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Exhibit 10.8    
    

 
 

AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    

        This Amended and Restated Employment Agreement (the "Agreement") dated as of September 30, 2003, is entered between La Quinta Corporation (the "Company")
and Francis W. Cash (the "Executive"). 

        WHEREAS,
the Company and the Executive have previously entered into an Employment Agreement, as amended by an acknowledgement dated October 22, 2001, which they wish to amend and
restate in its entirety as set forth in this Agreement, pursuant to which the Executive will be employed by the Company in accordance with the terms and conditions stated below; 

        NOW,
THEREFORE, for good and valuable consideration, the delivery and receipt of which is hereby acknowledged by the parties hereto, respectively, said parties hereby agree as follows: 

 
 

ARTICLE I
  
    Employment, Duties and Responsibilities    
    

        1.1   Employment. The Executive shall serve as the President and Chief Executive Officer of the Company and as a member of the
Company's Board of Directors (the "Board"). The Executive hereby accepts such continued employment. The Executive agrees to devote substantially all of his time and efforts to promoting the interests
of the Company. 

        1.2   Duties and Responsibilities. Subject to the supervision of and direction by the Board the Executive shall
(a) perform such duties as are customarily associated with the position of President and Chief Executive Officer of the Company, and (b) be responsible, together with the other senior
executives of the Company, for the implementation of the operating plan and budget of the Company. 

        1.3   Base of Operation. The Executive's principal base of operation for the performance of his duties and responsibilities
under this Agreement shall be the offices of the Company in Dallas, Texas. 

 
 

ARTICLE II
  
    Term

        2.1   Term. The term of this Agreement (the "Term") shall commence on the date of this Agreement as indicated above and shall
continue for a period of three years from the commencement date hereof. The Term and this Agreement will be renewed automatically thereafter for
successive one-year terms unless 6 months notice of non-renewal is given by either party to the other. Regardless of the term remaining on this Agreement determined as
provided above, upon the occurrence of a Change of Control of the Company, the Term of this Agreement shall not expire until the later of the end of the remaining term then in effect or two years from
the date of such Change of Control. 

 
 

ARTICLE III
  
    Compensation and Expenses

        3.1   Salary and Benefits. As compensation and consideration for the performance by the Executive of his obligations under this
Agreement, the Executive shall be entitled to the following (subject, in each case, to the provisions of Article V hereof): 

        (a)   The
Company shall pay the Executive a base salary, payable in accordance with the ordinary payment procedures of the Company and subject to such withholdings and other
ordinary 

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employee
deductions as may be required by law. The total base salary paid to the Executive through the date of his next regular annual salary review shall be $800,000. The base salary to be paid the
Executive during the Term for subsequent years shall be reviewed on an annual basis, by the Board of Directors of the Company (the "Board") or by the Compensation Committee of the Board, (the
"Compensation Committee") subject to increase based upon performance and competitive market data as determined by the Compensation Committee in its sole discretion. In no event shall such base salary
be less than $800,000 per annum. 

        (b)   The
Executive shall participate during the Term in the annual cash bonus plan maintained by the Company, subject to the performance goals and procedures established by
the Compensation Committee, from time to time. Subject to the terms and conditions of the annual cash bonus plan, the Executive's base target bonus opportunity for each fiscal year for satisfaction of
goals for such fiscal year shall be 100 percent of the Executive's base salary as actually paid in the applicable calendar year ("Base Target"). In the event the Executive significantly exceeds
annual goals for any fiscal year, he may receive a cash bonus of up to 200 percent of the Executive's base salary as actually paid in the applicable calendar year. Actual payments under the
annual cash bonus plan will be determined by the Compensation Committee, in its sole discretion. 

        (c)   During
the Term the Company shall pay Executive $25,000 per annum in lieu of furnishing him coverage under the Company's life insurance plan. If the Executive so elects
by written notice provided to the Company, the obligations of the Company set forth in the first sentence of this clause (c) shall terminate as of 30 days after the date of the notice
and from that date, during the Term, the Executive shall participate in any such life insurance plan as may be maintained from time to time during the Term by the Company for the benefit of the
employees of the Company, to the extent and in such manner available to other executive officers of the Company and subject to the terms and provisions of such plans and programs. 

        (d)   The
Executive shall participate during the Term in such retirement, pension, health, disability and medical insurance plans, (other than the Company's life insurance
plan, as described in paragraph (c) above), and in such other employee benefit plans and programs, as may be maintained from time to time during the Term by the Company for the benefit of the
employees of the Company, in each case to the extent and in such manner available to other executive officers of the Company and subject to the terms and provisions of such plans or programs. 

        (e)   The
Executive shall be entitled to an annual paid vacation period (but not necessarily consecutive vacation weeks) during the Term, in accordance with the Company's
employee benefit policies, but in no event less than four weeks per year. 

        3.2   Expenses. The Company will reimburse the Executive for reasonable business-related expenses incurred by him in connection
with the performance of his duties hereunder during the Term subject, however, to the Company's policies relating to business-related expenses as in effect from time to time during the Term. 

        3.3   Long Term Incentives. The Company may provide the Executive with additional opportunities to earn long-term
incentive awards in the future, from time to time, at levels that are competitive with external market place opportunities for the Executives' position and in line with the Company's compensation
philosophies as in effect, from time to time, as may be approved by the Compensation Committee, in its sole discretion. 

        As
compensation and in consideration for the performance by the Executive of his obligations under his prior Employment Agreement and this Employment Agreement, the Executive has
received the following (subject, in each case, to the provisions of Article V hereof): 

        (a)   Performance Shares. The Company has granted awards to the Executive and may grant additional awards in the future of
shares of the common stock of La Quinta Corporation and 

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shares
of the common stock of La Quinta Properties, Inc. which are paired for trading purposes ("Paired Shares") in accordance with the provisions of the Agreements pursuant to which such
awards have been or will be granted (the "Award Agreements") and the terms of the La Quinta Corporation 1995 Share Award Plan, the La Quinta Corporation 2002 Share Award Plan and any additional or
modified plans as may be adopted from time to time, as applicable, (the "Award" of the "Performance Shares" under the "Plans"). 

        (b)   Stock Options. The Company has also granted to the Executive options to purchase Paired Shares and may grant additional
awards in the future (the "Options") in accordance with the provisions of the Agreements pursuant to which such awards have been or will be granted (the "Option Agreements") and the terms of the
Plans. 

        In
the event of a Change in Control (as hereafter defined and provided for in Section 5.7), all Performance Shares and Options shall become fully vested immediately prior to the
consummation of the Change in Control, notwithstanding the terms of any Award Agreement or Option Agreement pertaining to these grants that may indicate to the contrary. 

        3.4   Supplemental Retirement Agreement. The Company has entered into the La Quinta Executive Supplemental Retirement Agreement
with the Executive, dated as of November 1, 2001, which is hereby ratified and confirmed. 

 
 

ARTICLE IV
  
    Exclusivity, Etc.

        4.1   Exclusivity. The Executive agrees to perform his duties, responsibilities and obligations hereunder efficiently and to
the best of his ability. The Executive agrees that he will devote substantially all of his working time, care and attention and best efforts to such duties, responsibilities and obligations throughout
the Term. The foregoing shall not be interpreted to prohibit the Executive from serving as director or trustee of one or more corporations or foundations (either for-profit or
not-for-profit) other than the Company, after obtaining consent from the Board, which shall not be unreasonably withheld. The Executive also agrees so long as he is employed by
the Company that he will not engage in any other business activities, pursued for gain, profit or other pecuniary advantage, that are competitive with the activities of the Company. 

        4.2   Other Business Ventures. The Executive agrees that, so long as he is employed by the Company, he will not own, directly
or indirectly, any controlling or substantial stock or other beneficial interest in any business enterprise which is engaged in, or competitive with, any business engaged in by the Company.
Notwithstanding the foregoing, the Executive may own, directly or indirectly, up to 5% of the outstanding capital stock of any business having a class of capital stock which is traded on any national
stock exchange or in the over-the-counter market. 

