Document:

Exhibit
10.8

 

Note: Portions of this exhibit indicated by “[**]” are subject to a confidential
treatment request, and have been omitted from this exhibit. Complete,
unredacted copies of this exhibit have been filed with the Securities and
Exchange Commission as part of this company’s confidential treatment request.

 

CRS MARKETING, SERVICES AND DEVELOPMENT
AGREEMENT

 

This CRS MARKETING, SERVICES AND DEVELOPMENT AGREEMENT, dated and
effective as of December 15, 1995 (the “Agreement”), by and between
MICROSOFT CORPORATION, a Washington corporation, with its principal office at
One MICROSOFT Way, Redmond, Washington 98052 (“MICROSOFT”), and WORLDSPAN,
L.P., a Delaware limited partnership, with its principal office at 300 Galleria
Parkway NW, Atlanta, Georgia 30339 (“WORLDSPAN”)

 

RECITALS

 

WORLDSPAN operates a
computerized reservations system and provides information and other transaction
processing to airlines, travel agents and others in the travel industry.

 

MICROSOFT develops software
and operates an Online System in the United States and throughout the world.

 

MICROSOFT desires to retain
WORLDSPAN to provide travel related transaction and data processing and other
services, and WORLDSPAN desires to provide same, all according to this
Agreement;

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Agreement hereby agree as follows:

 

1.                                      Definitions

 

Except as otherwise defined
in this Agreement, terms used herein in capitalized form shall have the
meanings set forth in Schedule 1.

 

2.                                      WORLDSPAN’s
Obligations

 

2.1.1                     WORLDSPAN
shall provide MICROSOFT access to the WORLDSPAN System through Super
Transaction, Standard Message Interface, and such other communication protocols
as WORLDSPAN may develop from time to time. WORLDSPAN shall through proprietary
and leased communications facilities allow access to the WORLDSPAN System to
MICROSOFT’s communications node in Bellevue, Washington.

 

2.1.2                     The
parties acknowledge that neither can accurately forecast the volume of
transactions that will be generated by MICROSOFT System users with the
WORLDSPAN System. To ensure reasonable capacity is available, WORLDSPAN shall
make available to

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

1

 

MICROSOFT not later than August 14,
1996, processing capacity from the WORLDSPAN System according to the
specifications set forth on Schedule 2.1.2 attached hereto and as
otherwise provided in this Agreement. Thereafter, the parties shall confer
periodically for the purpose of modifying these minimum standards.
Notwithstanding the foregoing, WORLDSPAN acknowledges that the standards set
forth herein and to be agreed upon are the minimum standards necessary to
service MICROSOFT System users and that adequate WORLDSPAN System resources are
critical to the use of the MICROSOFT System travel related services for their
intended purposes.

 

2.2                               WORLDSPAN
shall be responsible for acquiring any hardware and developing, at its expense,
all of the software and systems necessary and appropriate for delivery of the
CRS Services to the MICROSOFT node according to this Agreement. Improvements,
changes and enhancements to the WORLDSPAN System to be developed by WORLDSPAN
to implement MICROSOFT’s access to the WORLDSPAN System and the schedule for
such development are included on Schedule 2.2 attached hereto and
incorporated herein by this reference.

 

2.3                               Upon
MICROSOFT’s request, WORLDSPAN shall provide, at its own expense, engineering,
communications and technical support on-site at MICROSOFT’s facilities in
Redmond, Washington until the Rollout Date to a maximum of two (2) Person
Months in any twelve (12) month period. This on-site support will be provided
by WORLDSPAN to: (a) assist MICROSOFT in installing and utilizing the
communication’s link between the MICROSOFT System and the WORLDSPAN System; (b) provide
support for translation of MICROSOFT System users’ entries into the appropriate
set of Super Transactions and input values; and (c) trouble-shoot and
repair problems with any of the foregoing.

 

2.4                               WORLDSPAN
shall provide to MICROSOFT telephone access to WORLDSPAN’s production and
technical personnel or contractors to respond to MICROSOFT personnel with
questions and problems arising out of access to the WORLDSPAN System by
MICROSOFT System users. WORLDSPAN shall use reasonable business efforts to make
the necessary personnel available twenty four (24) hours each day.

 

2.5                               WORLDSPAN
shall not disclose any information created by a MICROSOFT System user or use
such information except as necessary for the performance of this Agreement
(including as reasonably needed by WORLDSPAN to complete and facilitate travel
transactions generated by Microsoft System users, and/or to adequately service
WORLDSPAN’s Travel Suppliers), except that WORLDSPAN may disclose information
from a reservation as required by law. WORLDSPAN acknowledges and agrees that
MICROSOFT will have data privacy obligations to its customers which MICROSOFT
will need to be respected by WORLDSPAN. WORLDSPAN agrees to comply with all
MICROSOFT data privacy requirements communicated in writing by MICROSOFT to
WORLDSPAN except where to do so would be commercially unreasonable due to the
costs of implementation (where costs may not include foregone revenue from the
sale or use of such data).

 

[**] Confidential treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

2

 

3.                                      Services

 

3.1                               During
the Term, WORLDSPAN shall make available to MICROSOFT the CRS Services in
accordance with the performance standards set forth in Schedule 2.1.2.
Such performance standards in general are intended to reflect the service
levels provided to any Travel Agent customer of WORLDSPAN. WORLDSPAN shall not
be responsible for WORLDSPAN System unavailability or any Response Time in
excess of agreed limits due to: (a) scheduled maintenance or scheduled
downtime, (b) actions or inactions of MICROSOFT or MICROSOFT System users,
(c) failure of any part of the WORLDSPAN Network operated by a third party
supplier, or (d) outages caused by the failure of public network
components.

 

3.2                               Nothing
herein shall prohibit MICROSOFT from obtaining any travel information or CRS
Services from any entity other than WORLDSPAN for use with the MICROSOFT System
and nothing shall prohibit WORLDSPAN from providing any travel information or
CRS Services to any Online System provider or other person.

 

3.3                               MICROSOFT
shall provide to WORLDSPAN the information, data and necessary technical and
human resources to permit WORLDSPAN to complete WORLDSPAN’s development of
improvements, changes and enhancements to the WORLDSPAN System and to provide
access to the WORLDSPAN System and the CRS Services.

 

4.                                      Access
To CRS Services And Rights

 

4.1                               Subject
to Section 4.3 and during the Term, WORLDSPAN hereby grants to MICROSOFT a
nonexclusive right and license in and to all of the functions, services,
information and data available through the WORLDSPAN System to all of WORLDSPAN’s
Travel Agent customers including, but not limited to, the CRS Services.

 

4.2                               WORLDSPAN
also grants to MICROSOFT a worldwide, non-exclusive, right and license during
the Term of this Agreement in WORLDSPAN Training Materials for the sole purpose
of permitting MICROSOFT to create, publish, and distribute training books,
manuals, software programs and other materials for the use of MICROSOFT
employees, contractors and MICROSOFT System users. Within a reasonable period
following termination of this Agreement not to exceed sixty (60) days, MICROSOFT
shall, at its option, return to WORLDSPAN or destroy all of the WORLDSPAN
Training Materials and all copies of books, manuals, software or other
materials containing WORLDSPAN Training Materials, then in the possession of
MICROSOFT.

 

4.3                               The
license and the rights granted in Section 4.1 herein shall be limited to
the Territory and shall permit MICROSOFT to utilize information, data,
functions and services from the WORLDSPAN System, including the CRS Services,
to provide such information, data, functions and services through an Online
System to permit, among other things, users to review travel related
information, make reservations, and request tickets and other documents for
travel. Notwithstanding anything to the contrary herein, such restriction of
MICROSOFT’s license rights to the Territory shall mean only that MICROSOFT
shall not actively market or advertise the availability of the travel services
and information provided through the WORLDSPAN

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

3

 

System as part of the MICROSOFT System
outside of the Territory, and such restriction shall place no limitation on
MICROSOFT’s right which is permitted by this Agreement to operate the MICROSOFT
System and to provide travel services and information via the WORLDSPAN System
over the Internet, the World Wide Web, The Microsoft Network, or any other
Online System. As used in this Section 4.3, to “actively market or
advertise” outside the Territory shall mean to undertake actual marketing or
advertising activities in local markets outside the Territory, but shall not
include marketing or advertising activities done generally over the Internet, the
World Wide Web, The Microsoft Network, or any other Online System regardless of
the fact that such activities may be accessible to persons outside the
Territory. With respect to information and data regarding hotels and other
lodging services, WORLDSPAN also grants to MICROSOFT a perpetual, worldwide
license and right to:  (a) develop,
market, sell, make, use, reproduce, modify, adapt, create derivative works
based on, translate, distribute, (directly and indirectly), transmit, display
and perform publicly, license, rent, lease, and sell such information and data
on printed, electronic or other fixed media, and to sublicense any or all of
the foregoing rights, including the right to sublicense such rights to third
parties; and (b) create, develop, market, distribute, transmit, license,
sub-license and sell such information and data through broadcast, cable or
satellite television distribution, interactive and otherwise. Such license to
information and data regarding hotels and other lodging services shall be
subject to such future restrictions as may be imposed on WORLDSPAN by its
suppliers of such information, but only to the extent that such restrictions
are communicated in advance and in writing to MICROSOFT.

 

4.4                               Subject
to the provisions of Section 7.5 herein, WORLDSPAN retains the right to
modify and enhance the WORLDSPAN System in its sole discretion at any time
during the Term, including but not limited to, the right to migrate MICROSOFT
and MICROSOFT System users to new computer reservation systems created or used
by WORLDSPAN, provided that any such modifications, enhancements and/or
migration shall not materially adversely alter any of the CRS Services,
including specifically the functionality associated with the development items
set forth on Schedule 2.2 attached hereto. MICROSOFT agrees that it will
take reasonable steps to administer the use of the WORLDSPAN System by
MICROSOFT System Users, including but not limited to using all commercially
reasonable efforts to terminate the access of such users who MICROSOFT or
WORLDSPAN determines use the WORLDSPAN System improperly. Improper use of the
WORLDSPAN System shall include: transmitting personal messages; making
speculative or improper bookings; training anyone other than MICROSOFT
employees, contractors or MICROSOFT System users; entering passive booking
codes (e.g., GK, HK, MK or BK codes) when no corresponding space has been
reserved with the transporting carrier’s internal reservation system; or
failing to remove such passive bookings from the WORLDSPAN System if the
corresponding space is canceled via telephone or by other means.

 

5.                                      MICROSOFT’s
Obligations

 

MICROSOFT will develop, at its own expense,
the capability for MICROSOFT System users to make reservations on airlines,
cars, hotels, tours, cruises and other products and services distributed
through the WORLDSPAN System. For a five (5) month period following
implementation of the WORLDSPAN System through the MICROSOFT System, MICROSOFT

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

4

 

will use reasonable business efforts to
construct its travel reservations facilities available through the MICROSOFT
System in a way to promote the making of reservations and bookings to generate
a stream of chargeable transactions through the WORLDSPAN System. Thereafter,
MICROSOFT and WORLDSPAN shall agree upon the appropriate level of promotion of
the WORLDSPAN System given the then-existing business circumstances. MICROSOFT
makes no representation or warranty about the volume of chargeable transactions
that will be generated by MICROSOFT System users or the ratio of chargeable
transactions to total transactions.

 

6.                                      Attribution

 

At WORLDSPAN’s request, MICROSOFT shall
include in a screen or page provided as a part of any fixed media product
utilizing data or information provided from the WORLDSPAN System that WORLDSPAN
has supplied such data or information.

 

7.                                      Term

 

7.1                               Unless
earlier terminated as provided herein, the term of this Agreement (the “Term”)
shall commence as of the date first written above on page one, and shall
continue thereafter for a period of ten (10) years.

 

7.2                               This
Agreement may be terminated as follows:

 

7.2.1                     Either
WORLDSPAN or MICROSOFT may terminate this Agreement (a) following six (6) months
prior notice if the parties have failed to reach an agreement according to
either Section 2.1.2 or Section 11.2 or Schedule 2.1.2 of this
Agreement, or (b) upon the occurrence of an Event of Default by the other
party.

 

7.2.2                     An
Event of Default with respect to MICROSOFT shall mean that:

 

(a)                                  MICROSOFT
defaults in making any payment hereunder when the same becomes due and payable,
and such default continues for a period of thirty (30) days after notice
thereof in writing from WORLDSPAN; or

 

(b)                                 MICROSOFT
fails to comply with any of its other material covenants or agreements in this
Agreement and such default continues for a period of thirty (30) days after
notice thereof in writing from WORLDSPAN.

 

7.2.3                     An
Event of Default with respect to WORLDSPAN shall mean that:

 

(a)                                  WORLDSPAN
fails to provide the CRS Services, which failure is not cured by WORLDSPAN not
more than sixty (60) days after notice thereof in writing from MICROSOFT; or

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

5

 

(b)                                 WORLDSPAN
fails to comply with any of its other material covenants or obligations in this
Agreement and such default continues for a period of thirty (30) days after
notice thereof in writing.

 

7.3                               If
MICROSOFT makes any assignment for the benefit of creditors or becomes
insolvent, or if WORLDSPAN has reason to believe MICROSOFT is not generally
paying its bills when due, or if federal, state or common law bankruptcy or
insolvency proceedings are commenced with respect to MICROSOFT, or if a
receiver of MICROSOFT assets is appointed, or if MICROSOFT shall take any step
leading to its cessation as a going concern, or if MICROSOFT shall cease
operations for reasons other than a strike, then in any of the foregoing events
WORLDSPAN may immediately cancel this Agreement on notice to MICROSOFT, or, at
WORLDSPAN’s option require MICROSOFT to give adequate assurance of future
performance of this Agreement by immediately curing any default hereunder and
establishing any irrevocable letter of credit issued by a bank and on terms and
conditions acceptable to WORLDSPAN in an amount sufficient to cover all amounts
potentially due from MICROSOFT under this Agreement and which may be drawn upon
WORLDSPAN upon the sole condition that MICROSOFT does not fulfill its
obligations under this Agreement in a timely manner.

 

7.4                               If
WORLDSPAN makes any assignment for the benefit of creditors or becomes
insolvent, or if MICROSOFT has reason to believe WORLDSPAN is not generally
paying its bills when due, or if federal, state or common law bankruptcy or
insolvency proceedings are commenced with respect to WORLDSPAN, or if a
receiver of WORLDSPAN’s assets is appointed, or if WORLDSPAN shall take any
step leading to its cessation as a going concern, or if WORLDSPAN shall cease
operations for reasons other than a strike, then in any of the foregoing events
MICROSOFT may immediately cancel this Agreement on notice to WORLDSPAN, or, at
MICROSOFT’s option require WORLDSPAN to give adequate assurance of future
performance of this Agreement by immediately curing any default hereunder and
establishing any irrevocable letter of credit issued by a bank and on terms and
conditions acceptable to MICROSOFT in an amount sufficient to cover all amounts
potentially due from WORLDSPAN under this Agreement and which may be drawn upon
MICROSOFT upon the sole condition that WORLDSPAN does not fulfill its
obligations under this Agreement in a timely manner.

 

7.5                               MICROSOFT
shall have the option to terminate this Agreement upon written notice to
WORLDSPAN in the event that WORLDSPAN migrates MICROSOFT and MICROSOFT System
users to a computer reservation system not operated by WORLDSPAN. In addition,
either party may terminate this Agreement upon written notice to the other in
the event of an assignment of this Agreement by the other party to a third
party. For purposes of this Section 7.5, an assignment shall include (i) any
transfer of an ownership interest in WORLDSPAN or MS to a person, group, or
entity that would result in that person, group or entity acquiring control of
such party, or (ii) any transfer by either party of all or substantially
all of its assets.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

6

 

8.                                      Additional
Development Services

 

In addition to development otherwise required
to be done by WORLDSPAN pursuant to this Agreement, MICROSOFT may request that
WORLDSPAN develop additional enhancements, improvements or changes to the
WORLDSPAN System for the benefit of MICROSOFT System users. Subject to the
availability of programming resources and provided the enhancements,
improvements, or changes do not adversely impact the existing performance
standards of the WORLDSPAN System, WORLDSPAN shall provide Additional
Development Services to complete such requested development.

 

9.                                      Charges/Payment

 

9.1                               MICROSOFT
shall pay WORLDSPAN’S standard hourly rate for Additional Development Services
provided pursuant to this Agreement.

 

9.2                               MICROSOFT
shall pay all amounts hereunder calculated pursuant to the formulas and
otherwise in the manner set forth in this Agreement. Payment shall be made
within thirty (30) days of each monthly invoice.

 

10.                               Ownership,
No Other License

 

10.1                        The
WORLDSPAN System, including all Intellectual Property Rights therein, shall be
owned or retained, to the fullest extent legally permitted under all applicable
laws, by WORLDSPAN. MICROSOFT shall execute such instruments, agreements and
acknowledgments as WORLDSPAN shall require to transfer and assign any and all
of MICROSOFT’s rights in and to such Intellectual Property Rights therein to
WORLDSPAN. In addition to any other rights WORLDSPAN may have, WORLDSPAN shall
be permitted to license or market to any third party all or portions of the
WORLDSPAN System or the WORLDSPAN Software.

 

10.2                        The
MICROSOFT System, including all Intellectual Property Rights therein, shall be
owned or retained, to the fullest extent legally permitted under all applicable
laws, by MICROSOFT. WORLDSPAN shall execute such instruments, agreements and
acknowledgments as MICROSOFT shall require to transfer and assign any and all
of WORLDSPAN’s rights in and to such Intellectual Property Rights therein to
MICROSOFT. In addition to any other rights MICROSOFT may have, MICROSOFT shall
be permitted to license or market to any third party all or portions of the
MICROSOFT System or the MICROSOFT Software.

 

10.3                        Nothing
herein shall be construed as granting or conferring upon a party a license or
right to use the name or any Trademark, logo, or mark of the other party.

 

11.                               Financial
Arrangements

 

11.1                        WORLDSPAN
acknowledges that the MICROSOFT System is a new service and, accordingly,
neither MICROSOFT nor WORLDSPAN can anticipate the number of

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

7

 

transactions through the WORLDSPAN System
that will be generated by MICROSOFT System users nor all of the revenues or
expenses that will accrue to either party or the number of transactions that
will be generated by MICROSOFT System users. As additional consideration for
the promises made by WORLDSPAN in this Agreement, MICROSOFT agrees that if
revenues payable by Travel Suppliers to WORLDSPAN for transactions generated by
MICROSOFT System users are less than One Hundred Thousand Dollars ($100,000.00)
during the five (5) month period following implementation of the WORLDSPAN
System through the MICROSOFT System (including the development items set forth
on Schedule 2.2), then MICROSOFT shall pay to WORLDSPAN:

 

(i)                                    the
amount by which the actual amount of revenues payable is less than $100,000.00;
and

 

(ii)                                the
amount equal to WORLDSPAN’s out of pocket costs paid to third party
telecommunications suppliers for the leased communications lines from the
WORLDSPAN System to the Microsoft System in Bellevue, Washington.

 

WORLDSPAN shall make available to MICROSOFT
upon request any of its books, records and regularly generated reports as are
reasonably necessary to confirm the average amounts charged for air bookings in
1995 and 1996.

 

11.2                        Other
than payments made by MICROSOFT for Additional Development Services and the
amount to be paid by MICROSOFT, if any, pursuant to section 11.1 above,
MICROSOFT and WORLDSPAN agree that each shall bear any and all expenses
incurred in the performance of this Agreement and each shall be entitled to
retain any and all revenues arising out of this Agreement for the period ending
January 31, 1997. Not later than August 1, 1996, the parties shall
begin to confer for the purposes of determining the need for making any change
to the financial aspects of this Agreement for the period after January 31,
1997, principally the sharing of revenues received by WORLDSPAN from Travel Suppliers
for bookings and reservations made by MICROSOFT System users and expenses
incurred by WORLDSPAN in excess of the anticipated expenses. In the event the
parties are unable to agree to the financial aspects by November 30, 1996,
either party may terminate this Agreement pursuant to Section 7.2.

 

12.                               Confidentiality

 

12.1                        The
Non Disclosure Agreement shall be in effect throughout the Term and shall
continue according to its terms.

 

12.2                        Notwithstanding
the foregoing, if either party receives a subpoena, civil investigative demand,
or any other order, demand or request for the Confidential Information of the
other party (the “Owning Party”); or if there is any change in law, statute or
regulation that requires the disclosure or delivery of such information to any
third party, then the party that would respond or otherwise be required to make
the delivery, disclosure or response shall give written notice to the Owning
Party. The Owning Party shall have ten (10) business days following such
notice to make any motion to quash, file any objection or protest, or otherwise

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

8

 

take any action deemed necessary and
appropriate to prevent such disclosure and, during such ten (10) day
period, the other party will make no delivery, disclosure or response with
respect to the Confidential Information of the Owning Party.

 

13.                               Force
Majeure

 

13.1                        WORLDSPAN
shall have no liability to MICROSOFT or any other person for malfunctions,
errors or interruptions in the operation of the WORLDSPAN System or
non-performance or delays in performance hereunder caused by acts of God,
strikes, labor disputes, fires, delays of suppliers of goods or services, acts
or omissions of sovereign states or airline industry associations (including
but not limited to ATA, ACH, ARC and IATA) or for any other cause beyond the
control of WORLDSPAN, and no such malfunction, interruption, non- performance
or delay shall constitute an Event of Default with respect to WORLDSPAN or
MICROSOFT hereunder.

 

13.2                        MICROSOFT
shall have no liability to WORLDSPAN or any other person for malfunctions or
interruptions in the operation of the MICROSOFT System or non-performance or
delays in performance hereunder caused by acts of God, strikes, labor disputes,
fires, delays of suppliers of goods or services, acts or omissions of sovereign
states or airline industry associations (including but not limited to ATA, ACH,
ARC and IATA) or for any other cause beyond the control of MICROSOFT, and no
such malfunction, interruption, non- performance or delay shall constitute an
Event of Default with respect to MICROSOFT or WORLDSPAN hereunder.

 

14.                               Indemnification

 

14.1                        WORLDSPAN
and MICROSOFT each agree to indemnify, defend and hold harmless the other and
the other’s directors, officers, partners, affiliates, and employees from any
and all Loss arising out of: (a) the death or bodily injury of any agent,
employee, contractor, customer, business invitee or business visitor of the
indemnitor; and (b) the damage, loss or destruction of any real or
tangible personal property of the indemnitor, including but limited to the loss
of use thereof.

 

14.2                        WORLDSPAN
and MICROSOFT each agree to indemnify, defend and hold harmless the other and
the other’s directors, officers, partners, affiliates, and employees from any
and all Loss arising out of any claims or infringement of any Intellectual
Property Right conferred by contract or by common law or by any law of the
United States or any state alleged to have occurred because of any service,
data, or Confidential Information provided or work performed by the indemnitor;
provided, however, that this indemnity shall not apply unless the party
claiming indemnification notifies the other promptly of any matters in respect
of which the foregoing indemnity may apply and of which the notifying party has
knowledge and gives the other full opportunity to control the response thereto
and defense thereof, including, without limitation any agreement relating to
the settlement thereof.

 

14.3                        MICROSOFT
agrees to indemnify, defend, and hold harmless WORLDSPAN and its directors,
officers, partners, affiliates, and employees from any and all

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

9

 

Loss incurred by WORLDSPAN arising out any
claim by a MICROSOFT System user using the WORLDSPAN System, except for or to
the extent that any such Loss is due to the negligence of WORLDSPAN.

 

14.4                        WORLDSPAN
agrees to indemnify, defend, and hold harmless MICROSOFT and its directors,
officers, partners, affiliates, and employees from any and all Loss incurred by
MICROSOFT arising out any claim by a MICROSOFT System user using the WORLDSPAN
System to the extent that any such Loss is due to the negligence of WORLDSPAN.

 

14.5                        Each
of the indemnities set forth in this Section shall apply to each
applicable Loss described above that results from any cause (including the
negligence of the indemnified party) but shall not apply to the extent such
applicable loss results solely from the gross negligence or willful misconduct
of the indemnified party or such indemnity is otherwise prohibited by
applicable law.

 

15.                               Insurance

 

15.1                        WORLDSPAN
shall maintain a Comprehensive General Liability insurance policy, including
worldwide coverage, in the amount of no less than U.S. One Million and no/100
Dollars ($1,000,000.00) per occurrence with a U.S. Two Million and no/100
Dollars ($2,000,000.00) aggregate. Such coverage shall include contractual
liability coverage for the indemnification obligations contained herein,
products hazard coverage and broad form property coverage. In addition,
WORLDSPAN shall maintain an umbrella liability insurance policy or policies in
an amount no less than U.S. Five Million and no/100 Dollars ($5,000,000.00).

 

15.2                        WORLDSPAN
shall maintain the insurance or policies as required in subsection 15.1
above as follows:

 

15.2.1              WORLDSPAN
hereto shall provide to MICROSOFT a Certificate of Insurance, in a form
reasonably acceptable to MICROSOFT, for each of the policies of insurance
required by this Section. Each Certificate of Insurance with respect to the
policies of insurance required by this Section must name MICROSOFT as an
additional insured.

 

15.2.2              Each
insurance policy including renewal insurance, or Certificates of Insurance
shall contain an agreement by the insurer that it shall give no less than
thirty (30) days written notice of cancellation, intent not to renew, or
reduction of material change in coverage. WORLDSPAN shall provide MICROSOFT no
less than ten (10) days prior written notice of any such notice set forth
in this Section.

 

15.2.3              Each
Certificate of Insurance required hereby shall be delivered to MICROSOFT within
ten (10) business days after the effective date or renewal of the
respective policy, as applicable.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

10

 

16.                               Regulatory
Compliance

 

WORLDSPAN and MICROSOFT shall comply with all
ATA, ACH, ARC, IATA and other travel industry and other governmental and
regulatory rules and regulations, and all laws, statutes, ordinances and
regulations in each case, applicable to this Agreement, to the parties, and to
the services provided hereunder. WORLDSPAN reserves the right to modify or
eliminate any CRS Service if the provision of such service might constitute a
violation of any applicable statute, law, ordinance, industry rule or
regulation or order of a court or judicial or administrative body.

 

17.                               Successors

 

Neither party shall assign its interest in
this Agreement; provided, however, that (subject to Section 7.5) either
party may assign this Agreement upon thirty (30) days prior written notice to a
wholly-owned subsidiary or to an entity to which substantially all of the
assets of the assigning party are being transferred if such assignee assumes
and agrees to perform all of the obligations of the assignor. This Agreement
shall be binding upon the parties hereto and their successors and assigns and
all persons claiming under or through them or any such successor or assign.

 

18.                               Entire
Agreement

 

This Agreement and the Non Disclosure
Agreement, together with any appendices, schedules and exhibits to either this
Agreement and the Non Disclosure Agreement, constitute the entire agreement and
understanding of the parties and supersedes all other prior agreements and
understandings, both written and oral, between the parties with respect to the
subject matter hereof. This Agreement and the Non Disclosure Agreement may be
amended only by a further writing duly executed by authorized representative of
the parties.

 

19.                               Governing
Law

 

19.1                        Governing
Law. This agreement shall be governed by, and shall be performed, enforced
and construed in accordance with, the laws of the United States and the State
of Washington (other than its rules on conflicts of laws).

 

19.2                        Jurisdiction,
Forum. Each Party irrevocably submits to the non-exclusive jurisdiction of
the Courts of the State of Georgia and Washington and the United States Federal
Courts sitting in Georgia and Washington. Each party shall appoint an agent for
services of process in the States of Georgia and Washington (and notify the
other party of the name and address of such agent) and shall maintain such
agent at all times unless it shall designate and notify the other of a
reasonably satisfactory successor agent or agents.

