Document:

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                 Exhibit 10.1
            2000 Stock Option Plan

           STARMEDIA NETWORK, INC.

          2000 STOCK INCENTIVE PLAN

        EFFECTIVE AS OF MARCH 17, 2000

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                                TABLE OF CONTENTS

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<S>               <C>                                                                                           <C>
SECTION 1.        INTRODUCTION...................................................................................1

SECTION 2.        DEFINITIONS....................................................................................1

                  (a)      "Affiliate"...........................................................................1
                  (b)      "Award"...............................................................................1
                  (c)      "Board"...............................................................................1
                  (d)      "Code"................................................................................1
                  (e)      "Committee"...........................................................................2
                  (f)      "Common Stock"........................................................................2
                  (g)      "Company".............................................................................2
                  (h)      "Consultant"..........................................................................2
                  (i)      "Director"............................................................................2
                  (j)      "Disability"..........................................................................2
                  (k)      "Employee"............................................................................2
                  (l)      "Exchange Act"........................................................................2
                  (m)      "Exercise Price"......................................................................2
                  (n)      "Fair Market Value"...................................................................2
                  (o)      "Grant"...............................................................................3
                  (p)      "Incentive Stock Option" or "ISO".....................................................3
                  (q)      "Key Employee"........................................................................3
                  (r)      "Non-Employee Director"...............................................................3
                  (s)      "Nonstatutory Stock Option" or "NSO"..................................................3
                  (t)      "Option"..............................................................................3
                  (u)      "Optionee"............................................................................3
                  (v)      "Parent"..............................................................................3
                  (w)      "Participant".........................................................................3
                  (x)      "Plan"................................................................................3
                  (y)      "Restricted Stock"....................................................................3
                  (z)      "Restricted Stock Agreement"..........................................................3
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                  (aa)     "SAR Agreement".......................................................................3
                  (bb)     "Securities Act"......................................................................3
                  (cc)     "Service".............................................................................3
                  (dd)     "Share"...............................................................................3
                  (ee)     "Stock Appreciation Right" or "SAR"...................................................3
                  (ff)     "Stock Option Agreement"..............................................................3
                  (gg)     "Stock Unit"..........................................................................4
                  (hh)     "Stock Unit Agreement"................................................................4
                  (ii)     "Subsidiary"..........................................................................4
                  (jj)     "10-Percent Shareholder"..............................................................4

SECTION 3.        ADMINISTRATION.................................................................................4

                  (a)      Committee Composition.................................................................4
                  (b)      Authority of the Committee............................................................4
                  (c)      Indemnification.......................................................................5

SECTION 4.        ELIGIBILITY....................................................................................5

                  (a)      General Rules.........................................................................5
                  (b)      Incentive Stock Options...............................................................5
                  (c)      Non-Employee Director Options.........................................................5

SECTION 5.        SHARES SUBJECT TO PLAN.........................................................................6

                  (a)      Basic Limitation......................................................................6
                  (b)      Additional Shares.....................................................................6
                  (c)      Dividend Equivalents..................................................................6
                  (d)      Limits on Options.....................................................................6

SECTION 6.        TERMS AND CONDITIONS OF OPTIONS................................................................6

                  (a)      Stock Option Agreement................................................................6
                  (b)      Number of Shares......................................................................7
                  (c)      Exercise Price........................................................................7
                  (d)      Exercisability and Term...............................................................7
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                  (i)      Modifications or Assumption of Options................................................8
                  (j)      Transferability of Options............................................................8
                  (k)      No Rights as Stockholder..............................................................9
                  (l)      Restrictions on Share Transfer........................................................9

SECTION 7.        PAYMENT FOR OPTION SHARES......................................................................9

                  (a)      General Rule..........................................................................9
                  (b)      Surrender of Stock....................................................................9
                  (c)      Promissory Note.......................................................................9
                  (d)      Other Forms of Payment................................................................9

SECTION 8.        TERMS AND CONDITIONS FOR AWARDS OF RESTRICTED STOCK AND STOCK UNITS...........................10

                  (a)      Time, Amount and Form of Awards......................................................10
                  (b)      Agreements...........................................................................10
                  (c)      Payment for Restricted Stock or Stock Unit Awards....................................10
                  (d)      Form and Time of Settlement of Stock Units...........................................10
                  (e)      Vesting Conditions...................................................................10
                  (f)      Assignment or Transfer of Restricted Stock or Stock Units............................10
                  (g)      Death of Stock Units Recipient.......................................................11
                  (h)      Trusts...............................................................................11
                  (i)      Voting and Dividend Rights...........................................................11
                  (j)      Stock Units Voting and Dividend Rights...............................................11
                  (k)      Creditors' Rights....................................................................11
                  (l)      Performance Based Restricted Stock...................................................12