        4.3   Confidentiality. The Executive agrees that he will not, at any time during or after the Term, make use of or divulge to
any other person, firm or corporation any trade or business secret, process, method or means, or any other confidential information concerning the business or policies of the Company, which he may
have learned in connection with his employment hereunder. For purposes of this Agreement, a "trade or business secret, process, method or means, or any other confidential
information" shall mean and include written information treated as both confidential and as a trade secret by the Company. The Executive's obligation under this
Section 4.3 shall not apply to any information which (a) is known publicly; (b) is in the public domain or hereafter enters the public domain without the fault of the Executive;
(c) is known to the Executive prior to his receipt of such information from the Company, as evidenced by written records of the Executive; or (d) is hereafter disclosed to the Executive
by a third party not under an obligation of confidence to the Company. The Executive agrees not to remove from the premises of the Company, except as an employee of the 

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Company
in pursuit of the business of the Company or except as specifically permitted in writing by the Company, any document or other object containing or reflecting any such confidential
information. The Executive recognizes that all such documents and objects, whether developed by him or by someone else, will be the sole and exclusive property of the Company. Upon termination of his
employment hereunder, the Executive shall forthwith deliver to the Company all such confidential information, including without limitation all lists of lessees, customers, correspondence, accounts,
records and any other documents or property made or held by him or under his control in relation to the business or affairs of the Company, and no copy of any such confidential information shall be
retained by him. The provisions of this Section 4.3 shall survive any termination of this Agreement. 

        4.4   Noncompetition and Non Disparagement. During the period commencing on the date hereof and ending on the first anniversary
of the date on which the Executive's employment is terminated, (the "Restricted Period") whether before or after the Term the Executive shall not, directly or indirectly, whether as an employee,
consultant, independent contractor, partner, joint venturer or otherwise, (A) solicit or induce, or in any manner attempt to solicit or induce, any person employed by, or as agent of, the
Company to terminate such person's employment or agency, as the case may be, with the Company or (B) divert, or attempt to divert, any person, concern, or entity from doing business with the
Company (including entering into a lease), nor will he attempt to induce any such person, concern or entity to cease being a lessee, customer or supplier of the Company. Furthermore, during the
Restricted Period, the Executive shall not make disparaging remarks about the Company. If the Executive is terminated by the Company for other than Cause or by the Executive for Good Reason, or after
a Change of Control and Executive Termination Event, the provisions of this Section 4.4 relating to noncompetition shall not be binding on Executive. The provisions of this Section 4.4
shall survive the termination of this Agreement. 

 
 

ARTICLE V
  
    Termination

        5.1
Termination by the Company. 

        (a)   The
Company shall have the right to terminate the Executive's employment at any time with or without "Cause". For purposes of this Agreement,
"Cause" shall mean that, prior to any termination the Executive shall have committed: (i) an act of willful misconduct, fraud, embezzlement,
theft, or any other act constituting a felony, involving moral turpitude or causing material harm, financial or otherwise, to the Company; (ii) a demonstrably intentional and deliberate act or
failure to act, including a gross neglect in duties, (other than as a result of incapacity due to physical or mental illness), which is committed in bad faith by the Executive, which causes or can be
expected to cause material financial injury to the Company; or (iii) an intentional and material breach of this Agreement that is not cured by the Executive within 30 days after written
notice from the Board of Directors specifying the breach and requesting a cure. For purposes of this Agreement, no act, or failure to act, on the part of the Executive shall be deemed "intentional" if
it was due primarily to an error in judgment or negligence, but shall be deemed "intentional" only if done, or omitted to be done, by the Executive not in good faith and without reasonable belief that
his action or omission was in, or not opposed to, the best interest of the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for "Cause" hereunder
unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the Board then in office (however, the
Executive will not be permitted to cast a vote as a Director for these purposes), at a meeting of the Board of Directors called and held for such purpose (after reasonable notice to the Executive and
an opportunity for the Executive, together with his counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive had committed an act set forth above and
specifying the particulars thereof 

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in
detail. Nothing herein shall limit the right of the Executive or his beneficiaries to contest the validity or propriety of any such determination. 

        (b)   The
end of the Term, due to the exercise by the Company of its non-renewal right under Section 2.1, shall also constitute termination by the Company
of the Executive's employment, with the giving of such notice by the Company creating a severance payment obligation, which is payable at the end of the notice period. 

        5.2   Death. In the event the Executive dies during the Term, this Agreement shall automatically terminate, such termination to
be effective on the date of the Executive's death. 

        5.3   Disability. In the event that the Executive shall suffer a disability which shall have prevented him from performing
satisfactorily his obligations hereunder for a period of at least 120 consecutive days, the Company shall have the right to terminate this Agreement, such termination to be effective upon the giving
of notice thereof to the Executive in accordance with this Agreement. 

        5.4   Termination by the Executive for Good Reason. The Executive's employment may be terminated during the Term by the
Executive for Good Reason, by giving to the Company 30 days advance written notice specifying the event or circumstance which the Executive alleges constitutes Good Reason. Such notice of
resignation will take effect, if not revoked by the Executive, at the conclusion of such thirty-day period. For purposes of this Agreement, the following circumstances shall constitute
"Good Reason" if not cured prior to the expiration of such thirty-day period: 

        (a)   the
assignment to the Executive of duties that are materially inconsistent with the Executive's position or with his authority, duties or responsibilities as
contemplated by Sections 1.1 and 1.2 of this Agreement, or any other action by the Company or its successor which results in a material diminution or material adverse change in such position,
authority, duties or responsibilities; 

        (b)   any
material breach by the Company or its successor of the provisions of this Agreement; 

        (c)   the
Company shall relocate its principal executive offices or require the Executive to have his principal location of work changed, in either case, to any location which
is in excess of 45 miles from its current location; or 

        (d)   the
reduction of the Executive's base salary below its then current level or the reduction of the Executive's Base Target bonus percentage factor. 

        5.5   Effect of Termination. 

        (a)   In
the event of termination of the Executive's employment for any reason or by reason of the Executive's death or disability, the Company shall pay to the Executive (or
his beneficiary in the event of his death) within 30 days after termination of employment any base salary, bonus, vested benefits in accordance with the Company's plans, and any other
compensation earned but not paid to the Executive prior to the effective date of such termination and, other than the circumstances of termination by the Company for Cause or by the Executive
voluntarily without Good Reason, the pro rata amount of the annual cash bonus payable under the plan based on the Base Target bonus for the year during which such termination occurs, based on the
number of days worked during such year. Upon such termination, the Company's obligation to pay base salary, annual bonus and long term incentives ceases except to the extent vested, in accordance with
the plans, or as otherwise payable pursuant to this Agreement. 

        (b)   In
the event of termination of the Executive's employment (other than a termination following a Change of Control as hereafter defined and provided for in
Section 5.6, which shall govern in such event) (i) by the Company other than for Cause or (ii) by the Executive for Good Reason, (subject to the signing by the Executive of the
Company's standard form of general 

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release
of employment claims as generally used prior to the Change of Control and the expiration of the statutory revocation period) the Company shall pay to the Executive, within 30 days after
termination of employment in addition to the amounts described in Section 5.5(a) hereof, a lump sum equal to two times the sum of Executive's then current base salary and then current Base
Target bonus. Further, 20% of the original number of the Options in the Executive's initial Option Agreement award grant issued upon hire shall accelerate and become vested and exercisable. 

        (c)   In
the event of the termination of the Executive's employment (other than a termination following a Change in Control as hereafter defined and provided for in
Section 5.6, which shall govern in such event) (i) by the Company other than for Cause, (ii) by the Executive for Good Reason or (iii) on account of the Executive's death
or disability, for 24 months (or, if later, the date the Executive becomes eligible for Medicare if his employment terminates on account of disability) following the Termination Date, the
Company shall arrange to provide the Executive with insurance benefits (medical, dental, life and disability) on the same terms and conditions applicable to active executive officers of the Company,
and in the event of the Executive's death, the Company shall arrange to provide the Executive's surviving spouse and dependents with such benefits if they were provided with such benefits by the
Company at the time of the Executive's death. If and to the extent that such benefits shall not or cannot be paid or provided under any policy, plan, program or arrangement of the Company solely due
to the fact that the Executive is no longer an officer or employee of the Company, then the Company shall pay to the Executive, his dependents and beneficiaries, the amount of premiums that would have
been incurred by the Company were the Company able to provide such coverage through its plan, program or arrangement. Such benefits shall be discontinued prior to the end of the specified continuation
period if the Executive receives comparable coverage from a subsequent employer (except to the extent that the subsequent employer does not cover the preexisting medical conditions of the Executive or
a previously covered member of the Executive's family). 

