Document:

Expedia Inc. Amended and Restated 2001 Stock Plan

 
Exhibit 10.13

 
EXPEDIA, INC. 
 
AMENDED AND RESTATED 2001 STOCK PLAN 
 
1. Purposes of the Plan. The purposes of this Expedia,
Inc. Amended and Restated 2001 Stock Plan are: to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives to Service Providers, and to promote the success of the Company’s
business. Options granted under the Plan are Non-statutory Stock Options. Stock Purchase Rights, Restricted Stock, Performance Units and Warrants may also be granted under the Plan. 
 
2. Definitions. As used herein, the following definitions shall apply: 
 
(a) “Administrator” means the
Committee, the Board or their designee, as provided in Section 4 of the Plan. 
 
(b) “Affiliate” means a corporation or other entity (including, a limited liability company or a partnership) controlled by, controlling or under common control with the Company.

 
(c) “Applicable Laws”
means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock or Warrants are listed or
quoted and the applicable laws of any foreign country or jurisdiction where Options, Restricted Stock, Stock Purchase Rights, Performance Units or Warrants are, or will be, granted under the Plan. 
 
(d) “Award Cycle” means a period of
consecutive fiscal years or portions thereof designated by the Administrator over which Performance Units are to be earned. 
 
(e) “Board” means the Board of Directors of the Company. 
 
(f) “Cause” means termination of an
Optionee’s or Grantee’s employment by the Company for such reasons as may be defined as “Cause” in any applicable employment agreement, or, if an Optionee or Grantee is not party to a valid employment agreement at the time of his
or her termination, shall mean (i) the plea of guilty or nolo contendere to, or conviction for, the commission of a felony offense by an Optionee or Grantee; (ii) a material breach by an Optionee or a Grantee of a fiduciary duty owed to the
Company or any of its subsidiaries; (iii) a willful breach by an Optionee or Grantee of any non-disclosure, non-solicitation or non-competition obligation owed to the Company or any of its subsidiaries;(iv) the willful or gross neglect by an
Optionee or Grantee of his or her employment duties; and (v) such other event as shall be set forth in the agreement evidencing the Optionee’s or Grantee’s award under this Plan. 
 
(g) “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and the applicable regulations promulgated thereunder. 

 
(h) “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 
 
(i) “Common Stock” means the Common Stock of the Company. 
 
(j) “Company” means Expedia, Inc.,
a Washington corporation, and any successor entity thereto. 
 
(k) “Consultant” means any person, including an advisor, engaged by the Company or any Parent, Subsidiary or other Affiliate to render services to such entity. 
 
(l) “Director” means a member of
the Board. 
 
(m)
“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
 
(n) “Distribution” is defined in Section 13(a) hereof. 
 
(o) “Employee” means any person,
including Officers and Directors, employed by the Company or any Parent or Subsidiary or other Affiliate of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by a senior officer of the
Company or a majority of the members of the Board, or (ii) transfers between locations of the Company or between the Company, any Parent, Subsidiary or other Affiliate or any successor to such entities. Neither service as a Director nor payment of a
director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
 
(p) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the applicable
rules and regulations promulgated thereunder. 
 
(q) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
 
If the Common Stock is listed on any established stock exchange or a national market system, including, without limitation, the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market
trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 
If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a
Share of Common Stock shall be the mean between the high bid and low asked prices for 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 Administrator
deems reliable; or 
 

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In the absence
of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator and computed in accordance with applicable regulations of the Internal Revenue Service. 
 
(r) “Grantee” means the holder of
Restricted Stock, a Stock Purchase Right, a Performance Unit or a Warrant granted under the Plan. 
 
(s) “Immediate Family” means the Optionee and the Optionee’s spouse, parents, children or grandchildren
(including adopted children, step-children and step-grandchildren. 
 
(t) “Merger Consideration” shall have the meaning in Section 3.2(b) of the Transaction Agreement. 
 
(u) “Non-Employee Director” means a Director who is not an Employee. 
 
(v) “Non-statutory Stock Option”
means an Option not intended to meet the requirements of Section 422 of the Code and the regulations promulgated thereunder. 
 
(w) “Notice of Grant” means a written or electronic notice evidencing certain terms and conditions of an
individual Option, Performance Unit or Stock Purchase Right grant. The Notice of Grant is part of the applicable award Agreement. 
 
(x) “Old Option” means an option to purchase Common Stock issued under the Company’s 1999 Amended and
Restated Stock Option Plan or the Company’s Stock Option Plan for Non-Employee Directors that is outstanding as of August 2, 2001. 
 
(y) “Officer” means 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. 
 
(z) “Option” means a stock option granted pursuant to the Plan. 
 
(aa) “Option Agreement” means an agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
 
(bb) “Optioned Stock” means the Common Stock subject to an Option or Stock Purchase Right. 
 
(cc) “Optionee” means the holder of
an outstanding Option or Stock Purchase Right granted under the Plan. 
 
(dd) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 
(ee) “Performance Goals” means the
performance goals established by the Committee in connection with the grant of Restricted Stock or Performance Units. In the 

 

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case of Qualified Performance-Based Awards, (i) such goals shall be based on the attainment of specified levels of one or more of the
following measures: earnings per share, sales, net profit after tax, gross profit, operating profit, cash generation, unit volume, return on equity, change in working capital, return on capital, shareholder return, market share or any other
objective performance measure established by the Committee, and (ii) such Performance Goals shall be set by the Committee within the time period prescribed by Section 162(m) of the Code and related regulations. 
 
(ff) “Performance Unit Agreement”
means a written agreement between the Company and the Grantee evidencing the terms and restrictions applying to a Performance Unit. The Performance Unit Agreement is subject to the terms of the Plan and the Notice of Grant. 
 
(gg) “Performance Units” means an
award made pursuant to Section 14 of the Plan. 
 
(hh) “Plan” means this Expedia, Inc. 2001 Stock Plan, as amended and restated from time to time. 
 
(ii) “Qualified Performance-Based Award” means an award of Restricted Stock or Performance Units designated as
such by the Committee at the time of grant, based upon a determination that (i) the Grantee is or may be a “covered employee” within the meaning of Section 162(m)(3) of the Code in the year in which the Company would expect to be able to
claim a tax deduction with respect to such Restricted Stock or Performance Units and (ii) the Committee wishes such award to qualify for the Section 162(m) Exemption. 
 
(jj) “Recapitalization and Merger” means the transactions contemplated by the
Transaction Agreement. 
 
(kk)
“Restricted Stock” means restricted Shares awarded pursuant to the Plan. 
 
(ll) “Restricted Stock Purchase Agreement” means a written agreement between the Company and the Optionee
evidencing the terms and restrictions applying to stock purchased under a Stock Purchase Right. The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the Notice of Grant. 
 
(mm) “Restricted Stock Agreement”
means a written agreement between the Company and the Grantee evidencing the terms and conditions of an individual Restricted Stock grant. The Restricted Stock Agreement is subject to the terms of the Plan. 
 
(nn) “Rule 16b-3” means Rule 16b-3
of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
 
(oo) “Section 16(b)” means Section 16(b) of the Exchange Act. 
 

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(pp) “Section 162(m) Exemption” means the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(C) of the Code. 
 
(qq) “Service Provider” means an
Employee, Non-Employee Director or Consultant. 
 
(rr) “Share” means a share of the Common Stock, as adjusted in accordance with Section 16 of the Plan. 
 
(ss) “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 of the Plan, as
evidenced by a Notice of Grant. 
 
(tt) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 
(uu) “Transaction Agreement” means the Amended and Restated Agreement and Plan of
Recapitalization and Merger, dated as of July 15, 2001, by and among USA Networks, Inc., the Company, Taipei, Inc., Microsoft Corporation, and Microsoft E-Holdings, Inc. 
 
(vv) “Warrant” means “Company Warrant” as defined in the Transaction
Agreement. 
 
3. Stock Subject to the Plan.
Subject to the provisions of Section 16 of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is 6,800,000 Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 
 
If any grant of Restricted Stock or Performance Units is
forfeited, or if any Option, Stock Purchase Right or Warrant terminates, expires or lapses without being exercised in full, any forfeited or unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated); provided, however, that Shares that have actually been issued under the Plan, whether upon exercise of an Option, Stock Purchase Right or Warrant or upon lapsing of restrictions on Restricted Stock or Performance
Units, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become
available for future grant under the Plan. If the exercise price of any Option, Warrant or Stock Purchase Right granted under the Plan is satisfied by delivering Shares to the Company (by either actual delivery or by attestation), only the number of
Shares issued net of the Shares delivered or attested to shall be deemed issued for purposes of determining the maximum numbers of Shares available for issuance under the Plan. To the extent any Shares subject to an Option, Stock Purchase Right,
Performance Unit, Warrant or Restricted Stock are not delivered to a participant because such Shares are used to satisfy an applicable tax-withholding obligation, such Shares shall not be deemed to have been issued for purposes of determining the
maximum number of Shares available for issuance under the Plan. 
 