 

19.3                        Negotiation
of Provisions. The parties agree that the choice of law and forum
provisions of this Section 19 have been negotiated in good faith and
agreed upon by the parties hereto and are reasonable. The parties, by their due
execution of this Agreement,

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

11

 

expressly agree, to the fullest extent
permitted by law, not to challenge the choice of law or forum provisions
contained in this Section 19.

 

20.                               No
Third Party Beneficiaries

 

None of the provisions of this Agreement
shall be for the benefit of or enforceable by or against any person other than
a party, including without limitation, any creditor of WORLDSPAN or of
MICROSOFT.

 

21.                               Cooperation
and Further Assurances

 

Each party hereto agrees to execute,
acknowledge, deliver, file and record such further certificates, instruments
and documents, and to do such other acts and things as may be required by law,
or as may, in the reasonable opinion of the counsel of either party, be
necessary or advisable to carry out the full intent and purposes of this Agreement.
In addition, each party agrees to provide to the other party, as soon as
practicable after receipt of a request and subject to applicable laws and
regulations, such financial data or other information as may be necessary for
compliance with the requirements of any federal, state or local law or
regulations or any governmental agency or authority applicable to a party or
its affiliates; provided, however, that the requesting person shall bear any
outside reasonable accounting, legal, and third-party costs and expenses
incurred in fulfilling any such request. Each party agrees to keep confidential
and not use in any matter, other than as contemplated in this Section 21,
financial data or other information or documents furnished pursuant to this
Agreement unless ascertainable from public or published information or trade
sources, or already known to our subsequently developed by such party
independently, or received from a third party not under an obligation to keep
confidential such financial data, other information or documents. Both parties
also agree to confer on mutually beneficial projects, such as, but not limited
to, Net Fares support with possible incentives for the Net Fares program,
during the term of this Agreement.

 

22.                               Expenses

 

Each party hereto shall assume and pay its
own expenses incident to the negotiation, execution and performance of this
Agreement.

 

23.                               Waivers

 

The terms of this Agreement may be waived
only by a written instrument signed by the party which would have been able to
require compliance. No delay on the part of either party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof. No
waiver on the part of either party of any such right, power or privilege, shall
preclude any further exercise thereof or the exercise of any other such right,
power or privilege.

 

24.                               Notices

 

24.1                        All
notices, requests, demands, and other communications under this Agreement shall
be in writing and shall be deemed given: (a) when received if delivered

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

12

 

personally; (b) on the next business day
if sent by overnight service prepaid with instructions for next business day
delivery; or (c) on the day of transmission if telecopied or telegraphed
(transmission confirmed), to the parties at the following addresses and numbers
(or to such other persons, addresses and numbers as a party may have specified
by notice given to the other party pursuant to this provision):

 

If to WORLDSPAN:

 

WORLDSPAN,
L.P.

300 Galleria Parkway, NW., Suite 2100

Atlanta, Georgia 30339

Attention:  Chief Executive Officer

Telecopier No.:  (770) 563-7878

 

with a copy
to:

 

WORLDSPAN,
L.P.

300 Galleria Parkway, NW., Suite 2100

Atlanta, Georgia 30339

Attention:  Vice President, General
Counsel and Secretary 

Telecopier No.:  (770) 563-7878

 

If to
MICROSOFT:

 

MICROSOFT
CORPORATION

One MICROSOFT Way

Redmond, Washington 98052-6399

Attention:  Product Unit Manager – Travel
Products Group 

Telecopier No.:  (206) 936-7329

 

with a copy
to:

 

MICROSOFT
CORPORATION

One MICROSOFT Way

Redmond, Washington 98052-6399

Attention:  Legal Department

Telecopier No.: (206) 936-7329

 

24.2                        If
either party gives a notice regarding any alleged breach or default of any term
of this Agreement, then such party shall include prominently on such notice the
legend “Notice of Claim of Breach of Contract” or words to the same effect.

 

25.                               Headings

 

The headings of this Agreement are for
reference purposes only and are to be given no effect in the construction or
interpretation of this Agreement.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

13

 

26.                               Severability

 

Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

27.                               Counterparts

 

This Agreement may be executed in
counterparts, each of which shall be an original and all of which shall
together constitute one and the same instrument.

 

28.                               WARRANTY
DISCLAIMER

 

28.1                        MICROSOFT,
ON BEHALF OF ITSELF, ITS SUBSIDIARIES, AFFILIATES, AND SUBSCRIBERS,
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE PROVIDED HEREIN, NEITHER WORLDSPAN,
ITS PARTNERS, AFFILIATES, NOR ANY SERVICE PROVIDER OR OTHER SUPPLIER OF DATA
PROVIDED THROUGH THE WORLDSPAN SYSTEM WARRANTS THE ACCURACY, MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF ANY SOFTWARE, DATA OR EQUIPMENT. MICROSOFT
FURTHER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE PROVIDED HEREIN,
WORLDSPAN, ITS PARTNERS, AND AFFILIATES DO NOT MAKE ANY REPRESENTATIONS OR
WARRANTIES CONCERNING THE PARTICIPATION OR IDENTITIES OF TRAVEL SUPPLIERS OR
VENDORS IN THE WORLDSPAN SYSTEM. EXCEPT AS OTHERWISE PROVIDED HEREIN, NO
WARRANTIES, GUARANTEES OR REPRESENTATIONS OF ANY KIND, EXPRESSED OR IMPLIED,
ARE MADE BY WORLDSPAN WITH RESPECT TO THE WORLDSPAN SYSTEM OR ANY WORLDSPAN
SOFTWARE, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE.

 

28.2                        WORLDSPAN,
ON BEHALF OF ITSELF, ITS SUBSIDIARIES, AFFILIATES, AND SUBSCRIBERS,
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE PROVIDED HEREIN, NEITHER
MICROSOFT, ITS AFFILIATES, NOR ITS AGENTS WARRANTS THE ACCURACY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SOFTWARE, DATA OR
EQUIPMENT. WORLDSPAN FURTHER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE
PROVIDED HEREIN, MICROSOFT, ITS PARTNERS, AND AFFILIATES DO NOT MAKE ANY
REPRESENTATIONS OR WARRANTIES CONCERNING THE PARTICIPATION LEVEL OF USERS THE
MICROSOFT SYSTEM OR THE REVENUES THAT MIGHT BE GENERATED THEREBY. EXCEPT AS
OTHERWISE PROVIDED HEREIN, NO WARRANTIES, GUARANTEES OR REPRESENTATIONS OF ANY
KIND, EXPRESSED OR IMPLIED, ARE MADE BY MICROSOFT WITH RESPECT TO THE MICROSOFT
SYSTEM, ITS SUBSCRIBERS, OR ANY MICROSOFT SOFTWARE, INCLUDING

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

14

 

WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

15

 

IN WITNESS WHEREOF,
each of the parties hereto have caused this Agreement to be executed by its
respective officer thereunto duly authorized as of the day and year first above
written.

 

	
  MICROSOFT CORPORATION

  	
   

  	
  WORLDSPAN, L.P.

  
	
   

  	
   

  	
   

  
	
  /s/ Patty
  Stonesifer

  	
   

  	
  /s/ Mike
  Buckman

  
	
  By (sign)

  	
   

  	
  By (sign)

  
	
   

  	
   

  	
   

  
	
  Patty
  Stonesifer

  	
   

  	
  Mike Buckman

  
	
  Senior Vice
  President – Consumer Division

  	
   

  	
  Chief
  Executive Officer, pursuant to a

  delegation of authority by the General partners

  of WORLDSPAN, L.P.

  
	
   

  	
   

  	
   

  
	
  12/22/95

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

16

 

SCHEDULE 1

 

DEFINITIONS RELATING TO THE

CRS MARKETING, SERVICES AND DEVELOPMENT AGREEMENT

 

“ACH”
means the Airlines Clearing House

 

“ARC”
means the Airlines Reporting Corporation

 

“ATA”
means the Airline Transport Association

 

“Additional
Development Services” means programming services
provided by WORLDSPAN pursuant to Section 8 of the Agreement to create
improvements and enhancements to the WORLDSPAN System for the benefit of
MICROSOFT.

 

“Computer Reservation
System” or “CRS” means an automated system used by
travel agents and other non-airline personnel under contractual agreement,
containing information about the availability of travel related services and
goods.

 

“Confidential
Information” shall have the meaning set forth in the
Non Disclosure Agreement. This Agreement shall also be considered Confidential
Information of each party with respect to the other party.

 

“Contracts”
means contracts, leases, sales orders, licenses, agreements, permits, plans,
purchase orders, commitments, collective bargaining agreements, and other binding
arrangements (including, without limitation, capital commitments and
arrangements with respect to construction in progress), whether oral or
written, express or implied.

 

“CRS Services”
means all of the information, data, services, features and functions of the
WORLDSPAN System made available to all Travel Agent customers of WORLDSPAN from
time to time.

 

“Event of Default”
has the meaning assigned in Section 7 of the Agreement.

 

“Fares/Pricing
Services” means the services provided to MICROSOFT
through the WORLDSPAN System with respect to information on fares and the
automatic calculation of prices for air travel itineraries for MICROSOFT System
users.

 

“IATA”
means the International Air Transport Association.

 

“Intellectual
Property Right” means each (a) Patent, (b) Trademark,
(c) trade name, (d) knowhow, (e) shop right, (f) copyright,
(g) service mark, (h) trade secret, (i) invention and (j) any
Intellectual Property Right.

 

“Loss”
means loss, liability (whether accrued, absolute, contingent, or otherwise),
damages, deficiencies, expenses (including without limitation, fees and
disbursements of counsel and expenses of investigation), claims, liens or other
obligations whatsoever.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

17

 

“MICROSOFT Network”
means the telecommunications network operated and/or managed by MICROSOFT.

 

“MICROSOFT Software”
means the computer programs and associated documentation, including source
code, used by MICROSOFT in the MICROSOFT Network or otherwise developed by or
licensed to MICROSOFT.

 

“MICROSOFT System”
means the computer hardware, software and related devices and systems used by,
or operated for the benefit of, MICROSOFT to provide an Online System to
customers and MICROSOFT internal users including, without limitation, the
MICROSOFT Software and the MICROSOFT Network. The MICROSOFT System does not
include the WORLDSPAN System.

 

“MICROSOFT System user”
means any person or entity who is entitled to use the MICROSOFT System.

 

“Network Services”
means data communication services provided through a network.

 

“Non Disclosure
Agreement” means that Microsoft Corporation
Non-Disclosure Agreement between MICROSOFT and WORLDSPAN dated February 10,
1995.

 

“Online System”
means any system or combination of systems for distributing electronic content
or an electronic product or service, digital or otherwise, via transmission,
directly or indirectly, to users, whether over telephone lines, cable
television systems, optical fiber connections, cellular telephones, satellites,
wireless broadcast, or other mode of transmission now known or subsequently
developed.

 

“Operational
Emergency” means (i) any disruption in or
impairment of the operation of the WORLDSPAN System that causes a material
interruption in the normal business operations of any WORLDSPAN Hosted Carrier,
or (ii) any problem or defect in the WORLDSPAN System which, in the
reasonable opinion of WORLDSPAN, either (x) impairs the ability of aircraft of
any such carrier to operate safely pursuant to the laws, rules or
regulations of any jurisdiction governing the flight of such aircraft or (y)
poses any imminent risk that the airline operations conducted by any such
carrier will suffer any event, occurrence or delay that poses a material threat
to the safe operation of any aircraft.

 

“Patents”
means patents (including all reissues, divisions, continuation and extensions
thereof), patent applications, patent disclosures docketed and all other patent
rights.

 

“Person Month”
means the equivalent of one person working on average one hundred seventy (170)
hours for a period of thirty (30) consecutive days.

 

“Power Shopper”
means the functionality provided through the WORLDSPAN System to permit a user
to automatically retrieve the lowest priced travel option as more fully defined
in the document entitled “WORLDSPAN Super Transaction Implementation Guide” as
modified on November 13, 1995.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

18

 

“Response Time”
means the time elapsed between delivery of a message to the WORLDSPAN System,
until the response to that message leaves the WORLDSPAN System (exclusive of
the WORLDSPAN Network).

 

“Rollout Date”
means the date that Power Shopper has been through alpha testing, that changes
and/or fixes arising out of alpha testing have been implemented by WORLDSPAN,
and Power Shopper is then released to MICROSOFT for beta testing.

 

“Term”
shall have the meaning assigned in Section 7 of the Agreement.

 

“Territory”
means the geographic territory defined by IATA as Traffic Conferences 1 and 2,
which includes all of the North and South American continents and adjacent
islands, Greenland, Bermuda, the West Indies and Islands of the Caribbean, the
Hawaiian Islands (including Midway and Palmyra), all of Europe and adjacent
islands, Iceland, the Azores, all of Africa and adjacent islands, Ascension
Island and that part of Asia lying west of and including Iran.

 

“Trademark”
means a trademark, service mark or an application for either.

 

“Training Materials”
means books, instructions, charts, information or programs used or useful in
training or educating a Travel Agent in operating the WORLDSPAN System,
regardless of whether such materials are made available in print, electronic
media, online or otherwise.

 

“Travel Agent”
means each wholesaler, agent or other person who makes travel arrangements for
others for airlines, trains, buses, cruise ships, hotels, car rentals and the
like as well as any corporate travel department, but shall not include any
Travel Supplier.

 

“Travel Supplier”
means each airline, hotel, car rental company, cruise line or other entity
providing travel related goods or services.

 

“WORLDSPAN Hosted
Carrier” means any WORLDSPAN Partner which receives
its internal reservation and/or flight operations functions from the WORLDSPAN
System.

 

“WORLDSPAN Network”
means the telecommunications network operated and/or managed by WORLDSPAN.

 

“WORLDSPAN Partner”
means any airline that owns, directly or indirectly, an equity interest in
WORLDSPAN, L.P.

 

“WORLDSPAN Software”
means the computer programs and associated documentation, including source
code, used by WORLDSPAN in connection with the operation of the WORLDSPAN
System, including all Improvements.

 

“WORLDSPAN System”
means the computer hardware, software and related devices and systems used by
WORLDSPAN to provide services to MICROSOFT pursuant to the Agreement including,
without limitation, the WORLDSPAN Software and the WORLDSPAN Network.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

19

 

“WORLDSPAN Training
Materials” means training manuals, books, software and
other materials used or useful in connection with training for WORLDSPAN’s
Travel Agent customers.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

20

 

SCHEDULE 2.1.2

 

WORLDSPAN INITIAL MINIMUM CAPACITY
REQUIREMENTS

 

WORLDSPAN will provide initial capability to
process up to [**] concurrent TPF
transactions during peak hours (7am-7pm EST) and up to [**] concurrent TPF transactions during off
peak hours (7pm-7am EST) submitted from MICROSOFT. This capacity is
expected to be sufficient to process [**]
Super Transactions per second during peak hours and up to [**] super Transactions per second during
off- peak hours. This will be implemented in the form of [**] of terminal addresses which MICROSOFT
can access through the WORLDSPAN Auxiliary Processor. WORLDSPAN will provide
one half the number of terminal addresses guaranteed for the beginning phase of
production by February 15, 1996. During the period February 15, 1996
to August 14, 1996, for agreed upon scheduled periods of at least ten (10) days
every two (2) months, full initial capacity as described above will be
made available for the purpose of stress testing.

 

WORLDSPAN SYSTEM AVAILABILITY OBJECTIVE

 

The CRS Services will be available to
MICROSOFT on average during any [**]
consecutive month period at least [**]
of the time.

 

Regarding Power Shopper: given that MICROSOFT
does not submit at a higher rate than [**]
Power Shopper request per [**]
seconds during peak hours (7am-7pm EST) and [**] Power Shopper per second during off peak hours (7pm-7am
EST)WORLDSPAN will provide a substantive, accurate response [**] of the time.

 

Prior to Rollout Date

 

MICROSOFT and WORLDSPAN agree to:

 

1.               Identify
all unique Super Transactions which will be generated by MICROSOFT for
processing by the WORLDSPAN System and identify the average TPF Transaction
rate per Super Transaction.

 

2.               Identify
profile of Super Transactions activity to include estimates of rates for entire
24-hour daily periods.

 

3.               Measure
current Response Time levels provided to Travel Agent and other customers of
WORLDSPAN System using identical or similar Super Transactions.

 

4.               Identify
and implement any necessary changes to the WORLDSPAN System to make Response
Times to MICROSOFT comparable to measurements from point 3 above.

 

5.               MICROSOFT
will make changes to its message structure as suggested by WORLDSPAN to improve
Response Times providing the changes do not materially impact the functionality
provided to MICROSOFT System users.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

21

 

Prior to end of Beta Test

 

WORLDSPAN and MICROSOFT will mutually agree
to the documentation and acceptance of Response Time objectives above.

 

The Response Time objectives above shall be
available no later than August 14, 1996. In the event the parties are
unable to agree to the Response Times to be imposed during the term of this
Agreement, either party may terminate this Agreement pursuant to Section 7.2.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

22

 

SCHEDULE 2.2

 

WORLDSPAN DEVELOPMENT ITEMS AND DELIVERY
DATES

 

This schedule defines additional
functionality in addition to the CRS Services that WORLDSPAN will provide to
MICROSOFT pursuant to the Agreement. Also defined is the nature and
responsibility for the communication link between WORLDSPAN and MICROSOFT and
standards for WORLDSPAN System availability to MICROSOFT during development.

 

General Nature of Work

 

MICROSOFT requires a set of changes to the
WORLDSPAN System in order to build the initial version of the product to be
included with the Microsoft System. Other changes may be necessary to support
future versions. The changes described in this subsection are general
only, and more detailed descriptions follow below. Although all requests in
this Schedule 2.2 refer to Super Transaction, other functionally similar
structured message interfaces may be substituted following MICROSOFT’s consent.
The changes fall into four categories:

 

1.                                       Provide
functionality through the Super Transaction API that exists on the native host
systems but is not currently available through Super Transaction. Where
practical, MICROSOFT will in its discretion attempt to leverage the existing
capability of the host systems and not require new functionality at the host
level. However, new host system capability may be needed in some areas.

 

2.                                       Provide
enhanced shopping capabilities.

 

3.                                       Provide
support for automating processes that an experienced travel agent could perform
using the existing WORLDSPAN System. For example, interpreting fares rules and
applying applicable discounts.

 

4.                                       Support
MICROSOFT’s ability to provide travel agency operations (ticketing, queue
management, etc.) and telephone support, either directly or through agreement
with third parties.

 

Existing Functionality

 

MICROSOFT will have the ability to use all
functionality described in “WORLDSPAN Super Transaction Specifications” dated December 1,
1995. All functionality described in the Specifications will work as
documented. Any functionality described in the Specifications but not yet
implemented will be accessible by MICROSOFT by December 15, 1995.

 

All transactions will return complete,
accurate and reliable information. [**]
of all software defects reported by MICROSOFT will be resolved in 30 days or
less unless by mutual agreement the time limit is extended. Resolution will
either mean the defect is fixed or a suitable work around is identified. A “software
defect” means any documented occurrence of an instance where the software does
not perform according to its published specifications.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

23

 

Summary of the Requirements for New Work

 

The following enhancements will be required:

 

[**]

 

Air Transactions

 

[**]

 

Hotels

 

[**]

 

Other

 

[**]

 

Communication Links

 

WORLDSPAN will provide the following
communication links with MICROSOFT:

 

The existing dial-in X.25 link to Atlanta
provided for test purposes shall continue through the Term of the Agreement.
MICROSOFT pays for the phone costs and WORLDSPAN maintains the internal
connections and hardware to WORLDSPAN’s systems.

 

By November 30, 1995, WORLDSPAN will
provide a leased line X.25 connection to the point-of-presence at the local
telephone provider in Bellevue Washington. This will operate at speeds no less
than 56KB/sec. WORLDSPAN will pay for all traffic generated and the cost of
installation to the point-of-presence. This line will be used for continued
test and development of the products. This will be maintained for the Term of
the Agreement.

 

By January 1, 1996, WORLDSPAN will
provide one leased line X.25 connection to a point of presence identified above
to WORLDSPAN production facilities. This will operate at speeds no less than
56KB/sec. WORLDSPAN will pay for all traffic generated and the cost of
installation to the point-of-presence. This line will be used for final beta
testing. This will be maintained for the Term of the Agreement.

 

By February 15, 1995, WORLDSPAN will
provide two more leased lines X.25 connection to a point of presence identified
above to WORLDSPAN production facilities. These will operate at speeds no less
than 56KB/sec. WORLDSPAN will pay for all traffic generated and the cost of
installation to the point-of- presence. This line will be used for production
uses. This will be maintained for the Term of the Agreement.

 

For each communications facility described
above, WORLDSPAN will provide the same level availability as provided to its
highest volume travel agencies using similar facilities.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

24

 

The technology used to support any of the
above links can be modified to provide higher bandwidth, lower cost or better
security so long as such modifications do not materially adversely affect
WORLDSPAN’s performance standards hereunder.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

25

 

AMENDMENT NO. 1

TO CRS MARKETING, SERVICES AND DEVELOPMENT AGREEMENT

 

THIS AMENDMENT NO. 1 TO CRS MARKETING,
SERVICES AND DEVELOPMENT AGREEMENT, dated and effective as of January 1,
1997 (“Amendment”), by and between Microsoft Corporation, a Washington
corporation (“MICROSOFT”) with its principal office at One Microsoft Way,
Redmond, Washington 98052, and WORLDSPAN, L.P., a Delaware limited partnership
(“WORLDSPAN”), with its principal office at 300 Galleria Parkway, NW, Atlanta,
Georgia 30339.

 

MICROSOFT and WORLDSPAN are parties to that
certain CRS Marketing, Services and Development Agreement dated December 15,
1995 (the “Agreement”).

 

WORLDSPAN and MICROSOFT now desire to modify
the Agreement.

 

Now, Therefore,
in consideration of the above recitals, the mutual undertakings of the parties
as contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Amendment
hereby agree as follows:

 

1.                                      Definitions

 

Terms in capitalized form
used in this Amendment shall have the meanings set forth in Schedules 1 and
2.1.2. Terms in capitalized form not defined in this Amendment shall have the
meanings set forth in the Agreement.

 

2.                                      Travel
Supplier Billings

 

A new Section 29 is
hereby added to the Agreement to provide as follows:

 

29                                    Travel Supplier
Billings

 

29.1                           Notwithstanding
anything in this Agreement to the contrary, commencing with Car and Hotel
Bookings as of January 1, 1997, WORLDSPAN agrees to prepare and deliver to
MICROSOFT and/or its designated service provider reasonably approved by
WORLDSPAN, a report showing the Car and Hotel Bookings made through MICROSOFT
System during the preceding calendar month (the “Booking Report”). The Booking
Reports shall be delivered not more than ten (10) days following the end
of the month in which the Car and Hotel Bookings occurred. Each Booking Report
shall be provided in printed form and on electronic media according to the
following specifications: delimited text file and print file, both available
for download via modem by MICROSOFT and/or its designated service provider.
Each Booking Report shall include, for each Car and Hotel Booking, the date
made, name of the traveler, and such other information normally provided by
WORLDSPAN to the Participating Car or Participating Hotel in connection with
WORLDSPAN’s invoice for the Bookings. WORLDSPAN shall use reasonable business
efforts to obligate, where

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

26

 

applicable,
Participating Cars and Participating Hotels to pay Car and Hotel Fees to
MICROSOFT instead of WORLDSPAN. MICROSOFT understands and agrees that WORLDSPAN
may directly bill certain Participating Cars and Participating Hotels for
Bookings made by MICROSOFT System users. MICROSOFT shall be responsible at its
expense for contracting with Travel Suppliers with regard to payment of
MICROSOFT’s charges and other matters related to Bookings from the MICROSOFT
System.

 

29.2                           With
respect to Bookings made through the MICROSOFT System, the parties acknowledge
that Participating Cars and Participating Hotels may agree to provide MICROSOFT
with a negotiated rate agreed upon by MICROSOFT and the applicable Travel
Supplier (“Negotiated Car and Hotel Rates”) in lieu of the customary industry
commissions. MICROSOFT shall provide to WORLDSPAN a list indicating whether a
Participating Car or Hotel has elected to pay a Negotiated Car and Hotel Rate
on a monthly basis. Exhibit A sets forth the Participating Cars and
Participating Hotels that have agreed to pay the Negotiated Car and Hotel Rates
as of the effective date of this Amendment. WORLDSPAN shall prepare a monthly
invoice based upon the list described above and the monthly Booking Report, and
MICROSOFT shall pay WORLDSPAN [**]
per Net Booking made by MICROSOFT System users with respect to Participating
Cars and Participating Hotels that have elected to pay the Negotiated Car and
Hotel Rates. (The amount to be paid with respect to other Travel Suppliers
(i.e., cruises and tours), if any, shall be determined by mutual written agreement
of the parties.) Such invoiced amount shall be paid by MICROSOFT within sixty
(60) days of receipt of WORLDSPAN’s invoice. In the event a Participating Car
or Participating Hotel fails to pay MICROSOFT the Negotiated Car and Hotel
Rates for three (3) consecutive months, and MICROSOFT, despite using
reasonable business efforts, is unable to collect any such fees, MICROSOFT will
notify WORLDSPAN in writing of such uncollected amounts and the parties will
discuss the appropriate next steps. If such Participating Car or Participating
Hotel continues to fail to pay MICROSOFT the Negotiated Car and Hotel Rates for
an additional thirty (30) days after the date of the notice, then MICROSOFT may
elect either (i) to continue to pay to WORLDSPAN the [**] per Net Booking incurred despite its
inability to collect or (ii) to agree to remove the defaulting
Participating Car or Participating Hotel from this Section 29.2 and to
permit WORLDSPAN to directly invoice such defaulting Participating Car or
Participating Hotel the standard WORLDSPAN Car or Hotel Fee in which case
WORLDSPAN will refund (or otherwise offset from amounts owed by MICROSOFT to
WORLDSPAN hereunder) the amounts paid to WORLDSPAN by MICROSOFT for such
uncollected Bookings (provided, however, WORLDSPAN will not be required to
refund any amounts where MICROSOFT fails to collect due to a marketing or other
arrangement with a Participating Car or Participating Hotel).

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

27

 

29.3                           If
WORLDSPAN elects to terminate the availability of a Travel Supplier
participating in the WORLDSPAN System, WORLDSPAN shall notify MICROSOFT as soon
as reasonably practicable and shall use commercially reasonable efforts to make
arrangements appropriate for handling the existing Bookings of such Travel
Supplier made by MICROSOFT users through the WORLDSPAN System.

 

29.4                           WORLDSPAN
and MICROSOFT reserve the right to charge Travel Suppliers for other services
and products, and to modify their respective fees and charges with Travel
Suppliers. In the event that WORLDSPAN changes its Car and Hotel Fee, such
change shall not affect the distribution of the fees collected by MICROSOFT
from such Participating Cars or Participating Hotels as set forth in this
Amendment above unless otherwise agreed to by the parties in writing.

 

29.5                           MICROSOFT
shall make available to WORLDSPAN upon request any of its books, records and
reports as are reasonably necessary to confirm the reports or statement
provided by MICROSOFT hereunder.