        5.6   Termination Following a Change of Control. 

        (a)   Definitions. As used herein, the following terms shall have the following meanings: 

          (i)  Change
in Control. "Change in Control" shall mean 

        (1)   any
transaction, or series of transactions, including, but not limited to any merger, consolidation, or reorganization, which results when any "person" as defined in
Section 3(a)(9) of the Securities Exchange Act of 1934 (the "Exchange Act") and as used in Sections 13(d) and 14(d) thereof, including
a "group" as defined in Section 13(d) of the Exchange Act, but excluding the Company, any subsidiary of the Company, and any employee benefit plan sponsored or maintained by the Company or any
subsidiary of the Company, directly or indirectly, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing more
than 50% of the combined voting power of the Company's then outstanding securities; 

        (2)   when,
during any period of 24 consecutive months the individuals who, at the beginning of such period, constitute the Board (the "Incumbent Directors") cease for any
reason other than death to constitute at least a majority of the Board; provided, however, that a director who was not a director at the beginning of such 24-month period shall be deemed
to have satisfied such 24-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of, at least
two-thirds of the directors who then qualified as Incumbent Directors either actually (because they were directors at the beginning of such 24-month period) or by prior
operation of this Section; or 

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        (3)   upon
the closing of a transaction comprising: a stockholder approved plan of complete liquidation of the Company; or an agreement for the sale or disposition of
substantially all of the Company's assets; or a merger, consolidation, or reorganization of the Company in which stockholders of the Company immediately prior to the transaction own less than 50% of
the combined voting power of the surviving entity. 

         (ii)  "Termination
Date" shall mean the date on which the Executive's employment with the Company is terminated. 

        (b)   Termination by the Company. Following a Change in Control, the Executive's employment may be terminated by the Company (a
"Company Termination Event") and the Executive shall not be entitled to the severance benefits provided under Section 5.7, provided that the Executive's termination occurs as a result of one or
more of the following events: 

          (i)  The
Executive's death; 

         (ii)  The
Executive's disability, provided the Executive actually begins to receive disability benefits pursuant to the long-term disability plan in effect for
senior executives of the Company immediately prior to the Change in Control; or 

        (c)   Executive Termination Event. If at any time during the two year period commencing on the date of a Change in Control, the
Company or the Executive terminates his employment following the occurrence of one or more of the following events (each, an "Executive Termination Event"), the Executive shall be entitled to the
severance benefits provided in Section 5.7 below: 

          (i)  Any
termination by the Company of the Executive's employment during such two year period for any reason, other than for Cause, as a result of the Executive's death, or
by reason of the Executive's disability and the actual receipt of disability benefits pursuant to the long-term disability plan in effect for senior executives of the Company immediately
prior to the Change in Control. 

         (ii)  Termination
by the Executive of his employment with the Company at any time within two years after the Change in Control upon the occurrence of any of the following
events: 

        (1)   The
Company's failure to elect, re-elect or otherwise maintain the Executive in the office or position in the Company which the Executive held immediately
prior to a Change in Control, or the removal of the Executive as a Director of the Company (or any successor thereto); 

        (2)   A
significant, adverse change (increase or decrease) in the nature or scope of the authorities, powers, functions, responsibilities or duties attached to the position
with the Company which the Executive held immediately prior to the Change in Control, or a reduction in the aggregate of the Executive's base pay or annual incentive bonus opportunity (and relative
level of goal achievement) in which the Executive participated immediately prior to the Change in Control, or the termination of the Executive's rights to any employee benefits to which he was
entitled immediately prior to the Change in Control, or a reduction in scope or value of such benefits, without prior written consent of the Executive, any of which is not remedied within 10 calendar
days after receipt by the Company of a written notice from the Executive of such change, reduction, or termination, as the case may be; 

        (3)   The
Company or its successor becomes a subsidiary of another company and the Executive does not hold the position stated in Section 1.1 of the ultimate parent
company; 

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        (4)   The
Company shall relocate its principal executive offices, or require the Executive to have his principal location of work changed, to any location which is in excess
of 45 miles from the location thereof immediately prior to the Change in Control; or 

        (5)   The
occurrence of any of the events described in Section 5.6(a) (i) clauses (1), (2) or (3); or 

        (6)   Without
limiting the generality or effect of the foregoing, any material breach of this Agreement by the Company or any successor thereto. 

        5.7   Severance Benefits. In the event the Executive's employment is terminated within two years of the date of a Change in
Control as a result of an Executive Termination Event, the Executive shall be entitled to the benefits set forth below, subject to the signing by the Executive of the Company's standard form of
general release of employment claims as generally used prior to the Change in Control and the expiration of any statutory revocation period. All amounts payable under this Section 5.7(a)
(b) (c) and (d) shall be paid to the Executive in one lump sum within 30 days after his termination of employment. 

        (a)   The
Company shall pay to the Executive an amount equal to three times the greater of: i) the average of his annual base salary for the three fiscal years (or such
fewer fiscal years that the Executive is actually employed by the Company) preceding the Change in Control or ii) his then current base salary ("average Base Salary") and three times the
greater of: i) the average of his cash bonuses paid with respect to the last two fiscal years (or such fewer fiscal years that the Executive is actually employed by the Company) preceding the
Change in Control, or ii) his Base Target bonus. 

        (b)   The
Company shall pay the Executive his full base salary through the Executive's Termination Date. The Company shall also pay the Executive an amount equal to the pro
rata amount of the Base Target bonus award available to the Executive under the bonus plan during the year of termination, based on the number of days of the year elapsed prior to the Termination
Date. Any cash-based long-term incentives shall be cashed out on a pro-rata basis, based on the greater of actual goal achievement or target. 

        (c)   All
Performance Shares, Options, Award Grants and retirement benefits (such as 401k), shall become vested in accordance with the applicable plan documents as in effect
on the dates of the respective grants, consistent with the provisions of Section 3.3 hereof. 

        (d)   The
Company will provide outplacement assistance from a service selected by the Executive for a period of one year from the Termination Date. All associated costs will
be paid by the Company, up to a maximum of $50,000. 

        (e)   The
Executive may elect, within 120 calendar days following the Termination Date, to have the Company purchase the Executive's house at its then current market value
(which shall be established by taking the average of three appraisals from real estate firms, one selected by the Executive, one selected by the Company, and one selected by the two selected firms,
with the Company paying the costs of the appraisals). Such purchase shall occur on a date specified by the Executive but in any event within six months following the Executive's election to have the
house purchased by the Company. 

        (f)    For
a period of three years following the Executive's termination of employment the Company shall arrange to provide the Executive with insurance benefits (medical,
dental, life and disability) substantially similar to those which the Executive was receiving or entitled to receive immediately prior to the Termination Date with all costs paid by the Company. If
and to the extent that such benefits shall not or cannot be paid or provided under any policy, plan, program or 

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arrangement
of the Company solely due to the fact that the Executive is no longer an officer or employee of the Company, then the Company shall pay to the Executive, his dependents and beneficiaries,
the amount of premiums that would have been incurred by the Company were the Company able to provide such coverage through its plan, program or arrangement. Such insurance benefits shall be
discontinued prior to the end of the specified continuation period if the Executive receives comparable coverage from a subsequent employer (except to the extent that the subsequent employer does not
cover the preexisting medical conditions of the Executive or a previously covered member of the Executive's family). 

        (g)   Executive's
Supplemental Retirement Agreement as described in Section 3.4 shall remain in full force and effect, binding the Company's successors and assigns;
however, the Executive's normal retirement benefit shall become fully vested and immediately payable. 

        5.8   Other Rights. A termination of the Executive's employment by the Company pursuant to this Agreement or by the Executive
shall not affect adversely any rights which the Executive may have pursuant to any agreement, employment contract, policy, plan, program or arrangement of the Company providing employee benefits,
which rights shall be governed by the terms of such employee benefit plan. 

        5.9   Retirement. The Executive will be entitled to retirement benefits and all other applicable benefits if any, pursuant to
the terms of any of the Company's plans. The Company's obligation to pay base salary, annual bonus and long-term incentives ceases upon retirement except to the extent vested, in
accordance with the plans, or as otherwise payable pursuant to this Agreement. 

