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Technology Stocks : How high will Microsoft fly?
MSFT 399.64+1.5%2:58 PM EST

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To: vinod Khurana who wrote (3818)10/27/1997 11:15:00 AM
From: vinod Khurana  Read Replies (1) of 74651
 
The following is a letter from Don Hardwick, Microsoft's head of OEM
sales, to Celeste Dunn, Compaq's vice president of consumer software
business. Hardwick says Microsoft will terminate Compaq's license for
Windows 95 unless the PC maker restored the Microsoft Network and
Internet Explorer icons on the desktop.

June 6, 1996

Ms. Celeste Dunn
Vice President
Consumer Software Business Unit, Compaq
1111 Bayhill Drive, Suite 475
San Bruno, CA 94066

Re: Notice of Intent to Terminate License Agreement #1107-3053, dated
October 1, 1992

Dear Celeste:

I appreciated speaking with you over the phone earlier today. As we
discussed, in the spirit of reinstating mutual cooperation and trust we would
like to resolve the above mentioned Notice of Intent to Terminate letter in as a
quick and mutually agreeable manner as possible.

To accomplish this, Microsoft is requesting that Compaq replace the
Microsoft Network and Internet Explorer icons on the Windows 95 desktop
on all Compaq Presario machines. Specifically we are asking that these icons
be put back on the Windows 95 desktop so they look and function exactly
the same as how they were originally provided by Microsoft and/or
Authorized Replicators. This means the icons should not be just Windows 95
shortcuts, since the functionality is different. In addition, the Microsoft
Network and Internet Explorer icons and Internet Setup Wizard icon should
also be put back into their original locations and functionality under the "Start"
button on Windows 95.

If you are willing to give Microsoft a clear written assurance that the above
will be implemented on all Compaq Presario machines within sixty (60) days
of the date of this letter, Microsoft will withdraw its Notice of Intent to
Terminate letter addressed to David Cabello and dated May 30, 1996 once
such written assurance is received by Microsoft. By withdrawing the Notice
of Intent to Terminate letter Microsoft does not waive or limit its rights under
the Agreement.

I [sic] you would like to discuss this further, or would like more detail, please
let me know and I will respond immediately. Once again, we appreciate your
openness and willingness to discuss and resolve the above issues.

Sincerely,

Don Hardwick Group Manager, OEM Sales Division

cc: David Cabello, Compaq Legal Department

Steve Flannigan, Vice President, Compaq Computer Corporation

Joachim Kempin, Sr. Vice President, Microsoft OEM Sales Division

Bengt Akerlind, Director, Microsoft OEM Sales Division

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