 

3.                                      Payment

 

Section 9.2 of the
Agreement is hereby deleted and replaced by the following new Section 9.2:

 

9.2                                 Each
party shall pay all amounts due hereunder calculated pursuant to the formulas
and otherwise in the manner set forth in this Agreement. Except as otherwise
specified, payment shall be made within thirty (30) days of an invoice or,
where the amount owed is determined by the paying party, within sixty (60) days
of the end of the month, quarter or other period to which the obligation
applies. All payments to be made to MICROSOFT shall be sent to the following
address (or to such other address as MICROSOFT so designates in writing to
WORLDSPAN):

 

Microsoft
North American Collections

Attn:  Dept. 551 – Special Agreements

P.O. Box 844505

Dallas, TX 75284-4505

 

4.                                      System
Capacity

 

Section 2.1.2 of the
Agreement is hereby deleted and replaced by the following new Section 2.1.2:

 

2.1.2                        To
ensure reasonable capacity is available and subject to Section 3.1,
WORLDSPAN shall make available to MICROSOFT processing capacity from the
WORLDSPAN System according to the specifications set forth on Schedule 2.1.2
attached hereto and as otherwise provided in this Agreement. MICROSOFT shall
not have any proprietary rights in any equipment or software acquired by

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

28

 

WORLDSPAN to
provide capacity hereunder. Once each calendar month during the term of this
Agreement, MICROSOFT and WORLDSPAN agree to discuss the WORLDSPAN System
capacity available to MICROSOFT and MICROSOFT’s projections with respect to its
total capacity requirements. Based upon such meetings and projections, the
parties shall implement in good faith any necessary changes mutually agreed
upon, including but not limited to the WORLDSPAN System capacity and other
technical issues and shall document such changes in a revised Schedule 2.1.2.
MICROSOFT and WORLDSPAN shall bear the costs and expenses associated with any
expansion of capacity of the WORLDSPAN System only to the extent expressly
agreed to herein by the parties in writing.

 

5.                                      Revenue
Share; Capacity Fees

 

(a)                                  Effective
as of January 1, 1997, Section 11.1 of the Agreement is hereby
deleted and replaced by the following new Section 11.1:

 

11.1.                        A.
As additional consideration for the promises made by WORLDSPAN in this
Agreement including, but not limited to the promises regarding WORLDSPAN System
capacity, MICROSOFT shall pay WORLDSPAN [**]
within thirty (30) days of the signing date of this Amendment. Additionally,
MICROSOFT shall pay WORLDSPAN [**]
within thirty (30) days of the signing of this Amendment.

 

B.                                     (i)                                     The
parties agree that WORLDSPAN shall pay to MICROSOFT the base revenue share
amount indicated in the attached Appendix 1 (“Base Revenue Share”) and the
incentive revenue share amount indicated in the attached Appendix 1 (‘Incentive
Revenue Share”) with respect to all Airline Fees generated by MICROSOFT System
users through the MICROSOFT System. Within sixty (60) days after the end of
each calendar month, WORLDSPAN shall furnish MICROSOFT with a statement
together with payment for all amounts shown thereby to be due to MICROSOFT. The
statement shall be based upon the Base Revenue Share and the Incentive Revenue
Share (together, the “Revenue Share”) for the month preceding the month then
ended, and shall contain information sufficient to discern how the Revenue
Share was computed.

 

(ii)                                  At
the end of each calendar year, WORLDSPAN shall reconcile the amounts billed to
and paid by Participating Airlines for Bookings made by MICROSOFT System users.
In the event a Participating Airline fails to pay and WORLDSPAN, despite using
reasonable business efforts, is unable to collect Airline Fees from such
Participating Airline, WORLDSPAN shall notify MICROSOFT in writing of such
uncollected amounts. Within thirty (30) days of receipt of WORLDSPAN’s notice,
MICROSOFT will refund (or WORLDSPAN may set off from amounts owed by WORLDSPAN
to MICROSOFT hereunder) the amounts paid to MICROSOFT by WORLDSPAN for such
Bookings.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

29

 

MICROSOFT
shall not be required to refund any amounts where WORLDSPAN’s fails to collect
due to a marketing or other arrangement with a Participating Airline.

 

(iii)                               Notwithstanding
the foregoing, MICROSOFT and WORLDSPAN agree to discuss in good faith the
revenue share that would apply in the event a significant or major airline
becomes a Participating Airline.

 

C.                                     MICROSOFT
agrees to pay to WORLDSPAN the Base Capacity Fee (as defined in Schedule 2.1.2)
each month during the term of this Agreement. The Base Capacity Fee shall be
the full amount due to WORLDSPAN from MICROSOFT with respect to the provision
of Base Capacity (as defined in Schedule 2.1.2). The Base Capacity Fee may
be adjusted in accordance with the provisions set forth in Schedule 2.1.2.
Additionally, MICROSOFT agrees to reimburse WORLDSPAN for the charges incurred
by WORLDSPAN with respect to direct communication lines and frame relay access
devices (each party is responsible for its own installation and ongoing costs
of circuits and equipment necessary to connect such party’s facilities to the
local exchange carrier’s termination of the frame relay circuits) that are
requested by MICROSOFT through its Product Unit Manager for the Travel Group (“Direct
Communication Fees”) and to pay the direct costs related to terminal addresses
used in connection with the MICROSOFT System by MICROSOFT’s fulfillment partner
(“Fulfillment Partner Fees”). WORLDSPAN shall invoice MICROSOFT for the Base
Capacity Fee, the Direct Communication Fees, and the Fulfillment Partner Fees
on a monthly basis and shall also include a written report of the PS Rate for
the applicable month and a summary of number of sessions used by MICROSOFT in
connection with the MICROSOFT System. MICROSOFT shall pay the invoiced amount
within thirty (30) days after receipt of the invoice.

 

D.                                    WORLDSPAN
shall make available to MICROSOFT upon request any of its books, records and
reports as are reasonably necessary to confirm the reports or statements
provided by WORLDSPAN hereunder.

 

(b)                                 Section 11.2
of the Agreement is hereby deleted and replaced with the following new Section 11.2:

 

11.2                           Other
than payments made by MICROSOFT for Additional Development Services and the
amounts to be paid by MICROSOFT and WORLDSPAN, if any, pursuant to new Sections
11.1 and 29, MICROSOFT and WORLDSPAN agree that each shall bear its own
expenses incurred in the performance of this Agreement. Not later than June 1,
1999, the parties shall begin to confer for the purpose of determining the need
for making any change to the financial aspects of this Agreement for the period
after September 30, 1999, principally the sharing of revenues received by
WORLDSPAN from Travel Suppliers for Bookings generated by MICROSOFT System
users and expenses incurred by

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

30

 

WORLDSPAN in
excess of the anticipated expenses. If the parties are unable to agree to an
arrangement for the period after September 30, 1999, the Agreement shall
continue according to the terms in effect on September 30, 1999, subject
to each party’s rights in Section 7.2 of this Agreement.

 

6.                                      Confidentiality

 

The terms and conditions
contained in this Amendment shall be considered Confidential Information in
accordance with Section 12 of the Agreement.

 

7.                                      Other
Products and Services

 

With respect to other
products and services through which MICROSOFT may desire to use WORLDSPAN
System, including but not limited to, certain private label products, the
parties will discuss in good faith how such products and services may be included
under the terms of this Agreement.

 

8.                                      Other
Agreements

 

(a)                                  Use of
WORLDSPAN Logo. MICROSOFT agrees that it will include the
WORLDSPAN Wired logo on the bottom of the MICROSOFT Expedia home page.
Placement and size of the logo will be determined by MICROSOFT, however
MICROSOFT will use its best efforts to feature the WORLDSPAN logo in a manner
similar to the presentation of any other third party logo featured on the
MICROSOFT Expedia home page.

 

(b)                                 Updated Hotel
Data. WORLDSPAN agrees, on at least a monthly basis until September 30,
1999, to continue to provide and license to MICROSOFT, subject to Section 4.3
of the Agreement, updated pricing information and data regarding hotel and
other lodging services. WORLDSPAN shall not be obligated to provide any such
pricing information and data supplied by third parties where WORLDSPAN’s
agreement with such third party prohibits providing such data to MICROSOFT or
for which WORLDSPAN is required to pay a fee and the provision of such pricing
information and data is subject to the disclaimer of warranty set forth in Section 28
of the Agreement. Additionally, pursuant to the Section 4.3 of the
Agreement, MICROSOFT has updated certain information and data regarding hotel
and other lodging services received from WORLDSPAN as of the Effective Date of
this Amendment (“Updated Hotel Data”). MICROSOFT hereby grants to WORLDSPAN a
perpetual, nonexclusive, royalty-free worldwide license and right to: (i) develop,
market, sell, make, use, reproduce, modify, adapt, create derivative works
based on, translate, distribute (directly and indirectly), transmit, display
and perform publicly, license, rent, lease, and sell such Updated Hotel Data on
printed, electronic or other fixed media, and to sublicense any or all of the
foregoing rights, including the right to sublicense such rights to third
parties; and (ii) create, develop, market, distribute, transmit, license,
sub-license and sell such Updated Hotel Data. WORLDSPAN, ON BEHALF OF ITSELF,
ITS SUBSIDIARIES, AFFILIATES AND SUBSCRIBERS, ACKNOWLEDGES AND AGREES THAT
NEITHER MICROSOFT, ITS AFFILIATES, NOR ITS AGENTS WARRANTS THE ACCURACY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE UPDATED HOTEL DATA.
WORLDSPAN FURTHER

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

31

 

ACKNOWLEDGES AND AGREES THAT MICROSOFT, ITS
AFFILIATES, AND AGENTS DO NOT MAKE ANY REPRESENTATIONS OR WARRANTIES CONCERNING
THE UPDATED HOTEL DATA. To the extent that MICROSOFT, in its sole discretion,
updates or modifies the Updated Hotel Data from the Effective Date until September 30,
1999, MICROSOFT agrees to provide such updates or modifications to the Updated
Hotel Data to WORLDSPAN without cost. MICROSOFT shall not be obligated to
provide any Updated Hotel Data supplied by third parties where MICROSOFT’s
agreement with such third party prohibits providing such data to WORLDSPAN or
for which MICROSOFT is required to pay a fee.

 

(c)                                  Minimum
Performance Functionality. From the Effective Date of this Amendment
through September 30, 1999, WORLDSPAN agrees to provide the same or
comparable significant functionality tools and features (such as a ticketless
functionality) as other computer reservation systems. So long as WORLDSPAN
complies with the foregoing, MICROSOFT agrees that it will maintain from the
Effective Date of this Amendment through September 30, 1999; on a calendar
quarterly basis, at least [**] CRS
booking share from Expedia North America on the WORLDSPAN System. At any time
after MICROSOFT enters into an agreement with another computer reservation
system for [**], MICROSOFT shall
provide WORLDSPAN with a quarterly report that details bookings made by Expedia
North American users. In the event MICROSOFT does not maintain at least a [**] CRS booking share from Expedia North
America on the WORLDSPAN System, the amounts otherwise payable to MICROSOFT
pursuant to Section 5 of this Amendment and Appendix 1 shall be reduced by
[**].

 

9.                                      Effective
Date

 

Except as provided in this
Amendment or the schedules, the provisions of this Amendment shall be effective
as of the date specified in the preamble to this Amendment.

 

10.                               Continuation
of Agreement

 

Except as provided in this
Amendment, the Agreement shall continue in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be executed by their duly authorized undersigned
representatives as of the date first above written.

 

	
  MICROSOFT CORPORATION

  	
  WORLDSPAN, L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ John
  Neilson

  	
   

  	
  By:

  	
  /s/ Mike
  Buckman

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
  John Neilson

  	
   

  	
  Print Name:

  	
  Mike Buckman

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Vice
  President

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  
	
  Date : 6-16-97

  	
   

  
										

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

32

 

SCHEDULE I

DEFINITIONS RELATING TO THE AMENDMENT TO THE 

CRS MARKETING, SERVICES AND DEVELOPMENT AGREEMENT

 

“Airline Fee”
means the fee charged by WORLDSPAN to a Participating Airline for Bookings and
other transactions made through the WORLDSPAN System by MICROSOFT System users.

 

“Base Capacity”
has the meaning set forth in Schedule 2.1.2.

 

“Base Capacity Fee”
has the meaning set forth in Schedule 2.1.2.

 

“Base Revenue Share”
has the meaning set forth in Section 5 of the Amendment.

 

“Booking”
means a reservation, electronic message or other transaction made through the
WORLDSPAN System with respect to a Travel Supplier for which WORLDSPAN charges
a fee.

 

“Booking Report”
has the meaning set forth in Section 2 of the Amendment.

 

“Car and Hotel
Booking” means a reservation or other transaction made
through the WORLDSPAN System with respect to a Participating Car or
Participating Hotel for which WORLDSPAN charges a fee.

 

“Car and Hotel Fee”
means the fee charged by WORLDSPAN to Participating Cars and Participating
Hotels for Bookings and other transactions made through the WORLDSPAN System by
MICROSOFT users.

 

“Direct Communication
Fees” has the meaning set forth in Section 5 of
the Amendment.

 

“Fulfillment Partner
Fees” has the meaning set forth in Section 5 of
the Amendment.

 

“Incentive Revenue
Share” has the meaning set forth in Section 5 of
the Amendment.

 

“Negotiated Car and
Hotel Rates” has the meaning set forth in Section 2
of the Amendment.

 

“Net Booking”
means the total number of Bookings generated for a Travel Supplier by a
MICROSOFT System user during a calendar month, minus the cancellations accepted
by WORLDSPAN for such Travel Supplier.

 

“Off-Peak Time”
has the meaning set forth in Schedule 2.1.2.

 

“Off-Peak Power
Shopper Factor” or “Off-Peak PS Factor” has the
meaning set forth in Schedule 2.1.2.

 

“Participating
Airline” means an airline that is a party to an
agreement with WORLDSPAN for participation in the WORLDSPAN System and which
pays WORLDSPAN Airline Fees.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

33

 

“Participating Car” means a single company or
facility that rents or leases cars or other vehicles, a chain of such
companies, or an entity representing a group of car or other vehicle rental
facilities that is a party to an agreement with WORLDSPAN for participation in
the WORLDSPAN System and which pays WORLDSPAN a fee.

 

“Participating Hotel”
means a single hotel or other lodging facility, chain of hotels or lodging
facility, or entity representing a group of hotels or lodging facilities, that
is a party to an agreement with WORLDSPAN for participation in the WORLDSPAN
System and which pays WORLDSPAN a fee.

 

“Peak Time”
has the meaning set forth in Schedule 2.1.2

 

“Peak Power Shopper
Factor” or “Peak PS
Factor” has the meaning set forth in Schedule 2.1.2.

 

“Power Shopper Rate”
or “PS Rate” has the meaning set
forth in Schedule 2.1.2.

 

“Revenue Share”
has the meaning set forth in Section 5 of the Amendment.

 

“Segment”
means each passenger leg created in a passenger name record booked in the
WORLDSPAN System by a MICROSOFT System user less cancellations.

 

“Updated Hotel Data”
has the meaning set forth in Section 8 of the Amendment.

 

“WORLDSPAN Sessions”
has the meaning set forth in Schedule 2.1.2.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

34

 

SCHEDULE 2.1.2

CAPACITY REQUIREMENTS

 

1.                                       Base
Capacity; Base Capacity Fees.

 

The table below sets forth the initial base
capacity that WORLDSPAN will provide to MICROSOFT as measured by a Power
Shopper Rate (during both Peak and Off-Peak Times) for each identified usage by
the MICROSOFT System. MICROSOFT may change the initial base capacity pursuant
to Section 2 of this Schedule 2.1.2, and the base capacity at any
time during the term is defined herein as “Base Capacity”.

 

In consideration for the Base Capacity,
MICROSOFT will pay the total Base Capacity Fees indicated in the table below on
a monthly basis in accordance with Section 5(a) of the Amendment.
MICROSOFT will receive a [**]
discount from the Base Capacity Fee in any month if (and subject to Section 3.1
of the Agreement) (i) WORLDSPAN provides a substantive, accurate response
to MICROSOFT’s processor [**] of
the time during the month, or (ii) WORLDSPAN fails to provide the Base
Capacity in any period (excluding any downtime) during the month.

 

If MICROSOFT decides to change the level of
Base Capacity (in accordance with the procedure outlined in Section 2
below), the Base Capacity Fees will be increased or decreased, as applicable,
by [**] per WORLDSPAN Session
(SMI/ST/DIR) per month as a result of the requested change in Base Capacity.
The table below indicates the additional fee that will be incurred by MICROSOFT
for one additional Power Shopper message per second that may be requested by
MICROSOFT. Any changes to Base Capacity will be billed effective as of the
first day of the month such change is implemented by WORLDSPAN.

 

If MICROSOFT exceeds the indicated Base
Capacity by [**] or less for any
given minute during the month, then MICROSOFT will pay to WORLDSPAN the
applicable Base Capacity Fee. If MICROSOFT exceeds the indicated Base Capacity
by [**] or less but more than [**] for any given minute during the month,
then MICROSOFT will pay to WORLDSPAN the applicable Base Capacity Fee and the
pro-rated portion of the Base Capacity Fee for the amount of capacity used in
excess of Base Capacity. If MICROSOFT exceeds the indicated Base Capacity by
more than [**] for any given minute
during the month, then MICROSOFT will pay to WORLDSPAN the applicable Base
Capacity Fee, the pro-rated portion of the Base Capacity Fee for the amount of
capacity used in excess of Base Capacity, and the penalty fee indicated in the “Penalty”
column of the Table.

 

Microsoft Base Capacity Table

 

[**]

 

2.                                       Procedure
for Changing Base Capacity.

 

MICROSOFT may from time to time during the
term of this Agreement request changes to Base Capacity. Changes to Base
Capacity may be requested only by the MICROSOFT Product Unit

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

35

 

Manager for the Travel Group to the WORLDSPAN
Product Specialist - Expedia. Requests must be made by email, fax or letter.
MICROSOFT will pay for expanded capacity only to the extent requested by
MICROSOFT.

 

WORLDSPAN shall provide the requested changes
to the Base Capacity on the following schedule, provided however that MICROSOFT
may not request a change of more than [**]
Power Shopper messages per second at any one time:

 

•                  within
two (2) weeks after receiving notice for a less than [**] increase or decrease (based upon the
total Power Shopper messages per second or sessions for the MICROSOFT System)
for existing SMI/ST/DIR sessions.

 

•                  within
sixty (60) days after receiving notice for a more than [**]increase or decrease (based upon the
total Power Shopper messages per second or sessions for the MICROSOFT System) for
an existing SMI/ST/DIR sessions.

 

•                  within
sixty (60) days after receiving notice for a new SID.

 

Notwithstanding the above schedule, WORLDSPAN
will only be required to provide a change in Base Capacity that equals [**] per second (or more) within sixty (60)
days after receiving notice of the request. Additionally, WORLDSPAN shall not
be required to provide to MICROSOFT more than [**]
Power Shopper messages per second in connection with the uses by the MICROSOFT
System as set forth in the above Table (or subsequent versions of the Table).
The parties agree to discuss in good faith applicable capacity issues in the
event MICROSOFT desires to obtain more than [**]
Power Shopper messages per second in connection with the uses of the MICROSOFT
System as set forth in the above Table (or subsequent versions of the Table).
WORLDSPAN may reject messages from the MICROSOFT System to the extent that
capacity for any given minute during the month exceeds the indicated Base
Capacity by more than [**] if it
causes a denigration of the WORLDSPAN System.

 

3.                                       Other
Requirements

 

In connection with providing Base Capacity,
WORLDSPAN agrees to configure its Power Shopper capacity to accept a Power
Shopper message for each SMI session. MICROSOFT will be responsible for appropriately
“throttling” the Power Shopper messages per second rate to its associated Base
Capacity. Additionally, WORLDSPAN will provide [**] two test labs on the WORLDSPAN test systems for customer
test as a cost of doing business and will not be used in billing calculations.

 

Current WORLDSPAN capacity configuration may
be adjusted at MICROSOFT’s request per Section 2 above (i.e. – [**] sessions can be changed to [**] sessions).

 

[**]

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

36

 

4.                                       Capacity
Meetings and Reports.

 

WORLDSPAN will provide the following
information and reports to MICROSOFT on a monthly basis prior to the capacity
meetings described in Section 4 of the Amendment:

 

[**]

 

5.                                       Changes
to Schedule 2.1.2. The parties may revise and amend this Schedule 2.1.2
from time to time during the term of the Agreement. Any amended Schedule 2.1.2
must be signed by both parties and attached to the Agreement.

 

6.                                       Definitions.

 

Subject to Section 1 of the Amendment,
the following are the defined terms for the purposes of this Schedule 2.1.2:

 

“Base Capacity” means the PS Rate supported
by WORLDSPAN for the MICROSOFT System.

 

“Base Capacity Fees” means the fees set forth
in the Microsoft Base Capacity Table in Section 1 of this Schedule 2.1.2.

 

“Off-Peak Time” means 19:00 Eastern Time -
7:00 Eastern Time.

 

“Power Shopper” or “PS” means the
functionality provided through the WORLDSPAN System to permit a user to
automatically retrieve the lowest priced travel option as more fully defined in
the document entitled “WORLDSPAN Super Transaction Implementation Guide” as
modified on November 13, 1995.

 

“Peak Time” means 07:00 Eastern Time - 19:00 Eastern
Time.

 

“Power Shopper Rate” or “PS Rate” means the
number of PS requests received by WORLDSPAN from the MICROSOFT System per
second averaged over a fixed one minute period.

 

“WORDSPAN Sessions” means the total of SMI
sessions, ST sessions and DIR sessions requested by MICROSOFT that are
connected to the production WORLDSPAN TPF system.

 

“Peak Power Shopper Factor” or “Peak PS
Factor” = [**]

 

“Off-Peak Power Shopper Factor” or “Off-Peak
PS Factor” = [**]

 

(Note - Peak and Off Peak Power Shopper Factor
are determined from the current MICROSOFT configuration of PS enabled sessions
for the MICROSOFT US Expedia product.)

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

37

 

APPENDIX
I

REVENUE SHARE MATRIX

 

The Revenue Share payable by
WORLDSPAN to MICROSOFT shall consist of a Base Revenue Share and an Incentive
Revenue Share.

 

The Base Revenue Share of
Airline Fees shall be based on the number of Power Shopper messages per net
Segment per month. The “Base Revenue Share” column indicates that percentage
amount of Airline Fees that will be paid by WORLDSPAN to MICROSOFT in
accordance with Section 5 of the Amendment from dollar one. 

 

	
  Power Per

  Net

  	
   

  	
  Shopper

  Segment

  	
   

  	
  Message

  Per Month

  	
   

  	
  Base Revenue

  Share

  
	
  35.01

  	
   

  	
   

  	
  And

  	
   

  	
  Above

  	
   

  	
  Renegotiate

  
	
  30.01

  	
   

  	
   

  	
   

  	
   

  	
  35.00

  	
   

  	
   

  	
  [**]

  
	
  29.01

  	
   

  	
   

  	
   

  	
   

  	
  30.00

  	
   

  	
   

  	
  [**]

  
	
  28.01

  	
   

  	
   

  	
   

  	
   

  	
  29.00

  	
   

  	
   

  	
  [**]

  
	
  27.01

  	
   

  	
   

  	
   

  	
   

  	
  28.00

  	
   

  	
   

  	
  [**]

  
	
  26.01

  	
   

  	
   

  	
   

  	
   

  	
  27.00

  	
   

  	
   

  	
  [**]

  
	
  25.01

  	
   

  	
   

  	
   

  	
   

  	
  26.00

  	
   

  	
   

  	
  [**]

  
	
  23.01

  	
   

  	
   

  	
   

  	
   

  	
  25.00

  	
   

  	
   

  	
  [**]

  
	
  21.01

  	
   

  	
   

  	
   

  	
   

  	
  23.00

  	
   

  	
   

  	
  [**]

  
	
  19.01

  	
   

  	
   

  	
   

  	
   

  	
  21.00

  	
   

  	
   

  	
  [**]

  
	
  17.01

  	
   

  	
   

  	
   

  	
   

  	
  19.00

  	
   

  	
   

  	
  [**]

  
	
  15.01

  	
   

  	
   

  	
   

  	
   

  	
  17.00

  	
   

  	
   

  	
  [**]

  
	
  13.01

  	
   

  	
   

  	
   

  	
   

  	
  15.00

  	
   

  	
   

  	
  [**]

  
	
  11.01

  	
   

  	
   

  	
   

  	
   

  	
  13.00

  	
   

  	
   

  	
  [**]

  
	
  9.01

  	
   

  	
   

  	
   

  	
   

  	
  11.00

  	
   

  	
   

  	
  [**]

  
	
  7.01

  	
   

  	
   

  	
   

  	
   

  	
  9.00

  	
   

  	
   

  	
  [**]

  
	
  5.01

  	
   

  	
   

  	
   

  	
   

  	
  7.00

  	
   

  	
   

  	
  [**]

  
	
  Below

  	
   

  	
   

  	
   

  	
   

  	
  5.01

  	
   

  	
   

  	
  [**]

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

38

 

The Incentive Revenue Share
shall be based on the number of net Segments generated by MICROSOFT System
users each month. The Incentive Revenue Share column indicates the percentage
of Airline Fees that will be paid by WORLDSPAN to MICROSOFT on an incremental
basis.

 

[**]

 

For example, and subject to
the limitation in the next paragraph, if the net Segments for a particular month
total [**], WORLDSPAN will pay
Microsoft an incentive Revenue Share equal to [**]
for net Segments that exceed [**]
but are less than [**] plus [**] for net Segments that exceed [**] but are less than [**].

 

The maximum Revenue Share of
Airline Fees to be paid by WORLDSPAN to MICROSOFT on a monthly basis shall not
exceed [**]

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

39

 

EXHIBIT A

 

List
of Participating Hotels and Participating Cars Paying Negotiated Car and Hotel
Rates

 

Participating
Hotels:

 

[**]

 

Participating
Cars:

 

[**]

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

40

 

Amendment
No. 2

to CRS Marketing, Services and Development Agreement

 

This Amendment No. 2 to
the CRS Marketing, Services and Development Agreement (the “Amendment”) is entered
into as of July 27, 1998 (the “Amendment Effective Date”) by and between
Microsoft Corporation, a Washington corporation (“Microsoft”) with its
principal office at One Microsoft Way, Redmond, Washington 98052, and
WORLDSPAN, L.P., a Delaware limited partnership (“WORLDSPAN”), with its
principal office at 300 Galleria Parkway, NW, Atlanta, Georgia 30339.

 

Recitals

 

Microsoft and WORLDSPAN are parties to that certain
CRS Marketing, Services and Development Agreement dated December 15, 1995,
as amended by the parties pursuant to that certain Amendment No. 1 dated January 1,
1997 (collectively, the “Agreement”).

 

Microsoft and WORLDSPAN seek to modify the Agreement
as set forth herein to provide an additional avenue for mutual cooperation
wherein WORLDSPAN will encourage certain travel suppliers to join the Microsoft
Expedia Associates Program, and WORLDSPAN and Microsoft will share WORLDSPAN
revenues created from travel bookings deriving from customers who access
Expedia (and WORLDSPAN) via the web sites of such new Associates.

 

Now, therefore, in consideration of the above
recitals, the mutual undertakings of the parties as contained herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties to this Amendment hereby agree as follows:

 

Agreement

 

1.                                      Definitions

 

Terms in capitalized form used in this Amendment shall
have the meanings set forth in Schedule I of this Amendment or in the text
of this Amendment. Terms in capitalized form not defined in Schedule I or
in the text of the Amendment shall have the meanings set forth in the
Agreement.

 

2.                                      Revenue Share; Capacity and SID Fees

 

A new Section 11.3 is hereby added to the Agreement
to provide as follows:

 

11.3.                        WORLDSPAN Expedia Associates Program

 

A.                                   Notwithstanding anything to the contrary in
this Section 11, effective as of the Amendment Effective Date, the parties
agree that all Airline Fees generated with respect to WORLDSPAN/EAP Bookings
shall be shared [**] by the
parties. The revenue share matrix set forth in Appendix 1 of Amendment No. 1
shall not apply to WORLDSPAN/EAP Bookings. In addition, the additional fees
charged by

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

41

 

WORLDSPAN
as referred to in Section 30.6 herein shall be reported to Microsoft, but
this revenue will not be shared.