 
 

ARTICLE VI
  
    Indemnification

        The
Company will indemnify the Executive to the fullest extent that would be permitted by law (including a payment of expenses in advance of final disposition of a proceeding) as in
effect at the time of the subject act or omission, or by the charter or by-laws of the Company as in
effect at such time, or by the terms of any indemnification agreement between the Company and the Executive, whichever affords greatest protection to the Executive, and the Executive shall be entitled
to the protection of any insurance policies the Company may elect to maintain generally for the benefit of its officers and/or, during the Executive's service in such capacity (if applicable),
directors (and to the extent the Company maintains such an insurance policy or policies, in accordance with its or their terms to the maximum extent of the coverage available for any Company officer
or director); against all costs, charges and expenses whatsoever incurred or sustained by the Executive (including but not limited to any judgment entered by a court of law) at the time such costs,
charges and expenses are incurred or sustained, in connection with any action, suit or proceeding to which the Executive may be made a party by reason of his being or having been an officer or
employee of the Company, or serving as a director, officer or employee of an affiliate of the Company, at the request of the Company, other than any action, suit or proceeding brought against the
Executive by or on account of his breach of the provisions of an employment agreement with a third party that has not been disclosed by the Executive to the Company. The provisions of this
Article VI shall survive any termination of this Agreement. 

 
 

ARTICLE VII
  
    Taxes and Miscellaneous Other Provisions

        7.1   Tax Considerations. Notwithstanding anything herein to the contrary, in the event any payments or benefits provided to
the Executive hereunder are determined by the Company to be subject to the tax imposed by Section 4999 of the Internal Revenue Code (the "Code", with all Code Section references used herein
being deemed to include any regulations thereunder), or any similar 

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federal
or state excise tax, FICA tax, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties are
hereinafter collectively referred to as the "Excise Tax"), the Company shall pay to the Executive at the time specified in Section 5.5 (b) or 5.7 above (whichever applies), an additional
amount (the "Gross-Up Payment") such that after the payment by the Executive of all federal, state, or local income taxes, Excise Taxes, FICA tax, or other taxes (including any interest or
penalties imposed with respect thereto) imposed upon the receipt of the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed on
the severance payments and benefits provided herein. 

        (a)   For
purposes of determining whether any payments or benefits to the Executive hereunder will be subject to the Excise Tax and the amount of such Excise Tax: 

          (i)  all
payments or benefits received or to be received by the Executive in connection with a Change in Control or the termination of employment (whether pursuant to the
terms of this Agreement or of any
other plan, arrangement or agreement with the Company) shall be treated as "parachute payments" within the meaning of Section 280G(b)(2) of the Code, and all "excess parachute payments" within
the meaning of Section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel selected by the Company and acceptable to the Executive, such payments or
benefits (in whole or in part) do not constitute parachute payments under Section 280G of the Code, or such excess parachute payments (in whole or in part) represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the Code; 

         (ii)  the
amount of the severance payments which shall be treated as subject to the Excise Tax shall be equal to the amount of excess parachute payments within the meaning of
Sections 280G(b)(1) and (4) (after applying clause (a), above); and 

        (iii)  the
parachute value of any noncash benefits or any deferred payment or benefit shall be determined by Company in accordance with the principles of Sections 280G(d)(3)
and (4) of the Code. 

        (b)   If
the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time of termination of employment, the Executive shall repay
to the Company, at the time the reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment attributable to such reduction. If the Excise Tax is determined to exceed
the amount taken into account hereunder at the time of termination of employment, the Company shall make an additional Gross-Up Payment to the Executive in respect of such excess at the
time the amount of such excess is finally determined. The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later that ten business days after the Executive is informed in writing of such claim
and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30 calendar
day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company
notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall: 

          (i)  give
the Company any information reasonably requested by the Company relating to such claim, 

10

 

         (ii)  take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company, 

        (iii)  cooperate
with the Company in good faith in order to effectively contest such claim, and 

        (iv)  permit
the Company to participate in any proceedings relating to such claim; 

provided,
however, that the Company shall bear and pay directly all costs and expenses (including legal and accounting fees and additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax, FICA tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this section, the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim
and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect
to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with
respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority. 

        If
any such claim referred to in this Section is made by the Internal Revenue Service and the Company does not request the Executive to contest the claim within the 30 calendar day
period following notice of the claim, the Company shall pay to the Executive the amount of any Gross-Up Payment owed to the Executive, but not previously paid pursuant to
Section 7.1(b), immediately upon the expiration of such 30 calendar day period. If any such claim is made by the Internal Revenue Service and the Company requests the Executive to contest such
claim, but does not advance the amount of such claim to the Executive for purposes of such contest, the Company shall pay to the Executive the amount of any Gross-Up Payment owed to the
Executive, but not previously paid under the provisions of Section 7.1(b), within 5 business days of a Final Determination of the liability of the Executive for such Excise Tax. For purposes of
this Agreement, a "Final Determination" shall be deemed to occur with respect to a claim when (i) there is a decision, judgment, decree or other order by any court of competent jurisdiction,
which decision, judgment, decree or other order has become final, i.e., all allowable appeals pursuant to this section have been exhausted by either party to the action, (ii) there is a closing
agreement made under Section 7121 of the Code, or (iii) the time for instituting a claim for refund has expired, or if a claim was filed, the time for instituting suit with respect
thereto has expired. 

        If,
after the receipt by the Executive of an amount advanced by the Company pursuant to this section, the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company's complying with the requirements of this Section) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes 

11

 

applicable
thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to this Section, a determination is made by the Internal Revenue Service that the Executive is
not entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 calendar
days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid. 

        7.2   No Set-Off. There shall be no set-off or counterclaim against, or delay in, any payment of
severance benefits by the Company to the Executive provided for in this Agreement with respect to any claim against or debt or obligation of the Executive, whether arising hereunder or otherwise
except for insurance benefits as provided in Sections 5.5(c) or 5.7(f). 

        7.3   No Mitigation Obligation. The Executive's benefits hereunder shall be payable to him as severance pay in consideration of
his services under this Agreement. The Company hereby acknowledges that it will be difficult, and may be impossible, for the Executive to find reasonably comparable employment following the
Termination Date. Accordingly, the parties hereto expressly agree that the payment of the severance benefits by the Company to the Executive in accordance with the terms of this Agreement will be
liquidated damages, and that the Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall any profits,
income, earnings or other benefits from any source whatever create any mitigation, offset, reduction or any other obligation on the part of the Executive hereunder or otherwise. 

        7.4   Enforcement Costs. The Company is aware that, upon the occurrence of a Change in Control, the Board of Directors or a
shareholder of the Company, or the Company's successor in interest, may then cause or attempt to cause the Company to refuse to comply with its obligations under this Agreement, or may cause or
attempt to cause the Company to institute, or may institute litigation seeking to have this Agreement declared unenforceable, or may take, or attempt to take, other action to deny the Executive the
benefits intended under this Agreement. In these circumstances, the purpose of this Agreement could be frustrated. It is the intent of the Company that the Executive not be required to incur the
expenses associated with the enforcement of his rights under this Agreement by litigation or other legal action, nor be bound to negotiate any settlement of his rights hereunder under threat of
incurring such expenses because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Executive hereunder. Accordingly, if following a Change in
Control the Executive should conclude in good faith that the Company has failed to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes
any action to declare this Agreement void or unenforceable, or institutes any litigation or other legal action designed to deny, diminish or to recover from the Executive the benefits intended to be
provided to the Executive hereunder, the Company irrevocably authorizes the Executive from time to time to retain legal counsel of his choice at the expense of the Company to represent the Executive
in connection with the initiation or defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other person affiliated with the
Company. The reasonable fees and expenses of counsel selected from time to time by the Executive as provided herein shall be paid or reimbursed to the Executive by the Company on a regular, periodic
basis upon presentation by the Executive of a statement or statements prepared by his counsel in accordance with its customary practices. In any action involving this Agreement, the Executive shall be
entitled to prejudgment interest on any amounts found to be due him as of the date such amounts would have been payable to the Executive pursuant to this Agreement at an annual rate of interest of
10%. 

        7.5   Arbitration. The Company and the Executive hereby agree that certain issues and/or disagreements arising in connection
with this Agreement shall be settled by arbitration. Accordingly, in the event the Company or the Executive believes that the other party has violated any provision of this 

12

 

Agreement,
including but not limited to any action by the Company which the Executive believes would entitle the Executive to terminate his employment with severance benefits in accordance with
Article V hereof, the party alleging such violation shall notify the other party in writing of such alleged violation. In the event the party receiving such violation notice disagrees with the
position taken by the other party in such written notice, the recipient of the violation notice may, within 20 days of receipt of such written notice, notify the other party, in writing, that
it has elected to submit such disagreement to arbitration. Arbitration of such dispute shall be settled in Dallas, Texas, in accordance with the then applicable rules of the American Arbitration
Association. The Company shall bear all costs associated with such arbitration. In the event the party receiving a violation notice does not elect to submit any issue or disagreement to arbitration
within 10 days of its receipt of the written violation notice, such party will be deemed to have accepted the position taken in such written notice. Notwithstanding anything herein to the
contrary, neither the Company nor the Executive shall be required to arbitrate the basis of any involuntary termination of the Executive's employment with the Company by the Company or its successor. 

