Exhibit 10.5.1
Note: Portions of this exhibit indicated by "[*]" are subject to a confidential
treatment request, and have been omitted from this exhibit. Complete, unredacted
copies of this exhibit have been filed with the Securities and Exchange
Commission as part of Expedia's confidential treatment request.
July 26, 2001
Richard Bray
VP, MSN - US Region
Microsoft Corp.
One Microsoft Way
Redmond, WA 98052-6399
RE MSN/Expedia Carriage and Cross Promotion Agreement dated June 29, 2001
("Agreement") Expedia Gross Profit per Transaction from December 1, 2000
through June 30, 2001 ("Opening Period")
Dear Richard:
In accordance with Section 4.4 of the Agreement, the parties agree that
the figures below specify the Average Gross Profit to EI per Transaction by
transaction type achieved during the first and second quarter of EI's fiscal
year 2001, and thus the payment amount per Transaction to be paid by EI to MSN
for Transactions occurring during the Opening Period, as further defined in
Section 4.8 of the Agreement.
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* Performance Payment
Due Microsoft **Average Gross Profit Payment Amount Due
(% of avg. Gross Profit) to EI per Transaction Microsoft per Transaction
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Air Transactions 30% [*] [*]
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Car Transactions 25% [*] [*]
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Merchant Accommodations
Transactions 25% [*] [*]
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Agency Accommodations
Transactions 25% [*] [*]
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* Weighted Average calculated in accordance with Section 4.3(b).
** Determined based on Q1 and Q2 FY01
The parties agree that defined terms in this letter agreement have the
same meaning as set forth in the Agreement, except as otherwise provided.
The parties have caused this Agreement to be executed by their duly
authorized representatives as of the Effective Date.
MICROSOFT CORPORATION EXPEDIA, INC.
By /s/ Richard Bray By /s/ Gregory S. Stanger
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Name (Print) Richard Bray Name (Print) Gregory Stanger
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Title VP-MSN US Region Title Sr. VP and CFO
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[*] - CERTAIN INFORMATION ON THIS PAGE HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE COMMISSION
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS
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