 

B.                                     Within sixty (60) days after the end of each
calendar month, WORLDSPAN shall furnish Microsoft with a statement regarding,
and full payment for, all amounts due to Microsoft pursuant to subsection A
above. WORLDSPAN shall be responsible for tracking the source of all its
Bookings to enable the parties to determine which Bookings qualify as
WORLDSPAN/EAP Bookings subject to Section 1l.3. A above. At the end of
each calendar year, WORLDSPAN shall reconcile the amounts billed to and paid by
WORLDSPAN Expedia Associates. In the event a WORLDSPAN Expedia Associate fails
to pay and WORLDSPAN, despite using reasonable business efforts, is unable to
collect Airline Fees from such WORLDSPAN Expedia Associate, WORLDSPAN will
deduct [**] of the amount not
collected from such WORLDSPAN Expedia Associate from amounts otherwise owed by
WORLDSPAN to Microsoft.

 

C.                                     The parties further acknowledge and agree
that, with respect to all WORLDSPAN/EAP Bookings, there shall be no Incentive
Revenue Share payable to either party.

 

D.                                    Capacity for WORLDSPAN/EAP Bookings shall be
provided by WORLDSPAN and paid by Microsoft in accordance with Schedule 2.1.2
of Amendment No. 1.

 

E.                                      In the event WORLDSPAN EAP Air Bookings
exceed [**] per month in any month
during the first year following the Amendment Effective Date, Microsoft shall
arrange and pay for up to [**].
WORLDSPAN shall use such tickets as incentives to be provided to WORLDSPAN
employees (and their guests) who market Expedia to Eligible Customers.

 

F.                                      Microsoft agrees to process any and all
WORLDSPAN Expedia Associates’ car and hotel bookings, reservations and other
transactions via the WORLDSPAN System, regardless of whether Microsoft uses any
other CRS to process such car and hotel bookings reservations or other
transactions for other providers.

 

3.                                      WORLDSPAN Marketing of Expedia Associate
Program

 

A new Section 30 shall be added to the Agreement
to provide as follows:

 

30.                                 Marketing of Expedia Associate Programs;
WORLDSPAN Contacts

 

30.1                           During the term of this Agreement, WORLDSPAN
may initiate Marketing Contacts with any Eligible Customers for purposes of
encouraging such Eligible Customers to sign the EAP Agreement. WORLDSPAN shall
not entertain any discussions with the Excluded Carriers regarding the Expedia
Associate Program without first receiving written permission from Microsoft,
even in the event such an Excluded

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

42

 

Carrier
contacts WORLDSPAN for information regarding the EAP Program; in such case,
WORLDSPAN shall promptly refer such entities to Microsoft.

 

30.2                           Microsoft agrees that for six (6) months
starting with the Amendment Effective Date, Microsoft shall not itself make
contacts with airlines who are Eligible Customers, nor authorize any third
party other than WORLDSPAN to make such contacts, for the purposes of having
such Eligible Customers sign EAP Agreements for U.S. and Canada points of sale.
Microsoft may decide, in its sole discretion, to extend the foregoing period
longer than six (6) months.

 

30.3                           WORLDSPAN may disclose the terms of the EAP
Agreement in Marketing Contacts to potential WORLDSPAN Expedia Associates, and
may show such Agreement to the potential WORLDSPAN Expedia Associate and allow
a duplicate to remain in the possession of such potential Associate. WORLDSPAN
shall present interested parties with all information necessary to contact a
designated Microsoft representative to pursue signing the EAP Agreement. If the
WORLDSPAN candidate signs an EAP Agreement, then if the candidate so agrees.
Microsoft shall provide WORLDSPAN a copy of the signed EAP Agreement, subject
to nondisclosure obligations.

 

30.4                           In the event a WORLDSPAN Marketing Contact
results in the delivery of a WORLDSPAN MTT Customer to Microsoft or the
conversion of an Expedia Associate to an MTT Customer, Microsoft shall pay
WORLDSPAN [**] of the initial,
one-time license fee (first year only) Microsoft may receive from such
WORLDSPAN MTT Customer. To the extent a WORLDSPAN Marketing Contact results in
the WORLDSPAN candidate becoming a WORLDSPAN Expedia Associate prior to
becoming a WORLDSPAN MTT Customer, the compensation provisions regarding
WORLDSPAN Expedia Associates shall apply. WORLDSPAN shall not have the right to
receive a copy of signed Microsoft Travel Technology agreements.

 

30.5                           In no event shall either party be considered,
or represent itself, as an agent of the other. Both parties agree that
WORLDSPAN is an independent contractor providing sales services to Microsoft and
that WORLDSPAN has no authority to enter into any obligations, make any
representations or warranties or negotiate any agreements on Microsoft’s
behalf. Similarly, Microsoft has no authority to enter into any obligations,
make any representations or warranties or negotiate any agreements on WORLDSPAN’s
behalf.

 

30.6                           Initially, the parties agree that WORLDSPAN
may charge (or discount or waive) WORLDSPAN fees to Eligible Customers to
complete a Marketing Contact, in addition to any other compensation owed by the
WORLDSPAN Expedia Associate to Microsoft or WORLDSPAN under the EAP Agreement
or under the WORLDSPAN Expedia Associate’s billing arrangements with WORLDSPAN.
The parties shall reexamine such additional WORLDSPAN fees within six (6) months
of the Amendment Effective Date, and WORLDSPAN shall be permitted to continue
such fees after six (6)

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

43

 

months
only if the parties so agree in writing. Notwithstanding the foregoing,
WORLDSPAN retains exclusive control over the identity of and the terms of its
agreements with Travel Suppliers.

 

30.7                           The parties agree that the WORLDSPAN “wired”
logo shall appear on WORLDSPAN Expedia Associates’ web sites in substantially
the same form as set forth in Exhibit B.

 

30.8 In the event that
traffic generated by WORLDSPAN Expedia Associates makes Microsoft exceed the
capacity provided under Schedule 2.1.2 of Amendment 1, Microsoft may
restrict the ability of users referred by WORLDSPAN Expedia Associates to make
searches and bookings on Expedia, unless WORLDSPAN agrees in writing to provide
additional capacity to accommodate the WORLDSPAN Expedia Associates users.

 

4.                                      WORLDSPAN Account

 

A new Section 31 shall be added to the Agreement
to provide as follows:

 

31.                                 Changing the CRS of a WORLDSPAN Expedia
Associate.

 

Microsoft agrees not to
switch the processing of WORLDSPAN bookings, reservations or other transactions
for any WORLDSPAN Expedia Associate to any other CRS during the initial term of
the WORLDSPAN Expedia Associate’s EAP Agreement, and for twelve (12) months
after such initial term. Notwithstanding the foregoing, twenty-four (24) months
after the effective date of the EAP Agreement for any WORLDSPAN Expedia
Associate, Microsoft may switch the WORLDSPAN Expedia Associate’s WORLDSPAN EAP
Bookings to another CRS.

 

5.                                      Territory

 

The term “Territory” as defined in Schedule 1 of
the Agreement is hereby revised to provide as follows:

 

“Territory” means the entire world.

 

The parties agree that,
along with this change of the definition of “Territory,” the second and third
sentences of Section 4.3 of the Agreement are deleted, and Microsoft may
market and advertise the availability of travel services via Expedia in the
applicable countries within TC3 as it does in the rest of the Territory.

 

6.                                      Fare Guarantee

 

A new Section 32 shall be added to the Agreement
to provide as follows:

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

44

 

32.                                 Fare
Guarantee.

 

A.                                   Beginning August 1, 1998, WORLDSPAN
guarantees that the prices available to Expedia for any itinerary for a
scheduled airline flight or flights will be correctly calculated according to
applicable fare rules. In the event that any carrier issues to Microsoft or its
authorized representative a debit memo or other charge for any fare that is not
correct, WORLDSPAN shall promptly either pay the amount of such memo or charge
directly to the carrier, or reimburse Microsoft.

 

B.                                     This guarantee by WORLDSPAN shall be subject
to the following terms:

 

1.                                       The price must be based upon published fares
in the WORLDSPAN System.

 

2.                                       The guarantee applies only to reservations
made on the scheduled flights of WORLDSPAN Participating Carriers and through
one of the predetermined SIDs, for Microsoft Expedia in Great Britain, Germany,
France and Australia. Other countries may be added upon the mutual written
consent of both parties.

 

3.                                       The price must be autopriced by Power Shopper
or other standard WORLDSPAN System facility such as, but not limited to,
entries 4P or 4PLFB. The guarantee does not apply to other pricing methods such
as agent assist price or rate desk price, unless the fare has been approved
before booking by a WORLDSPAN representative.

 

C.                                     Any fare quoted by the WORLDSPAN System will
remain valid for ticketing until midnight the day following the day the
reservation is made. For purposes of determining when a reservation is made,
the time zone of the SID for a particular country shall apply rather than the
time zone for the Point of Sale. WORLDSPAN will establish SID location per
Microsoft direction.

 

D.                                    If Microsoft receives a debit memo or
otherwise is advised that a price subject to this guarantee is not correct,
Microsoft shall promptly forward such memo or item to WORLDSPAN. WORLDSPAN
shall promptly investigate and, where the price is guaranteed according to this
Agreement, pay the airline the amount of the charge or, reimburse Microsoft.
WORLDSPAN will use commercially reasonable efforts to provide Microsoft a
written report by the fifteenth day of each calendar month with respect to the
handling of charges referred by Microsoft during the previous month.

 

E.                                      WORLDSPAN may terminate this Section 32
in its sole discretion without penalty or reimbursement with ninety (90) days
written notice to Microsoft.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

45

 

All other terms not
expressly amended herein shall remain in full force and effect as set forth in
the Agreement.

 

	
  MICROSOFT
  CORPORATION

  	
   

  	
  WORLDSPAN,
  L.P.

  
	
   

  	
   

  	
   

  
	
  /s/ Simon Breakwell

  	
   

  	
  /s/ Jeff Hoffman

  
	
  By

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
  Simon Breakwell

  	
   

  	
  JEFF HOFFMAN

  
	
  Name (Print)

  	
   

  	
  Name (Print)

  
	
   

  	
   

  	
   

  
	
  Group Manager

  	
   

  	
  VICE PRESIDENT

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  7/30/98

  	
   

  	
  7/27/98

  
	
  Date

  	
   

  	
  Date

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

46

 

Schedule 1

 

Definitions

 

“Co-Branded
Pages” means the Web pages to
be developed and maintained within Expedia by MS pursuant to the terms of the
EAP Agreement and incorporating the branding of both MS and the WORLDSPAN
Expedia Associate.

 

“EAP” means the Microsoft Expedia Associate
Program, the terms and conditions of which are set forth in the EAP Agreement.

 

“EAP
Agreement” means an
agreement executed between Microsoft and a Eligible Customer that is
substantially in the form attached hereto as Exhibit A.

 

“Eligible
Customers” means any
airline (not on the Excluded Carrier list – Schedule 2) offering U.S. or
Canadian Point of Sale, which are customers of WORLDSPAN at WORLDSPAN’s “direct
access,” “direct sell,” or “airline source” level (referring to the level of
access into their reservation database for purposes of online booking via
WORLDSPAN). Microsoft may add additional categories of companies to the
definition of Eligible Customers by providing written notice to WORLDSPAN.

 

“Excluded
Carriers” means those
airline carriers listed in Schedule 2 hereto.

 

“Expedia” means the software code, informational
databases, products, and other components that make up Microsoft’s service to
enable such end users to shop for, reserve, book (including, at a minimum, air
travel, hotel accommodations, and car rentals) and pay for certain travel
services via a personal computer (or other interactive device) connected to the
Internet or other network. Microsoft currently offers such service on the Web
under the name “Expedia,” but such name may change from time to time and the
term “Expedia” as used herein shall be deemed to refer to all future versions
of the above-described online service, regardless of the name under which it is
offered from time to time, and includes without limitation any and all
additional, follow-on, successor or replacement versions of such service.

 

“Marketing
Contact” means any
sales call or other contact initiated by WORLDSPAN with a Eligible Customer in
which WORLDSPAN explains and markets Microsoft’s EAP program or MTT program,
and persuades such potential EAP Associate or MTT Customer to contact a
designated Microsoft liaison with the intention of entering into the EAP
Agreement or MTT license agreement.

 

“Microsoft
Travel Technology”
means the computer software and other technology that provides the travel
booking functionality for Expedia.

 

“Point of
Sale” means the
location of an Expedia user making a Booking on Expedia, determined by the
billing address of the credit card the end user uses to make the booking.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

47

 

“SID” shall mean a WORLDSPAN Subscriber
Identification code that allows Microsoft and WORLDSPAN to identify end user
traffic on Expedia as originating with a WORLDSPAN Expedia Associate.

 

“Web Link
Page(s)” means any
page(s) within the web site of a WORLDSPAN Expedia Associate that provides a
hyperlink directly to a Co-Branded Page in Expedia.

 

“WORLDSPAN/EAP
Air Booking” means a
WORLDSPAN/EAP Booking for air travel tickets.

 

“WORLDSPAN/EAP
Booking” means any
reservation, electronic message or other transaction made through the WORLDSPAN
System (a) for which WORLDSPAN charges a fee and (b) that is
completed by a user of Expedia who has linked directly to Expedia from Web Link
Page of a WORLDSPAN Expedia Associate.

 

“WORLDSPAN
Expedia Associate”
means any Eligible Customer that actually enters into an EAP Agreement with
Microsoft as a direct result of a Marketing Contact.

 

“WORLDSPAN
MTT Customer” means
an Eligible Customer who, as a direct result of a Marketing Contact, enters
into a license agreement with Microsoft for Microsoft Travel Technology in
order to allow customers to reserve and purchase travel services via such
Eligible Customer’s Web site.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

48

 

Schedule 2

 

Excluded
Carriers

 

[**]

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

49

 

Exhibit A

 

Sample
EAP Agreement

 

MICROSOFT
CORPORATION

ASSOCIATE PROGRAM AGREEMENT

 

THIS AGREEMENT (“Agreement”) contains the complete
terms and conditions for participation in Microsoft Expedia Associate Program (“Program”),
and is made and entered into as of the later of the two signature dates below
(the “Effective Date”) by and between MICROSOFT CORPORATION (“MS”), a
Washington, U.S.A. corporation, and(“Company”), a                          
corporation.

 

1.                                      DEFINITIONS

 

1.1                               “Co-Branded Pages” means (a) the Welcome Page,
and(b) the Expedia Travel Agent web pages co-branded with the COMPANY
logo in accordance with the specifications set forth in Exhibit 1. Such
Expedia Travel Agent web pages will be made available to users of COMPANY’s
Web Site who link directly to Expedia from the COMPANY Web Link Pages.

 

1.4                               “COMPANY Web Link Pages” means the pages within
COMPANY Web Site as identified in Exhibit 2 that provide a hyperlink
directly to a Co-Branded Page in Expedia.

 

1.5                               “COMPANY Web Site” means COMPANY’s site located at
[insert URL of COMPANY’S site] and any successor web site.

 

1.6                               “Expedia” means the software code, informational
databases, products, and other components that make up MS’ service which is
marketed for use by individual end users in the United States and/or Canada to
enable such end users to shop for, reserve, book (including, at a minimum, air
travel, hotel accommodations, and car rentals) and pay for certain travel
services via a personal computer (or other interactive device) connected to the
Internet or other network. MS currently offers such service on the Web under
the name “Expedia,” but such name may change from time to time and the term “Expedia”
as used herein shall be deemed to refer to all future versions of the above-
described online service, regardless of the name under which it is offered from
time to time, and includes without limitation any and all additional,
follow-on, successor or replacement versions of such service.

 

1.7                               “Expedia Logo” means the MS’ Expedia logo as set forth
in Exhibit 2.

 

1.8                               “Expedia Travel Agent” means the area within Expedia
where Users may search for and book airline tickets, automobile rentals, and
hotel rooms.

 

1.9                               “User” means any person accessing the COMPANY Web
Site, Expedia, or the Co-Branded Pages.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

50

 

1.10                        “Welcome Page” means the first Co-branded Page (as
more particularly described in Exhibit 1) that a User sees when the User
links to Expedia from Company Web Link Pages.

 

2.                                      MS OBLIGATIONS

 

2.1                               MS shall create and maintain the Co-Branded Pages of
Expedia as set forth in Exhibit 1 for use by Users linking directly to
Expedia from COMPANY Web Link Pages. MS may use COMPANY’s logo and/or logo link
described in Exhibit 1 in accordance with any COMPANY logo guidelines that
may be set forth in Exhibit 1 or any other replacement guidelines that
COMPANY may provide to MS in writing from time-to-time during the term of this
Agreement. COMPANY’s logo link on the Co-Branded Pages shall link directly
back to COMPANY Web Link Pages.

 

2.2                               MS shall provide COMPANY with a Uniform Resource
Locator (URL) to link from COMPANY Web Link Pages to the Welcome
Co-Branded Page or similar page specified in Exhibit 1.

 

2.3                               MS shall provide services to users linking directly to
Expedia from COMPANY Web Link Pages in accordance with MS’ then-current
standard terms and conditions and standard customer service policies and
procedures applying generally to users of Expedia.

 

2.4                               MS shall provide COMPANY, reports that set forth the
activity by users linking directly to Expedia from COMPANY Web Link Pages during
the applicable month.

 

2.5                               MS shall be responsible for the development,
operation, and maintenance of Expedia and the Co-Branded Pages and, except
as expressly set forth herein, MS will remit Fare and Tax revenue through
normal agency channels. MS shall retain all other revenues (including all
advertising revenues) that are generated from Expedia, the Co-Branded Pages or
related services.

 

2.6                               In the event traffic on Expedia exceeds or threatens
to exceed MS’ back end booking capacity, MS shall retain the right to redirect
or temporarily block User searches.

 

3.                                      COMPANY OBLIGATIONS

 

3.1                               No later than thirty(30) days after the Effective
Date, COMPANY shall prominently display and maintain a persistent hyperlink (in
the form indicated in Exhibit 2 or a substitute that MS may provide to
COMPANY from time-to-time during the term of this Agreement) on the COMPANY Web
Link Pages which shall link directly to the Welcome Page (or other
Co-Branded Page) on Expedia. If Exhibit 2 indicates that such persistent
hyperlink shall be in the form of an MS logo, then the COMPANY agrees to comply
with the MS logo link guidelines as set forth in Exhibit 3 or any other
replacement guidelines that MS may provide to COMPANY in writing from
time-to-time during the term of this Agreement.

 

3.2                               COMPANY shall provide MS with all the information
identified in the checklist set forth in Exhibit 1 at least seven (7) days
prior to the Effective Date.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

51

 

3.3                               During the term of the Agreement, COMPANY shall use
commercially reasonable efforts to actively market and promote Expedia and the
services available on Expedia in order to generate the maximum number of
bookings on Expedia by users of COMPANY Web Site. During the term of this
Agreement, COMPANY agrees that it will not with respect to the COMPANY Web
Site, co-brand, grant a sponsorship to or promote any third-party online travel
service provider other than Expedia.

 

3.4                               COMPANY shall be responsible for the development,
operation, and maintenance of COMPANY Web Site and for all materials that
appear on COMPANY Web Site, including without limitation, as follows:

 

(a)                                  all technical operation of COMPANY Web Site
and all related equipment;

 

(b)                                  all maintenance of the hyperlink(s) to
Expedia as described in Exhibit 1 ; and

 

(c)                                  compliance with all MS trademark requirements
or guidelines as defined in Exhibit 3 and Section 4 below.

 

3.5                               COMPANY agrees that it shall submit the COMPANY Web
Link Pages as described in Exhibit 2 (and any modifications thereof)
to MS for its review and written approval prior to publishing such COMPANY Web
Link Pages. Company shall submit such materials to the MS Expedia Associate
Program Product Manager for review. In no event shall COMPANY or its agents
make or extend any representation or warranty on behalf of MS with respect to
Expedia or the services available therein.

 

4.                                      MS TRADEMARKS IN PROMOTION MATERIALS

 

COMPANY agrees that if it
desires to use MS trademarks, logos or branding in any COMPANY promotional
material then COMPANY shall first submit all marketing pieces, documentation,
and other materials which contain an MS trademark, logo or branding to MS for
its prior review and written approval. Company shall submit such materials to
the MS Expedia Associate Program Product Manager for review.

 

5.                                      OWNERSHIP OF EXPEDIA

 

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

 

5.2                               End users who use Expedia, including users who have
linked to Expedia from COMPANY Web Link Pages, shall be deemed to be customers
of Microsoft Expedia for all purposes with respect to such users’ actions on
Expedia. Accordingly, all Expedia terms and conditions, rules, policies and
operating procedures including but not limited to policies relating to the use
of customer personally identifying information, customer orders, customer
service, and ticket fulfillment will apply to those customers. MS reserves the
right to change such terms and conditions, rules, policies and operating
procedures at any time.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

52

 

6.                                      PAYMENTS

 

6.1                                 Fees.

 

Microsoft Expedia is an
accredited IATA approved agency. COMPANY agrees to pay Microsoft Expedia normal
commissions that it pays to standard agencies.

 

7.                                      TERM AND TERMINATION

 

7.1                               The term of this Agreement shall commence on the
Effective Date and, unless terminated earlier as provided herein, shall
continue for one (1) year after the Effective Date.

 

7.2                               In the event that MS exits the online travel service
business and no longer offers Expedia, MS may terminate this Agreement with
written notice to COMPANY. Additionally, in the event either party materially
fails to perform or comply with this Agreement or any provision thereof, and
fails to remedy the default within seven (7) days after the receipt of
notice to that effect, then the other party shall have the right, at its sole
option and upon written notice to the defaulting party, to terminate this
Agreement upon written notice. Any notice of default hereunder shall be
prominently labeled “NOTICE OF DEFAULT,” and if to MS, shall be copied to MS’
Law & Corporate Affairs Department, attn. U.S. Legal Group. The rights
and remedies provided in this section shall not be exclusive and are in
addition to any other rights and remedies provided by law or this Agreement.

 

7.3                               Upon termination or expiration of this Agreement for
any reason, COMPANY shall immediately remove any MS logo link from COMPANY Web
Site Pages.

 

7.4                               The following provisions shall survive termination of
this Agreement: 7.3, 7.4 and 8-12.

 

8.                                      REPRESENTATIONS AND WARRANTIES

 

Each party hereby represents
and warrants as follows:

 

8.1                               Corporate Power. Such party is duly organized and validly existing
under the laws of the state of its incorporation and has full corporate power
and authority to enter into this Agreement and to carry out the provisions
hereof.

 

8.2                               Due Authorization. Such party is duly authorized to execute and deliver
this Agreement and to perform its obligations hereunder.

 

8.3                               Binding Agreement. This Agreement is a legal and valid obligation
binding upon it and enforceable with its terms. The execution, delivery and
performance of this Agreement by such party does not conflict with any
agreement, instrument or understanding, oral or written, to which it is a party
or by which it may be bound, nor violate any law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over
it.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

53

 

8.4                               Logos and Marks. Such party has the full and exclusive right to grant
or otherwise permit the other party to use the trademarks, logos and trade
names as set forth in this Agreement, and that it is aware of no claims by any
third parties adverse to any of such trademarks, logos and trade names.

 

The representations and
warranties and covenants in this Section 8 are continuous in nature and
shall be deemed to have been given by each party at execution of this Agreement
and at each stage of performance hereunder. These representations, warranties
and covenants shall survive termination or expiration of this Agreement.

 

9.                                      LIMITATION OF WARRANTY

 

EXCEPT AS EXPRESSLY
WARRANTED IN SECTION 8 ABOVE, EACH PARTY EXPRESSLY DISCLAIMS ANY FURTHER
WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE.

 

10.                               INDEMNIFICATION AND LIMITATION OF LIABILITY

 

10.1                        Indemnification by COMPANY. COMPANY shall, at its expense and MS’
request, defend any third-party claim or action brought against MS, and MS’
affiliates, directors, officers, employees, licensees, agents and independent
contractors, (i) relating to COMPANY Web Site or the marketing thereof,
and (ii) to the extent it is based upon a claim that, if true, would
constitute a breach of a COMPANY warranty, representation or covenant set forth
in this Agreement (collectively, “COMPANY Claims”), and COMPANY shall indemnify
and hold MS harmless from and against any costs, damages and fees reasonably
incurred by MS, including but not limited to fees of attorneys and other
professionals, that are attributable to such COMPANY Claims. MS shall provide
COMPANY reasonably prompt notice in writing of any such COMPANY Claims and
provide COMPANY with reasonable information and assistance, at COMPANY’s
expense, to help Company to defend such COMPANY Claims.

 

10.2                        Indemnification by MS. MS shall, at its expense and COMPANY’s request,
defend any third-party claim or action brought against COMPANY, and its
affiliates, directors, officers, employees, licensees, agents and independent
contractors, (i) relating to Expedia, the Co-Branded Pages or the
marketing thereof, and (ii) to the extent it is based upon a claim that,
if true, would constitute a breach of a MS warranty, representation or covenant
set forth in this Agreement (collectively, “MS Claims”), and MS shall indemnify
and hold COMPANY harmless from and against any costs, damages and fees
reasonably incurred by COMPANY, including but not limited to fees of attorneys
and other professionals, that are attributable to such MS Claims. COMPANY shall
provide MS reasonably prompt notice in writing of any such MS Claims and
provide MS with reasonable information and assistance, at MS’ expense, to help
MS to defend such MS Claims.

 

10.3                        Limitation of Liability. BOTH PARTIES AGREE THAT NEITHER PARTY WILL BE LIABLE
FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING BUT
NOT LIMITED TO SUCH DAMAGES ARISING FROM

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

54

 

BREACH OF CONTRACT OR
WARRANTY OR FROM NEGLIGENCE OR STRICT LIABILITY), OR FOR INTERRUPTED
COMMUNICATIONS, LOST BUSINESS, LOST DATA OR LOST PROFITS, ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF (OR
KNOWS OR SHOULD KNOW OF) THE ONLY POSSIBILITY OF SUCH DAMAGES. UNDER NO
CIRCUMSTANCES SHALL MS BE LIABLE TO COMPANY OR ANY THIRD PARTY FOR AN AMOUNT
GREATER THAN THE AGGREGATE AMOUNTS PAID BY MS HEREUNDER.

 

11.                               CONFIDENTIALITY; MEDIA COMMUNICATIONS

 

11.1                        If MS and COMPANY have entered into a Microsoft
Non-Disclosure Agreement, MS and COMPANY agree that the terms of such agreement
shall be deemed incorporated herein, and further, that all terms and conditions
of this Agreement shall be deemed Confidential Information as defined therein.
If MS and COMPANY have not entered into a Microsoft Non-Disclosure Agreement,
then each party expressly undertakes to retain in confidence and to require its
agents and contractors to retain in confidence all information and know-how
transmitted to such party that the disclosing party has identified as being proprietary
and/or confidential or which, by the nature of the circumstances surrounding
the disclosure, ought in good faith to be treated as proprietary and/or
confidential. Without limiting the foregoing, all terms and conditions of this
Agreement shall be considered confidential and shall not be disclosed (except
to either party’s attorneys and accountants on a need-to-know basis) without
the prior written consent of the other party.

 

11.2                        MS and COMPANY agree that the initial press release or
communication to the press and/or public regarding this Agreement and the
parties’ relationship shall be made only after prior consultation with the
other party. Subsequent accurate press releases and other communications to the
press and/or public regarding the parties’ relationship may be made by either
party subject to the confidentiality obligations set forth in Section 11.1.