        7.6   Employment Rights. Nothing expressed or implied in this Agreement shall create any right or duty on the part of the
Company or the Executive to have the Executive remain in the employment of the Company prior to any Change in Control, provided, however, that any event which would constitute an Executive Termination
Event had a Change in Control occurred following the commencement of active negotiations with a third party (which negotiations are evidenced by the delivery of evaluation material) that ultimately
results in a Change in Control shall be deemed to be a termination or removal of the Executive by the Company other than for Cause after a Change in Control for purposes of this Agreement. 

        7.7   Benefit of Agreement; Assignment; Beneficiary. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns, including, without limitation, any corporation or person which may acquire all or substantially all of the Company's assets or business, or with or into which
the Company may be consolidated or merged. This Agreement shall also inure to the benefit of, and be enforceable by, the Executive and his personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should die while any amount would still be payable to the Executive hereunder if he had continued to live, all such amounts
shall be paid in accordance with the terms of this Agreement to the Executive's beneficiary, devisee, legatee or other designee, or if there is no such designee, to the Executive's estate. 

        7.8   Notices. Any notice required or permitted hereunder shall be in writing and shall be sufficiently given if personally
delivered or if sent by telegram or telex or by registered or certified mail, postage prepaid, with return receipt requested, addressed: 

        (a)   in
the case of the Company, La Quinta Corporation, 909 Hidden Ridge, Suite 600, Irving, Texas 75038, Attention: General Counsel; and 

        (b)   in
the case of the Executive, to Francis W. Cash, 5504 Miramar Lane Colleyville, TX 76034, or such other address as the Executive may specify in writing to the Company. 

        7.9   Entire Agreement; Amendment. This Agreement contains the entire agreement of the parties hereto with respect to the terms
and conditions of the Executive's employment during the Term and supersedes any and all prior agreements and understandings, whether written or oral, between the parties hereto with respect to
compensation due for services rendered hereunder. This Agreement may not be changed or modified except by an instrument in writing signed by both of the parties hereto. 

        7.10 Waiver. The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a
continuing waiver or as a consent to or waiver of any subsequent breach hereof. 

13

 

        7.11 Headings. The article and section headings herein are for convenience of reference only, do not constitute a part of
this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

        7.12 Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the internal laws
of the State of Texas without reference to the principles of conflict of laws. 

        7.13 Agreement to Take Actions. Each party hereto shall execute and deliver such documents, certificates, agreements and
other instruments, and shall take such other actions, as may be reasonably necessary or desirable in order to perform his or its obligations under this Agreement or to effectuate the purposes hereof. 

        7.14 Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this
Agreement to the extent necessary for the intended preservation of the rights and obligations under this Agreement. 

        7.15 Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

        7.16 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument. 

        7.17 Corporate Authorization. The Company hereby represents that the execution, delivery and performance by the Company of
this Agreement are within the corporate powers of the Company, and that the Chairman of the Board of Directors of the Company has the requisite authority to bind the Company hereby. 

        7.18 Third Party Agreements and Rights. The Executive represents to the Company that the Executive's execution of this
Agreement, the Executive's employment with the Company and the performance of the Executive's duties for the Company will not violate any obligations the Executive may have to any employer, former
employer or other party, and the Executive does not possess tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.
Further, the Executive represents and acknowledges that to the extent that he is under any continuing obligation under any agreement with any employer, former employer or other party with regard to
non-solicitation, non-inducement and confidentiality, he shall not violate any such obligation. 

        7.19 Litigation and Regulatory Cooperation. During and after the Executive's employment, the Executive shall reasonably
cooperate with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or
occurrences that transpired while the Executive was employed by the Company; provided, however, that such cooperation shall not materially and adversely affect the Executive or expose the Executive to
an increased probability of civil or criminal litigation. The Executive's cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with
counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. During and after the Executive's employment, the Executive also shall cooperate
fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that
transpired while the Executive was employed by the Company. The Company shall also provide the Executive with compensation on an hourly basis (to be derived from his then current or last applicable
level of base compensation, as paid by the Company) for requested litigation and regulatory cooperation that occurs after his termination of employment, and reimburse the Executive 

14

 

for
all costs and expenses incurred in connection with his performance under this Section 7.19, including, but not limited to, reasonable attorneys' fees and costs. 

        IN
WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first above written. 

	 	 	LA QUINTA CORPORATION
	

 	
 	

By:	

/s/  CLIVE D. BODE      

	 	 	Name: Clive D. Bode

As its: Chairman of the Board of Directors
	

 	
 	

EXECUTIVE
	

 	
 	

/s/  FRANCIS W. CASH      
 Francis W. Cash

15

QuickLinks

Exhibit 10.8

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

ARTICLE I Employment, Duties and Responsibilities

ARTICLE II Term

ARTICLE III Compensation and Expenses

ARTICLE IV Exclusivity, Etc.

ARTICLE V Termination

ARTICLE VI Indemnification

ARTICLE VII Taxes and Miscellaneous Other ProvisionsQuickLinks
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Exhibit 4.3    
    

 
  HOTWIRE, INC.
  
    2000 EQUITY INCENTIVE PLAN

Adopted March 27, 2000

Approved By Stockholders March 27, 2000

Amended to Increase Share Reserve Effective January 18, 2002

Termination Date: March 26, 2010  

1.     PURPOSES.

        (a)    Eligible Stock Award Recipients.    The persons eligible to receive Stock Awards are the Employees, Directors
and Consultants of the Company and its Affiliates. 

        (b)    Available Stock Awards.    The purpose of the Plan is to provide a means by which eligible recipients of Stock
Awards may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Incentive Stock Options,
(ii) Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights to acquire restricted stock. 

        (c)    General Purpose.    The Company, by means of the Plan, seeks to retain the services of the group of persons
eligible to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and
its Affiliates. 

2.     DEFINITIONS.

        (a)   "Affiliate" means any parent corporation or subsidiary corporation of the Company, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 

        (b)   "Board" means the Board of Directors of the Company. 

        (c)   "Code" means the Internal Revenue Code of 1986, as amended. 

        (d)   "Committee" means a committee of one or more members of the Board appointed by the Board in
accordance with subsection 3(c). 

        (e)   "Common Stock" means the Class A Common Stock of the Company. 

        (f)    "Company" means Hotwire, Inc., a Delaware corporation. 

        (g)   "Consultant" means any person, including an advisor, (i) engaged by the Company or an
Affiliate to render consulting or advisory services and who is compensated for such services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term "Consultant"
shall not include either Directors who are not compensated by the Company for their services as Directors or Directors who are merely paid a director's fee by the Company for their services as
Directors. 

        (h)   "Continuous Service" means that the Participant's service with the Company or an Affiliate,
whether as an Employee, Director or Consultant, is not interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity
in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that
there is no interruption or termination of the Participant's service with the Company or an Affiliate. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate
or a Director will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party's sole discretion, may determine whether Continuous
Service shall 

1

 

be
considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

        (i)    "Covered Employee" means the chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code. 

        (j)    "Director" means a member of the Board of Directors of the Company. 

        (k)   "Disability" means (i) before the Listing Date, the inability of a person, in the opinion
of a qualified physician acceptable to the Company, to perform the major duties of that person's position with the Company or an Affiliate of the Company because of the sickness or injury of the
person and (ii) after the Listing Date, the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. 

        (l)    "Employee" means any person employed by the Company or an Affiliate. Mere service as a Director
or payment of a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or an Affiliate. 

        (m)  "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (n)   "Fair Market Value" means, as of any date, the value of the Common Stock determined as follows: 

        (i)    If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq
SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as reported in  The Wall Street Journal or such other source as the Board deems reliable. 

        (ii)   In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the
Board. 

        (iii) Prior to the Listing Date, the value of the Common Stock shall be determined in a manner consistent with
Section 260.140.50 of Title 10 of the California Code of Regulations. 

        (o)   "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

        (p)   "Listing Date" means the first date upon which any security of the Company is listed (or approved
for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system if
such securities exchange or interdealer quotation system has been certified in accordance with the provisions of Section 25100(o) of the California Corporate Securities Law of 1968. 

        (q)   "Non-Employee Director" means a Director who either (i) is not a current
Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a
consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to
the Securities Act ("Regulation S-K")), does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director" for purposes of Rule 16b-3. 

