common Stock issuable under the
Plan (the “Increase”). The Summary of Award sets forth the number of shares of Common Stock covered by the Stock Option, the per share exercise price of the Stock Option and the Grant Date of the Stock Option.
Nothing in this Agreement, the Summary of Award or the Plan shall confer upon the Eligible Individual any right to continue in the employ or service of the Corporation or any of its Subsidiaries or Affiliates or interfere in any way with their
rights to terminate the Eligible Individual’s employment or service at any time. The Stock Option shall be a Nonqualified Option. Unless earlier terminated pursuant to the terms of this Agreement or the Plan, the Stock Option shall expire on
the seven year anniversary of the Grant Date. If the Corporation’s stockholders do not approve the Increase at the next annual meeting of the stockholders of the Corporation, the Eligible Individual automatically shall forfeit the Stock
Option. 
  

	2.	Vesting 

 (a)
Subject to (i) approval of the Increase by the Corporation’s stockholders, (ii) the terms and conditions of this Agreement, the Summary of Award and the provisions of the Plan, and (iii) the Eligible Individual’s
continuous employment by the Corporation or one of its Subsidiaries or Affiliates through the applicable vesting date, the Stock Option shall vest and become exercisable as follows: 

 

				
	 Vesting Date
	  	Percentage of Stock Option Vesting	 
	 On the first anniversary of the Grant Date
	  	25	% 
	 On the second anniversary of the Grant Date
	  	25	% 
	 On the third anniversary of the Grant Date
	  	25	% 
	 On the fourth anniversary of the Grant Date
	  	25	% 

 (b) In the event of the Eligible Individual’s Termination of Employment by the Eligible
Individual for Good Reason or by the Corporation without Cause (each a “Qualifying Termination”), the Stock Option immediately shall vest and be exercisable with respect to the number of the shares of Common Stock covered thereby that
would have otherwise vested during the 18 months immediately following the Qualifying Termination if the Eligible Individual had remained employed by the Corporation. For purposes of this provision, Good Reason and Cause shall have the definitions
set forth in the Employment Agreement between the Eligible Individual and the Corporation dated March 16, 2009. 
  

	3.	Termination of Employment by the Corporation for Cause  

In the event the Eligible Individual exercises any portion of the Stock Option within two years prior to the Eligible Individual’s
Termination of Employment for Cause, the Eligible Individual agrees that the Corporation shall be entitled to recover from the Eligible Individual, at any time within two years following such exercise, and the shall pay over to the Corporation, the
excess of (i) the aggregate Fair Market Value of the Common Stock subject to such exercise on the date of exercise over (ii) the aggregate exercise price of the Common Stock subject to such exercise on the date of exercise. 

 

	4.	Taxes and Withholding 

No later than the date as of which an amount in respect of the Stock Option first becomes includible in the Eligible Individual’s
gross income for federal, state, local or foreign income or employment or other tax purposes, the Eligible Individual shall pay to the Corporation or make arrangements satisfactory to the Committee regarding payment of any federal, state, local or
foreign taxes of any kind required by law to be withheld with respect to such amount and the Corporation shall, to the extent permitted or required by law, have the right to deduct from any payment of any kind otherwise due to the Eligible
Individual (either directly or indirectly through its agent), federal, state, local and foreign taxes of any kind required by law to be withheld. Notwithstanding the foregoing, the Corporation shall be entitled to hold the shares of Common Stock
issuable to the Eligible Individual upon exercise of the Eligible Individual’s Stock Option until the Corporation or the agent selected by the Corporation to manage the Plan under which the Stock Option has been issued (the
“Agent”) has received from the Eligible Individual (i) a duly executed Form W-9 or W-8, as applicable and (ii) payment for any federal, state, local or foreign taxes of any kind required by law to be withheld with
respect to any portion of such Stock Option. 
  

	5.	Conflicts and Interpretation 

Applicable terms of the Plan are expressly incorporated by reference into this Agreement. In the event of any conflict between this
Agreement and the Plan, the Plan shall control. In the event of any ambiguity in this Agreement, or any matters as to which this Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the
Committee has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable for the
administration of the Plan. In the event of any (x) conflict between the Summary of Award (or any other information posted on the Smith Barney Benefit Access System or successor system) and this Agreement, the Plan and/or the books and records
of the Corporation or (y) ambiguity in the Summary of Award (or any other information posted on the Smith Barney Benefit Access System or successor system), this Agreement, the Plan and/or the books and records of the Corporation, as
applicable, shall control. 
  

 -2- 

	6.	Data Protection 

The Eligible Individual authorizes the release from time to time to the Corporation (and any of its Subsidiaries or Affiliates) and to the
Agent (together, the “Relevant Companies”) of any and all personal or professional data that is necessary or desirable for the administration of the Plan and/or this Agreement (the “Relevant
Information”). Without limiting the above, the Eligible Individual permits his or her employing company to collect, process, register and transfer to the Relevant Companies all Relevant Information (including any professional and
personal data that may be useful or necessary for the purposes of the administration of the Plan and/or this Agreement and/or to implement or structure any further grants of equity awards (if any)). The Eligible Individual hereby authorizes the
Relevant Information to be transferred to any jurisdiction that the Corporation, his or her employing company or the Agent considers appropriate. The Eligible Individual shall have access to, and the right to change, the Relevant Information.
Relevant Information will only be used in accordance with applicable law. 
  

	7.	Amendment 

 The
Committee may unilaterally amend the Stock Option, prospectively or retroactively, but no such amendment shall, without the Eligible Individual’s consent, materially impair the rights of the Eligible Individual with respect to the Stock Option,
except such an amendment made to cause the Stock Option to comply with applicable law, stock exchange rules or accounting rules. 
  

	8.	Notification of Changes 

Any changes to this Agreement shall be communicated (either directly by the Corporation or indirectly through any of its Subsidiaries,
Affiliates or the Agent) to the Eligible Individual electronically via email (or otherwise in writing) promptly after such change becomes effective. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 

 -3- 

 IN WITNESS WHEREOF, as of the Grant Date, the Corporation has caused this Agreement to be
executed on its behalf by a duly authorized officer, and the Eligible Individual has hereunto set the Eligible Individual’s hand. Electronic acceptance of this Agreement pursuant to the Corporation’s instructions to the Eligible Individual
(including through an online acceptance process managed by the Agent) shall constitute execution of the Agreement by the Eligible Individual. 
  

			
	EXPEDIA, INC.
	
	 /S/ Burke F. Norton

	Name:	 	Burke F. Norton
	Title:	 	Executive Vice President,
		 	General Counsel & Secretary
	
	ELIGIBLE INDIVIDUAL
	
	 /S/ Gary M. Fritz

	Name:	 	Gary M. Fritz

  

 -4-

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