 

12.                               GENERAL

 

12.1                        Governing Law; Venue; Attorneys Fees. This Agreement shall be construed and
controlled by the laws of the State of Washington, and each party further
consents to jurisdiction by the state or federal courts sitting in the State of
Washington. Process may be served on either party by U.S. Mail, postage
prepaid, certified or registered, return receipt requested, or by such other
method as is authorized by law. If either MS or COMPANY employs attorneys to
enforce any rights arising out of or relating to this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys’ fees and costs,
including expert witness fees.

 

12.2                        Force Majeure. If the performance of this Agreement or any
obligation hereunder is prevented, restricted or interfered with by any act or
condition whatsoever beyond the reasonable control of the affected party, the
party so affected, upon giving prompt notice to the other party, shall be
excused from such performance, except for the making of payments hereunder, to
the extent of such prevention, restriction or interference.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

55

 

12.3                        Notices; Requests. All notices and requests in connection with this
Agreement shall be deemed given as of the day they are (i) deposited in the
U.S. mails, postage prepaid, certified or registered, return receipt requested;
or (ii) sent by overnight courier, charges prepaid, with a confirming fax;
and addressed as follows:

 

	
  COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  courier
  address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  mailing
  address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  	
   

  
	
  Phone:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with a cc
  to:

  	
   

  	
  Corporate
  Legal Department

  
	
   

  	
   

  	
   

  
	
  MS:

  	
   

  	
  MICROSOFT
  CORPORATION

  
	
   

  	
   

  	
  One Microsoft Way

  
	
   

  	
   

  	
  Redmond, WA 98052-6399

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Product Manager, Expedia
  Travel

  
	
   

  	
   

  	
   

  
	
  with a cc to:

  	
   

  	
  MICROSOFT CORPORATION

  
	
   

  	
   

  	
  One Microsoft Way

  
	
   

  	
   

  	
  Redmond, WA 98052-6399

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Law & Corporate
  Affairs Department

  
	
  Fax:

  	
   

  	
  U.S. Legal Group

  
	
   

  	
   

  	
  (425) 936-7329

  

 

or to such other address as
the party to receive the notice or request so designates by written notice to
the other.

 

12.4                        Assignment. COMPANY may not assign this Agreement, or any
portion thereof, to any third party unless MS expressly consents to such
assignment in writing. For the purposes of this Agreement, a merger,
consolidation, or other corporate reorganization, or a transfer or sale of a
controlling interest in COMPANY’s stock, or of all or substantially all of its
assets shall be deemed to be an assignment.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

56

 

12.5                        Severability. In the event that any provision of this Agreement is
found invalid or unenforceable pursuant to judicial decree or decision, the
remainder of this Agreement shall remain valid and enforceable according to its
terms. The parties intend that the provisions of this Agreement be enforced to
the fullest extent permitted by applicable law. Accordingly, the parties agree
that if any provisions are deemed not enforceable, they shall be deemed
modified to the extent necessary to make them enforceable.

 

12.6                        Entire Agreement; Modification; No Offer. The parties hereto agree that this
Agreement (and the Microsoft Non-Disclosure Agreement to the extent incorporated
herein) constitutes the entire agreement between the parties with respect to
the subject matter hereof and merges all prior and contemporaneous
communications. It shall not be modified except by a written agreement dated
subsequent hereto signed on behalf of COMPANY and MS by their duly authorized
representatives. Neither this Agreement nor any written or oral statements
related hereto constitute an offer, and this Agreement shall not be legally
binding until executed by both parties hereto.

 

12.7                        Binding Effect. Subject to the limitations herein before expressed,
this Agreement will inure to the benefit of and be binding upon the parties,
their successors, administrators, heirs, and permitted assigns.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the dates
indicated below.

 

	
  MICROSOFT
  CORPORATION

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By (sign)

  	
   

  	
  By (sign)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name (Print)

  	
   

  	
  Name (Print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Federal Employer ID No.:

  	
   

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

57

 

Exhibit 1

 

Co-Branded
Pages Specifications

 

Expedia.com
Associates Program

Partner Set-Up Information Form

 

Getting
set up with the Expedia Associates Program is easy! The 5 simple steps below
provide you with the necessary information to help you get set up.

 

•                  Step
1: Provide us with some basic information

 

•                  Step
2: Send us your logo and a return link to your site

 

•                  Step
3: Fill in the Friendship Table

 

•                  Step
4: Linking to Expedia.com

 

•                  Step
5: Send completed form and signed contract to Microsoft

 

•                  Step
6: Microsoft sends you your Expedia Associates Program Identification Number and
URLs for linking to Expedia

 

•                  Step
7: How to get a free Hot Mail account to receive your monthly reports and
Expedia Updates!

 

Please complete this
document filling in blanks and checking appropriate boxes where indicated and
return to Joel Ruzich at your earliest convenience. Once this form has been
completed and returned to Expedia, you will be sent back a copy of this form
and an email confirmation with specific URL information.

 

If you have any questions or
comments, please do not hesitate to contact Erin Cullen, Marketing Coordinator
at [425] 703-6625 or via email a-erincu@microsoft.com for assistance.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

58

 

Step
1: Provide us with Basic Information

 

Please fill in the blanks
below:

 

	
  Your Company Name

  	
   

  	
   

  
	
   

  	
   

  	
  This is the name consumers will see on the Intro page (see Step 2, for sample screen shots of
  this page). Please limit this name to a maximum of 40 characters. Example:     Blue Yonder
  Airways

  
	
   

  	
   

  	
   

  
	
  Business Contact Name & email

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Email Address:

  	
   

  
	
   

  	
   

  	
  The name & email address to receive
  information and notification with regards to EAP promotions, reports, member
  information, etc.

  Example:     jane@blueyonderairways.com

  
	
   

  	
   

  	
   

  
	
  Monthly Report Email Address

  	
   

  	
   

  
	
   

  	
   

  	
  The email address to receive your monthly
  performance report.

  Example:     ken@blueyonderairways.com

  
	
   

  	
   

  	
   

  
	
  Technical Contact Name & email

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Email Address:

  	
   

  
	
   

  	
   

  	
  The name & email address to receive
  information and notification with regards to set-up and review of EAP links
  and pages and any technical questions.

  Example:     jane@blueyonderairways.com

  
	
   

  	
   

  	
   

  
	
  Your Company “Short Name”:

  	
   

  	
   

  
	
   

  	
   

  	
  A shortened version (up to 8 characters) of Partner
  Name.

  Example: bluydair

   

  (Note: If you represent multiple sites or multiple
  links, and each site is linking to Expedia, you must assign a unique number
  to each site. For example, suppose you are Alpine Ski Center and there are
  individual store sites you represent; you would list the following multiple
  short names and numbers:

  bluydair 01      -Alpine
  Ski Center

  bluydair 02      -Alpine
  Sports Ski Haus

  bluydair 03      -Alpine
  Sports Ski House

   

  In order to track each of these, please complete a
  separate EAP Partner Set Up Information Required form for each sub-site.)

  
	
   

  	
   

  	
   

  
	
  Business Type

  	
   

  	
  Select one:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Air

  	
  Car

  
	
   

  	
   

  	
  Directory

  	
  Hotel

  
	
   

  	
   

  	
  Search Engine

  	
  Travel Content

  
	
   

  	
   

  	
  Other (please specify):

  	
   

  
							

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

59

 

• Step 2: Send us your logo and a return link
your site

 

Please provide your logo as
a Gif in an electronic file format. Total Gif dimensions should be 180 width
and 38 height. The logo must be centered on a white background with no border
within the specified area. An additional fade element image (15w x 38h) will be
added to the left of the logo (see example below).

 

Coloring should be within
the 216 color palette that is Netscape and Internet Explorer Compatible. This
will ensure a clean solid appearance with no dithering pattern. (If your logo
contains gradient, metallic, or gives a 3D rendered appearance please provide a
high quality jpeg file instead of a Gif.)

 

Example:

 

[GRAPHIC]

 

[GRAPHIC]

 

Please fill in the blank
below:

 

	
  Your Return Page URL

  	
   

  	
   

  
	
   

  	
   

  	
  The URL where you’d like users to return to if they
  click on your logo (as shown in the banner samples above). Typically this
  return URL is either to your homepage or the page on your site the
  visitor was last at.

  Example:     Error! Bookmark not defined.

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

60

 

• Step 3: Friendship Table

 

If applicable, select
whether a consumer sees and chooses from a complete list of companies (see
Figure 3) or a singular company.

 

	
  Airline Flight Wizard

  	
   

  	
  (select one) 

  o
  Show complete list of airlines to choose from

  

  o Show only one
  airline. Please specify:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Example: Show only one airline: Blue Yonder Airways

  
	
   

  	
   

  	
   

  
	
  Car Wizard

  	
   

  	
  (select one)

  o
  Show complete list of car rental companies to choose from

  

  o Show only one car
  rental company. Please specify:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Hotel Wizard

  	
   

  	
  (select one)

  o
  Show complete list of hotels to choose from

  

  o Show only one hotel
  company. Please specify:

  
	
   

  	
   

  	
   

  

 

Figure 3

 

	
   

  	
   

  	
  If you’d like to rent from a specific company, select a name from the
  drop-down list below.

  
	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  All

  All

  Advantage Rent A Car

  Alamo Rent A Car

  Avis

  Budget

  Dollar Rent A Car

  Hertz

  National Car Rental

  Interrent

  Sears Car and Truck Rental

  Thrifty Car Rental

  Value Rent A Car

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

61

 

• [ARROW] Step 4: Linking to Expedia.com

 

Linking to Expedia is
simple! We will work with you to design a welcome page that you can link
to from your site. This page will reside on Expedia’s web site and explain
how Expedia works to your customers. We
recommend this method of linking to Expedia because it:

 

•                  Provides
your customer with an individual welcome from both your company and Expedia
(co-branding)

 

•                  Includes
necessary information to help your customer with all of their travel needs

 

•                  Clearly
explains how to use Microsoft Expedia

 

Please review our
recommended linking method below - option 1 (as well as the additional option detailed
on the next page). Once you have decided which method of linking you prefer,
please indicate which choice you prefer by selecting one of the options (on
this page and the following page).

 

 Y/N  
OPTION 1 Expedia works with you to create a welcome page (Figure 1 illustrated below.)

 

Figure 1

 

Key

 

•                  Circled
areas represent a link

 

•                  Arrows
point to where the link will take the customer

 

1.)                                   You add a link to your main site to Expedia.  (image –
left).

 

2.)                                   Your customer clicks on the Microsoft Expedia
link and goes to the Welcome page on Expedia.com

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

62

 

Below is option 2 for linking
to Expedia. This method of linking to Expedia requires creation of an
additional page hosted on your web site explaining Expedia and providing a
link to the Travel Agent main page (and/or additional linking options as
illustrated below). If you select this option, the page you develop should
include the following:

 

•                  Clear
direction to your customer they will be leaving your web site and going to
Expedia

 

•                  Thorough
explanation of Expedia: what the service is and what it provides

 

If you select this option,
we will work with you on implementing your page and also need to approve
the final design.

 

Y/N   OPTION 2 Your company creates your welcome page (Figure 2 illustrated below.)

 

Figure 2

 

Key

 

•                  Circled
areas represent a link

 

•                  Arrows
point to where the link will take the customer

 

1.)                                   You add a link to your main web site to an
additional page on your company web site (image
– below)

 

2.)                                   Create an additional site which your company
will build and host that introduces & explains Expedia and then directs
your customers to the

 

[GRAPHIC]

 

The Travel Agent main page site
sits behind our registration wall. Therefore, your visitors in this instance
will go to our registration page if they are not currently an Expedia
member. If the visitor is an existing member, they will go directly into the
area you link to.

 

3.)                                   Link to Expedia via one or more of the
following urls: (this example uses Blue
Yonder Airways EAPid which is 101)

 

Travel Agent Main Page:
http://expedia.msn.com/oub/eap.asp?EAPID=101-1

Flight Wizard: http://expedia.msn.com/oub/eap.asp?Intro=http:%2F%2Fexpedia.msn.com%2Fpub%2Fela
dll%3Fcscr%3Dfexp%25illy%30new&EAPID=101-1

Car Wizard:

http://expedia.msn.com/pub/eap/asp?INTRO=http%2F%2Fexpedia.msn.com%2Fpub%2Feta.dll%3Fascr%3Dspec%

26illy%3Dnew%26flag%3DF&aapid=101.1

Hotel Wizard: http://expedia.msn com/pub/eap aso?INTRO=http%2F%2Fexpedia.msn.com%2Fpub%2Fela
dll%3Fcscr%3Dhtwx%26illy%3Dnew&EAPID=101-1

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

63

 

• Step 6: 
Return this form and the signed contract to Microsoft

 

Please send this form and your signed contract to:

 

Attn: Joel Ruzich

Microsoft Travel Business Unit

Microsoft Corporation

One Microsoft Way

Remond, Washington 98052-6399

 

• Step 6: 
Microsoft will send your Expedia Identification Number and URLs

 

We will provide you with an
EAPid number to be used when setting up URLs. You will receive a copy of this
completed form with your unique EAPid once the contracts are signed. In
addition, we will send you linking information for linking to Expedia.com (this
will be filled out below and returned to you).

 

(This section is
to be filled in by Microsoft)

 

	
  1.) Your Identification
  Number -EAPid(1)

  	
   

  	
  We will send you this
  information with completed form

  
	
   

  	
   

  	
   

  
	
  2.) URLs

  These URLs will be used for linking to Expedia from your web site.

  	
   

  	
  We will send you this
  information with completed form

  

(1) EAPid =
Expedia Associates Programs Identification

 

• Step 7: 
Sign up for your free Hot Mail account to receive your monthly reports
and Expedia Updates

 

We send out monthly reports
and Expedia.com updates each month via your EAP Hot Mail account. The report is
in HTML format and provides you with your company monthly activity as well as
new promotions on Expedia you can participate in and other Expedia.com content
and event updates.

 

If you are running Microsoft
Outlook 98 you will be able to receive HTML based email. Check here if you are
running Outlook 98 and include your email address:

 

[GRAPHIC]

 

To sign up for your Hot Mail
account here is what you need to do:

 

1.)           Go to http://hotmail.com/

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

64

 

2.)           Register and Sign up for your account!

 

3.)           Send Expedia your Hot Mail address we will add to our account list for
monthly reporting distribution i.e., blueyonderair@hotmail.com (or the name of
the person who will receive the reports)

 

HOTMAIL EMAIL ADDRESS –
INPUT HERE BEFORE RETURNING FORM:

 

 

	
   

  
	
  The names of companies,
  products, people, characters, and/or data mentioned herein are fictitious and
  are in no way intended to represent any real individual, company, product, or
  event, unless otherwise noted.

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

65

 

Appendix
A

 

Figure
1 - Option 1: Co-Branded Introduction Page

 

If you choose this option,
your url to link to Expedia would be as follows:
http://expedia.msn.com/pub/eap.asp?EAPID=X-1 X in this instance is a
PLACEHOLDER for your EAPid. With your returned contract and set up form, your
assigned url will be found within Step 5 under EAPid.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

66

 

Appendix
B

 

Figure
2 – Option 2: Customized Introduction Page

 

If you choose this option,
your url to link to Expedia would one or more of the following URLS:

 

[GRAPHIC]

 

	
  3.) Link to Expedia via one or more of the following urls: (this example uses Blue Yonder Airways EAPid which
  is 101)

  Travel Agent Main Page: http://expedia.msn.com/oub/eap.asp?EAPID=101-1

  Flight Wizard:
  http://expedia.msn.com/oub/eap.asp?Intro=http:%2F%2Fexpedia.msn.com%2Fpub%2Fela
  dll%3Fcscr%3Dfexp%25illy%30new&EAPID=101-1

  Car Wizard:
  http://expedia.msn.com/pub/eap/asp?INTRO=http%2F%2Fexpedia.msn.com%2Fpub%2Feta.dll%3Fascr%3Dspec%26illy%3Dnew%26flag%3DF&aapid=101.1

  Hotel Wizard: http://expedia.msn com/pub/eap
  aso?INTRO=http%2F%2Fexpedia.msn.com%2Fpub%2Fela.dll%3Fcscr%3Dhtwx%26illy%3Dnew&EAPID=101-1
  

  

 

X in this instance is a
PLACEHOLDER for your EAPid. With your returned contract and set up form, your
assigned url will be found within Step 5 under EAPid.

 

[GRAPHIC]

 

[GRAPHIC]

 

Expedia Page Link

 

Travel Agent Main Page or
one of the other options: Hotel, Car or Flight wizard.

 

Tagging occurs when the user
from Blue Yonder Airways clicks through to the Expedia web site.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

67

 

Exhibit 2

 

Expedia
Logo

 

[LOGO OF MICROSOFT
EXPEDIA.COM APPEARS HERE]

Start your travel here

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

68

 

Exhibit 3

 

Expedia
Logo Link and

Guidelines for Using the Expedia Logo Link

On COMPANY Web Link Pages

 

The following guidelines
apply to COMPANY’S use of the Expedia Logo for use on COMPANY Web Link Pages

 

1.               Except as Microsoft may authorize elsewhere,
COMPANY may use only the Expedia Logo in accordance with the Agreement and
guidelines set forth below.

 

2.               COMPANY may only use the Expedia Logo on
COMPANY Web Link Pages identified in Exhibit 1, and not in any other
manner. It must always be an active link to Microsoft’s Expedia web site at
http://expedia.com/. HTML code for the link is shown below.

 

3.               The Expedia Logo gif includes certain words
describing the significance of the Expedia Logo on COMPANY Web Site Pages (i.e.
the Expedia Logo is a link to Microsoft, not an endorsement of COMPANY Web
Site). COMPANY may not remove or alter this or any other element of the Expedia
Logo.

 

4.               The Expedia Logo may be used only on COMPANY
Web Link Pages that make accurate references to Microsoft Expedia’s
products or services. COMPANY Web Link Page title and other trademarks and
logos must appear at least as prominent as the Expedia Logo. COMPANY may not
display the Expedia Logo in any manner that implies sponsorship, endorsement,
or license by Microsoft.

 

5.               The Expedia Logo must appear by itself, with
a minimum spacing (the height of the Expedia Logo) between each side of the
Expedia Logo and other graphic or textual elements on COMPANY Web Link Page.
The Expedia Logo may not be used as a feature or design element of any other
logo.

 

6.               COMPANY may not alter the Expedia Logo in any
manner, including size, proportions, colors, elements, etc., or animate, morph
or otherwise distort its perspective or two-dimensional appearance.

 

7.               COMPANY may not use the Expedia Logo on any
site that disparages Microsoft or its products or services, infringes any
Microsoft intellectual property or other rights, or violates any state, federal
or international law.

 

These guidelines do not
grant a license or any other right in Microsoft’s logos or trademarks.
Microsoft reserves the right in its sole discretion to terminate or modify
permission to use the Expedia Logo at any time. Microsoft reserves the right to
take action against any use that does not conform to these Policies, infringes
any Microsoft intellectual property or other right, or violates other
applicable law.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

69

 

Exhibit B

 

Sample Appearance of WORLDSPAN Wired Logo

on WORLDSPAN Expedia Associate Web Sites

 

[LOGO OF WORLDSPAN WIRED APPEARS HERE]

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

70

 

Amendment No. 3

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 3 to the CRS Marketing, Services and Development Agreement (the “Amendment
No. 3”) is entered into as of April 1, 1999 (the “Amendment Effective Date”)
by and between Microsoft Corporation, a Washington corporation (“Microsoft”)
with its principal office at One Microsoft Way, Redmond, Washington 98052, and
WORLDSPAN, L.P., a Delaware limited partnership (“WORLDSPAN”), with its
principal office at 300 Galleria Parkway, NW, Atlanta, Georgia 30339.

 

Recitals

 

i.                                          Microsoft and
WORLDSPAN are parties to that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997 and Amendment No. 2
dated July 1, 1998 (collectively, the “Agreement”).

 

ii.                                       Microsoft and
WORLDSPAN seek to modify the Agreement as set forth herein to change the
revenue sharing arrangements, capacity provisions, and other terms under the
Agreement.

 

Now,
therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

Agreement

 

1.                                      Definitions

 

Terms in capitalized form
not defined in the text of this Amendment No. 3 shall have the meanings set
forth in the Agreement.

 

2.                                      Revenue Share

 

(a)                                  The revenue
share matrix set forth in Appendix 1 of Amendment No. 1 shall be deleted and
replaced in its entirety with the matrix attached as Appendix 1 of this
Amendment No. 3.  Furthermore, Section 11.3
A. through D. of the Agreement, as set forth in Amendment No. 2, shall be
deleted, and the revenue share described in Appendix 1 of this Amendment No. 3
shall apply to WORLDSPAN/EAP Bookings as well as all other air bookings under
the Agreement.  However, in the event (i)
WORLDSPAN breaches the Development Agreement between the parties dated as of July 1,
1999 (the “BFS Agreement”) and Microsoft elects to terminate the BFS Agreement
pursuant to Section 5.2(a) of the BFS Agreement or (ii) WORLDSPAN
elects to terminate the BFS Agreement pursuant to Section 5.2(b) of the
BFS Agreement, then the revenue share and WORLDSPAN’s capacity commitment will
revert to the Revenue Share, volume tables and WORLDSPAN capacity commitment
set forth in Schedule 2.1.2 and Appendix 1 of Amendment No. 1 to the Agreement.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

71

 

(b)                                 Microsoft
recognizes that [**] and WORLDSPAN
are in the process of negotiating an agreement whereby WORLDSPAN will provide [**] with hosting and other airline
services.  As a part of these
negotiations, WORLDSPAN has agreed to charge hosting and other airline
services.  As a part of these
negotiations, WORLDSPAN has agreed to charge [**]
at cost (as determined in accordance with WORLDSPAN’s normal cost collection
and allocation methodology, as used by WORLDSPAN with respect to its owner
airlines) for messages generated through the [**].  Microsoft agrees that these at-cost fees charged
by WORLDSPAN to [**] will not be
included within the definition of Airline Fees under this Agreement and will
not be subject to the revenue share specified in Appendix 1.  In the event WORLDSPAN and [**] do not execute an agreement for
hosting and other airline services within three (3) years after the Effective
Date, WORLDSPAN will charge [**]
for all transactions generated on the [**]
in accordance with the Participating Carrier Agreement between [**] and WORLDSPAN and all revenue received
from [**] from its Internet
booking site as an [**] (including
all amounts paid retroactively by [**])
will be included as Airline Fees and shared with Microsoft in accordance with
Appendix 1.

 

[**]

 

(c)                                  Section 11.2
of the Agreement is hereby deleted and replaced with the following new Section 11.2:

 

Section 11.2.
Other than payments made by MICROSOFT for Additional Development Services and
the amounts to be paid by MICROSOFT and WORLDSPAN, if any, pursuant to new
Sections 11.1 and 29, MICROSOFT and WORLDSPAN agree that each shall bear its
own expenses incurred in the performance of this Agreement.

 

3.                                      Capacity

 

Schedule 2.1.2
is deleted from the Agreement in its entirety. Section 2.1.2 of the
Agreement, as set forth in Amendment No. 1, is hereby deleted and replaced in
its entirety with the following:

 

Section 2.1.2.
WORLDSPAN and Microsoft will work together in good faith to ensure the
WORLDSPAN System has sufficient capacity to process Microsoft’s estimated
demand in accordance with this Section. The failure of either (i) WORLDSPAN to
deliver sufficient capacity to meet Microsoft’s demand, or (ii) Microsoft to
deliver the anticipated air ticket sales, will result in a financial penalty
mutually agreed upon by the parties as set forth herein.

 

(a)                                  Each
month during the Term, Microsoft shall provide to WORLDSPAN a good faith
estimate of the projected Expedia air ticket sales for each of the following
twelve (12) months. WORLDSPAN will estimate segments to be generated by the
projected level of Expedia air ticket sales and the number of Power Shopper
messages that are expected to be generated by the estimated segments. Microsoft
shall provide such assistance and information for WORLDSPAN’s estimation of
segments and Power Shopper messages as WORLDSPAN may reasonably request. Upon
conclusion of this

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

72

 

forecasting process, WORLDSPAN shall make all necessary preparations to
provide sufficient capacity on the WORLDSPAN System to support the projected
Expedia demand during the next six (6) months, as projected pursuant to subsection (b)
below.

 

(b)                                 If
a given estimate of Expedia demand will cause WORLDSPAN to make material
equipment purchases (e.g. purchase of new CPUs or other equipment) specifically
for additional Expedia demand, WORLDSPAN shall notify Microsoft thereof in
writing, and Microsoft shall either reconfirm or adjust its estimate of Expedia
air ticket sales within ten (10) days after such notice (such reconfirmed or
adjusted estimate, a “Microsoft Binding Estimate”). WORLDSPAN may also adjust
the related estimates of segments and Power Shopper messages. WORLDSPAN shall
deliver the required capacity no later than ninety (90) days after the date of
a Microsoft Binding Estimate.

 

(i)                                     The
financial remedy to compensate WORLDSPAN for excess capacity or Microsoft for
insufficient capacity shall be determined by the parties after the following
occur:

 

• A forecasting
model that calculates air ticket sales will be developed by Microsoft within
thirty (30) days of Microsoft’s execution of this Amendment and approved by
WORLDSPAN within thirty (30) days after receipt from Microsoft.

 

• A capacity
planning and tracking model to forecast capacity and calculate rejected demand
will be built by WORLDSPAN within thirty (30) days of WORLDSPAN’s execution of
this Amendment and approved by Microsoft within thirty (30) days after receipt
from WORLDSPAN.

 

• The agreed-upon
models will be used for six (6) months from approval of the above models before
instituting any financial penalties and, during such testing, may be “tweaked”
or otherwise adjusted by mutual agreement of the parties in order to better
achieve their intended purposes. At the end of such six (6) month period (the “Test
Period”), if the models, as so adjusted, would not have resulted in payments to
either party, then the financial payment aspects of these procedures will
become operative for the remainder of the term of this Agreement. If, however,
the models, as so adjusted, would, have resulted in payments to either party
during the Test Period, then the financial aspects of these procedures will not
become operative and the parties will negotiate in good faith to develop
alternative models or procedures as a replacement for those described. If the
parties fail to reach an agreement regarding such replacement models or
procedures within two (2) months after the end of the Test Period, then the
financial payment aspects of the models, as so adjusted, shall continue in
effect with a cap of [**] per
month payable by either party, until the parties mutually agree on alternative
financial arrangements.

 

The financial penalties will be determined based on the parameters set
forth in Section 2.1.2(b)(ii) and (iii) below.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

73

 

(ii)                                  If
actual Expedia air ticket sales in a given month are less than [**] of the Microsoft Binding Estimate,
then Microsoft will pay WORLDSPAN an amount based on WORLDSPAN’s anticipated
portion of lost Airline Fees. Such Airline Fees shall be calculated at the revenue
share level for such month, as set forth in Appendix 1 of this Amendment No. 3.
If actual ticket sales in a given month are greater than [**] of the Microsoft Binding Estimate,
then Microsoft will owe nothing additional to WORLDSPAN.

 

(iii)                               If
actual Expedia air ticket sales in a given month are less than [**] of the Microsoft Binding Estimate due
to a failure of the WORLDSPAN System to support the forecast segments and Power
Shopper messages necessary to process the Microsoft Binding Estimate, WORLDSPAN
will pay Microsoft an amount based on Microsoft’s anticipated portion of
Airline Fees for ticket sales that do not get processed due to such
interruptions in capacity. Such Airline Fees shall be calculated at the revenue
share level for such month, as set forth in Appendix 1 of this Amendment No. 3.
If the WORLDSPAN System processes [**]
or more of the Microsoft Binding Estimate, then WORLDSPAN will owe nothing
additional to Microsoft.