2

 

        (r)   "Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

        (s)   "Officer" means (i) before the Listing Date, any person designated by the Company as an
officer and (ii) on and after the Listing Date, a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder. 

        (t)    "Option" means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the
Plan. 

        (u)   "Option Agreement" means a written agreement between the Company and an Optionholder evidencing
the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

        (v)   "Optionholder" means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option. 

        (w)  "Outside Director" means a Director who either (i) is not a current employee of the
Company or an "affiliated corporation" (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an "affiliated
corporation" receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an "affiliated corporation" at any time and is not
currently receiving direct or indirect remuneration from the Company or an "affiliated corporation" for services in any capacity other than as a Director or (ii) is otherwise considered an
"outside director" for purposes of Section 162(m) of the Code. 

        (x)   "Participant" means a person to whom a Stock Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Stock Award. 

        (y)   "Plan" means this Hotwire, Inc. 2000 Equity Incentive Plan. 

        (z)   "Rule 16b-3" means Rule 16b-3 promulgated under the
Exchange Act or any successor to Rule 16b-3, as in effect from time to time. 

        (aa) "Securities Act" means the Securities Act of 1933, as amended. 

        (bb) "Stock Award" means any right granted under the Plan, including an Option, a stock bonus and a
right to acquire restricted stock. 

        (cc) "Stock Award Agreement" means a written agreement between the Company and a holder of a Stock
Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

        (dd) "Ten Percent Stockholder" means a person who owns (or is deemed to own pursuant to
Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its Affiliates. 

3.     ADMINISTRATION.

        (a)    Administration by Board.    The Board shall administer the Plan unless and until the Board delegates
administration to a Committee, as provided in subsection 3(c). 

        (b)    Powers of Board.    The Board shall have the power, subject to, and within the limitations of, the express
provisions of the Plan: 

        (i)    To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how
each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted 

3

 

(which
need not be identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of Common Stock with respect to
which a Stock Award shall be granted to each such person. 

        (ii)   To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and
regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the
extent it shall deem necessary or expedient to make the Plan fully effective. 

        (iii) To amend the Plan or a Stock Award as provided in Section 12. 

        (iv)  Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the
best interests of the Company which are not in conflict with the provisions of the Plan. 

        (c)    Delegation to Committee.    

        (i)    General.    The Board may delegate administration of the Plan
to a Committee or Committees of one (1) or more members of the Board, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. If administration
is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however,
to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. 

        (ii)    Committee Composition when Common Stock is Publicly
Traded.    At such time as the Common Stock is publicly traded, in the discretion of the Board, a Committee may consist solely of two or more Outside Directors, in
accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such
authority, the Board or the Committee may (1) delegate to a committee of one or more members of the Board who are not Outside Directors the authority to grant Stock Awards to eligible persons
who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award or (b) not persons with
respect to whom the Company wishes to comply with Section 162(m) of the Code and/or) (2) delegate to a committee of one or more members of the Board who are not Non-Employee
Directors the authority to grant Stock Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. 

        (d)    Effect of Board's Decision.    All determinations, interpretations and constructions made by the Board in good
faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 

4.     SHARES SUBJECT TO THE PLAN.

        (a)    Share Reserve.    Subject to the provisions of Section 11 relating to adjustments upon changes in Common
Stock, the Common Stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate sixteen million (16,000,000) shares of Common Stock (taking into account the
one-for-two stock split effected in March 2000 and the share reserve increase effective January 18, 2002). 

        (b)    Reversion of Shares to the Share Reserve.    If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full, the shares of Common 

4

 

Stock
not acquired under such Stock Award shall revert to and again become available for issuance under the Plan. 

        (c)    Source of Shares.    The shares of Common Stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise. 

        (d)    Share Reserve Limitation.    Prior to the Listing Date and to the extent then required by
Section 260.140.45 of Title 10 of the California Code of Regulations, the total number of shares of Common Stock issuable upon exercise of all outstanding Options and the total number of shares
of Common Stock provided for under any stock bonus or similar plan of the Company shall not exceed the applicable percentage as calculated in accordance with the conditions and exclusions of
Section 260.140.45 of Title 10 of the California Code of Regulations, based on the shares of Common Stock of the Company that are outstanding at the time the calculation is made.1 

	1
	Section
260.140.45 generally provides that the total number of shares issuable upon exercise of all outstanding options (exclusive of certain rights) and the total number
of shares called for under any stock bonus or similar plan shall not exceed a number of shares which is equal to 30% of the then outstanding shares of the issuer (convertible preferred or convertible
senior common shares counted on an as if converted basis), exclusive of shares subject to promotional waivers under Section 260.141, unless a percentage higher than 30% is approved by at least
two-thirds of the outstanding shares entitled to vote. 

5.     ELIGIBILITY.

        (a)    Eligibility for Specific Stock Awards.    Incentive Stock Options may be granted only to Employees. Stock
Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. 

        (b)    Ten Percent Stockholders.    

        (i)    A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of
grant. 

        (ii)   Prior to the Listing Date, a Ten Percent Stockholder shall not be granted a Nonstatutory Stock Option unless the
exercise price of such Option is at least (i) one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant or (ii) such lower percentage of the Fair
Market Value of the Common Stock at the date of grant as is permitted by Section 260.140.41 of Title 10 of the California Code of Regulations at the time of the grant of the Option. 

        (iii) Prior to the Listing Date, a Ten Percent Stockholder shall not be granted a restricted stock award unless the purchase
price of the restricted stock is at least (i) one hundred percent (100%) of the Fair Market Value of the Common Stock at the date of grant or (ii) such lower percentage of the Fair
Market Value of the Common Stock at the date of grant as is permitted by Section 260.140.41 of Title 10 of the California Code of Regulations at the time of the grant of the Option. 

        (c)    Section 162(m) Limitation.    Subject to the provisions of Section 11 relating to adjustments
upon changes in the shares of Common Stock, no Employee shall be eligible to be granted Options covering more than two million seven hundred thousand (2,700,000) shares of Common Stock during any
calendar year. This subsection 5(c) shall not apply prior to the Listing Date and, following the Listing Date, this subsection 5(c) shall not apply until (i) the earliest of: (1) the
first material modification of the Plan (including any increase in the number of shares of Common Stock reserved 

5

 

for
issuance under the Plan in accordance with Section 4); (2) the issuance of all of the shares of Common Stock reserved for issuance under the Plan; (3) the expiration of the
Plan; or (4) the first meeting of stockholders at which Directors are to be elected that occurs after the close of the third calendar year following the calendar year in which occurred the
first registration of an equity security under Section 12 of the Exchange Act; or (ii) such other date required by Section 162(m) of the Code and the rules and regulations
promulgated thereunder. 

        (d)    Consultants.    

        (i)    Prior to the Listing Date, a Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant,
either the offer or the sale of the Company's securities to such Consultant is not exempt
under Rule 701 of the Securities Act ("Rule 701") because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is not a natural
person, or as otherwise provided by Rule 701, unless the Company determines that such grant need not comply with the requirements of Rule 701 and will satisfy another exemption under the
Securities Act as well as comply with the securities laws of all other relevant jurisdictions. 

        (ii)   From and after the Listing Date, a Consultant shall not be eligible for the grant of a Stock Award if, at the time of
grant, a Form S-8 Registration Statement under the Securities Act ("Form S-8") is not available to register either the offer or the sale of the Company's
securities to such Consultant because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by the
rules governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be registered in another manner under the Securities Act
(e.g., on a Form S-3 Registration Statement) or (B) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities laws of all other relevant jurisdictions. 

        (iii) Rule 701 and Form S-8 generally are available to consultants and advisors only if
(i) they are natural persons; (ii) they provide bona fide services to the issuer, its parents, its majority-owned subsidiaries or majority-owned subsidiaries of the issuer's parent; and
(iii) the services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the issuer's
securities. 

6.     OPTION PROVISIONS.

        Each
Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or
Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of
each of the following provisions: 

        (a)    Term.    Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no Option granted
prior to the Listing Date shall be exercisable after the expiration of ten (10) years from the date it was granted, and no Incentive Stock Option granted on or after the Listing Date shall be
exercisable after the expiration of ten (10) years from the date it was granted. 