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4.
Administration of the Plan. 
 
(a) Procedure – in General. The Plan shall be administered by (i) the Committee, which shall be comprised of not less than two directors appointed by the Board, each of whom is intended to be a “non-employee
director” (within the meaning of Rule 16b-3) and an “outside director” (within the meaning of Code Section 162(m) and the Treasury Regulations promulgated thereunder) to the extent that Rule 16b-3 and Code Section 162(m),
respectively, are applicable to the Company and to Options, Stock Purchase Rights, Performance Units, Restricted Stock and Warrants granted under the Plan; or (ii) the Board. 
 
(b) Powers of the Administrator. Subject to the provisions of the Plan, the
Administrator shall have the authority, in its discretion: 
 
(i) to grant Options, Restricted Stock, Performance Units, Stock Purchase Rights and Warrants pursuant to the terms of the Plan to Service Providers; 
 
(ii) to determine the Fair Market Value;

 
(iii) to select the Service
Providers to whom Options, Restricted Stock, Performance Units, Stock Purchase Rights and Warrants may be granted hereunder; provided, however, that notwithstanding any other provision of this Plan, grants to Consultants shall be made
solely by the Board, subject to its authority to delegate pursuant to Section 4(c); 
 
(iv) to determine the number of shares of Common Stock to be covered by each Option, Restricted Stock award, Performance
Units, Stock Purchase Right and Warrant granted hereunder; 
 
(v) to approve forms of agreement for use under the Plan; 
 
(vi) to determine the terms and conditions (which need not be the same with respect to each Grantee), not inconsistent
with the terms of the Plan, of any Option, Performance Unit, Restricted Stock award or Stock Purchase Right granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or Stock
Purchase Rights may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option, grant of Restricted Stock, Performance Units or
Stock Purchase Rights or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
 
(vii) to construe and interpret the terms of the Plan and awards granted pursuant to the Plan
and interpret, administer, reconcile any inconsistency, correct any default and/or supply any omission in the Plan and any instrument or agreement relating to any Option, Restricted Stock award, Performance Unit, Stock Purchase Right or Warrant
granted under the Plan; provided, however, that 

 

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the Committee may not adjust upwards the amount payable with respect to a Qualified Performance-Based Award or alter the Performance Goals
associated therewith; 
 
(viii) to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
 
(ix) to modify or amend each Option,
Restricted Stock grant, Performance Unit, Stock Purchase Right or Warrant (subject to Section 18(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided
for in the Plan; 
 
(x) to allow
Optionees and Grantees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option, Warrant or Stock Purchase Right or lapsing of restrictions on Restricted Stock or
Performance Units that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be
determined. All elections by an Optionee or a Grantee to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; 
 
(xi) to authorize any person to execute on
behalf of the Company any instrument required to effect the grant of an Option, Restricted Stock, Performance Unit, Stock Purchase Right or Warrant previously granted by the Administrator; and 
 
(xii) to make all other determinations deemed
necessary or advisable for administering the Plan. 
 
(c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations shall be final, binding and conclusive on all Optionees and Grantees, and all other persons having an
interest herein. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any award hereunder. 
 
The Administrator may act only by a majority of its members then in office, except that the Administrator may, except to the extent
prohibited by applicable law or the applicable rules of a stock exchange, allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any
person or persons selected by it; provided that no such delegation may be made that would cause awards or other transactions under the Plan to cease to be exempt from Section 16(b) of the Exchange Act or cause an award designated as a Qualified
Performance-Based award not to qualify for, or to cease to qualify for, the Section 162(m) Exemption. Any such allocation or delegation may be revoked by the Administrator at any time. 
 

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5.
Eligibility. Non-statutory Stock Options, Restricted Stock, Performance Unit, Stock Purchase Rights and Warrants may be granted to all Service Providers. Warrants may only be granted pursuant to the specific provisions of Section 13 of the
Plan. 
 
Except as may specifically be provided by
the Administrator from time to time, in order to receive a grant of Options, Restricted Stock, Performance Units or Stock Purchase Rights under the Plan, a Service Provider must agree not to (a) solicit employees of the Company or its Subsidiaries
or Affiliates, (b) compete with the Company or its Subsidiaries or Affiliates and (c) reveal confidential information of the Company or its Subsidiaries or Affiliates. The terms, conditions, and provisions relating to these non-solicitation,
non-competition and confidentiality provisions shall be determined by the Administrator. 
 
6. Limitations. 
 
(a) Each Option granted under the Plan shall be designated in the Option Agreement as a Non-statutory Stock Option. 
 
(b) The following limitations shall apply to grants of Options and Qualified
Performance-Based Awards: 
 
(i)
No Service Provider shall be granted, more than 2,000,0000 Options or more than 2,000,000 Qualified Performance-Based Awards during any calendar year. No Non-Employee Director shall be granted more than 15,000 Options with respect to such
Non-Employee Director’s first calendar year as a Non-Employee Director and no Non-Employee Director shall be granted more than 10,000 Options with respect to any calendar year thereafter. 
 
(ii) The foregoing limitations shall be
adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 16. 
 
(iii) If an Option is canceled in the same fiscal year of the Company in which it was granted (other than in connection
with a transaction described in Section 16), the canceled Option will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option. 
 
7. Term of Plan. Subject to Section 22 of the Plan, the Plan shall become effective upon its adoption by the Board. It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 18 of the
Plan. 
 
8. Term of Option. The term of each
Option shall be stated in the Option Agreement. 
 

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9. Option
Exercise Price and Consideration. 
 
(a) Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator.In the case of a Non-statutory Stock Option intended to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. Notwithstanding the foregoing, Options may
be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 
 
(b) Waiting Period and Exercise Dates. At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. 
 
(c) Form of Consideration. The Administrator shall determine the acceptable form of
consideration for exercising an Option, including the method of payment. The Administrator shall determine the acceptable form of consideration at the time of grant or the agreement. Such consideration may consist entirely of: 
 
(i) cash; 
 
(ii) check; 
 
(iii) promissory note; 
 
(iv) other than as provided in subsection
(v), other Shares (by delivery or attestation) which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on the date of delivery (or attestation) or which were acquired in the open
market, and (B) have a Fair Market Value on the date of delivery (or attestation) equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
 
(v) consideration received by the Company under the cashless exercise program that is
implemented by the Company from time to time in connection with the Plan; 
 
(vi) any combination of the foregoing methods of payment; or 
 
(vii) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable
Laws. 
 
10. Exercise of Option.

 
(a) Procedure for Exercise;
Rights as a Stockholder. Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Unless the
Administrator provides otherwise, vesting of Options granted 
 

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hereunder shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share. 
 
An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of
any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the
name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other
rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 16 of the Plan. 
 
Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale
under the Option, by the number of Shares as to which the Option is exercised, except as otherwise provided in Section 3 of the Plan. 
 
(b) Termination of Relationship as a Service Provider. If an Optionee ceases to be a Service Provider, other than
upon the Optionee’s death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination (but in no event later
than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three months following the Optionee’s termination, unless
such termination is for Cause, in which case the Option will immediately terminate and expire. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 
(c) Disability of Optionee. If an
Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option, but only to the extent that the Option would have otherwise vested had the Optionee remained a Service Provider for
a period of twelve (12) months after the date on which the Service Provider ceased to be a Service Provider as a result of the Disability. Such exercise must occur within eighteen (18) months (or such shorter time as is specified in the Option
Agreement) from the date on which the Service Provider ceased to be a Service Provider as a result of the Disability (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement). If, after
termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 

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(d) Death of Optionee. In the event of the death of an Optionee: 
 
(i) who is at the time of death a Service Provider, the Option may be exercised, at any time within twelve (12) months
following the date of death (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s estate or by a person who acquired the right to exercise the option by bequest or
inheritance, but only to the extent that the Option would have otherwise vested had the Optionee continued living and continued to be a Service Provider twelve (12) months after the date of death; or 
 
(ii) who is at the time of death not a
Service Provider but whose Option has not yet expired, the Option may be exercised, at any time within twelve (12) months following the date of death (but in no event later than the date of expiration of the term of such Option as set forth in the
Option Agreement), by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that the Option would have otherwise vested at the date of termination. 
 
If the Option is not so exercised within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 
(e) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares an Option
previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made. 
 
11. Stock Purchase Rights. 
 
(a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other
awards granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically, by means of a Notice of
Grant, of the terms, conditions and restrictions related to the offer, including the number of Shares that the offeree shall be entitled to purchase, the price to be paid, and the time within which the offeree must accept such offer. The offer shall
be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator. 
 