 

(c)                                  On an annual
basis, Microsoft will provide WORLDSPAN with a long-term demand forecast
covering at least three (3) years beyond the current year. WORLDSPAN, within
thirty (30) days after Microsoft’s delivery of such demand forecast, will
provide Microsoft a nonbinding projection of the capacity WORLDSPAN will
provide in the same three (3) year period to support the forecast Microsoft
demand. If after reviewing the demand forecast from Microsoft pursuant to this Section 2.1.2(C),
WORLDSPAN can demonstrate that it can not meet the capacity requirements during
the forecast period by the time required without having to build a new computer
data center or without materially altering the architecture of the WORLDSPAN
System, WORLDSPAN will provide Microsoft with eleven (11) months prior written
notice (provided Microsoft has given WORLDSPAN at least twelve (12) months
written notice of such increased capacity requirement) that it will not be able
to meet the capacity demand in the forecasted time. In such event, Microsoft
will be released from its minimum commitment in Section 8(c) of this
Amendment and WORLDSPAN shall not be obligated to provide such additional
capacity to Microsoft but will continue to provide the maximum capacity set
forth in the previously agreed-upon capacity forecast. WORLDSPAN agrees that
Microsoft has provided the projection of Expedia air ticket sales set forth
below, and WORLDSPAN expects to be able to meet capacity requirements therefor
without having to build a new computer data center and without materially
altering the architecture of the WORLDSPAN System.

 

	
  Fiscal Year

  	
   

  	
  Ticket Sales Projected

  	
   

  
	
  July 1999-June 2000

  	
   

  	
  2.5 million

  	
   

  
	
  July 2000-June 2001

  	
   

  	
  3.7 million

  	
   

  
	
  July 2001-June 2002

  	
   

  	
  4.5 million

  	
   

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

74

 

4.                                      Revenue Share
Payments; Capacity Fees

 

Sections 11.1 B and C of the
Agreement, as set forth in Amendment No. 1, are hereby deleted and replaced in
their entirety with the following:

 

Section 11.1
B (i) The parties agree that WORLDSPAN shall pay to Microsoft the revenue share
amount indicated in the attached Appendix 1 (the “Revenue Share”) with respect
to Airline Fees generated by Microsoft System users through the Microsoft System.
Within thirty (30) days from the end of each calendar month, WORLDSPAN shall
furnish Microsoft with a statement together with payment for all amounts shown
thereby to be due to Microsoft. That statement shall be based upon the Revenue
Share for the month preceding the month then ended, and shall contain
information sufficient to discern how the Revenue Share was computed.

 

(ii) At the
end of each calendar year, WORLDSPAN shall reconcile the amounts billed to and
paid by Participating Airlines for Bookings made by Microsoft System users.  In the event a Participating Airline fails to
pay and WORLDSPAN, despite using reasonable business efforts, is unable to
collect Airline Fees from such Participating Airline, WORLDSPAN shall notify
Microsoft in writing of such uncollected amounts.  Within thirty (30) days of receipt of
WORLDSPAN’s notice, Microsoft will refund (or WORLDSPAN may set off from
amounts owed by WORLDSPAN to Microsoft hereunder) the amounts paid to Microsoft
by WORLDSPAN for such Bookings. Microsoft shall not be required to refund any
amounts where WORLDSPAN fails to collect due to a marketing or other arrangement
with a Participating Airline.

 

Section 11.1
C.  Microsoft shall reimburse WORLDSPAN
for the charges incurred by WORLDSPAN with respect to direct communication
lines and frame relay access devices (each party is responsible for its own
installation and ongoing costs of circuits and equipment necessary to connect
such party’s facilities to the local exchange carrier’s termination of the
frame relay circuits) that are requested by Microsoft through its Product Unit
Manager for the Travel Group (“Direct Communication Fees”) and to pay the
direct costs related to terminal addresses used in connection with the
Microsoft System by Microsoft’s fulfillment partner (“Fulfillment Partner Fees”).
 Microsoft shall also pay for any
equipment requested by Microsoft and provided by WORLDSPAN to be used by
Microsoft’s fulfillment partner.  WORLDSPAN
shall either offset these fees from the Revenue Share due Microsoft or invoice
Microsoft for the Direct Communication Fees and the Fulfillment Partner Fees on
a monthly basis and shall also include a written report of the PS Rate for the
applicable month. Microsoft shall pay the invoiced amount within thirty (30)
days after receipt of the invoice.  Except as provided herein and Section 2.1.2,
Microsoft shall not owe WORLDSPAN any fees for capacity under this Agreement.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

75

 

5.                                      Assignment

 

Section 17
of the Agreement is hereby deleted and replaced in its entirety with the
following:

 

Section 17.
Neither party may assign its interest in this Agreement; provided, however,
that either party may assign this Agreement upon thirty (30) days prior written
notice to a wholly-owned subsidiary or to an entity to which substantially all
the assets of the assigning party (or, with respect to MICROSOFT, substantially
all the assets of the Expedia online consumer travel agent business) are being
transferred if such assignee assumes and agrees to perform all the obligations
of the assignor. This Agreement shall be binding upon the parties hereto and
their successors and permitted assigns and all persons claiming under or
through them or any such successor or permitted assign.

 

6.                                      Equal
Treatment

 

A new Section 33
shall be added to the Agreement to provide as follows:

 

33.                                 Equal
Treatment.

 

[**]
If (i) WORLDSPAN differentiates between Expedia and offline travel agencies for
reasons other than regulatory requirements and (ii) at the time WORLDSPAN first
differentiates, any two of Sabre, Galileo or Amadeus are not similarly
differentiating between online and offline travel agencies, then the parties
shall at that time discuss adjustment to the business relationship between the
parties in good faith.  If the parties
fail to reach an agreement regarding an adjustment to the business relationship
within two (2) months after WORLDSPAN implements such differentiation,
Microsoft may terminate this Agreement upon six (6) months’ written notice.
Such termination right expires eight (8) months from the date of such differentiation.

 

7.                                      Change in
Expedia Search Functionality

 

A new Section 34
shall be added to the Agreement to provide as follows:

 

34.                                 Change
in Expedia Search Functionality.

 

Microsoft
shall consult with WORLDSPAN on a regular basis regarding proposed changes to
the search functionality, or changes to the utilization of existing
functionality, available to end users of Expedia that are reasonably expected
to have a materially adverse impact on message weight in the WORLDSPAN CRS. If
the proposed change has a materially adverse impact on the financial benefits
of the parties hereunder, the parties shall discuss in good faith a
corresponding adjustment to pricing or revenue share. If the parties are unable
to reach agreement within two (2) months after Microsoft implements such
change, then WORLDSPAN may terminate this Agreement upon a further six (6)
months’ written notice. Such termination right expires eight (8) months from
the date of Microsoft’s implementation of such changes.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

76

 

8.                                      Changes to
Expedia CRS Usage Commitment

 

Section 8(c) of
Amendment No. 1 to the Agreement is hereby deleted and replaced in its entirety
with the following:

 

(c)                                  Minimum
Performance Functionality. During the Term of the Agreement, WORLDSPAN
agrees to provide the same or comparable significant functionality tools and
features (such as a ticketless functionality) as other computer reservation
systems. So long as WORLDSPAN complies with the foregoing, Microsoft agrees
that it will maintain during the Term of the Agreement, on a calendar quarterly
basis, at least the same or greater (but in no event [**] CRS booking share from Expedia on the WORLDSPAN System
than it maintains on any other CRS (“Minimum Commitment”). At any time after
Microsoft enters into an agreement with another CRS for Expedia, Microsoft
shall provide WORLDSPAN with a quarterly report that details bookings made by
Expedia users. In the event Microsoft does not maintain at least the Minimum
Commitment CRS booking share from Expedia on the WORLDSPAN System, the amounts
otherwise payable to Microsoft pursuant to Appendix 1 shall be reduced by [**].  For
purposes of this Section only, the term “CRS” shall mean the following
entities and their successors: Sabre, Galileo, Abacus, Amadeus, and Infini.

 

All other
terms not expressly amended herein shall remain in full force and effect as set
forth in the Agreement. The Agreement, as amended hereby, shall remain in
effect for the remainder of the term set forth in Section 7.

 

	
  Microsoft Corporation

  	
   

  	
  WORLDSPAN, L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Richard
  Barton

  	
   

  	
  /s/ Douglas
  L. Abramson

  	
   

  
	
  By

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Richard
  Barton

  	
   

  	
  Douglas L.
  Abramson

  	
   

  
	
  Name (Print)

  	
   

  	
  Name (Print)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Gen. Mgr.
  Travel Group

  	
   

  	
  Co-Chief
  Executive Officer

  	
   

  
	
  Title

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7/20/99

  	
   

  	
  July 16,
  1999

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

77

 

Appendix 1

 

Revenue Share Matrix

 

The Revenue Share payable by
WORLDSPAN to Microsoft shall consist of the Base Revenue Share set forth below.
The Incentive Revenue Share appearing in Appendix 1 of Amendment No. 1 is
eliminated.

 

The Revenue Share of Airline
Fees shall be based on the number of Power Shopper messages per net Segment per
month. The “Revenue Share” column indicates the percentage amount of Airline
Fees that will be paid by WORLDSPAN to Microsoft in accordance with Section 5
of Amendment No. 1, from dollar one.

 

	
  Power Shopper Messages per Net

  Segment per Month

  	
   

  	
  Revenue Share to

  Microsoft

  	
   

  
	
  30.01 and
  greater

  	
   

  	
  [**]

  	
   

  
	
  29.01-30.00

  	
   

  	
  [**]

  	
   

  
	
  28.01-29.00

  	
   

  	
  [**]

  	
   

  
	
  27.01-28.00

  	
   

  	
  [**]

  	
   

  
	
  26.01-27.00

  	
   

  	
  [**]

  	
   

  
	
  25.01-26.00

  	
   

  	
  [**]

  	
   

  
	
  24.01-25.00

  	
   

  	
  [**]

  	
   

  
	
  23.01-24.00

  	
   

  	
  [**]

  	
   

  
	
  22.01-23.00

  	
   

  	
  [**]

  	
   

  
	
  21.01-22.00

  	
   

  	
  [**]

  	
   

  
	
  20.01-21.00

  	
   

  	
  [**]

  	
   

  
	
  19.01-20.00

  	
   

  	
  [**]

  	
   

  
	
  18.01-19.00

  	
   

  	
  [**]

  	
   

  
	
  17.01-18.00

  	
   

  	
  [**]

  	
   

  
	
  16.01-17.00

  	
   

  	
  [**]

  	
   

  
	
  15.01-16.00

  	
   

  	
  [**]

  	
   

  
	
  14.01-15.00

  	
   

  	
  [**]

  	
   

  
	
  13.01-14.00

  	
   

  	
  [**]

  	
   

  
	
  12.01-13.00

  	
   

  	
  [**]

  	
   

  
	
  11.01-12.00

  	
   

  	
  [**]

  	
   

  
	
  11.00 and
  less

  	
   

  	
  [**]

  	
   

  

 

If the number of Power
Shopper messages per net Segment exceeds 30.00, or falls below 11.00, in an
given month, then the parties shall renegotiate revenue share percentages in
good faith. If the parties are unable to reach agreement within three (3)
months, then at any time in the following three (3) months either party may
terminate this Agreement upon a further six (6) months’ written notice. In the
meantime, the percentages set forth above shall apply.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

78

 

Amendment No. 4

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 4 to the CRS Marketing, Services and Development Agreement (the “Amendment”)
is entered into as of July 1, 2001 (the “Amendment Effective Date”), by
and between Expedia, Inc. (“EI”), a Washington corporation with its principal
office at 13810 SE Eastgate Way, Suite 400, Bellevue, WA 98005, and Worldspan,
L.P., a Delaware limited partnership (“Worldspan”), with its principal office
at 300 Galleria Parkway, NW, Atlanta, Georgia 30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, and Amendment No. 3 dated April 1, 1999 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement have been assigned to and assumed by EI, which
is the successor in interest to Microsoft for all purposes relating to the
Agreement.

 

EI and Worldspan now desire
to modify the Agreement as set forth herein.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                      Definitions

 

Terms in
capitalized form not defined in the text of this Amendment No. 4 shall have the
meanings set forth in the Agreement.

 

2.                                      Term

 

(a)                                  Section 7.1
of the Agreement is hereby deleted and replaced in its entirety with the
following:

 

7.1.                              Unless
earlier terminated as provided herein, the term of this Agreement (the “Term”)
shall commence as of December 15, 1995, and shall continue thereafter
until December 15, 2010.

 

(b)                                 Section 7.5
of the Agreement is hereby deleted and replaced in its entirety with the
following:

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

79

 

7.5                                 EI
shall have the option to terminate this Agreement upon written notice to
WORLDSPAN in the event that WORLDSPAN migrates EI and EI Systems users to a
computer reservation system not operated by WORLDSPAN.

 

3.                                      Financial
Arrangements

 

The last
sentence of Section 2(a) of Amendment No. 3 is hereby deleted in its
entirety. Section 11.1.B of the Agreement, as set forth in Amendment No.
3, is hereby deleted and replaced in its entirety with the following:

 

11.1.B (i) The
parties agree that WORLDSPAN shall pay to EI the revenue share amount indicated
in Schedule 11.1 of this Agreement (the “Revenue Share”). Within thirty
(30) days from the end of each calendar month, WORLDSPAN shall furnish EI with
a statement together with payment for all amounts shown thereby to be due to
EI. That statement shall be based upon the Revenue Share for the month
preceding the month then ended, and shall contain information sufficient to
discern how the Revenue Share was computed.

 

(ii)                                  At
the end of each calendar year, WORLDSPAN shall reconcile the amounts billed to
and paid by Participating Airlines, Participating Cars and Participating Hotels
(collectively, “Participating Vendors”) for Net Segments (as defined in Schedule 11.1)
made by EI System users. In the event a Participating Vendor fails to pay and
WORLDSPAN, despite using reasonable business efforts, is unable to collect fees
from such Participating Vendor, WORLDSPAN shall notify EI in writing of such
uncollected amounts. Within thirty (30) days of receipt of WORLDSPAN’s notice,
EI will refund (or WORLDSPAN may set off from amounts owed by WORLDSPAN to EI
hereunder) the amounts paid to EI by WORLDSPAN for such Net Segments. EI shall
not be required to refund any amounts where WORLDSPAN fails to collect due to a
marketing or other arrangement with a Participating Vendor.

 

4.                                      Use
of Logos/CRS Usage Commitment

 

Section 8
of Amendment No. 1 and Section 8 of Amendment No. 3 to the Agreement are
hereby deleted in their entirety and a new Section 35 is added to the
Agreement to provide as follows:

 

35.                               Other
Agreements.

 

35.1                           Use
of WORLDSPAN Logo. EI will include the “Worldspan Wired” logo on the bottom
of the Expedia home page as long as there is at least one (1) other
third-party, non-advertising logo in the same general location.  Placement and size of all third-party,
non-advertising logos will be determined by EI, however, EI will use
commercially reasonable best efforts to feature the WORLDSPAN logo in a manner
similar to the presentation of any other third-party, non-advertising logo
featured on the Expedia home page.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

80

 

35.2                           CRS
Usage Commitment. During the Term of this Agreement, WORLDSPAN agrees to
provide the same or comparable significant functionality tools and features
(such as a ticketless functionality) as other computer reservation systems. So
long as WORLDSPAN complies with the foregoing, EI agrees that it will maintain
during the Term of this Agreement, on a [**]
basis, no less than [**] CRS
booking share from Expedia on the WORLDSPAN System (“Minimum Commitment”). At
any time after EI enters into an agreement with another CRS for Expedia, EI
shall provide WORLDSPAN with a quarterly report that details bookings made by
Expedia users. In the event EI does not maintain at least the Minimum
Commitment CRS booking share from Expedia on the WORLDSPAN System, the amounts
otherwise payable to EI pursuant to Schedule 11.1 shall be reduced by [**]. For purposes of this Section only,
the term “CRS” shall mean the following entities and their successors and
affiliates: [**].

 

5.                                      Revenue
Share

 

The Agreement
is hereby amended by adding thereto as Schedule 11.1, the Schedule 11.1
attached as Appendix 1 of this Amendment No. 4. Appendix 1 of Amendment No. 1
and Appendix 1 of Amendment No. 3 shall be deleted and replaced in their
entirety by such Schedule 11.1.

 

6.                                      Confidentiality

 

This Amendment
shall be considered Confidential Information according to the Agreement.

 

7.                                      Effective
Date

 

Except as
provided in this Amendment, the provisions of this Amendment shall be effective
as of the Amendment Effective Date.

 

8.                                      Continuation
of Agreement

 

Except as
provided in this Amendment, the Agreement shall continue in full force and
effect.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

81

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  Expedia,
  Inc.

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Byron
  Bishop

  	
   

  	
  By:

  	
  /s/Sue
  Powers

  	
   

  
	
   

  	
   

  
	
  Print Name:
  Byron Bishop

  	
  Print Name:
  Sue Powers

  
	
   

  	
   

  
	
  Title:
  Senior Vice President, Transportation

  and Core Development

  	
  Title:
  Senior Vice President and General

  Manager – Worldwide E-Commerce

  
						

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

82

 

Appendix 1

 

Schedule 11.1

Revenue Share

 

A.                                   Air
Segment Revenue Share

 

WORLDSPAN
shall pay EI a revenue share for Net Domestic Air Segments and Net
International Air Segments based on the number and type of segments in
accordance with the following:

 

	
  Type of Net Segment

  	
   

  	
  Revenue Share

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  
	
  [**]

  	
   

  	
  [**]

  	
   

  

 

In the event [**]. In the event [**]. If the parties are unable to agree [**].At the end of such twelve (12) month
period, either party may terminate this Agreement by providing the other party
with ninety (90) days prior written notice thereof. [**]

 

B.                                     Car
Segment Revenue Share

 

WORLDSPAN
shall pay EI a revenue share for Net Car Segments equal to [**] for each Net Car Segment, except that
WORLDSPAN shall not be required to pay any such revenue share for the [**] Net Car Segments during each Contract
Year. For example, if the number of Net Car Segments during a Contract Year was
[**], then WORLDSPAN would pay EI [**].

 

C.                                     Hotel
Segment Revenue Share

 

WORLDSPAN
shall pay EI a revenue share for Net Hotel Segments equal to [**] for each Net Hotel Segment, except
that WORLDSPAN shall not be required to pay any such revenue share for [**]. For example, if the number of Net
Hotel Segments during a Contract Year was [**],
and of the [**] Net Hotel Segments
after the [**] Net Hotel Segments,
[**], then WORLDSPAN would pay EI [**].

 

D.                                    Review
of Revenue Share

 

The revenue
share set forth in Sections A, B and C of this Schedule 11.1 shall be
reviewed by WORLDSPAN and EI every [**].
In the event either party requests to renegotiate such revenue share at that
time and the parties are unable to agree on new revenue share within sixty (60)
days of the commencement of such negotiations, then at any time [**]. However, the [**].

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

83

 

E.                                      Weighted
Message Fee

 

Within 30 days
following the end of each month, EI will pay WORLDSPAN a Weighted Message Unit
charge equal to (i) [**],
multiplied by (ii) the amount, if any, by which (x) the number of [**] processed by the WORLDSPAN System
during the then preceding six (6) calendar month period, exceeds (y) [**] multiplied by the number of Net
Segments for that six (6) calendar month period.

 

F.                                      Definitions

 

“Air
Segment” means each direct or through flight booked by means of Expedia
through the WORLDSPAN System for which WORLDSPAN receives a discrete payment
from the applicable air carrier, as determined by the WORLDSPAN System.

 

“Announced
Rate” means Worldspan’s announced rate for determining Airline Fees payable
to Worldspan by Participating Airlines for Net Segments.

 

“Announced
Rate Decrease” means a decrease in the Announced Rate below the Announced
Rate then in effect

 

“Announced
Rate Increase” means an increase in the Announced Rate above the Announced
Rate then in effect.

 

“Car
Segment” means each car rental booked by means of Expedia through the
WORLDSPAN System for which WORLDSPAN receives a discrete payment from the
applicable car rental company, as determined by the WORLDSPAN System.

 

“Contract
Year” means each twelve (12) month period commencing, in the case of the
first Contract Year, on the date of Amendment No. 4 to this Agreement and
thereafter upon the completion of the immediately preceding Contract Year.

 

“Domestic
Air Segment” means any Air Segment booked from a point of sale designated
by WORLDSPAN as within Billing Conference 1.

 

“Expedia”
means the software code, informational databases, products, and other
components that make up the travel services of EI and its subsidiaries and are
branded “Expedia” or “Travelscape”, which are marketed for use by individual
end users in the United States, Belgium, Canada, France, Germany, the United
Kingdom and/or such other locales as EI may elect to market its services, at
its sole discretion, to enable such end users to shop for, reserve, book and
pay for certain travel products and services (including, at a minimum, air
travel, hotel accommodations, and car rentals) via a personal computer,
telephone or other interactive device. The term “Expedia” as used in this
Agreement shall be deemed to refer to all future versions of the
above-described services, and includes without limitation any and all
additional, follow-on, successor or replacement versions of such services.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

84

 

“Hotel
Segment” means each hotel stay booked by means of Expedia through the
WORLDSPAN System for which WORLDSPAN receives a discrete payment from the
applicable hotel, as determined by the WORLDSPAN System.

 

“International
Air Segment” means any Air Segment booked from a point of sale designated
by WORLDSPAN as outside of Billing Conference 1.

 

“Message”
means each electronic transmission to the WORLDSPAN System generated by
Expedia, EI, any employee, agent, or contractor of EI, or any Expedia user, and
the associated response. The types of Messages as of the date of Amendment No.
4 to this Agreement are set forth in Exhibit A to this Schedule 11.1.

 

“Net Car
Segments” means, for any applicable time period, the number of Car Segments
booked during that period less the number of Car Segments canceled during that
period, as determined by the WORLDSPAN System.

 

“Net
Domestic Air Segments” means, for any applicable time period, the number of
Domestic Air Segments booked during that period less the number of Domestic Air
Segments cancelled during that period, as determined by the WORLDSPAN System.

 

“Net Hotel
Segments” means, for any applicable time period, the number of Hotel
Segments booked during that period less the number of Hotel Segments cancelled
during that period, as determined by the WORLDSPAN System.

 

“Net
International Air Segments” means, for any applicable time period, the
number of International Air Segments booked during that period less the number
of International Air Segments cancelled during that period, as determined by
the WORLDSPAN System.

 

“Net
Segments” means, for any applicable time period, all of the Net Domestic
Air Segments, Net International Air Segments, Net Car Segments, and Net Hotel
Segments for that period.

 

“Weighted
Message Unit” means a unit of measurement for Messages that reflects the
respective average amount of computer and related resources required for the
WORLDSPAN System to process a given type of Message, as determined in
accordance with the methodology used by WORLDSPAN in the ordinary course of its
business for that purpose. The number of Weighted Message Units for a given Message
is determined by the Message Weight for that type of Message. The Message
Weight for each of the types of Messages as of the date of Amendment No. 4 to
this Agreement are set forth on Exhibit A to this Schedule 11.1.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

85

 

Exhibit A

Message Weight Categories

 

	
  Message
  Type

  	
   

  	
  Message Weight

  
	
   

  	
   

  	
   

  
	
  [**]

  	
   

  	
  [**]

  

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

86

 

Amendment No. 5

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 5 to the CRS Marketing, Services and Development Agreement (the “Amendment”)
is entered into as of October 22, 2001 (the “Amendment Effective Date”),
by and between Expedia, Inc. (“EI”), a Washington corporation with its
principal office at 13810 SE Eastgate Way, Suite 400, Bellevue, WA 98005, and
Worldspan, L.P., a Delaware limited partnership (“Worldspan”), with its
principal office at 300 Galleria Parkway, NW, Atlanta, Georgia 30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, Amendment No. 3 dated April 1, 1999 and Amendment No. 4 dated July 1,
2001 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement have been assigned to and assumed by EI, which
is the successor in interest to Microsoft for all purposes relating to the
Agreement.

 

EI and Worldspan now desire
to modify the Agreement as set forth herein.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                      Revenue
Share

 

Effective as
of July 1, 2001, Paragraph A of Schedule 11.1, attached as Appendix 1
to Amendment No. 4 of the Agreement shall be deleted and replaced in its
entirety by the following Paragraph A:

 

“A.  Air Segment Revenue Share

 

WORLDSPAN
shall pay EI a revenue share for Net Domestic Air Segments and Net
International Air Segments based on the number and type of segments in
accordance with the following:

 

	
  Type of
  Net Segment

  	
   

  	
  Revenue Share

  
	
  [**]

  	
   

  	
  [**]

  
	
  [**]

  	
   

  	
  [**]

  

 

Effective as
of July 1, 2002, [**].  In order to effectuate such change, the party
desiring the change shall provide the other party with thirty (30) days’ prior
written notice.  The

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

87

 

change [**] shall be made on the first day of the
month following the expiration of the thirty (30) day notice period.  In the event [**].
 In the event [**].  If the parties
are unable to agree [**].

 

2.                                      Definitions

 

Effective as
of July 1, 2001, Paragraph F of Schedule 11.1 attached as Appendix 1
to Amendment No. 4 of the Agreement is amended by adding the following new
definition:

 

“Net
Average Yield” means the average Airline Fees received by Worldspan from
Participating Airlines for Net Domestic Air Segments booked made by Expedia
users over the immediately preceding six (6) consecutive months.

 

3.                                      Confidentiality

 

This Amendment
shall be considered Confidential Information according to the Agreement.

 

4.                                      Effective
Date

 

Except as
provided in this Amendment, the provisions of this Amendment shall be effective
as of the Amendment Effective Date.

 

5.                                      Continuation
of Agreement

 

Except as
provided in this Amendment, the Agreement shall continue in full force and
effect.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  Expedia,
  Inc.

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gregory
  S. Stanger

  	
   

  	
  By:

  	
  /s/ Sue
  Powers

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
  Gregory S.
  Stanger

  	
   

  	
  Print Name:

  	
  Sue Powers

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Senior Vice
  President and Chief

  	
   

  	
  Title:

  	
  Senior Vice
  President and General

  	
   

  
	
  Financial
  Officer

  	
   

  	
  Manager –
  Worldwide E-Commerce

  	
   

  
												

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

88

 

Amendment No. 6

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 6 to the CRS Marketing, Services and Development Agreement (the “Amendment”)
is entered into as of January 1, 2002 (the “Amendment Effective Date”), by
and between Expedia, Inc. (“EI”), a Washington corporation with its principal
office at 13810 SE Eastgate Way, Suite 400, Bellevue, WA 98005, and Worldspan,
L.P., a Delaware limited partnership (“Worldspan”), with its principal office
at 300 Galleria Parkway, NW, Atlanta, Georgia 30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, Amendment No. 3 dated April 1, 1999, Amendment No. 4 dated July 1,
2001, and Amendment No. 5 dated October 22, 2001 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement have been assigned to and assumed by EI, which
is the successor in interest to Microsoft for all purposes relating to the
Agreement.

 

EI and Worldspan now desire
to modify the Agreement as set forth herein.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                      Definitions

 

(a)                                  Terms in capitalized
form not defined in this Amendment No. 6 shall have the meanings set forth in
the Agreement.