SECTION 9.        TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.............................................12

         (a)      SAR Agreement.................................................................................12
         (b)      Number of Shares..............................................................................12
         (c)      Exercise Price................................................................................12
         (d)      Exercisability and Term.......................................................................12
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         (e)      Exercise of SARs..............................................................................13
         (f)      Modification or Assumption of SARs............................................................13

SECTION 10.       PROTECTION AGAINST DILUTION...................................................................13

                  (a)      Adjustments..........................................................................13
                  (b)      Participant Rights...................................................................13

SECTION 11.       EFFECT OF DISSOLUTION, MERGER OR SALE.........................................................13

SECTION 12.       LIMITATIONS ON RIGHTS.........................................................................14

                  (a)      Retention Rights.....................................................................14
                  (b)      Stockholders' Rights.................................................................14
                  (c)      Regulatory Requirements..............................................................15

SECTION 13.       WITHHOLDING TAXES.............................................................................15

                  (a)      General..............................................................................15
                  (b)      Share Withholding....................................................................15

SECTION 14.       DURATION AND AMENDMENTS.......................................................................15

                  (a)      Term of the Plan.....................................................................15
                  (b)      Right to Amend or Terminate the Plan.................................................15

SECTION 15.       EXECUTION.....................................................................................16
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                             STARMEDIA NETWORK, INC.

                            2000 STOCK INCENTIVE PLAN

                         EFFECTIVE AS OF MARCH 17, 2000

SECTION 1. INTRODUCTION.

     The Company's Board of Directors adopted the Starmedia Network, Inc. 2000
     Stock Incentive Plan on March 17, 2000 (the "Adoption Date"). The Plan is
     effective on the Adoption Date, subject to stockholder approval. The
     purpose of the Plan is to promote the long-term success of the Company and
     the creation of shareholder value by offering Key Employees an opportunity
     to acquire a proprietary interest in the success of the Company, or to
     increase such interest, and to encourage such selected persons to continue
     to provide services to the Company and to attract new individuals with
     outstanding qualifications. The Plan seeks to achieve this purpose by
     providing for Awards in the form of Restricted Stock, Stock Units, Stock
     Appreciation Rights and Options (which may constitute Incentive Stock
     Options or Nonstatutory Stock Options). The Plan shall be governed by, and
     construed in accordance with, the laws of the State of New York (except its
     choice-of-law provisions). Capitalized terms shall have the meaning
     provided in Section 2 unless otherwise provided in this Plan or any Stock
     Option Agreement, SAR Agreement, Stock Unit Agreement or Restricted Stock
     Agreement.

SECTION 2. DEFINITIONS.

(a) "AFFILIATE" means any entity other than a Subsidiary, if the Company and/or
   one or more Subsidiaries own not less than 50% of such entity. For purposes
   of determining an individual's "Service," this definition shall include any
   entity other than a Subsidiary, if the Company, a Parent and/or one or more
   Subsidiaries own not less than 50% of such entity.

(b) "AWARD" means any award of an Option, SAR, Stock Unit or Restricted Stock
   under the Plan.

(c) "BOARD" means the Board of Directors of the Company, as constituted from
   time to time.

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

(e) "COMMITTEE" means a committee consisting of one or more members of the Board
   that is appointed by the Board (as described in Section 3) to administer the
   Plan.

(f) "COMMON STOCK" means the Company's common stock.

(g) "COMPANY" means StarMedia Network, Inc., a Delaware corporation.

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(h) "CONSULTANT" means an individual who performs bona fide services to the
   Company, a Parent, a Subsidiary or an Affiliate other than as an Employee or
   Director or Non-Employee Director.

(i) "DIRECTOR" means a member of the Board who is also an Employee.

(j) "DISABILITY" means that the Key Employee is unable to engage in any
   substantial gainful activity by reason of any medically determinable physical
   or mental impairment which can be expected to result in death or which has
   lasted or can be expected to last for a continuous period of not less than 12
   months.

(k) "EMPLOYEE" means any individual who is a common-law employee of the Company,
   a Parent, a Subsidiary or an Affiliate.

(l) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

(m) "EXERCISE PRICE" means, in the case of an Option, the amount for which a
   Share may be purchased upon exercise of such Option, as specified in the
   applicable Stock Option Agreement. "Exercise Price," in the case of a SAR,
   means an amount, as specified in the applicable SAR Agreement, which is
   subtracted from the Fair Market Value of a Share in determining the amount
   payable upon exercise of such SAR.