(b) Repurchase Option. Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall
grant the Company a repurchase option exercisable upon the Grantee voluntary or involuntary ceasing to be a Service Provider for any reason (including death or Disability). The purchase price for Shares repurchased pursuant to the Restricted Stock
Purchase Agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at a rate determined by the Administrator. 
 

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(c) Other Provisions. The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion.

 
(d) Rights as a
Stockholder. Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer
agent of the Company. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 16 of the Plan. 
 
12. Restricted Stock. 
 
(a) Administration. Shares of
Restricted Stock may be awarded either alone or in addition to other awards granted under the Plan. The Administrator shall determine the Service Providers to whom and the time or times at which grants of Restricted Stock will be awarded, the number
of Shares to be awarded to any Service Providers, the conditions for vesting, the time or times within which such awards may be subject to forfeiture and any other terms and conditions of the awards, in addition to those contained in Section 12(c).

 
(b) Awards and
Certificates. Shares of Restricted Stock shall be evidenced in such manner as the Administrator may deem appropriate, including book-entry registration or issuance of one or more stock certificates. Any certificate issued in respect of shares of
Restricted Stock shall be registered in the name of such participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such award, substantially in the following form: 
 
“The transferability of this certificate and the shares
of Common Stock represented hereby are subject to the terms and conditions (including forfeiture) of the Expedia, Inc. 2001 Stock Plan and a Restricted Stock Agreement. Copies of such Plan and Agreement are on file at the offices of Expedia, Inc.,
13810 SE Eastgate Way, Suite 400, Bellevue, WA 98005.” 
 
The
Administrator may require that the certificates evidencing such Shares be held in custody by the Company until the restrictions thereon shall have lapsed and that, as a condition of any award of Restricted Stock, the participant shall have delivered
a stock power, endorsed in blank, relating to the Common Stock covered by such award. 
 
(c) Terms and Conditions. Shares of Restricted Stock shall be subject to the following terms and conditions:

 
(i) The Administrator may,
prior to or at the time of grant, designate an award of Restricted Stock as a Qualified Performance-Based Award, in which event the Administrator shall condition the grant or vesting, as applicable, of such Restricted Stock upon the attainment of
Performance Goals. If the Administrator does not designate an award of Restricted Stock as a Qualified Performance-Based Award, it may also condition the grant or vesting thereof upon the 

 

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attainment of Performance Goals. Regardless of whether an award of Restricted Stock is a Qualified Performance-Based Award, the Administrator
may also condition the grant or vesting thereof upon the continued service of the Grantee. The conditions for grant or vesting and the other provisions of Restricted Stock grants (including without limitation any applicable Performance Goals) need
not be the same with respect to each Grantee. The Administrator may at any time, in its sole discretion, accelerate or waive, in whole or in part, any of the foregoing restrictions; provided, however, that in the case of Restricted Stock that is a
Qualified Performance-Based Award, the applicable Performance Goals have been satisfied. 
 
(ii) Subject to the provisions of the Plan and the Restricted Stock Agreement referred to in Section 12(c)(vi), during the
period, if any, set by the Administrator, commencing with the date of such award for which such Grantee’s continued service is required (the “Restriction Period”), and until the later of (i) the expiration of the Restriction Period
and (ii) the date the applicable Performance Goals (if any) are satisfied, the Grantee shall not be permitted to sell, assign, transfer, pledge or otherwise encumber shares of Restricted Stock; provided that the foregoing shall not prevent a Grantee
from pledging Restricted Stock as security for a loan, the sole purpose of which is to provide funds to pay the option price for Options. 
 
(iii) Except as provided in this paragraph (iii) and Sections 12(c)(i) and 12(c)(ii) and the Restricted Stock Agreement,
the Grantee shall have, with respect to the shares of Restricted Stock, all of the rights of a stockholder of the Company holding the class or series of Common Stock that is the subject of the Restricted Stock, including, if applicable, the right to
vote the shares and the right to receive any cash dividends. If so determined by the Administrator in the applicable Restricted Stock Agreement, (A) cash or other dividends on the class or series of Common Stock that is the subject of the Restricted
Stock Award shall be automatically deferred and reinvested in additional Restricted Stock, held subject to the vesting of the underlying Restricted Stock, or held subject to meeting Performance Goals applicable only to dividends, and (B) dividends
payable in Common Stock shall be paid in the form of Restricted Stock of the same class as the Common Stock with which such dividend was paid, held subject to the vesting of the underlying Restricted Stock, or held subject to meeting Performance
Goals applicable only to dividends; provided that reinvestment of dividends in additional Restricted Stock at the time of any divided payment shall only be permissible if sufficient shares of Common Stock are available under Section 3 for such
reinvestment. 
 
(iv) Except to
the extent otherwise provided in the applicable Restricted Stock Agreement or Section 12(c)(i), 12(c)(ii), 12(c)(v) or upon a Grantee ceasing to be a Service Provider for any reason during the Restriction Period or before the applicable Performance
Goals are satisfied, all shares still subject to restriction shall be forfeited by the Grantee; provided, however, that the Administrator shall have the discretion to waive, in whole or in part, any or all 

 

13 

remaining restrictions (other than, in the case of Restricted Stock with respect to which a Grantee is a “Covered Employee” within
the meaning of Section 162(m) of the Code, satisfaction of the applicable Performance Goals unless the Grantee resigns with Good Reason or his or her employment is terminated without Cause or by reason of death or Disability) with respect to any or
all of such Grantee’s Shares of Restricted Stock. 
 
(v) If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock (and any applicable Performance Goals are satisfied), unlegended certificates for such Shares shall be delivered to the
participant upon surrender of the legended certificates. 
 
Each
award shall be confirmed by, and be subject to, the terms of a Restricted Stock Agreement. 
 
13. Warrants. 
 
(a) Prior to the listing of the Warrants on Nasdaq, the American Stock Exchange or other exchange acceptable to the Company (as contemplated by the Transaction Agreement), the Company shall, subject to
applicable law, distribute under the Plan (the “Distribution”), to holders of Old Options on the date of the Distribution, 0.1920 Warrants with respect to each Share underlying any such Old Option, whether or not then vested; provided,
however, that, subject to the following sentence, Warrants distributed in respect of unvested Old Options shall be restricted and shall become exercisable and transferable solely upon the vesting of such related Old Option. 
 
(b) With respect to all Warrants, whether
vested or unvested, for a period of 90 days following the date of Distribution, (i) such Warrants shall not be exercisable, and (ii) the Company shall instruct its transfer agent to place a stop transfer order on certificates representing such
Warrants. The Company shall terminate such stop transfer order immediately upon expiration of such 90-day period. 
 
(c) The Warrants shall not terminate upon the termination of employment of a holder of an Old Option and shall not be
subject to the restrictions in Section 15 hereof. 
 
(d) Except as specifically provided for in this Plan, Warrants shall have the same terms and conditions as the Company Warrants described in Section 8.12 of the Transaction Agreement. 
 
14. Performance Units. 
 
(a) Generally. Performance Units may
be awarded either alone or in addition to other awards granted under the Plan. The Administrator shall determine the officers and employees to whom and the time or times at which Performance Units shall be awarded, the number of Performance Units to
be awarded to any Grantee (subject to the aggregate limit on grants to individual participants set forth in Section 6(b)), the duration of the Award Cycle and any other terms and conditions, in addition to those contained in Section 14(b).

 

14 

 
The Administrator may condition the settlement of Performance Units upon either the continued service of the Grantee or the attainment of Performance Goals, or both. The provisions of such Awards (including the applicable Performance
Goals) need not be the same with respect to each Grantee. 
 
(b) Terms and Conditions. Performance Unit awards shall be subject to the following terms and conditions: 
 
(i) At the expiration of the Award Cycle, the Administrator shall evaluate the Company’s
performance in light of the Performance Goals for such Award to the extent applicable, and shall determine the number of Performance Units granted to the Grantee that have been earned, and the Administrator may then elect to deliver (1) a number of
shares of Common Stock equal to the number of Performance Units determined by the Administrator to have been earned, or (2) cash equal to the Fair Market Value of such number of shares of Common Stock to the participant. 
 
(ii) Except to the extent otherwise provided
in the applicable Performance Unit Agreement, if a Grantee ceases to be a Service Provider for any reason during the Award Cycle or before any applicable Performance Goals are satisfied, the rights to the shares still covered by the Performance Unit
award shall be forfeited by the Grantee; provided, however, that the Administrator shall have the discretion to waive, in whole or in part, any or all remaining restrictions and payment limitations (other than, in the case of
Performance Units with respect to which a Grantee is a “Covered Employee” within the meaning of Section 162(m) of the Code, satisfaction of the applicable Performance Goals unless the Grantee resigns with Good Reason or his or her
employment is terminated without Cause or by reason of death or Disability) with respect to any or all of such Grantee’s Performance Units. 
 