 

(b)                                 Effective as of
January 1, 2002, Paragraph F of Schedule 11.1 attached as Appendix 1
to Amendment No. 4 of the Agreement is amended by adding the following new
definitions:

 

“Domestic
Automated Reissue” means one automated comparison of an old itinerary to a
new itinerary and recalculation of the new fare, including additional
collections, refunds, penalties and administrative fees, provided that (i) all
segments in the itinerary must be within and/or between the United States of
America, Puerto Rico and the U.S. Virgin Islands, (ii) the itinerary must be on
the same carrier, and only on carriers that participate in Automated Reissues,
(iii) electronic ticket itineraries must be issued by Worldspan (IATA code 1P),
(iv) the itinerary must be priced and re-priced in U.S. currency, (v) all
passengers in the ticket record must have the same itinerary, fare calculation
and ticketing date, and (vi) only non-BSP types of exchanges are applicable.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

89

 

EI acknowledges and agrees that Domestic Automated Reissues may not
be used for certain types of itineraries as may be established and modified by
Worldspan from time to time, including but not limited to, the following
itineraries: (i) a group PNR, (ii) tickets issued using bulk fares or print
routines, (iii) tickets issued with the fare printed as free, (iv) electronic
tickets printed to paper, and (v) BSP types of exchanges. EI further
acknowledges and agrees that each carrier participating in Automated Reissues
may establish limits for the number of passengers in a PNR that qualify for
Automated Reissues and that such limits may change from time to time.

 

2.                                      Domestic
Automated Reissues

 

(a)                                  Effective as of
January 1, 2002, CRS Services shall include the processing of Domestic
Automated Reissues. [**] For each
Domestic Automated Reissue processed by EI (or its authorized service provider)
through the Worldspan System, EI shall pay to Worldspan the transaction fee set
forth in the table below:

 

	
  Domestic
  Automated Reissues

  (per Contract Year)

  	
   

  	
  Transaction Fee

  
	
  [**]

  	
   

  	
  [**]

  
	
  [**]

  	
   

  	
  [**]

  
	
  [**]

  	
   

  	
  [**]

  

 

(b)                                 Charges will be
calculated monthly and shall be due within thirty (30) days following the
invoice date. Alternatively, Worldspan may offset the amount owed to it by EI
against any amount that Worldspan owes EI under the Agreement.

 

(c)                                  [**]

 

3.                                      Confidentiality

 

This Amendment shall be
considered Confidential Information according to the Agreement.

 

4.                                      Continuation
of Agreement

 

Except as provided in this
Amendment, the Agreement shall continue in full force and effect.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

90

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  Expedia,
  Inc.

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ David
  Beitel

  	
   

  	
  By:

  	
  /s/ Michael
  Parks

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  David Beitel

  	
   

  	
  Print Name:

  	
  Michael
  Parks

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice
  President, Product Development

  	
   

  	
  Title:

  	
  Senior Vice
  President and General

  	
   

  
	
   

  	
  Manager –
  Worldwide Travel Distribution

  	
   

  
										

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

91

 

Amendment No. 7

to CRS Marketing, Services and Development Agreement

 

This Amendment No. 7 to the
CRS Marketing, Services and Development Agreement (the “Amendment”) is entered
into as of October 8, 2003 (the “Amendment Effective Date”), by and
between Expedia, Inc. (“EI”), a Washington corporation with its principal
office at 13810 SE Eastgate Way, Suite 400, Bellevue, Washington  98005, and Worldspan, L.P., a Delaware
limited partnership (“Worldspan”), with its principal office at 300 Galleria
Parkway, N.W., Atlanta, Georgia  30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, Amendment No. 3 dated April 1, 1999, Amendment No. 4 dated July 1,
2001, Amendment 5 dated October 22, 2001 and Amendment 6 dated January 1,
2002 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement have been assigned to and assumed by EI, which
is the successor in interest to Microsoft for all purposes relating to the
Agreement.

 

EI and Worldspan now desire
to modify the Agreement as set forth herein.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                      Revenue
Share

 

Effective as
of July 1, 2003, Paragraph C of Schedule 11.1, attached as Appendix 1
to Amendment No. 4 of the Agreement shall be deleted and replaced in its
entirety by the following Paragraph C:

 

“C.                               Hotel
Segment Revenue Share

 

Worldspan
shall pay EI a revenue share for Net Hotel Segments equal to [**].

 

2.                                      Definitions

 

[**]

 

“Hotel Fee” means the fee charged by
Worldspan to a Participating Hotel for Bookings and other transactions made
through the Worldspan System by EI System Users.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

92

 

3.                                      Confidentiality

 

This Amendment
shall be considered Confidential Information according to the Agreement.

 

4.                                      Continuation
of Agreement

 

Except as
provided in this Amendment, the Agreement shall continue in full force and
effect.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  Expedia,
  Inc.

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Barney
  Harford

  	
   

  	
  By:

  	
  /s/ Charles
  J. Sullivan

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Barney Harford

  	
   

  	
  Print Name:

  	
  Charles J.
  Sullivan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  VP – Air,
  Car & Private Label

  	
   

  	
  Title:

  	
  Sr. VP
  e-Commerce

  	
   

  
												

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

93

 

Amendment No. 8

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 8 to the CRS Marketing, Services and Development Agreement (the “Amendment”)
is entered into as of November 1, 2003 (the “Amendment Effective Date”),
by and between Expedia, Inc. (“EI”), a Washington corporation with its
principal office at 13810 SE Eastgate Way, Suite 400, Bellevue, Washington  98005, and Worldspan, L.P., a Delaware
limited partnership (“Worldspan”), with its principal office at 300 Galleria
Parkway, N.W., Atlanta, Georgia  30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, Amendment No. 3 dated April 1, 1999, Amendment No. 4 dated July 1,
2001, Amendment No. 5 dated October 22, 2001, Amendment No. 6 dated January 1,
2002 and Amendment No. 7 dated October 8, 2003 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement have been assigned to and assumed by EI, which
is the successor in interest to Microsoft for all purposes relating to the
Agreement.

 

EI and Worldspan now desire
to modify the Agreement as set forth herein.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                       A new Section 36
is hereby added to the Agreement effective as of November 1, 2003 to
provide as follows:

 

“36.                        Acquisition
of Travelnow.com

 

EI’s parent
company acquired Travelnow.com, Inc. (“Travelnow.com”), a Worldspan
subscriber.  In connection with such
acquisition, the subscriber agreement between Travelnow.com and Worldspan shall
be cancelled pursuant to a separate agreement between Travelnow.com and Worldspan.

 

(a)  Bonus Payment.  Worldspan will pay EI a one-time lump sum
bonus equal to [**] Dollars ($[**]) no later than December 31, 2003.

 

(b)  Interface Development.  Worldspan will pay EI [**] Dollars ($[**]) no later than December 31, 2003 as payment for the
development of the interface between Travelnow.com’s hotel product and
Worldspan’s hotel product.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

94

 

(c)  e-Pricing.  Worldspan will provide its e-Pricing product
to EI solely for use on Travelnow.com’s SIDs. 
e-Pricing is a multi-server based solution for fares and pricing
products which offers more itinerary choices for qualified Power Shopper
entries.  Worldspan will display a
maximum of [**] ([**]) results with a per Message fee equal
to [**] ($[**]) per Message.  EI may cease use of the e-Pricing product and
payment of the associated fee by providing Worldspan with thirty (30) days
prior written notice.  Worldspan may
set-off the per Message fee owed by EI pursuant to this subparagraph against
amounts owed by Worldspan to EI under this Agreement and pay only the net
amount to EI.  The Power Shopper Messages
made pursuant to this subparagraph (c) shall not be included in determining EI’s
Weighted Message Unit fee under Section D of Schedule 11.1.  All other Messages (other than Power Shopper
Messages) made from Travelnow.com’s SIDs shall be included in determining EI’s
Weighted Message Unit fee under Section D of Schedule 11.1.

 

(d)  XML Pro Fee, Terminal Addresses, Circuits
and Equipment Transfer.  EI shall pay
Worldspan [**] Dollars ($[**]) per month for support of the XML Pro
messaging protocol provided to Travelnow.com. 
EI may cease use of the XML Pro messaging protocol and payment of the
associated fee by providing Worldspan with thirty (30) days prior written
notice.  EI shall pay Worldspan for all
terminal addresses, circuits, printers and other equipment provided by Worldspan
hereunder in accordance with the current methodology of payment by EI to
Worldspan for such items.  With respect
to equipment provided by Worldspan to Travelnow.com, Worldspan hereby transfers
ownership of the following equipment to EI:

 

	
  Quantity

  	
   

  	
  Description

  	
   

  
	
  2

  	
   

  	
  TI 1600 Printer

  	
   

  
	
  1

  	
   

  	
  TI 886 LLI Printer

  	
   

  
	
  1

  	
   

  	
  Ghz Gateway Server

  	
   

  

 

Worldspan may
set-off the amounts owed by EI pursuant to this subparagraph against amounts
owed by Worldspan to EI under this Agreement and pay only the net amount to EI.

 

(e)  Revenue Share for Travelnow.com Net
Segments.  Effective as of November 1,
2003, Net Segments generated by Travelnow.com SID’s will be compensated by
Worldspan in accordance with Schedule 11.1 of this Agreement as if such
Net Segments were generated by EI.

 

2.                                      Confidentiality

 

This Amendment
shall be considered Confidential Information according to the Agreement.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

95

 

3.                                      Continuation
of Agreement

 

Except as
provided in this Amendment, the Agreement shall continue in full force and
effect.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  EI, Inc.

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mark S.
  Britton

  	
   

  	
  By:

  	
  /s/ Charles
  J. Sullivan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Mark S. Britton

  	
   

  	
  Print Name:

  	
   Charles
  J. Sullivan

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  EVP, WWCA

  	
   

  	
  Title:

  	
  SVP
  e-Commerce

  	
   

  
															

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

96

 

Amendment No. 9

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 9 to the CRS Marketing, Services and Development Agreement (the “Amendment”)
is entered into as of the 11th day of March, 2004 (the “Amendment Effective
Date”), by and between Expedia, Inc. (“EI”), a Washington corporation with its
principal office at 13810 SE Eastgate Way, Suite 400, Bellevue, Washington  98005, and Worldspan, L.P., a Delaware
limited partnership (“Worldspan”), with its principal office at 300 Galleria
Parkway, N.W., Atlanta, Georgia  30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, Amendment No. 3 dated April 1, 1999, Amendment No. 4 dated July 1,
2001, Amendment No. 5 dated October 22, 2001, Amendment No. 6 dated January 1,
2002, Amendment No. 7 dated October 8, 2003 and Amendment No. 8 dated November 1,
2003 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement have been assigned to and assumed by EI, which
is the successor in interest to Microsoft for all purposes relating to the
Agreement.

 

EI and Worldspan now desire
to modify the Agreement as set forth herein.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                       Effective March 31,
2004, EI’s rights and obligations under the Agreement shall be assigned to IAC
Global, LLC, (“IAC”) a Nevada limited liability company.  Notwithstanding the foregoing, EI hereby (i)
guarantees to Worldspan the performance by IAC of IAC’s obligations under the
Agreement, (ii) agrees that its guarantee is continuing and will extend to
future amendments and modifications of the Agreement and future supplemental or
related agreements between IAC and Worldspan, (iii) acknowledges and agrees
that its liability hereunder shall not be affected by any insolvency or
bankruptcy of IAC or by any extension of time or forbearance granted to IAC by
Worldspan, and (iv) agrees that any notice given to IAC in connection with the
Agreement will constitute notice to EI for purposes of this guaranty.  This guaranty is an independent obligation of
EI and may be enforced against EI with or without the joinder of IAC.  IAC hereby agrees to comply with and be bound
by the Agreement to the same extent as EI.

 

2.                                       Paragraph A of Schedule 11.1,
attached as Appendix 1 to Amendment No. 4 of the Agreement and as amended by
Amendment No. 5 of the Agreement is hereby deleted in its entirety and replaced
with the following:

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

97

 

“A.  Air Segment Revenue Share

 

For Air
Segments booked by EI users on and after January 1, 2004, Worldspan shall
pay EI a Revenue Share for Net Domestic Air Segments, Net International Air
Segments, and Net Opt-in International Air Segments based in accordance with
the following:

 

	
  Type of Net Segment

  	
   

  	
  Revenue Share

  	
   

  
	
  Net Domestic
  Air Segment

  	
   

  	
  [**]

  	
   

  
	
  Net
  International Air Segment

  	
   

  	
  [**]

  	
   

  
	
  Net Opt-In
  International Air Segment

  	
   

  	
  [**]

  	
   

  

 

By way of example, pursuant
to Section 11.1.B(i) of the Agreement, within thirty (30) days from the
last day of February 2004, Worldspan shall pay EI [**] of the [**] for Net Domestic Air Segments generated by EI users in January 2004
and shall provide a statement showing the calculation of the Revenue Share for January 2004.

 

In the event Worldspan
announces an increase in the rate for determining Airline Fees payable to
Worldspan by Participating Airlines for [**]
above the rate in effect as of [**],
then the Revenue Share for [**]
shall be increased [**]. In the
event Worldspan announces a decrease in the rate for determining Airline Fees
payable to Worldspan by Participating Airlines for [**], then the parties will renegotiate the Revenue Share
payable to EI for [**]. If the
parties are unable to agree on a new Revenue Share for [**] within [**] days of the commencement of such negotiations, then at
any time until the parties are able to agree upon such new Revenue Share,
either party may terminate this Agreement by providing the other party with [**] days prior written notice thereof.
However, the then current Revenue Share will continue to apply until the
parties agree upon a new Revenue Share or this Agreement is terminated.

 

On a timely basis as
contemplated by the Agreement, Worldspan shall pay the Revenue Share as
calculated under the Agreement prior to this Amendment (the “Old Calculation”)
for [**] during the period from [**] and (b) the Revenue Share as
calculated under this Amendment (the “New Calculation”) [**]. 
In addition, for [**]
during the period from [**],
Worldspan shall pay the difference between the New Calculation and the Old
Calculation in one payment on [**].

 

3.                                       For Air
Segments booked by Expedia users on and after January 1, 2004, Paragraph F
of Schedule 11.1 attached as Appendix 1 to Amendment No. 4 of the
Agreement, as amended, is further amended by adding the following new
definitions:

 

“Opt-In
Carrier” means [**] and any other
air carrier designated in writing by Worldspan and EI.

 

“[**]” means the Airline Fees received by
Worldspan from Opt-In Carriers for Net Opt-In International Air Segments made
by EI users over the [**].  By way of example, the [**] for [**]
is the Airline Fees received by Worldspan for Opt-In Carriers for [**] made by Expedia users in [**].

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

98

 

“Net Opt-In
International Air Segments” means any Air Segment booked on an Opt-In Carrier
from a point of sale designated by Worldspan as outside of [**] less the number of International Air
Segments booked on an Opt-In Carrier cancelled during that period, as
determined by the WORLDSPAN System.

 

4.                                       For Air
Segments booked by EI users on or after January 1, 2004, the definitions
of “Expedia”, “International Air Segment” and “Net Average Yield” as set forth
in Paragraph F of Schedule 11.1 attached as Appendix 1 to Amendment No. 4
as added by Amendment No. 5 are hereby deleted in their entirety and replaced
with the following:

 

“Expedia”
means the software code, informational databases, products, and other
components that make up the service which is marketed for use by Expedia users,
to enable Expedia users to shop for, reserve, book and pay for certain travel
services (including, at a minimum, air travel, hotel accommodations, and car
rentals) via a personal computer, telephone or other interactive device.  EI and its affiliates currently or in the
future may offer such services on the Internet and through other distribution
channels under the names “Expedia”, “WWTE” or such other private label names as
EI and its affiliates in their sole discretion may choose.  Such names may change from time to time and
the term “Expedia” as used herein shall be deemed to refer to all future
versions of the above described services, regardless of the name under which
they are offered from time to time, and includes without limitation any and all
additional, follow-on, successor or replacement versions of such services.

 

“International
Air Segment” means any Air Segment booked from a point of sale designated by
Worldspan as outside of [**] other
than Air Segments generated by Expedia users on Opt-In Carriers.

 

“[**]” means the Airline Fees received by
Worldspan from Participating Airlines for Net Domestic Air Segments made by
Expedia users over the calendar month. 
By way of example, the [**]
for January 2004 is the Airline Fees received by Worldspan from
Participating Airlines for Net Domestic Air Segments made by EI users in January 2004.

 

5.                                      Confidentiality

 

This Amendment
shall be considered Confidential Information according to the Agreement.

 

6.                                      Continuation
of Agreement

 

Except as
provided in this Amendment, the Agreement shall continue in full force and
effect.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

99

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  Expedia,
  Inc.

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Barney
  Harford

  	
   

  	
  By:

  	
  /s/ Ninan
  Chacko

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Barney
  Harford

  	
   

  	
  Print Name:

  	
  Ninan Chacko

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  SVP – Air,
  Car & Private Label

  	
   

  	
  Title:

  	
  S.V.P
  e-Commerce & Product

  	
   

  
	
   

  	
  Planning

  	
   

  
														

 

IAC Global,
LLC

By: IACT US Inc., its sole member

 

	
  By:

  	
  /s/ Barney
  Harford

  	
   

  
	
   

  
	
  Print Name:

  	
  Barney
  Harford

  	
   

  
	
   

  
	
  Title:

  	
  SVP – Air,
  Car & Private Label

  	
   

  
							

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

100

 

Amendment No. 10

to CRS Marketing, Services and Development Agreement

 

This Amendment
No. 10 to the CRS Marketing, Services and Development Agreement (the “Amendment”)
is entered into as of the 22nd day of December, 2004 (the “Amendment Effective
Date”), by and between IAC Global, LLC (“IAC Global”), a Nevada limited
liability company with its principal office at 3150 139th Ave SE, Suite 500,
Bellevue, WA  98005, and Worldspan, L.P.,
a Delaware limited partnership (“Worldspan”), with its principal office at 300
Galleria Parkway, N.W., Atlanta, Georgia 
30339.

 

Recitals

 

Microsoft Corporation (“Microsoft”)
and Worldspan entered into that certain CRS Marketing, Services and Development
Agreement dated December 15, 1995, as amended by the parties pursuant to
that certain Amendment No. 1 dated January 1, 1997, Amendment No. 2 dated July 1,
1998, Amendment No. 3 dated April 1, 1999, Amendment No. 4 dated July 1,
2001, Amendment No. 5 dated October 22, 2001, Amendment No. 6 dated January 1,
2002, Amendment No. 7 dated October 8, 2003, Amendment No. 8 dated November 1,
2003, and Amendment No. 9 dated March 11, 2004 (collectively, the “Agreement”).

 

Microsoft’s rights and
obligations under the Agreement were assigned to and assumed by Expedia, Inc. (“EI”).

 

EI’s rights and obligations
under the Agreement were assigned to and assumed by IAC Global, which is the
successor in interest to EI for all purposes relating to the Agreement.

 

Now,
Therefore, in consideration of the above recitals, the mutual
undertakings of the parties as contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Amendment hereby agree as follows:

 

1.                                       Paragraph B of Schedule 11.1,
attached as Appendix 1 to Amendment No. 4 of the Agreement is hereby deleted in
its entirety and replaced with the following:

 

“B.  Car Segments Revenue Share and Related
Matters.

 

(i)                                     Car
Segment Revenue Share.  For Net Car
Segments booked by Expedia users on and after [**],
Worldspan shall pay IAC Global a revenue share equal to [**]% of the [**] (the “Base Car Segment Revenue Share”), subject to
adjustment as provided in this Paragraph B of Schedule 11.1.

 

(ii)                                  Net Car Segment Minimum.  Effective
as of [**], IAC Global agrees to
cause a minimum of [**] Net Car
Segments created on behalf of Expedia users to be booked through the Worldspan
System per [**] period, subject to
adjustment from Segment Count Reduction(s) as provided below (the “Net Car
Segment Minimum”), subject to the following terms:

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

101

 

(a)                                  If
IAC Global fails to book the Net Car Segment Minimum through the Worldspan
System during any [**] period,
then Worldspan, at its option, may give written notice to IAC Global of such
shortfall (“Shortfall Notice”).

 

(b)                                 If
IAC Global does not meet the Net Car Segment Minimum for the [**] period measured [**] after receipt of a Shortfall Notice
(such 60-day period following a Shortfall Notice is referred to herein as the “Probationary
Period”), then, the revenue share per Net Car Segment will be [**] $[**]
(the “Reduced Car Segment Revenue Share”) for Net Car Segments booked after the
expiration of the Probationary Period until such time as IAC Global has met the
Net Car Segment Minimum for the previous [**]
period as measured on the first day of any subsequent calendar month (a “Restoration
Event”). Following any Restoration Event, the Base Car Segment Revenue Share
will be restored for Net Car Segments booked following any Restoration Event,
provided that the provisions of subparagraph (a) above and this subparagraph
(b) will continue to apply in the event of subsequent shortfalls from the Net
Car Segment Minimum.

 

(iii)                               Renegotiation.  After [**],
IAC Global and Worldspan will negotiate in good faith to determine adjustments,
if any, to the Base Car Segment Revenue Share, Reduced Car Segment Revenue
Share and/or the Net Car Segment Minimum. 
If the parties agree upon adjustments to the Base Car Segment Revenue
Share, Reduced Car Segment Revenue Share and the Net Car Segment Minimum for
any period after [**], then such
adjustments will be added to this Agreement via a written amendment.  If, after [**],
the parties are unable to agree, then the Base Car Segment Revenue Share,
Reduced Car Segment Revenue Share and the Net Car Segment Minimum then applicable
shall remain in effect and either party may give written notice to the other
party after [**], to initiate the
Car Termination and Wind Down Procedure set forth in subparagraph (x) below.

 

(iv)                              Base
Car Segment Revenue Share Reductions. 
If the Base Car Segment Revenue Share drops below [**] ($[**])
per Net Car Segment, either party may elect to give the other party written
notice of initiation of the Car Termination and Wind-Down Procedure set forth
in subparagraph (x) below. [**]

 

(v)                                 Parity
and Discontinuation by Participating Cars. 
If (A) a Material Car Participant discontinues participation in the
Worldspan System after [**]; (B)
Worldspan otherwise fails to materially maintain parity with [**] with respect to the pricing, inventory
or functionality of any Material Car Participant; or (C) IAC Global gives
Worldspan written notice of any material parity discrepancy between the pricing
and publicly available inventory (e.g., types of cars and availability of cars)
of a Material Car Participant provided by [**],
and Worldspan is unable to resolve such lack of parity within [**] after such notice, then, in any case,
IAC Global may elect to:  (1) give
Worldspan written notice to [**]
by the [**] of the [**]; or (2) initiate the Car Termination
and Wind-Down Procedure set forth in subparagraph (x) below.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

102

 

(vi)                              Concerns
of Participating Cars.  IAC Global
and Worldspan will work together in good faith to address any concerns raised
by a Material Car Participant to IAC Global with respect to such Material Car
Participant’s participation in the Worldspan System.  [**]

 

(vii)                           Functionality
Changes.  If IAC Global requests
functionality to interact with a Material Car Participant in a new way (e.g.
selling insurance, gas option etc.) it will request in writing that Worldspan
build such functionality within a reasonable specified time period, provided,
that if the relevant supplier causes a delay in Worldspan’s delivery of such
functionality by unreasonably delaying or withholding development cooperation
and implementation, the specified time period will be extended for a period of
time equal to such delay.  Such
functionality changes will be subject to terms and conditions as may be
mutually agreed upon.

 

(viii)                        Internal
Reservation System Connections.  [**] IAC Global agrees that Worldspan will
be the technology provider for such work, provided, that any bid from Worldspan
is comparable or superior to alternatives with respect to functionality and all
relevant commercial and legal terms.

 

(ix)                                Reduction
of Net Car Segment Minimum.  In the
event that (1) IAC Global and Worldspan are not able to negotiate a
commercially reasonable revenue sharing arrangement as set forth in Section B(vi)
of this Schedule 11.1 within [**]
with respect to the applicable Material Car Participant; (2)  Worldspan is unable or unwilling to build the
requested functionality for a Material Car Participant as set forth in Section B(vii)
of this Schedule 11.1 in the earlier of (A) the time specified (as may be
adjusted in the event of supplier delay), or (B) in any event, [**] after such request has been made by
IAC Global to Worldspan; or (3)  IAC
Global receives a direct booking request of any Material Car Participant in
accordance with Section B(viii) of this Schedule 11.1 for which
Worldspan is not selected as the technology provider for such transactions; [**]

 

(x)                                   Car
Termination and Wind-Down Procedure. In the event that either party gives
notice of its intention to initiate the Car Termination and Wind-Down Procedure
as permitted under this Agreement, then the following will apply (collectively,
the “Car Termination and Wind-Down Procedure”):

 

(a)                                  The
parties will continue to operate under this Paragraph B of Schedule 11.1
for a period of [**] (the “Car
Termination and Wind-Down Period”) following effective delivery of notice of
the Car Termination and Wind-Down Procedure, including, without limitation,
continued application of the then-current Base Car Segment Revenue Share,
Reduced Car Segment Revenue Share and/or the Net Car Segment Minimum during
such Car Termination and Wind-Down Period.

 

(b)                                 During
the Car Termination and Wind-Down Period, each party will use commercially
reasonable efforts and cooperate in good faith with the other party

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

103

 

to effectuate
an orderly wind-down of IAC Global’s Car Bookings through the Worldspan System.

 

(c)                                  IAC
Global shall be under no obligation to generate Net Car Bookings through the
Worldspan System and Worldspan shall be under no obligation to compensate IAC
Global for any Net Car Segments generated by IAC Global through the Worldspan
System after the expiration of the Car Termination and Wind Down
Procedure.  In addition, this Paragraph B
of Schedule 11.1 (other than Worldspan’s obligation to pay any monies
accrued prior to the expiration of the Car Termination and Wind Down Period)
will be of no further force and effect. 
For avoidance of doubt, implementation of the Car Termination and Wind-Down
Procedure will have no effect on the other terms and conditions of this
Agreement.

 

2.                                       Paragraph F of Schedule 11.1
attached as Appendix 1 to Amendment No. 4 is amended by adding the following
new definitions:

 

“Material
Car Participant” means a car rental company that participates in the
Worldspan System and which accounted for more than [**] percent ([**]%)
of IAC Global’s Net Car Segments in the prior [**].

 

“Net Car
Yield” means the [**].

 

“Segment
Count Reduction” means, with respect to a Participating Car, a reduction in
the Net Car Segment Minimum for a [**]
equal to:

 

[**]

 

where:

 

A =                            [**]

 

B =                              [**]

 

C =                              [**]

 

D =                             [**]

 

By way of
example, [**]  If there are multiple Segment Count
Reductions applicable from two or more Participating Cars, then the calculations
will be done sequentially in the order that such Segment Count Reductions were
initiated, and the aggregate of all Segment Count Reductions will be applied
against the Net Car Segment Minimum.  For
avoidance of doubt, the Net Car Segment Minimum cannot be increased due to a
Segment Count Reduction.

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

104

 

3.                                       Section 11.1(C)
of the Agreement is hereby deleted in its entirety and replaced with the
following:

 

(C)                                (i)                                     IAC
Global shall reimburse Worldspan for the charges incurred by Worldspan with
respect to direct communication lines and frame relay access devices that are
requested by IAC Global through its Product Unit Manager for the Travel Group (“Direct
Communication Fees”).  Each party is
responsible for its own installation and ongoing costs of circuits and
equipment necessary to connect such party’s facilities to the local exchange
carrier’s termination of the frame relay circuits.

