In its Tuesday filing with the Securities and Exchange Commission (SEC), Yahoo has said that, as per the terms of its Internet search-advertising deal with Microsoft, the latter will employ at least 400 Yahoo employees, as well as pay US$50 million per year for a period of three years.

Yahoo specified that its partnership with Microsoft will affect nearly 3 percent of its work force, and the total $150 million payment by Microsoft in three years will help Yahoo cover the costs involved in initiating the negotiations.

The last week announced Microsoft-Yahoo 10-year partnership is essentially an attempt by the two Internet biggies to come together for challenging their bigger rival Google!

According to the agreement - the details of which have come to light via Yahoo's form 8-K that appeared online on Tuesday -, the Yahoo search site will be powered by Microsoft's Bing search engine, while Yahoo will sell premium search ad services for both companies.

The Microsoft-Yahoo deal will likely be finalized by October 27 either after a consensus decision or with the help of an arbitration panel.

In case they fail to implement the proposed deal by July 29, 2010, the agreement can be terminated by mutual consent. Moreover, Yahoo, but not Microsoft, would also have the option of extending the implementation date by six months if antitrust approvals need to be obtained.