(iii) A Grantee may elect to further defer receipt of the Performance Units payable under pursuant to an award (or an
installment of an award) for a specified period or until a specified event, subject in each case to the Administrator’s approval and to such terms as are determined by the Administrator (the “Elective Deferral Period”). Subject to any
exceptions adopted by the Administrator, such election must generally be made prior to commencement of the Award Cycle for the Award (or for such installment of an Award). 
 
(iv) If and when any applicable Performance Goals are satisfied and the Elective Deferral
Period expires without a prior forfeiture of the Performance Units, payment in accordance with Section 14(b)(i) hereof shall be made to the Grantee. 
 
(v) Each grant of a Performance Unit shall be confirmed by, and be subject to, the terms of a Performance Unit Agreement.

 

15 

 
15.
Non-Transferability of Options, Restricted Stock, Performance Units and Stock Purchase Rights. Unless determined otherwise by the Administrator, an Option, a grant of Restricted Stock, Performance Units or a Stock Purchase Right may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. However, an Option, a
grant of Restricted Stock, Performance Units or a Stock Purchase Right is transferable, in whole or in part, by gift or, with the consent of the Administrator, for value, to Immediate Family of the Optionee or Grantee, partnerships of which the only
partners are members of the Optionee’s or Grantee’s Immediate Family, and trusts established solely for the benefit of the Optionee’s or Grantee’s Immediate Family, provided such transferability shall be limited to vested rights.
Transfers to the Optionee’s or Grantee’s immediate family are subject to the terms and conditions of this Plan and the terms and conditions of any relevant agreement pursuant to which they were granted and shall not be permitted to effect
a cashless exercise. The Optionee’s or Grantee’s Immediate Family do not have the right to further transfer those rights other than by will or the laws of descent and distribution. In addition, an Option, a grant of Restricted Stock,
Performance Units or a Stock Purchase Right shall also be transferable by the Optionee or Grantee, in whole or in part, with the consent of the Administrator, to charitable organizations, provided such transferability shall be limited to vested
rights. Transfers to charitable organizations shall also be subject to the terms and conditions of this Plan and the terms and conditions of any relevant agreement pursuant to which they were granted, and charitable organizations shall not be
permitted to effect a cashless exercise. In addition, such charitable organizations shall not have the right to further transfer those rights. If the Administrator makes an Option, grant of Restricted Stock, Performance Units or a Stock Purchase
Right transferable, such Option, grant of Restricted Stock, Performance Unit or Stock Purchase Right shall contain such additional terms and conditions as the Administrator deems appropriate. 
 
16. Adjustments upon Changes in Capitalization,
Dissolution, Merger or Asset Sale. 
 
(a) Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of shares of Restricted Stock, the number of Shares covered by each outstanding Option, Performance Unit and Stock
Purchase Right, the number or kind of Shares which have been authorized for issuance under the Plan but as to which no Options, Shares of Restricted Stock, Performance Units or Stock Purchase Rights have yet been granted or which have been returned
to the Plan upon cancellation, expiration or forfeiture of an Option, shares of Restricted Stock, Performance Units or Stock Purchase Right, as well as the price per Share covered by each such outstanding Option or Stock Purchase Right shall be
proportionately adjusted for any increase or decrease in the number or kind of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without
receipt of consideration;” provided further, that the number of shares of Restricted Stock or Shares subject to an Option, Performance Unit or Stock Purchase Right shall always be a whole number. Such adjustment shall be made by the Board,
whose determination 

 

16 

in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option, shares of Restricted Stock,
Performance Unit or Stock Purchase Right. 
 
(b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which
the Option would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option (as described in Section 11(b) of the Plan) applicable to any Shares purchased upon exercise of an Option or Stock Purchase
Right shall lapse as to all such Shares and that all restrictions with respect to any Restricted Stock and Performance Units shall lapse as to all such Restricted Stock and Performance Units, provided that the proposed dissolution or liquidation
takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Option or a Stock Purchase Right will terminate immediately prior to the consummation of such proposed action. 
 
(c) Merger or Asset Sale. In the event
of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, all outstanding Options, shares of Restricted Stock, Performance Units or Stock Purchase Rights shall be assumed or an
equivalent option, share of restricted stock or right shall be substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. The number of Shares reserved pursuant to Section 3 may be increased by the corresponding
number of Options assumed in connection with such a transaction and, in the case of a substitution, by the net increase in the number of Shares subject to Options before and after the substitution. In the event that the successor corporation refuses
to assume or substitute for the Option, Restricted Stock, Performance Units or Stock Purchase Right, the Optionee or Grantee shall fully vest in and have the right to exercise the Option or Stock Purchase Right as to all of the Optioned Stock,
including Shares as to which it would not otherwise be vested or exercisable, and all restrictions on Restricted Stock and Performance Units shall lapse, as the case may be. If an Option or Stock Purchase Right becomes fully vested and exercisable
in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee or Grantee in writing or electronically that the Option or Stock Purchase Right shall be fully vested and exercisable for a
period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option, Stock Purchase Right, Performance Unit or Restricted
Stock shall be considered assumed if, following the merger or sale of assets, the option, right or share of restricted stock confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option, Performance Unit or Stock
Purchase Right, Share granted as Restricted Stock immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or 

 

17 

property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely
common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock Purchase Right for each Share of
Optioned Stock subject to the Option or Stock Purchase Right or upon the lapse of the restrictions with respect to the Restricted Stock and Performance Units, respectively, to be solely common stock of the successor corporation or its Parent equal
in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
 
17. Date of Grant. The date of grant of an Option, a share of Restricted Stock, a Performance Unit or a Stock Purchase Right shall
be, for all purposes, the date on which the Administrator makes the determination granting such Option, Restricted Stock, Performance Unit or Stock Purchase Right or such other later date as is determined by the Administrator. Notice of the
determination shall be provided to each Optionee or Grantee within a reasonable time after the date of such grant. The date of grant of a Warrant shall be the date of Distribution. 
 
18. Amendment and Termination of the Plan. 
 
(a) Amendment and Termination. The
Board may at any time amend, alter, suspend or terminate the Plan, provided that no such amendment, alteration, suspension, discontinuation or termination shall be made without shareholder approval if such approval is necessary to comply with any
tax or regulatory requirement applicable to the Plan (including as necessary to prevent Options, Stock Purchase Rights, Performance Units, Restricted Stock and Warrants granted under the Plan from failing to qualify as “performance-based
compensation” for purposes of Section 162(m) of the Code); and provided further that any such amendment, alteration, suspension, discontinuance or termination that would impair the rights of any Optionee or Grantee shall not to that extent be
effective without the consent of the affected Optionee, Grantee, holder or beneficiary. 
 
(b) Stockholder Approval. The Company shall obtain stockholder approval of any Plan amendment to the extent
necessary and desirable to comply with Applicable Laws. 
 
(c) Service Providers in Foreign Countries. The Administrator shall have the authority to adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of
foreign countries in which the Company or its Subsidiaries may operate to assure the viability of the benefits from Options, Restricted Stock, Performance Units or Stock Purchase Rights granted to Service Providers in such countries and to meet the
objectives of the Plan. 
 
(d)
Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee or Grantee, 
 

18 

unless mutually agreed otherwise between the Optionee or Grantee and the Company, which agreement must be in writing and signed by the
Optionee or Grantee and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options, Performance Units or Restricted Stock granted under the Plan prior
to the date of such termination. 
 
19.
Conditions Upon Issuance of Shares. 
 
(a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option, Stock Purchase Right or Warrant and shares of Restricted Stock or Shares underlying Performance Units shall not be released from the
custody of the Company if so held, unless the exercise of such Option, Stock Purchase Right, Performance Units or Warrant and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of
counsel for the Company with respect to such compliance. 
 
(b) Investment Representations. As a condition to the exercise of an Option, Stock Purchase Right or Warrant, the Company may require the person exercising such Option, Stock Purchase Right or Warrant to represent and
warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

 
20. Inability to Obtain Authority. The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 
21. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan. 
 
22. Stockholder Approval. The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted. Such stockholder approval shall be obtained in the
manner and to the degree required under Applicable Laws. 
 
23. Governing Law. The terms of this Plan shall be governed by the Laws of the State of Washington without reference to principles of conflict of laws, as applied to contracts executed in and performed wholly within the State
of Washington. 
 
24. Tax Withholding.

 
(a) An Optionee or Grantee may
be required to pay to the Company or any Parent, Subsidiary or other Affiliate, and the Company or any Parent, Subsidiary or other Affiliate shall have the right and is hereby authorized to withhold from any Shares or other property deliverable
under any award under the Plan or from any compensation or 

 

19 

other amounts owing to an Optionee or Grantee the amount (in cash, Shares or other property) of any required tax withholding and payroll
taxes in respect of the grant or exercise or lapse of restrictions with respect to an award, and to take such other action as may be necessary in the opinion of the Company, to satisfy all obligations for the payment of such taxes. 
 