(n) "FAIR MARKET VALUE" means the value of Shares, determined by the Committee
   as follows:

(i) 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 time of determination, as reported in
   THE WALL STREET JOURNAL or such other source as the Committee deems reliable;

(ii) If the Common Stock is regularly quoted by a recognized securities dealer
   but selling prices are not reported, its Fair Market Value 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; or

(iii)In the absence of an established market for the Common Stock, the Fair
   Market Value thereof shall be determined in good faith by the Committee.

(o) "GRANT" means any grant of an Award under the Plan.

(p) "INCENTIVE STOCK OPTION" or "ISO" means an incentive stock option as
   described in Code section 422(b).

(q) "KEY EMPLOYEE" means an Employee, Director, Non-Employee Director or
   Consultant who has been selected by the Committee to receive an Award under
   the Plan.

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(r) "NON-EMPLOYEE DIRECTOR" means a member of the Board who is not an Employee.

(s) "NONSTATUTORY STOCK OPTION" or "NSO" means a stock option that is not an
   ISO.

(t) "OPTION" means an ISO or NSO granted under the Plan entitling the Optionee
   to purchase Shares.

(u) "OPTIONEE" means an individual, estate or other entity that holds an Option.

(v) "PARENT" means any corporation (other than the Company) in an unbroken chain
   of corporations ending with the Company, if each of the corporations other
   than the Company owns stock possessing fifty percent (50%) or more of the
   total combined voting power of all classes of stock in one of the other
   corporations in such chain. A corporation that attains the status of a Parent
   on a date after the adoption of the Plan shall be considered a Parent
   commencing as of such date.

(w) "PARTICIPANT" means an individual or estate or other entity that holds an
   Award.

(x) "PLAN" means this StarMedia Network, Inc. 2000 Stock Incentive Plan as it
   may be amended from time to time.

(y) "RESTRICTED STOCK" means a Share awarded under the Plan.

(z) "RESTRICTED STOCK AGREEMENT" means an agreement described in Section 8
   evidencing an Award of Restricted Stock.

(aa) "SAR AGREEMENT" means an agreement described in Section 9 evidencing an
   Award of a Stock Appreciation Right.

(bb) "SECURITIES ACT" means an Securities Act of 1933, as amended.

(cc) "SERVICE" means service as an Employee, Director, Non-Employee Director or
   Consultant.

(dd) "SHARE" means one share of Common Stock.

(ee) "STOCK APPRECIATION RIGHT" OR "SAR" means a stock appreciation right
   awarded under the Plan.

(ff) "STOCK OPTION AGREEMENT" means an agreement described in Section 6
   evidencing a Grant of an Option.

(gg) "STOCK UNIT" means a bookkeeping entry representing the equivalent of a
   Share, as awarded under the Plan.

(hh) "STOCK UNIT AGREEMENT" means an agreement described in Section 8 evidencing
   an Award of Stock Units.

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(ii) "SUBSIDIARY" means any corporation (other than the Company) in an unbroken
   chain of corporations beginning with the Company, if each of the corporations
   other than the last corporation in the unbroken chain owns stock possessing
   fifty percent (50%) or more of the total combined voting power of all classes
   of stock in one of the other corporations in such chain. A corporation that
   attains the status of a Subsidiary on a date after the adoption of the Plan
   shall be considered a Subsidiary commencing as of such date.

(jj) "10-PERCENT SHAREHOLDER" means an individual who owns more than ten percent
   (10%) of the total combined voting power of all classes of outstanding stock
   of the Company, its Parent or any of its subsidiaries. In determining stock
   ownership, the attribution rules of section 424(d) of the Code shall be
   applied.

SECTION 3. ADMINISTRATION.

(a) COMMITTEE COMPOSITION. A Committee appointed by the Board shall administer
   the Plan. If no Committee has been approved, the entire Board shall
   constitute the Committee. Members of the Committee shall serve for such
   period of time as the Board may determine and shall be subject to removal by
   the Board at any time. The Board may also at any time terminate the functions
   of the Committee and reassume all powers and authority previously delegated
   to the Committee.