        (b)    Exercise Price of an Incentive Stock Option.    Subject to the provisions of subsection 5(b) regarding Ten
Percent Stockholders, the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date
the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such 

6

 

Option
is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 

        (c)    Exercise Price of a Nonstatutory Stock Option.    Subject to the provisions of subsection 5(b) regarding Ten
Percent Stockholders, the exercise price of each Nonstatutory Stock Option granted prior to the Listing Date shall be not less than eighty-five percent (85%) of the Fair Market Value of
the Common Stock subject to the Option on the date the Option is granted. The exercise price of each Nonstatutory Stock Option granted on or after the Listing Date shall be not less than
eighty-five percent (85%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option
may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying
the provisions of Section 424(a) of the Code. 

        (d)    Consideration.    The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the
extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the discretion of the Board at the time of the grant of the
Option (or subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the Company of other Common Stock, (2) according to a deferred payment or other similar arrangement
with the Optionholder or (3) in any other form of legal consideration that may be acceptable to the Board. Unless otherwise specifically provided in the Option, the purchase price of Common
Stock acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock
of the Company that have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). At any time
that the Company is incorporated in Delaware, payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 

        In
the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the minimum rate of interest necessary to avoid the treatment as
interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 

        (e)    Transferability of an Incentive Stock Option.    An Incentive Stock Option shall not be transferable except by
will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by
delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise
the Option. 

        (f)    Transferability of a Nonstatutory Stock Option.    A Nonstatutory Stock Option granted prior to the Listing
Date shall not be transferable except by will or by the laws of descent and distribution and, to the extent provided in the Option Agreement, to such further extent as permitted by
Section 260.140.41(d) of Title 10 of the California Code of Regulations at the time of the grant of the Option, and shall be exercisable during the lifetime of the Optionholder only by the
Optionholder. A Nonstatutory Stock Option granted on or after the Listing Date shall be transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option does not provide
for transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party
who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 

7

 

        (g)    Vesting Generally.    The total number of shares of Common Stock subject to an Option may, but need not, vest
and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised
(which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(g) are subject to
any Option provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised. 

        (h)    Minimum Vesting Prior to the Listing Date.    Notwithstanding the foregoing subsection 6(g), to the extent that
the following restrictions on vesting are required by Section 260.140.41(f) of Title 10 of the California Code of Regulations at the time of the grant of the Option, then: 

        (i)    Options granted prior to the Listing Date to an Employee who is not an Officer, Director or Consultant shall provide for
vesting of the total number of shares of Common Stock at a rate of at least twenty percent (20%) per year over five (5) years from the date the Option was granted, subject to reasonable
conditions such as continued employment; and 

        (ii)   Options granted prior to the Listing Date to Officers, Directors or Consultants may be made fully exercisable, subject
to reasonable conditions such as continued employment, at any time or during any period established by the Company. 

        (i)    Termination of Continuous Service.    In the event an Optionholder's Continuous Service terminates (other than
upon the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination)
but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder's Continuous Service (or such longer or shorter
period specified in the Option Agreement, which period shall not be less than thirty (30) days for Options granted prior to the Listing Date unless such termination is for cause), or
(ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the
Option Agreement, the Option shall terminate. 

        (j)    Extension of Termination Date.    An Optionholder's Option Agreement may also provide that if the exercise of
the Option following the termination of the Optionholder's Continuous Service (other than upon the Optionholder's death or Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set
forth in subsection 6(a) or (ii) the expiration of a period of three (3) months after the termination of the Optionholder's Continuous Service during which the exercise of the Option
would not be in violation of such registration requirements. 

        (k)    Disability of Optionholder.    In the event that an Optionholder's Continuous Service terminates as a result of
the Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within
such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option Agreement, which period
shall not be less than six (6) months for Options granted prior to the Listing Date) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after
termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 

        (l)    Death of Optionholder.    In the event (i) an Optionholder's Continuous Service terminates as a result
of the Optionholder's death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder's Continuous Service for a
reason 

8

 

other
than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder's estate, by a person who acquired
the right to exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but only within the
period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement, which period shall not
be less than six (6) months for Options granted prior to the Listing Date) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the
Option is not exercised within the time specified herein, the Option shall terminate. 

        (m)    Early Exercise.    The Option may, but need not, include a provision whereby the Optionholder may elect at any
time before the Optionholder's Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option.
Subject to the "Repurchase Limitation" in subsection 10(h), any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction
the Board determines to be appropriate. Provided that the "Repurchase Limitation" in subsection 10(h) is not violated, the Company will not exercise its repurchase option until at least six
(6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following exercise of the Option unless the Board
otherwise specifically provides in the Option. 

        (n)    Right of Repurchase.    Subject to the "Repurchase Limitation" in subsection 10(h), the Option may, but need
not, include a provision whereby the Company may elect, prior to the Listing Date, to repurchase all or any part of the vested shares of Common Stock acquired by the Optionholder pursuant to the
exercise of the Option. Provided that the "Repurchase Limitation" in subsection 10(h) is not violated, the Company will not exercise its repurchase option until at least six (6) months (or such
longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically
provides in the Option. 

        (o)    Right of First Refusal.    The Option may, but need not, include a provision whereby the Company may elect,
prior to the Listing Date, to exercise a right of first refusal following receipt of notice from the Optionholder of the intent to transfer all or any part of the shares of Common Stock received upon
the exercise of the Option. Except as expressly provided in this subsection 6(o), such right of first refusal shall otherwise comply with any applicable provisions of the Bylaws of the Company. 

        (p)    Re-Load Options.    

        (i)    Without in any way limiting the authority of the Board to make or not to make grants of Options hereunder, the Board
shall have the authority (but not an obligation) to include as part of any Option Agreement a provision entitling the Optionholder to a further Option (a "Re-Load Option") in the event the
Optionholder exercises the Option evidenced by the Option Agreement, in whole or in part, by surrendering other shares of Common Stock in accordance with this Plan and the terms and conditions of the
Option Agreement. Unless otherwise specifically provided in the Option, the Optionholder shall not surrender shares of Common Stock acquired, directly or indirectly from the Company, unless such
shares have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). 

        (ii)   Any such Re-Load Option shall (1) provide for a number of shares of Common Stock equal to the number
of shares of Common Stock surrendered as part or all of the exercise price of such Option; (2) have an expiration date which is the same as the expiration date of the Option the exercise of
which gave rise to such Re-Load Option; and (3) have an exercise price which is 

9

 

equal
to one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Re-Load Option on the date of exercise of the original Option. Notwithstanding the
foregoing, a Re-Load Option shall be subject to the same exercise price and term provisions heretofore described for Options under the Plan. 

        (iii) Any such Re-Load Option may be an Incentive Stock Option or a Nonstatutory Stock Option, as the Board may
designate at the time of the grant of the original Option; provided, however, that the designation of any Re-Load Option as an Incentive Stock Option shall be subject to the one hundred
thousand dollar ($100,000) annual limitation on the exercisability of Incentive Stock Options described in subsection 10(d) and in Section 422(d) of the Code. There shall be no
Re-Load Options on a Re-Load Option. Any such Re-Load Option shall be subject to the availability of sufficient shares of Common Stock under subsection 4(a) and the
"Section 162(m) Limitation" on the grants of Options under subsection 5(c) and shall be subject to such other terms and conditions as the Board may determine which are not inconsistent with the
express provisions of the Plan regarding the terms of Options. 

7.     PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

        (a)    Stock Bonus Awards.    Each stock bonus agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need
not be identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions: 

        (i)    Consideration.    A stock bonus may be awarded in consideration
for past services actually rendered to the Company or an Affiliate for its benefit. 

        (ii)    Vesting.    Subject to the "Repurchase Limitation" in
subsection 10(h), shares of Common Stock awarded under the stock bonus agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting
schedule to be determined by the Board. 

        (iii)    Termination of Participant's Continuous Service.    Subject
to the "Repurchase Limitation" in subsection 10(h), in the event a Participant's Continuous Service terminates, the Company may reacquire any or all of the shares of Common Stock held by the
Participant which have not vested as of the date of termination under the terms of the stock bonus agreement. 

        (iv)    Transferability.    For a stock bonus award made before the
Listing Date, rights to acquire shares of Common Stock under the stock bonus agreement shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Participant only by the Participant. For a stock bonus award made on or after the Listing Date, rights to acquire shares of Common Stock under the stock bonus agreement
shall be transferable by the Participant only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as Common Stock
awarded under the stock bonus agreement remains subject to the terms of the stock bonus agreement. 