(b) Without limiting the generality of clause
(a) above, if so provided in a Restricted Stock Agreement, Performance Unit Agreement, a Stock Option agreement, Warrant agreement or Stock Purchase Right agreement, a Grantee or an Optionee may satisfy, in whole or in part, the foregoing
withholding liability (but no more than the minimum required withholding liability) by delivery of Shares owned by the Grantee or the Optionee (which are not subject to any pledge or other security interest) with a Fair Market Value equal to such
withholding liability or by having the Company withhold from the number of Shares otherwise issuable pursuant to the exercise of the Option, Stock Purchase Right or Warrant or lapse of restrictions on the Restricted Stock or Performance Units a
number of shares with a Fair Market Value equal to such withholding liability. 
 
25. Privileges of Stock Ownership. Except as otherwise specifically provided in the Plan, no person shall be entitled to the privileges of ownership in respect of shares of Stock which are
subject to Options, Stock Purchase Rights, Performance Units or Warrants hereunder until such shares have been issued to that person. 
 
26. Claim to Awards and Employment Rights. No Service Provider shall have any claim or right to be granted Restricted Stock,
Performance Units, Options, Stock Purchase Rights or Warrants under the Plan or, having been selected for the grant of an award, to be selected for a grant of any other award. Neither the Plan nor any action taken hereunder shall be construed as
giving any Optionee or Grantee any right to be retained in the employ or service of the Company, Subsidiaries or Affiliates. 
 

20Amended and Restated Employment Agreement

Exhibit 10.27 
 
AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(“Agreement”), dated as of July 9, 2002 is entered into by and between Erik C. Blachford (“Employee”) and Expedia, Inc., a Washington corporation (the “Company”). 
 
WHEREAS, Employee has been promoted to the position of
President, Expedia North America of the Company; 
 
WHEREAS, USA Networks, Inc. (“USAi”), the Company, Taipei, Inc., and Microsoft Corporation entered into an Agreement and Plan of Recapitalization and Merger dated as of July 15, 2001 as amended August 21, 2001 (the
“Transaction Agreement”), which resulted in the merger of the Company with and into Taipei, Inc. effective as of the Effective Time (as defined in the Transaction Agreement); 
 
WHEREAS, the Board of Directors of the Company (the “Board”) has provided for the employment of
Employee from and after the date upon which the Effective Time occurred (the “Effective Date”), and Employee is willing to continue to commit himself to serve the Company and its subsidiaries and affiliates, on the terms and conditions
herein provided; 
 
WHEREAS, the Company and USAi
were parties to a term sheet dated as of July 15, 2001 as amended August 22, 2001 (the “Term Sheet”), that contemplated the execution between the parties hereto prior to the Effective Time of a long-form employment agreement consistent
with the terms thereof. 
 
WHEREAS, in order to
effect the foregoing, the Company and Employee wish to enter into an amended and restated employment agreement on the terms and conditions set forth below. 
 
NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, Employee and the Company have agreed and do hereby agree
as follows: 
 
1A. EMPLOYMENT. The Company agrees to
continue to employ Employee as President, Expedia North America of the Company, commencing upon the Effective Date, and Employee accepts and agrees to such employment. During Employee’s employment with the Company, Employee shall perform all
services and acts necessary or advisable to fulfill the duties and responsibilities as are commensurate and consistent with Employee’s position and shall render such services on the terms set forth herein. During Employee’s employment with
the Company, Employee shall report to the Company’s Chief Executive Officer/President, or such person(s) as from time to time may be designated by the Company (the “Reporting Officer”). Employee shall have such powers and duties with
respect to the Company as may reasonably be assigned to Employee by the Reporting Officer, to the extent consistent with Employee’s position and status. Employee agrees to devote all of Employee’s working time, attention and efforts to the
Company and to perform the duties of Employee’s position in accordance with the Company’s policies as in effect from time to time. Employee’s principal place of employment shall be the Company’s offices located in the Seattle,
Washington metropolitan area. 

 
2A. TERM OF AGREEMENT.
The term (“Term”) of this Agreement shall commence upon the Effective Date and shall continue for a period of three years, unless sooner terminated in accordance with the provisions of Section 1 of the Standard Terms and Conditions
attached hereto. Effective as of the date hereof, this Agreement shall replace and supercede the Term Sheet, and the Term Sheet shall be of no further force and effect. Upon the termination of the Transaction Agreement, this Agreement and the Term
Sheet shall terminate and shall be void ab initio and of no force and effect. 
 
3A. COMPENSATION. 
 
(a) BASE SALARY. During the remaining portion of the Term, the Company shall pay Employee an annual base salary of $185,000 (the
“Base Salary”), payable in equal biweekly installments or in accordance with the Company’s payroll practice as in effect from time to time. Unless otherwise agreed by the Company and USAi, the Base Salary shall be subject to review
and increase at the discretion of the Company’s Chief Executive Officer, any such increase to be approved by the Compensation Committee of the Board (the “Compensation Committee”). For all purposes under this Agreement, the term
“Base Salary” shall refer to Base Salary as in effect from time to time. 
 
(b) DISCRETIONARY BONUS. During the Term, Employee shall be eligible to receive discretionary annual bonuses. 
 
(c) EQUITY AWARDS. In consideration of Employee’s entering into this Agreement and as an
inducement to continue in the employ of the Company, Employee shall be eligible for stock option grants after August 2, 2001; provided that such grants shall not accelerate and vest upon a termination of Employee’s employment without Cause (as
defined in the Standard Terms and Conditions) or a resignation of the Employee for Good Reason (as defined in the Standard Terms and Conditions). 
 
(d) BENEFITS. From the Effective Date through the date of termination of Employee’s employment with the Company for any
reason, except as specifically provided herein, Employee shall be entitled to participate in any welfare, health, life insurance, pension benefit and incentive plans, programs, policies, and practices as may be adopted from time to time by the
Company on the same basis as that provided to similarly situated executives of the Company. Without limiting the generality of the foregoing, Employee shall be entitled to the following benefits: 
 
(i) Reimbursement for Business Expenses. During the
Term, the Company shall reimburse Employee for all reasonable and necessary expenses incurred by Employee in performing Employee’s duties for the Company, on the same basis as similarly situated executives of the Company and in accordance with
the Company’s policies as in effect from time to time. 
 
(ii) Vacation. During the Term, Employee shall be entitled to a number of weeks of paid vacation per year equal to those provided to similarly situated executives of the Company, in accordance with the plans, policies,
programs and practices of the Company applicable to similarly situated executives of the Company generally. 
 

2 

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

	         If to USAi:
	 	 USA Networks, Inc.

	 	 	 152 West 57th Street

	 	 	 New York, New York 10019

	
	 	 	 Attention: General Counsel

	
	 	 	 With a copy to:

	 	 	 Wachtell, Lipton, Rosen & Katz

	 	 	 51 West 52nd Street

	 	 	 New York, New York 10019

	
	 	 	 Attention: Michael S. Katzke, Esq.

	
	         If to the Company:
	 	 Expedia, Inc.

	 	 	 13810 SE Eastgate Way

	 	 	 Suite 400

	 	 	 Bellevue, Washington 98005

	
	 	 	 Attention: General Counsel

	
	 	 	 With a copy to

	
	 	 	 Shearman & Sterling

	 	 	 555 California Street

	 	 	 20th Floor

	 	 	 San Francisco, CA 94104

	
	 	 	 Attention: Peter D. Lyons, Esq.

	
	         If to Employee:
	 	 At the most recent address of Employee on record at the Company

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

3 

 
5A. GOVERNING LAW;
JURISDICTION. This Agreement and the legal relations thus created between the parties hereto shall be governed by and construed under and in accordance with the laws of the State of Washington, without reference to the principles of conflicts of
laws. Any and all disputes between the parties which may arise pursuant to this Agreement will be heard and determined solely before an appropriate federal court in Washington or, if not maintainable therein, then in an appropriate Washington state
court. The parties acknowledge that such courts have jurisdiction to interpret and enforce the provisions of this Agreement, and the parties consent to, and waive any and all objections that they may have as to, personal jurisdiction and/or venue in
such courts. 
 
6A. COUNTERPARTS. This Agreement may be
executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. Employee expressly understands and acknowledges that the Standard Terms and Conditions attached
hereto are incorporated herein by reference, deemed a part of this Agreement and are binding and enforceable provisions of this Agreement. References to “this Agreement” or the use of the term “hereof” shall refer to this
Agreement and the Standard Terms and Conditions attached hereto, taken as a whole. 
 