 

(ii)                                  For
the period through and including [**],
IAC Global will pay Worldspan (1) [**]
($[**]) per month per terminal
address (TA) login, digital address (DA) login or GO! Res login used in connection
with the EI System by IAC Global’s fulfillment partners and customer service
centers (other than as specified in item (2) below) anywhere in the world (“Fulfillment
Partner Fees”); and (2) [**] ($[**]) per month for each of [**] terminal address logins, digital
address (DA) login and/or GO! Res logins used in connection with the EI System
by TRX, Inc. during [**] (“TRX
Fulfillment Fees”), provided, that Fulfillment Partner Fees and TRX Fulfillment
Fees billed to IAC Global for [**]
will not exceed [**] ($[**]) in total.  Except as otherwise set forth herein, IAC
Global will not owe Worldspan any Fulfillment Partner Fees or TRX Fulfillment
Fees for any period after [**],
nor will Worldspan bill or make any retroactive negative adjustments for any
Fulfillment Partner Fees or TRX Fulfillment Fees for any period prior to [**].

 

(iii)                               Beginning
[**], IAC Global shall pay
Worldspan a fee equal to [**] ($[**]) per month (the “Login Fee”) for each
terminal address login, digital address login, GO! Res login and/or other
successor form of Worldspan login access used by IAC Global, its fulfillment
partners (including but not limited to automated programmatic, i.e., robot or
messaging TAs use of a TA by fulfillment partners) and call centers anywhere in
the world (each, a “Login”).  For
avoidance of doubt:  (1) IAC Global may
cancel Logins by providing written notice to Worldspan, for which no Login Fee
will be due following such cancellation; and (2) the Login Fees replace
Fulfillment Partner Fees and the TRX Fulfillment Fees, and accordingly, IAC
Global will not owe Worldspan any Login Fees for any period prior to [**]. 
Worldspan and IAC Global agree that the baseline number of IAC Global
Logins as of [**], is [**] Logins (i.e., the number of Logins
stated on Worldspan’s [**]
invoice). Worldspan will provide written notice to the Senior Vice President of
Agency Operations of IAC Global (or his authorized designee) within [**] days after it receives a request for
additional Logins from IAC Global.

 

(iv)                              IAC
Global shall pay for any equipment or scripting requested by IAC Global and
provided by Worldspan to be used by IAC Global’s fulfillment partner.  Worldspan shall offset the Direct
Communication Fees, Fulfillment Partner Fees and/or the Login Fees (as
applicable) from the amounts due IAC Global or invoice IAC Global for the
applicable fees on a monthly basis.  IAC
Global shall pay the invoiced amount

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

105

 

within [**] days after
receipt of the invoice.  Except as
provided in this Agreement, IAC Global shall not owe Worldspan any fees for
capacity under this Agreement.

 

(v)                                 IAC
Global shall pay Worldspan $[**]
per month for XML Pro and Secure Rate Air Plus implementations as requested by
Expedia and authorized by the authorized designee of the Senior Vice President
of Agency Operations of IAC Global.

 

(vi)                              IAC
Global hereby releases Worldspan from liability for any billing inconsistencies
or errors with respect to amounts billed to IAC Global (or its predecessors in
interest) under this Section 11.1(C) for terminal addresses and direct
costs prior to the date of this Amendment.

 

(vii)                           Worldspan
will not charge IAC Global, and IAC Global will have no obligation to pay
Worldspan, for the development or delivery of the enhancements to Worldspan’s
Corporate Fleet Product set forth in Worldspan’s Functional Design Document #[**] dated [**].

 

4.                                      Confidentiality

 

This Amendment
shall be considered Confidential Information according to the Agreement.

 

5.                                      Continuation of Agreement

 

Except as
provided in this Amendment, the Agreement shall continue in full force and
effect.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized undersigned representatives as of the date first above written.

 

	
  IAC Global,
  LLC

  By:  IACT US Inc., its sole member

  	
  Worldspan,
  L.P.

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert
  W. Greyber

  	
   

  	
  By:

  	
  /s/ Jeffrey
  C. Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Robert W.
  Greyber

  	
   

  	
  Print Name:

  	
  Jeffrey C.
  Smith

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice
  President – Air Partner 

  	
   

  	
  Title:

  	
  General
  Counsel, Secretary, and Senior

  	
   

  
	
  Management

  	
   

  	
  Vice
  President Human Resources

  	
   

  
																

 

[**]  Confidential treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

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Exhibit 10.9  

CONFORMED COPY  

DATED 15 APRIL 2005 

Watson Wyatt LLP  

 Watson Wyatt Limited  

and 

Watson Wyatt & Company Holdings  

	
Deed of Contribution
 

	 	 	 

Baker & McKenzie 

London

Ref: HS/JXH/EZW/PD  

 
 

CONTENTS    
    

	Clause
 
	 	 
	 	Page

	1.	 	Interpretation	 	1
	2.	 	Condition	 	3
	3.	 	Uninsured PI Claims Schedule	 	3
	4.	 	Escrow Account	 	3
	5.	 	Payment out of Escrow Account	 	4
	6.	 	WWP Claims and WWLLP insolvency	 	5
	7.	 	Expert Determination	 	5
	8.	 	Confidentiality	 	6
	9.	 	Notices	 	6
	10.	 	Third party rights	 	7
	11.	 	Variation, Waiver and Consent	 	7
	12.	 	Severability	 	7
	13.	 	Counterparts	 	7
	14.	 	Governing Law and Submission to Jurisdiction	 	7

   DATE: 15 April 2005

PARTIES:  

	(1)	 	WATSON WYATT LLP a limited liability partnership incorporated under the laws of England and Wales with registered number OC301975 and having its registered office and its principal place of
business at Watson House, London Road, Reigate, Surrey RH2 9PQ ("WWLLP")
	

(2)	
 	
WATSON WYATT & COMPANY HOLDINGS a company organised and subsisting under the laws of the State of Delaware, USA, whose principal place of business is at 1717H Street, N.W., Suite 800,
Washington D.C. 20006, USA ("WWCH")
	

(3)	
 	
WATSON WYATT LIMITED a company incorporated under the laws of England and Wales with registered number 5379716 and having its registered office at 100 New Bridge Street, London EC4V 6JA
("WWL").
	
RECITALS
	

(A)	
 	

Watson Wyatt (UK) Acquisitions 2 Limited ("WW2 Limited"), The Wyatt Company Holdings Limited ("WCHL"), WWCH and WWLLP have today entered into the BTA (as defined below).
	

(B)	
 	

The parties to this deed have agreed that arrangements be put in place, with effect from Completion (as defined in the BTA) regarding uninsured PI Claims and uninsured IFS PI Claims (each as defined in the BTA) in respect of which WWL and/or any
other member of the Purchaser's Group may suffer loss on the terms of this deed.
	

1.	
 	

INTERPRETATION
	

1.1	
 	

Definitions
	

 	
 	

In this deed, the following words and expressions shall have the following meanings:
	

 	
 	
"Available Contingent Stock" means the Seller's Entitlement calculated in accordance with clause 4 of the BTA, less any Claim Stock which has been withheld pursuant to paragraph 4.2
(b) of schedule 11 to the BTA;
	

 	
 	

"BTA" means an agreement for the purchase by WW2 Limited of the business and assets of WWLLP and made on the date hereof between WW2 Limited, WCHL, WWCH and WWLLP which is to be novated pursuant to the
BTA Deed of Novation so that, immediately following Completion, the parties thereto will be WWL, WWCH and WWLLP;
	

 	
 	
"Indemnity IFS PI Claims" means any and all claims by WWL or any other member of the Purchaser's Group pursuant to the indemnity given by WWLLP under clause 10.2 of the BTA in relation to
IFS PI Claims, in respect of which notice in writing has been given by WWL to WWLLP on or before the Outstanding PI Claims Determination Date;
	

 	
 	

"Indemnity PI Claims" means any and all claims by WWL or any other member of the Purchaser's Group pursuant to the indemnity given by WWLLP under clause 10.1 of the BTA in relation to PI Claims, in
respect of which notice in writing has been given by WWL to WWLLP on or before the Outstanding PI Claims Determination Date;
	

 	
 	

"Outstanding PI Claims" means the Indemnity PI Claims and the Indemnity IFS PI Claims;
	

 	
 	

"Outstanding PI Claims Determination Date" means the earlier of the Final Determination Date and 31 October 2007;
	 	 	 	 	 	 	 

1

 

	

 	
 	

"PI Claims Agreement" means the deed to be entered into on or prior to Completion, between WWCH, WWL, WWLLP and the PI Trustees (as defined therein) relating to post-completion insurance policies for
WWLLP;
	

 	
 	

"PI Insurance" means the post completion insurance policies to be put in place by WWL pursuant to the PI Claims Agreement;
	

 	
 	

"PI Trust" means the trust of that name to be established pursuant to the PI Claims Agreement;
	

 	
 	

"Reserves" means the reserves held by insurers in respect of Underlying PI Claims;
	

 	
 	

"Shortfall" means the amount by which the Sale Proceeds realised pursuant to clause 4.1 are less than 80% of the Uninsured PI Claims Amount;
	

 	
 	

"Underlying PI Claim" means any third party claim in respect of which an Outstanding PI Claim has been made or notified;
	

 	
 	

"Uninsured PI Claims Amount" means the estimated aggregate amount by which the Loss suffered by WWL and/or the relevant member of the Purchaser's Group under the Outstanding PI Claims is not covered by
insurance cover available to satisfy the Underlying PI Claims to be determined in accordance with clause 3; and
	

 	
 	
"Uninsured PI Claims Schedule" means the schedule of Outstanding PI Claims, to be prepared and determined in accordance with clause 3.
	

1.2	
 	

Recitals, etc
	

 	
 	

References to this deed include the recitals which form part of this deed for all purposes. References in this deed to the parties, the recitals and clauses are references respectively to the parties and their legal personal representatives and
successors, the recitals to and clauses of this deed.
	

1.3	
 	

Meaning of references.
	

 	
 	

Save where specifically required or indicated otherwise:
	

 	
 	

(a)	
 	

words importing one gender shall be treated as importing any gender, words importing individuals shall be treated as importing corporations and vice versa and words importing the singular shall be treated as importing the plural and vice
versa;
	

 	
 	

(b)	
 	

references to a person shall include any individual, firm, body corporate, unincorporated association, government, state or agency of state, association, joint venture or partnership, in each case whether or not having a separate legal personality.
References to a company shall be construed so as to include any company, corporation or other body corporate wherever and however incorporated or established; and
	

 	
 	

(c)	
 	

terms used in this deed shall have the meanings attributed to them in the BTA, unless otherwise provided in this deed.
	

1.4	
 	

Headings
	

 	
 	

clause and paragraph headings and the table of contents are inserted for ease of reference only and shall not affect construction.
	 	 	 	 	 	 	 

2

 

	

2.	
 	

CONDITION
	

 	
 	

The provisions of clauses 3-6 (inclusive) of this deed shall not become effective until Completion, whereupon they shall be of full force and effect. In the event that Completion shall not have occurred prior to 30 September 2005 (or such other
date as the parties to the BTA may agree for the purposes of clause 5.4 of the BTA) then all rights and obligations under this deed shall cease to be of any effect save for clauses 7, 8, 9, 10, 11, 13 and 14.
	

3.	
 	

UNINSURED PI CLAIMS SCHEDULE
	

3.1	
 	

As soon as practicable following the Outstanding PI Claims Determination Date, and in any event within 40 Business Days thereafter, WWL shall prepare and deliver to WWLLP the Uninsured PI Claims Schedule which shall set out WWL's summary of the
Outstanding PI Claims and the Uninsured PI Claims Amount. If the Reserves are equal to the maximum insurance cover applicable to the Underlying PI Claims, then the Uninsured PI Claims Amount in respect of the Outstanding PI Claims shall be determined
in accordance with clause 3.2. If the Reserves are less than the maximum insurance cover applicable to the Underlying PI Claims, then WWL shall be entitled to refer the matter of whether or not the Underlying PI Claims are sufficiently covered
by insurance and the determination of the Uninsured PI Claims Amount to an expert for determination pursuant to clause 7 of this deed, in which case, the Uninsured PI Claims Amount shall be as determined by the expert. In cases where the
Reserves are less than the maximum insurance cover applicable to the Underlying PI Claims, if WWL has not referred the matter to an expert before the 40th Business Day after the Outstanding PI Claims Determination Date, then there shall be
deemed to be no Outstanding PI Claims to which this deed relates and this deed shall cease to have any further effect.
	

3.2	
 	

Where the Reserves are equal to the maximum insurance cover applicable to the Underlying PI Claims, WWL's Uninsured PI Claims Schedule shall be supported by written opinion(s) (addressed to both WWL and WWLLP) from the external lawyer(s) to the
relevant Underlying PI Claims stating what amount in excess of insurance cover they believe it is likely will be needed to cover the Outstanding PI Claims. The amount(s) set out in the opinion(s) shall be deemed to be the Uninsured PI Claims
Amount.
	

3.3	
 	

If either party disagrees with the Uninsured PI Claims Amount (as determined in accordance with clause 3.2) then, at its cost, it shall be entitled to refer the matter to an expert for determination in accordance with clause 7 of this
deed.
	

3.4	
 	

In the event that WWL has not given notice in writing to WWLLP, in respect of any Outstanding PI Claims, on or before the Outstanding PI Claims Determination Date, then there shall be deemed to be no Outstanding PI Claims to which this deed relates
and this deed shall cease to have any further effect.
	

4.	
 	

ESCROW ACCOUNT
	

4.1	
 	

Within 20 Business Days of the later to occur of (a) the date on which the Uninsured PI Claims Amount is determined pursuant to this deed and (b) the Final Determination Date, WWL shall sell, on behalf of WWLLP, on the NYSE such amount of
the Available Contingent Stock as is required to realise gross sale proceeds (calculated by reference to the price per share of Contingent Stock realised by WWL) (the "Sale Proceeds") as near to (but not
exceeding) 80% of the Uninsured PI Claims Amount. In the event that the Available Contingent Stock is insufficient to cover 80% of the Uninsured PI Claims Amount (based on market value of the WWCH Stock as traded on the NYSE) WWL shall procure that
all of the Available Contingent Stock shall be sold.
	 	 	 	 	 	 	 

3

 

	

4.2	
 	

The Parties shall procure that a joint account is established (the "Escrow Account"), which shall be funded in accordance with this clause 4. The Escrow Account shall be operated in accordance with
the terms of this deed by an escrow agent to be appointed by the parties.
	

4.3	
 	

WWL shall procure that the Sale Proceeds realised pursuant to clause 4.1 are paid without set off or withholding (other than any withholding required by law) into the Escrow Account. At the same time as the Sale Proceeds are paid into the Escrow
Account, WWCH shall procure that WWC or another member of the Purchaser's Group shall pay into the Escrow Account, an amount of cash equal to 25% of the Sale Proceeds.
	

4.4	
 	

If there is a Shortfall and any Claim Stock has been withheld at the Final Determination Date in accordance with paragraph 4.2(b) of schedule 11 to the BTA, then following subsequent settlement or determination of the Warranty Claim(s) to
which such withholding relates, if some or all of the withheld Claim Stock is required pursuant to the BTA to be transferred to WWLLP (the "Deferred Contingent Stock"), WWL shall sell, on behalf of WWLLP,
 such amount of the Deferred Contingent Stock as is necessary to realise Sale Proceeds as near to (but not exceeding) the Shortfall. In the event that the Deferred Contingent Stock is insufficient to cover the Shortfall (based on market value of the
WWCH Stock as traded on the NYSE) WWL shall procure that all of the Deferred Contingent Stock shall be sold.
	

4.5	
 	

WWL shall procure that the Sale Proceeds realised pursuant to clause 4.4 are paid without set off or withholding (other than any withholding required by law) into the Escrow Account. At the same time as Sale Proceeds are paid into Escrow Account,
 WWCH shall procure that WWC or another member of the Purchaser's Group shall pay into the Escrow Account a cash amount equal to 25% of the Sale Proceeds referred to in clause 4.4.
	

5.	
 	

PAYMENT OUT OF ESCROW ACCOUNT
 
	

5.1	
 	

Subject to clause 6, the funds held in the Escrow Account shall be dealt with in accordance with the provisions of this clause 5:
	

 	
 	

(a)	
 	

upon an Outstanding PI Claim being settled or finally determined in respect of which there is insufficient PI Insurance or funds held in the PI Trust (if available) to meet the Underlying PI Claims (in whole or in part) and to cover any Loss WWL
and/or the relevant member of the Purchaser's Group may suffer as a result of such Outstanding PI Claim, then the funds held in the Escrow Account shall be used to satisfy the Outstanding PI Claim;
	

 	
 	

(b)	
 	

upon the settlement or final determination of the last Outstanding PI Claim in respect of which there is insufficient PI Insurance or funds held in the PI Trust (if available) to meet the Underlying PI Claims (in whole or in part) and to cover any
Loss WWL and/or the relevant member of the Purchaser's Group may suffer as a result of such Outstanding PI Claim then the funds held in the Escrow Account shall be used in the order set out below:
	

 	
 	

 	
 	

(i)	
 	

first, to satisfy the last Outstanding PI Claim;
	

 	
 	

 	
 	

(ii)	
 	

second, the balance (if any) to be paid as to 80% to WWLLP and 20% to WWL.
	

 	
 	

(c)	
 	

If a payment has been made to WWLLP pursuant to clause 6.1 of an amount equal to the aggregate Sale Proceeds and funds remain in the Escrow Account, then any payments to be made pursuant to clause 5.1(b)(ii) shall be paid as to 100% to
WWL.
	 	 	 	 	 	 	 

4

 

	

 	
 	

(d)	
 	

If a payment has been made to WWLLP pursuant to clause 6.1 or 6.3 of less than an amount equal to the aggregate Sale Proceeds and funds remain in the Escrow Account, then any payment to be made pursuant to clause 5.1(b)(ii) shall be
paid as to (i) WWLLP, an amount equal to the aggregate Sale Proceeds less an amount equal to 80% of any payment previously made pursuant to clause 5.1(a) and less an amount equal to 100% of any payment previously made pursuant to
clause 6 and (ii) the balance to WWL.
	

 	
 	

(e)	
 	

For the purpose of this clause 5, an Outstanding PI Claim shall, be (i) "settled" if there is an agreement in writing signed by or on behalf of WWLLP and the member of the Purchaser's Group who has brought the claim in respect of one or
more claims; and (ii) "finally determined" if and when a court of competent jurisdiction has delivered judgement in respect of the claim (whether on appeal or otherwise) and:
	

 	
 	

 	
 	

(i)	
 	

any such judgement has not been appealed against within the requisite time period for so doing;
	

 	
 	

 	
 	

(ii)	
 	

any such judgement has been appealed against but such appeal has been withdrawn; or
	

 	
 	

 	
 	

(iii)	
 	

there shall be no right of appeal against any such judgement.
	

6.	
 	

WWP CLAIMS AND WWLLP INSOLVENCY
	

6.1	
 	

Notwithstanding the provisions of clause 5, if at any time between (a) the date of deposit of funds into the Escrow Account and (b) the date of payment out of the Escrow Account of all funds held therein, WWP, or any of the Partners or
Former Partners receives a claim the liabilities in respect of which would constitute a PI Claim or IFS PI Claims and for which there is insufficient PI Insurance or funds held in the PI Trust (if available) to meet such claim (in whole or in part)
(a "WWP PI Claim"), then there shall be paid out of the funds held in the Escrow Account to WWLLP or to lawyers acting for it such amount as would be required to cover any Loss it may suffer as a result
of such claim, up to a maximum of the aggregate Sale Proceeds less an amount equal to 80% of any payment previously made pursuant to clause 5.1(a) and less an amount equal to 100% of any payment previously made pursuant to this clause 6 to
WWLLP.
	

6.2	
 	

When notifying WWL of such WWP PI Claim, WWLLP shall provide to them from external lawyers to the relevant claim a written opinion (addressed to both WWLLP and WWL) stating what amount in excess of insurance cover they believe it is likely will be
needed to cover such WWP PI Claim.
	

6.3	
 	

Notwithstanding clause 5, if WWLLP goes into insolvent liquidation, there shall be transferred out of the Escrow Account to WWLLP such amount as is equal to the aggregate Sale Proceeds less an amount equal to 80% of any payment previously made
pursuant to clause 5.1(a) and less an amount equal to 100% of any payment previously made pursuant to this clause 6.
	

7.	
 	

EXPERT DETERMINATION
	

 	
 	

If any party has referred any matter for determination pursuant to this clause 7, such referral shall be governed by the remaining provisions of this clause 7:
	

7.1	
 	

the independent expert shall be an independent firm of solicitors based in the City of London which has at least one partner with specialist professional indemnity insurance claims litigation experience (the "Expert") jointly agreed by the parties or,
 if no agreement is reached within 10 Business Days after any party notifies the others that it wishes to appoint an Expert under this clause, shall be appointed at the request of any party by the President of the Law Society of England and
Wales;
	

7.2	
 	

the Expert shall be requested to determine the amount of the Uninsured PI Claims Amount;
	 	 	 	 	 	 	 

5

 

	

7.3	
 	

subject to any rule of law or of any regulatory body or legal professional privilege or any provision of any contract or arrangement entered into prior to the date of this agreement to the contrary, each of the parties will, upon request, provide to
the other parties and to the Expert access to such premises, books, accounts, records, returns and other documents as are in its possession or control as may be required by the Expert to make its determination;
	

7.4	
 	

the determination of the Expert shall be final and binding on the parties in the absence of manifest error; and
	

7.5	
 	

the costs of the Expert shall be borne wholly by the party referring the matter to the Expert.
	

8.	
 	

CONFIDENTIALITY
	

 	
 	

Save to the extent required by law or by any securities exchange or any supervisory or regulatory body to whose rules any party to this deed is subject, the parties agree to, and will procure that each of their respective subsidiaries, holding
companies or parent undertakings and any subsidiary of any such holding company or parent undertaking for the time being will keep this deed confidential and no disclosure of nor reference to this deed or its terms shall be made without the prior
written consent of each of the parties, which consent may not be unreasonably withheld.
	

9.	
 	

NOTICES
	

9.1	
 	

Save as otherwise provided in this deed, any notice, demand or other communication ("Notice") to be given by any party under, or in connection with, this deed shall be in writing and signed by or on
behalf of the party giving it. Any Notice shall be served by sending it by fax to the number set out in clause 9.2, or delivering it by hand to the address set out in clause 9.2 and in each case marked for the attention of the relevant
party set out in clause 9.2 (or as otherwise notified from time to time in accordance with the provisions of this clause 9). Any Notice so served by fax or hand shall be deemed to have been duly given or made as follows:
	

 	
 	

(a)	
 	

if sent by fax, at the time of transmission; or
	

 	
 	

(b)	
 	

in the case of delivery by hand, when delivered;
	

 	
 	

provided that in each case where delivery by fax or by hand occurs after 5pm on a Business Day or on a day which is not a Business Day, service shall be deemed to occur at 9am on the next following Business Day.
	

 	
 	

References to time in this clause are to local time in the country of the addressee.
	

9.2	
 	

The addresses and fax numbers of the parties for the purpose of clause 9.1 are as follows:
	

 	
 	

(a)	
 	

WWLLP

Address: Watson House, London Road, Reigate, Surrey RH2 9PQ
	

 	
 	

 	
 	

Fax: 01737 241496
	

 	
 	

 	
 	

For the attention of: Senior Partner
	

 	
 	

(b)	
 	

WWL

Address: 100 New Bridge Street, London EC4V 6JA
	

 	
 	

 	
 	

Fax: 020 7919 1999
	

 	
 	

 	
 	

For the attention of: Company Secretary
	

 	
 	

 	
 	

With a copy by fax to WWCH, for the attention of General Counsel, fax no. +1 202 715 7039
	 	 	 	 	 	 	 

6

 

	

 	
 	

(c)	
 	

WWCH

Address: 1717 H Street, N.W., Suite 800, Washington DC 20006, USA
	

 	
 	

 	
 	

Fax: +1 202 715 7039
	

 	
 	

 	
 	

For the attention of: General Counsel
	

9.3	
 	

A party may notify all other parties to this deed of a change to its name, relevant addressee, address or fax number for the purposes of this clause 9, provided that such notice shall only be effective on:
	

 	
 	

(a)	
 	

the date specified in the notification as the date on which the change is to take place; or
	

 	
 	

(b)	
 	

if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date following five Business Days after notice of any change has been given.
	

9.4	
 	

In proving service it shall be sufficient to prove that the envelope containing such notice was properly addressed and delivered to the address shown thereon or that the facsimile transmission was made and a facsimile confirmation report was received,
 as the case may be.
	

10.	
 	

THIRD PARTY RIGHTS
	

 	
 	

The parties do not intend that any term of this deed shall be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to this deed.
	

11.	
 	

VARIATION, WAIVER AND CONSENT
	

11.1	
 	

No variation or waiver of any provision of this deed shall be effective unless it is in writing and signed by or on behalf of each of the parties (or, in the case of a waiver, by or on behalf of the party waiving compliance).
	

11.2	
 	

Unless expressly agreed, no variation or waiver of any provision or condition of this deed shall constitute a general variation or waiver of any provision or condition of this deed, nor shall it affect any rights, obligations or liabilities under or
pursuant to this deed which have already accrued up to the date of variation or waiver, and the rights and obligations of the parties under or pursuant to this deed shall remain in full force and effect, except and only to the extent that they are so
varied or waived.
	

11.3	
 	

Any consent granted under this deed shall be effective only if given in writing and signed by the consenting party and then only in the instance and for the purpose for which it was given.
	

12.	
 	

SEVERABILITY
	

 	
 	

If any provision of this deed is held by a court of competent jurisdiction to be illegal, invalid or unenforceable in any respect under the law of any jurisdiction, then such provision shall (so far as it is invalid or unenforceable) be given no
effect and shall be deemed not to be included in this deed but without invalidating any of the remaining provisions of this deed. Any provision of this deed held invalid or unenforceable only in part or degree will remain in full force and effect to
the extent not held invalid or unenforceable. The parties shall then use all reasonable endeavours to replace the invalid or unenforceable provision(s) by a valid and enforceable substitute provision the effect of which is as close as possible to the
intended effect of the invalid or unenforceable provision.
	

13.	
 	

COUNTERPARTS
	

 	
 	

This deed may be executed in any number of counterparts and by the parties to it on separate counterparts and each such counterpart shall constitute an original of this deed but all of which together constitute one and the same instrument. This deed
shall not be effective until each party has executed at least one counterpart.
	

14.	
 	

GOVERNING LAW AND SUBMISSION TO JURISDICTION
	

14.1	
 	

The construction, validity and performance of this deed shall be governed by the laws of England and Wales.
	

14.2	
 	

The parties to this deed irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction over any claim or matter arising under or in connection with this deed and that accordingly any proceedings in respect of any such claim
or matter may be brought in such court.

The
parties have shown their agreement to the terms of this deed by executing it as a deed below. 

7

 

	EXECUTED and	 	)	 	 
	DELIVERED as a Deed	 	)	 	 
	By	 	)	 	P. N. THORNTON
	WATSON WYATT LLP	 	)

)	 	
 Member
	 	 	)	 	C. RAMAMURTHY
	 	 	)

)	 	
 Member
	EXECUTED and	 	)	 	 
	DELIVERED as a Deed	 	)	 	 
	By	 	)	 	JOHN J. HALEY
	WATSON WYATT LIMITED	 	)

)	 	
 Director
	 	 	)	 	WALTER W. BARDENWERPER
	 	 	)

)	 	
 Director/Secretary
	EXECUTED and	 	)	 	 
	DELIVERED as a Deed	 	)	 	 
	By John J Haley duly authorised	 	)	 	 
	For and on behalf of	 	)	 	 
	WATSON WYATT & COMPANY	 	)	 	JOHN J. HALEY
	HOLDINGS	 	)

)	 	
 President and Chief Executive Officer

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