        (b)    Restricted Stock Awards.    Each restricted stock purchase agreement shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of
separate restricted stock purchase agreements need not be identical, but each 

10

 

restricted
stock purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

        (i)    Purchase Price.    Subject to the provisions of subsection 5(b)
regarding Ten Percent Stockholders, the purchase price under each restricted stock purchase agreement shall be such amount as the Board shall determine and designate in such restricted stock purchase
agreement. For restricted stock awards made prior to the Listing Date, the purchase price shall not be less than eighty-five percent (85%) of the Common Stock's Fair Market Value on the
date such award is made or at the time the purchase is consummated. For restricted stock awards made on or after the Listing Date, the purchase price shall not be less than eighty-five
percent (85%) of the Common Stock's Fair Market Value on the date such award is made or at the time the purchase is consummated. 

        (ii)    Consideration.    The purchase price of Common Stock acquired
pursuant to the restricted stock purchase agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or
other similar arrangement with the Participant; or (iii) in any other form of legal consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that
the Company is incorporated in Delaware, then payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 

        (iii)    Vesting.    Subject to the "Repurchase Limitation" in
subsection 10(h), shares of Common Stock acquired under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a
vesting schedule to be determined by the Board. 

        (iv)    Termination of Participant's Continuous Service.    Subject to
the "Repurchase Limitation" in subsection 10(h), in the event a Participant's Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock
held by the Participant which have not vested as of the date of termination under the terms of the restricted stock purchase agreement. 

        (v)    Transferability.    For a restricted stock award made before
the Listing Date, rights to acquire shares of Common Stock under the restricted stock purchase agreement shall not be transferable except by will or by the laws of descent and distribution and shall
be exercisable during the lifetime of the Participant only by the Participant. For a restricted stock award made on or after the Listing Date, rights to acquire shares of Common Stock under the
restricted stock purchase agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement, as the Board shall
determine in its discretion, so long as Common Stock awarded under the restricted stock purchase agreement remains subject to the terms of the restricted stock purchase agreement. 

8.     COVENANTS OF THE COMPANY.

        (a)    Availability of Shares.    During the terms of the Stock Awards, the Company shall keep available at all times
the number of shares of Common Stock required to satisfy such Stock Awards. 

        (b)    Securities Law Compliance.    The Company shall seek to obtain from each regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable
efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful 

11

 

issuance
and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such
authority is obtained. 

9.     USE OF PROCEEDS FROM STOCK.

        Proceeds
from the sale of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 

10.   MISCELLANEOUS.

        (a)    Acceleration of Exercisability and Vesting.    The Board shall have the power to accelerate the time at which a
Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time
at which it may first be exercised or the time during which it will vest. 

        (b)    Stockholder Rights.    No Participant shall be deemed to be the holder of, or to have any of the rights of a
holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 

        (c)    No Employment or Other Service Rights.    Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the
right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the
terms of such Consultant's agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of
the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 

        (d)    Incentive Stock Option $100,000 Limitation.    To the extent that the aggregate Fair Market Value (determined
at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as
Nonstatutory Stock Options. 

        (e)    Investment Assurances.    The Company may require a Participant, as a condition of exercising or acquiring
Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant's knowledge and experience in financial and business matters and/or to
employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or
together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is
acquiring Common Stock subject to the Stock Award for the Participant's own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing
requirements, and any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock
under the Stock Award has been registered under a then currently effective registration statement under the Securities Act or (2) as to any particular requirement, a determination is made by
counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on
stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply 

12

 

with
applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 

        (f)    Withholding Obligations.    To the extent provided by the terms of a Stock Award Agreement, the Participant may
satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the Company's
right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold
shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award, provided, however, that
no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of
Common Stock. 

        (g)    Information Obligation.    Prior to the Listing Date, to the extent required by Section 260.140.46 of
Title 10 of the California Code of Regulations, the Company shall deliver financial statements to Participants at least annually. This subsection 10(g) shall not apply to key Employees whose duties in
connection with the Company assure them access to equivalent information. 

        (h)    Repurchase Limitation.    The terms of any repurchase option shall be specified in the Stock Award and may be
either at Fair Market Value at the time of repurchase or at not less than the original purchase price. To the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of
the California Code of Regulations at the time a Stock Award is made, any repurchase option contained in a Stock Award granted prior to the Listing Date to a person who is not an Officer, Director or
Consultant shall be upon the terms described below: 

        (i)    Fair Market Value.    If the repurchase option gives the
Company the right to repurchase the shares of Common Stock upon termination of employment at not less than the Fair Market Value of the shares of Common Stock to be purchased on the date of
termination of Continuous Service, then (i) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares of Common Stock within ninety
(90) days of termination of Continuous Service (or in the case of shares of Common Stock issued upon exercise of Stock Awards after such date of termination, within ninety (90) days
after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the requirements of Section 1202(c)(3) of
the Code regarding "qualified small business stock") and (ii) the right terminates when the shares of Common Stock become publicly traded. 

        (ii)    Original Purchase Price.    If the repurchase option gives the
Company the right to repurchase the shares of Common Stock upon termination of Continuous Service at the original purchase price, then (i) the right to repurchase at the original purchase price
shall lapse at the rate of at least twenty percent (20%) of the shares of Common Stock per year over five (5) years from the date the Stock Award is granted (without respect to the date the
Stock Award was exercised or became exercisable) and (ii) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares of Common Stock
within ninety (90) days of termination of Continuous Service (or in the case of shares of Common Stock issued upon exercise of Options after such date of termination, within ninety
(90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the requirements of
Section 1202(c)(3) of the Code regarding "qualified small business stock"). 

13

 

11.   ADJUSTMENTS UPON CHANGES IN STOCK.

        (a)    Capitalization Adjustments.    If any change is made in the Common Stock subject to the Plan, or subject to any
Stock Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than
cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the
Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any
person pursuant to subsection 5(c), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of securities and price per share of Common Stock subject to such
outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be
treated as a transaction "without receipt of consideration" by the Company.) 

        (b)    Dissolution or Liquidation.    In the event of a dissolution or liquidation of the Company, then all
outstanding Stock Awards shall terminate immediately prior to such event. 

        (c)    Corporate Transaction.    In the event of a Corporate Transaction, any surviving corporation or acquiring
corporation may assume any Stock Awards outstanding under the Plan or substitute similar stock awards (including an award to acquire the same consideration paid to the stockholders pursuant to the
Corporate Transaction) for those outstanding under the Plan. In the event any surviving corporation or acquiring corporation does not assume such Stock Awards or substitute similar stock awards for
those outstanding under the Plan, then with respect to Stock Awards held by Participants whose Continuous Service has not terminated, the vesting of such Stock Awards (and, if applicable, the time
during which such Stock Awards may be exercised) shall be accelerated in full, and the Stock Awards shall terminate if not exercised (if applicable) at or prior to such event. With respect to any
other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to such event. 

        For
purposes of the Plan, "Corporate Transaction" means (i) a sale, lease or other disposition of all or substantially all of the securities or assets of the Company,
(ii) a merger or consolidation in which the Company is not the surviving corporation or (iii) a reverse merger in which the Company is the surviving corporation but the shares of Common
Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise. 

12.   AMENDMENT OF THE PLAN AND STOCK AWARDS.

        (a)    Amendment of Plan.    The Board at any time, and from time to time, may amend the Plan. However, except as
provided in Section 11 relating to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder
approval is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3 or any Nasdaq or securities exchange listing requirements. 

        (b)    Stockholder Approval.    The Board may, in its sole discretion, submit any other amendment to the Plan for
stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 

        (c)    Contemplated Amendments.    It is expressly contemplated that the Board may amend the Plan in any respect the
Board deems necessary or advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations 

14

 

promulgated
thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith. 

        (d)    No Impairment of Rights.    Rights under any Stock Award granted before amendment of the Plan shall not be
impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 

        (e)    Amendment of Stock Awards.    The Board at any time, and from time to time, may amend the terms of any one or
more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing. 

13.   TERMINATION OR SUSPENSION OF THE PLAN.

        (a)    Plan Term.    The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall
terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated. 

        (b)    No Impairment of Rights.    Suspension or termination of the Plan shall not impair rights and obligations under
any Stock Award granted while the Plan is in effect except with the written consent of the Participant. 

14.   EFFECTIVE DATE OF PLAN.

        The
Plan shall become effective upon its adoption by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be granted) unless and until the Plan has
been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 

15.   CHOICE OF LAW.

        The
law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state's conflict of laws rules. 

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QuickLinks

Exhibit 4.3

HOTWIRE, INC. 2000 EQUITY INCENTIVE PLAN

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