7A. TERMINATION OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement between the parties, and as of the Effective Date, terminates and supersedes any and all prior agreements and understandings
(whether written or oral) between the parties with respect to the subject matter of this Agreement, including, without limitation, The Expedia Incorporated Employee Agreement that was executed by Employee upon commencement of his employment, and, as
of the date hereof, this Agreement shall replace and supercede the Term Sheet. Employee acknowledges and agrees that neither the Company nor anyone acting on its behalf has made, and is not making, and in executing this Agreement, the Employee has
not relied upon, any representations, promises or inducements except to the extent the same is expressly set forth in this Agreement. Employee hereby represents and warrants that by entering into this Agreement, Employee will not rescind or
otherwise breach any agreement or other legal obligation with any other person or entity. 
 

4 

 
IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed and delivered by its duly authorized officer and Employee has executed and delivered this Agreement on July 9, 2002. 
 

	 EXPEDIA, INC.

	
	 /s/    Kathleen Delplain

	 By:
	 	 Kathleen Delplain

	 Title:
	 	 Senior Vice President of Human Resources

	
	 Erik C. Blachford

	
	 /s/    Erik Blachford

 

5 

 
STANDARD
TERMS AND CONDITIONS 
 
1.
TERMINATION OF EMPLOYEE’S EMPLOYMENT. 
 
(a) DEATH. In the event Employee’s employment hereunder is terminated by reason of Employee’s death, the Company shall pay Employee’s designated beneficiary or beneficiaries, within 30 days of Employee’s
death in a lump sum in cash, Employee’s Base Salary from the date of Employee’s death through the end of the month in which Employee’s death occurs and any Accrued Obligations (as defined in paragraph 1(f) below). In addition,
Employee’s beneficiary or beneficiaries shall be entitled to amounts that are vested benefits or that Employee is otherwise entitled to receive under any plan of, or any other contract or agreement with, the Company at Employee’s death in
accordance with the terms of such plan, contract or agreement, as such terms may be amended from time to time. 
 
(b) DISABILITY. If, as a result of Employee’s incapacity due to physical or mental illness (“Disability”), Employee
shall have been absent from the full-time performance of Employee’s duties with the Company for a period of four consecutive months and, within 30 days after written notice is provided to Employee by the Company (in accordance with Section 4A
hereof), Employee shall not have returned to the full-time performance of Employee’s duties, Employee’s employment under this Agreement may be terminated by the Company for Disability. During any period prior to such termination during
which Employee is absent from the full-time performance of Employee’s duties with the Company due to Disability, the Company shall continue to pay Employee’s Base Salary at the rate in effect at the commencement of such period of
Disability, offset by any amounts payable to Employee under any disability insurance plan or policy provided by the Company. Upon termination of Employee’s employment due to Disability, the Company shall pay Employee within 30 days of such
termination (i) Employee’s Base Salary from the date of Employee’s termination of employment due to Disability through the end of the month in which such termination of employment occurs in a lump sum in cash, offset by any amounts payable
to Employee under any disability insurance plan or policy provided by the Company with respect to such month; and (ii) any Accrued Obligations (as defined in paragraph 1(f) below). In addition, Employee or Employee’s beneficiary or
beneficiaries shall be entitled to amounts that are vested benefits or that Employee is otherwise entitled to receive under any plan of, or any other contract or agreement with, the Company at Employee’s termination of employment due to
Disability in accordance with the terms of such plan, contract or agreement, as such terms may be amended from time to time. 
 
(c) TERMINATION FOR CAUSE; RESIGNATION BY EMPLOYEE WITHOUT GOOD REASON. The Company may terminate Employee’s employment under
this Agreement for Cause at any time prior to the expiration of the Term, and Employee may resign from employment under this Agreement without Good Reason at any time prior to the expiration of the Term. As used herein, “Cause” shall mean:
(i) the plea of guilty or nolo contendere to, or conviction for, the commission of a felony offense by Employee; (ii) a material breach by Employee of a fiduciary duty owed to the Company; (iii) a material breach by Employee of any of the covenants
made by Employee in Section 2 below; or (iv) the willful or gross neglect by Employee of the material duties required by this Agreement that is not cured by Employee 

within 30 days after Employee is provided with written notice thereof. As used herein, “Good Reason” shall mean the occurrence of
any of the following without Employee’s prior written consent, other than in connection with the termination of the Employee’s employment for Cause: (i) a material adverse change in Employee’s title, duties or reporting
responsibilities from those in effect on the Effective Date, (ii) a reduction in Employee’s Base Salary or target bonus percentage as in effect from time to time, except that a reduction in target bonus level percentage pursuant to an
across-the-board reduction applicable to executives of the Company generally as set by the Company’s Compensation Committee shall not constitute Good Reason under this Agreement, or (iii) a relocation of Employee’s principal place of
business more than 25 miles from the Seattle, Washington metropolitan area. In the event of Employee’s termination for Cause or resignation without Good Reason, this Agreement shall terminate without further obligation by the Company, except
for the payment of any Accrued Obligations (as defined in paragraph 1(f) below). 
 
(d) TERMINATION BY THE COMPANY OTHER THAN FOR DEATH, DISABILITY OR CAUSE; RESIGNATION BY EMPLOYEE FOR GOOD REASON. If Employee’s employment is terminated by the Company for any reason other
than Employee’s death or Disability or for Cause, or if Employee resigns for Good Reason, then (i) the Company shall pay Employee the Base Salary from the date of termination of Employee’s employment through the end of the scheduled Term
(the “Severance Period”) pursuant to the Company’s normal payroll practices; (ii) commencing at the end of the fiscal year in which Employee’s date of termination of employment occurs and at the end of each full fiscal year
during the Severance Period, the Company shall pay to Employee an amount equal to Employee’s target bonus (expressed as a percentage of Base Salary) for the fiscal year in which the date of termination occurs, based on the deemed achievement of
any individual performance goal formulas and actual achievement of corporate performance goal formulas, with respect to the fiscal year in which payment is made, at such time and in such manner as the Company otherwise pays its annual bonuses to
similarly situated executives of the Company; (iii) during the Severance Period, the Company shall continue to provide benefits to Employee that would have been provided to Employee in accordance with the plans, programs, practices and policies in
which Employee participated as of the date of termination if Employee’s employment had not been terminated or, in the case where any or all of the employee benefit plans are discontinued or no longer applicable to similarly situated executives
of the Company and its subsidiaries, as in effect generally at any time thereafter with respect to similarly situated executives of the Company and its subsidiaries, provided, however, that, if Employee becomes re-employed with another employer and
is eligible to receive such benefits under another employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan, and such other benefits shall not be provided by the
Company, during such applicable period of eligibility; (iv) the Company shall pay Employee within 30 days of the date of such termination in a lump sum in cash any Accrued Obligations (as defined in Section 1(f) below). In addition, Employee shall
automatically and immediately vest in all of his then-outstanding Company equity-based compensation awards and options granted on or prior to August 2, 2001 or any attendant warrants granted in respect thereof pursuant to Section 8.12 of the
Transaction Agreement. The payment to Employee of the severance benefits described in this Section 1(d) shall be subject to Employee’s execution and non-revocation of a general release of the Company and its affiliates in a form substantially
similar to that used for similarly 

 

2 

situated executives of the Company and its subsidiaries, a copy of the form of which is attached as Exhibit A. 
 
(e) MITIGATION; OFFSET. In the event of termination of
Employee’s employment prior to the end of the Term, in no event shall Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable under this Section 1. If Employee obtains other employment
during the Severance Period, the amount of any payment or benefit provided for under this Section 1 which has been paid to Employee shall be refunded to the Company by Employee in an amount equal to any compensation earned by Employee as a result of
employment with or services provided to another employer during the Severance Period, and all future amounts payable by the Company to Employee during the Severance Period shall be offset by the amount earned by Employee from another employer. For
purposes of this Section 1(e), Employee shall have an obligation to inform promptly the Company regarding Employee’s employment status during the Severance Period. 
 
(f) ACCRUED OBLIGATIONS. As used in this Agreement, “Accrued Obligations” shall mean the sum
of (i) any portion of Employee’s accrued but unpaid Base Salary through the date of death or termination of employment for any reason, as the case may be; and (ii) any compensation previously earned but deferred by Employee (together with any
interest or earnings thereon) that has not yet been paid. 
 
2. CONFIDENTIAL INFORMATION; NON-SOLICITATION; AND PROPRIETARY RIGHTS. 
 
(a) CONFIDENTIALITY. During the Term and at all times thereafter, Employee shall not disclose to anyone outside the Company nor use
for any purpose other than in Employee’s work for the Company: (a) any confidential or proprietary information or trade secrets of the Company or its affiliates; or (b) any information that the Company or its affiliates have received from
others that they are obligated to treat as confidential or proprietary. Employee shall not disclose confidential or proprietary information or trade secrets to other employees of the Company or its affiliates except on a “need-to-know”
basis, and Employee shall not disclose third party confidential or proprietary information except as permitted by any applicable agreement between the Company and the third party. “Confidential or proprietary information or trade secrets”
means all data and information in whatever form, tangible or intangible, that is not generally known to the public and that relates to the business, technology, practices, products, marketing, sales, services, finances or legal affairs of the
Company or its affiliates or any third party doing business with or providing information to the Company, including, without limitation, information about actual or prospective customers, suppliers and business partners; business, sales, marketing,
technical, financial and legal plans, proposals and projections; concepts, techniques, processes, methods, systems, designs, programs, code, formulas, research, experimental work and work in progress. As used in this Agreement,
“affiliates” shall mean any company controlled by, controlling or under common control with the Company. When Employee’s employment with the Company ends, Employee shall immediately return to the Company all papers, drawings, notes,
manuals, specifications, designs, devices, code, e-mail, documents, diskettes and tapes, and any other material in any form or media containing any confidential or proprietary information or trade secrets, as defined above. Employee shall also
return any keys, access cards, credit cards, identification cards and other 

 

3 

property and equipment belonging to the Company. All materials, data and information stored on or transmitted using the Company owned or
leased property or equipment is the property of the Company and is subject to access by the Company at any time without further notice. 
 
(b) NON-COMPETITION. During the Term and for a period of 12 months beyond Employee’s date of termination of employment for any
reason (the “Restricted Period”), Employee shall not, directly or indirectly, engage in or become associated with a Competitive Activity. For purposes of this Section 2(b): (i) a “Competitive Activity” means any business or other
endeavor, in any county of any state of the United States or a comparable jurisdiction in Canada or any other country, of a kind being conducted by the Company or any of its subsidiaries or those affiliates that are engaged in the provision of
travel related services in such jurisdiction as of the Effective Date or at any time thereafter (including, without limitation, general online travel providers such as Travelocity.com Inc., Orbitz and Priceline.com Inc.); and (ii) Employee
shall be considered to have become “associated with a Competitive Activity” if Employee becomes directly or indirectly involved as an owner, principal, employee, officer, director, independent contractor, representative, stockholder,
financial backer, agent, partner, advisor, lender, or in any other individual or representative capacity with any individual, partnership, corporation or other organization that is engaged in a Competitive Activity. Notwithstanding the foregoing,
Employee may make and retain investments during the Restricted Period, for investment purposes only, in less than five percent (5%) of the outstanding capital stock of any publicly-traded corporation engaged in a Competitive Activity if stock of
such corporation is either listed on a national stock exchange or on the NASDAQ National Market System if Employee is not otherwise affiliated with such corporation. 
 
(c) NON-SOLICITATION OF EMPLOYEES. During the Restricted Period, Employee shall not, without the prior
written consent of the Company, directly or indirectly, or recruit or solicit the employment or services of (whether as an employee, officer, director, agent, consultant or independent contractor), any employee, officer, director, agent, consultant
or independent contractor of the Company or any of its subsidiaries or affiliates (except for such employment or hiring by the Company or any of its subsidiaries or affiliates); provided, however that a general solicitation of the
public for employment shall not constitute a solicitation hereunder so long as such general solicitation is not designed to target, or does not have the effect of targeting, any employee, officer, director, agent, consultant or independent
contractor of the Company or any of its subsidiaries or affiliates. 
 
(d) NON-SOLICITATION OF CUSTOMERS. During the Restricted Period, Employee shall not, without the prior written consent of the Company, directly or indirectly, solicit, attempt to do business with, do business with any
business partners of, business affiliates of, or providers of online travel inventory to, the Company or any of its subsidiaries or those affiliates of the Company that are engaged in a Competitive Activity, or encourage (regardless of who initiates
the contact) any such customers to use the services of any competitor of the Company, any of its subsidiaries or those affiliates that are engaged in a Competitive Activity. 
 
(e) PROPRIETARY RIGHTS; ASSIGNMENT. Employee shall make prompt and full disclosure to the Company,
will hold in trust for the sole benefit of the Company, and will assign exclusively to the Company all rights, title, and interest in and to any and all inventions, discoveries, designs, developments, improvements, copyrightable material, and trade
secrets 

 

4 

(collectively herein “Inventions”) that Employee solely or jointly may conceive, develop, author, reduce to practice or otherwise
produce during his employment with the Company. Employee waives and quitclaims to the Company any and all claims of any nature whatsoever that Employee now or hereafter may have for infringement of any patent application, patent, or other
intellectual property right relating to any Inventions so assigned to the Company. 
 
Employee’s obligation to assign shall not apply to any Invention about which Employee can prove all of the following: 
 

	 	(i)	 	it was developed entirely on Employee’s own time; 

 

	 	(ii)	 	no equipment, supplies, facility, services, or trade secret information of the Company were used in its development; 

 

	 	(iii)	 	it does not relate (x) directly to the business of the Company or (y) to the actual or demonstrably anticipated business, research or development of the Company; and

 

	 	(iv)	 	it does not result from any work performed by Employee for the Company. 

 
Employee shall assign to the Company or its designee all rights, title, and interest in and to any and all
Inventions full title to which may be required to lie in the United States government by any contract between the Company and the United States government or any of its agencies. In addition to the rights provided to the Company under this
paragraph, as to any Invention complying with subsections (i)-(iv) above that results in any product, service or development with potential commercial application. The Company shall be given the right of first refusal to obtain exclusive rights to
the Invention and such product, service or development. 
 
Employee has attached a list describing all Inventions belonging to Employee and made by Employee prior to employment with the Company that Employee wishes to have excluded from this Agreement. If no such list is attached, Employee
represents that there are no such Inventions. As to any Invention in which Employee has an interest at any time prior to or during Employee’s employment, if Employee uses or incorporates such an Invention in any released or unreleased the
Company product, service, program, process, machine, development or work in progress, or if Employee permits the Company to use or incorporate such an Invention, the Company is hereby granted and shall have an exclusive royalty-free, irrevocable,
worldwide license to exercise any and all rights with respect to such Invention, including the right to protect, make, have made, use, and sell that Invention without restriction as to the extent of Employee’s ownership or interest.

 
(f) COMPLIANCE WITH POLICIES AND
PROCEDURES. During the Term, Employee shall adhere to the policies and standards of professionalism set forth in the Company’s Policies and Procedures as they may exist from time to time. 
 
(g) REMEDIES FOR BREACH. Employee expressly agrees and
understands that Employee will notify the Company in writing of any alleged breach of this Agreement by the Company, and the Company will have 30 days from receipt of Employee’s notice to cure any such breach. 
 

5 

 
Employee
expressly agrees and understands that the remedy at law for any breach by Employee of this Section 2 will be inadequate and that damages flowing from such breach are not usually susceptible to being measured in monetary terms. Accordingly, it is
acknowledged that upon Employee’s violation of any provision of this Section 2, in addition to any remedy of law available to the Company, the Company shall be entitled to obtain from any court of competent jurisdiction immediate injunctive
relief and obtain a temporary order restraining any threatened or further breach as well as an equitable accounting of all profits or benefits arising out of such violation. Nothing in this Section 2 shall be deemed to limit the Company’s
remedies at law or in equity for any breach by Employee of any of the provisions of this Section 2, which may be pursued by or available to the Company. 
 
The Company expressly agrees and understands that the Company will notify Employee in writing of any alleged breach of this Agreement by
Employee, and Employee will have 30 days from receipt of the Company’s notice to cure any such breach, if such breach is curable. 
 
(h) SURVIVAL OF PROVISIONS. The obligations contained in this Section 2 shall, to the extent provided in this Section 2, survive
the termination or expiration of Employee’s employment with the Company and, as applicable, shall be fully enforceable thereafter in accordance with the terms of this Agreement. If it is determined by a court of competent jurisdiction in any
state that any restriction in this Section 2 is excessive in duration or scope or is unreasonable or unenforceable under the laws of that state, it is the intention of the parties that such restriction may be modified or amended by the court to
render it enforceable to the maximum extent permitted by the law of that state. 
 
3. TERMINATION OF PRIOR AGREEMENTS. This Agreement constitutes the entire agreement between the parties, and as of the Effective Date, terminates and supersedes any and all prior agreements and understandings (whether written
or oral) between the parties and the Company and USAi with respect to the subject matter of this Agreement, and as of the date hereof replaces and supercedes the Term Sheet. Employee acknowledges and agrees that neither the Company nor anyone acting
on its behalf has made, and is not making, and in executing this Agreement, Employee has not relied upon, any representations, promises or inducements except to the extent the same is expressly set forth in this Agreement. Employee hereby represents
and warrants that by entering into this Agreement, Employee will not rescind or otherwise breach any agreement or other legal obligation with any other person or entity. 
 
4. ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and none of the parties hereto shall, without the
consent of the others, assign or transfer this Agreement or any rights or obligations hereunder; provided that the Company may assign this Agreement to any of its affiliates; provided further that, in the event of the merger, consolidation,
transfer, or sale of all or substantially all of the assets of the Company with or to any other individual or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such
successor shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder, and all references herein to the “Company” shall refer to such successor. 
 

6 

 
5. WITHHOLDING. The
Company shall make such deductions and withhold such amounts from each payment and benefit made or provided to Employee hereunder, as may be required from time to time by applicable law, governmental regulation or order. 
 
6. HEADING REFERENCES. Section headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. References to “this Agreement” or the use of the term “hereof” shall refer to these Standard Terms and Conditions
and the Amended and Restated Employment Agreement attached hereto, taken as a whole. 
 
7. WAIVER; MODIFICATION. Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of, or failure to insist upon strict compliance with, any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times. This Agreement shall not be modified
in any respect except by a writing executed by each party hereto. 
 
8. SEVERABILITY. In the event that a court of competent jurisdiction determines that any portion of this Agreement is in violation of any law or public policy, only the portions of this Agreement that violate such law or
public policy shall be stricken. All portions of this Agreement that do not violate any statute or public policy shall continue in full force and effect. Further, any court order striking any portion of this Agreement shall modify the stricken terms
as narrowly as possible to give as much effect as possible to the intentions of the parties under this Agreement. 
 
9. INDEMNIFICATION. The Company shall indemnify and hold Employee harmless for acts and omissions in Employee’s capacity as an officer,
director or employee of the Company to the maximum extent permitted under applicable law; provided, however, that neither the Company, nor any of its subsidiaries or affiliates shall indemnify Employee for any losses incurred by Employee as a result
of acts described in Section 1(c) of this Agreement. 
 
10.
COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. Employee expressly understands and acknowledges that
the Agreement to which these Standard Terms and Conditions are attached is incorporated herein by reference, deemed a part of these Standard Terms and Conditions and is a binding and enforceable part of these Standard Terms and Conditions.
References to “Standard Terms and Conditions” or the use of the term “hereof” shall refer to the Standard Terms and Conditions and the Agreement to which these Standard Terms and Conditions are attached, taken as a whole.

 

7 

 
IN WITNESS
WHEREOF, the Company has caused this Agreement to be executed and delivered by its duly authorized officer and Employee has executed and delivered this Agreement on July 9, 2002. 
 

	 EXPEDIA, INC.

	
	

	 By:
	 	 
	 Title:
	 	 
	
	 Erik C. Blachford

	
	

 
 

8 

 
EXHIBIT A

 
FORM OF RELEASE AGREEMENT

 
This Release Agreement (“Release”)
is entered into as of this             day of             , 200  , hereinafter “Execution Date”, by and
between Erik C. Blachford (hereinafter “Employee”), and Expedia, Inc., its successors and assigns (hereinafter, the Company”). The Employee and the Company are sometimes collectively referred to as the “Parties”.

 

	 	1.	 	The Employee’s employment with the Company is terminated effective [Month, Day, Year] (hereinafter “Termination Date”). The Parties have agreed to
avoid and resolve any alleged existing or potential disagreements between them arising out of or connected with the Employee’s employment with the Company including the termination thereof. The Company expressly disclaims any wrongdoing or any
liability to the Employee. 

 

	 	2.	 	The Company agrees to provide the Employee the severance benefits provided for in his/her Employment Agreement with the Company, dated as of
            , 200  , after he/she executes this Release [FOR 40+ and does not revoke it as permitted in Section 9 below, the expiration of such revocation period being the
“Effective Date”)]. 

 

	 	3.	 	 Employee represents that he/she has not filed, and will not file, any complaints, lawsuits, administrative complaints or charges relating to her employment with,
or resignation from, the Company[; provided, however, that nothing contained in this Section 3 shall prohibit you from bringing a claim to challenge the validity of the ADEA Release in Section 9 herein]. Employee agrees to release the Company, its
subsidiaries, affiliates, Board of Directors, officers, employees, agents and assigns (collectively, the “Released Parties”), from any and all claims, charges, complaints, causes of action or demands of whatever kind or nature that
Employee now has or has ever had against the Released Parties, whether known or unknown, arising from or relating to Employee’s employment with or discharge from the Company, including but not limited to: wrongful or tortious termination;
constructive discharge; implied or express employment contracts and/or estoppel; discrimination and/or retaliation under any federal, state or local statute or regulation, specifically including any claims Employee may have under the Fair Labor
Standards Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964 as amended, and the Family and Medical Leave Act; the discrimination or other employment laws of the State of Washington; any claims brought under any
federal or state statute or regulation for non-payment of wages or other compensation, including stock grants or stock options; and libel, slander, or breach of contract other than the breach of this Release. This Release specifically excludes
claims, charges, complaints, causes of action or demand that post-date the Termination Date [or the Effective Date, whichever is later,] and that are based on factual allegations that do not arise from or relate to Employee’s 

 

9 

	 	 
present employment with or resignation from the Company. 

 

	 	4.	 	Employee agrees to keep the fact that this Release exists and the terms of this Release in strict confidence except to his/her immediate family and his/her financial
and legal advisors on a need-to-know basis. 

 

	 	5.	 	Employee acknowledges and affirms that he/she has previously executed an Employment Agreement (attached) dated
            , and that the terms and conditions of such agreement that survive the employment relationship are not affected by this Release. Employee represents that he/she has returned all
property belonging to the Company. 

 

	 	6.	 	Employee warrants that no promise or inducement has been offered for this Release other than as set forth herein and that this Release is executed without reliance
upon any other promises or representations, oral or written. Any modification of this Release must be made in writing and be signed by Employee and the Company. 

 

	 	7.	 	Employee will direct all employment verification inquires to [HR Rep]. In response to inquiries regarding Employee’s employment with the Company, the Company by
and through its speaking agent(s) agrees to provide only the following information: Employee’s date of hire, the date her employment ended and rates of pay. 

 

	 	8.	 	If any provision of this Release or compliance by Employee or the Company with any provision of the Release constitutes a violation of any law, or is or becomes
unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such
provision will be enforced to the fullest extent permitted by law. If such modification is not possible, said provision, to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of
this Release, which provisions will remain binding on both Employee and the Company. This Release is governed by, and construed and interpreted in accordance with the laws of the State of Washington, without regard to principles of conflicts of law.
Employee consents to venue and personal jurisdiction in the State of Washington for disputes arising under this Release. This Release represents the entire understanding with the Parties with respect to subject matter herein, no oral representations
have been made or relied upon by the Parties. 

 

	 	9.	 	 [FOR EMPLOYEES OVER 40 ONLY—In further recognition of the above, Employee hereby releases and discharges the Released Parties from any and all claims,
actions and causes of action that he/she may have against the Released Parties, as of the date of the execution of this Release, arising under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), and the applicable rules
and regulations promulgated thereunder. The Employee acknowledges and understands that ADEA is a federal statute that prohibits discrimination on the basis of age in employment, benefits and benefit plans. 

 

10 

	 	 
Employee specifically agrees and acknowledges that: (A) the release in this Section 9 was granted in exchange for the receipt of
consideration that exceeds the amount to which he/she would otherwise be entitled to receive upon termination of his/her employment; (B) his/her waiver of rights under this Release is knowing and voluntary as required under the Older Workers Benefit
Protection Act; (B) that he/she has read and understands the terms of this Release; (C) he/she has hereby been advised in writing by the Company to consult with an attorney prior to executing this Release; (D) the Company has given him/her a period
of up to twenty-one (21) days within which to consider this Release, which period shall be waived by the Employee’s voluntary execution prior to the expiration of the twenty-one day period; and (E) following his/her execution of this Release
he/she has seven (7) days in which to revoke his/her release as set forth in this Section 9 only and that, if he/she chooses not to so revoke, the Release in this Section 9 shall then become effective and enforceable and the payment listed above
shall then be made to his/her in accordance with the terms of this Release. To cancel this Release, Employee understands that he/she must give a written revocation to the General Counsel of the Company at 13810 SE Eastgate Way, Suite 400, Bellevue,
Washington 98005, either by hand delivery or certified mail within the seven-day period. If he/she rescinds the Release, it will not become effective or enforceable and he/she will not be entitled to any benefits from the Company.]

 

	 	10.	 	EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE/SHE HAS CAREFULLY READ AND VOLUNTARILY SIGNED THIS RELEASE, THAT HE/SHE HAS HAD AN OPPORTUNITY TO CONSULT WITH AN
ATTORNEY OF HIS/HER CHOICE, AND THAT HE/SHE SIGNS THIS RELEASE WITH THE INTENT OF RELEASING EXPEDIA AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY AND ALL CLAIMS. 

 
ACCEPTED AND AGREED TO: 
 

	
	
	 	 	 	

	 Expedia, Inc.
	 	 	 	 Erik C. Blachford

	
	 Dated:
	 	  

	 	 	 	 Dated:
	 	  

 

11

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