     With respect to officers or directors subject to Section 16 of the Exchange
     Act, the Committee shall consist of those individuals who shall satisfy the
     requirements of Rule 16b-3 (or its successor) under the Exchange Act with
     respect to Awards granted to persons who are officers or directors of the
     Company under Section 16 of the Exchange Act.
     The Board may also appoint one or more separate committees of the Board,
     each composed of one or more directors of the Company who need not qualify
     under Rule 16b-3, who may administer the Plan with respect to Key Employees
     who are not considered officers or directors of the Company under Section
     16 of the Exchange Act, may grant Awards under the Plan to such Key
     Employees and may determine all terms of such Awards.
     Notwithstanding the foregoing, the Board shall constitute the Committee and
     shall administer the Plan with respect to all Awards granted to
     Non-Employee Directors.
(b) AUTHORITY OF THE COMMITTEE. Subject to the provisions of the Plan, the
   Committee shall have full authority and discretion to take any actions it
   deems necessary or advisable for the administration of the Plan. Such actions
   shall include:

               (i)  selecting Key Employees who are to receive Awards under the
                    Plan;
               (ii) determining the type, size, vesting requirements and other
                    features and conditions of such Awards;
               (iii) interpreting the Plan;
               (iv) making all other decisions relating to the operation of the
                    Plan;

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               (v)  to reduce the exercise price of any Option to the then
                    current Fair Market Value if the Fair Market Value of the
                    Common Stock covered by such Option has declined since the
                    date the Option was granted; and
               (vi) to initiate a program whereby outstanding Options are
                    exchanged for Options with a lower Exercise Price.

          The Committee may adopt such rules or guidelines, as it deems
          appropriate to implement the Plan. The Committee's determinations
          under the Plan shall be final and binding on all persons.

(c) INDEMNIFICATION. Each member of the Board and each individual to whom the
   Board has delegated a portion of its authority under this Plan, shall be
   indemnified and held harmless by the Company against and from (i) any loss,
   cost, liability, or expense that may be imposed upon or reasonably incurred
   by him or her in connection with or resulting from any claim, action, suit,
   or proceeding to which he or she may be a party or in which he or she may be
   involved by reason of any action taken or failure to act under the Plan or
   any Stock Option Agreement, SAR Agreement, Stock Unit Agreement or Restricted
   Stock Agreement, and (ii) from any and all amounts paid by him or her in
   settlement thereof, with the Company's approval, or paid by him or her in
   satisfaction of any judgment in any such claim, action, suit, or proceeding
   against him or her, provided he or she shall give the Company an opportunity,
   at its own expense, to handle and defend the same before he or she undertakes
   to handle and defend it on his or her own behalf. The foregoing right of
   indemnification shall not be exclusive of any other rights of indemnification
   to which such persons may be entitled under the Company's Certificate of
   Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or
   under any power that the Company may have to indemnify them or hold them
   harmless.

SECTION 4. ELIGIBILITY.

(a) GENERAL RULES. Only Employees, Directors, Non-Employee Directors and
   Consultants shall be eligible for designation as Key Employees by the
   Committee.

(b) INCENTIVE STOCK OPTIONS. Only Key Employees who are common-law employees of
   the Company, a Parent or a Subsidiary shall be eligible for the grant of
   ISOs. In addition, a Key Employee who is a 10-Percent Shareholder shall not
   be eligible for the grant of an ISO unless the requirements set forth in
   section 422(c)(5) of the Code are satisfied.

(c) NON-EMPLOYEE DIRECTOR OPTIONS. Non-Employee Directors shall also be eligible
   to receive Options as described in this Section 4(c) from and after the date
   the Board has determined to implement this provision.

SECTION 5. SHARES SUBJECT TO PLAN.

(a) BASIC LIMITATION. The stock issuable under the Plan shall be authorized but
   unissued Shares or treasury Shares. The aggregate number of Shares reserved
   for Awards under the Plan shall

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   not exceed 20,000,000, plus an annual increase to be added on April 1 of each
   year, beginning on April 1, 2001, equal to the lesser of (i) 4,000,000
   shares, or (ii) 5% of the outstanding shares on such date.

(b) ADDITIONAL SHARES. If Awards are forfeited or terminate for any other reason
   before being exercised, then the Shares underlying such Awards shall again
   become available for Awards under the Plan. If SARs are exercised, then only
   the number of Shares (if any) actually issued in settlement of such SARs
   shall reduce the number available under Section 5(a) and the balance shall
   again become available for Awards under the Plan.

(c) DIVIDEND EQUIVALENTS. Any dividend equivalents distributed under the Plan
   shall not be applied against the number of Shares available for Awards
   whether or not such dividend equivalents are converted into Stock Units.

(d) LIMITS ON OPTIONS. Notwithstanding the foregoing, the following limitations
   shall apply to grants of Options:

(i) No Key Employee shall be granted, in any fiscal year of the Company, Options
   to purchase more than 1,500,000 Shares.

(ii) In connection with his or her initial service, a Key Employee may be
   granted Options to purchase up to an additional 1,500,000 Shares which shall
   not count against the limit set forth in subsection (i) above.

(iii)The foregoing limitations shall be adjusted proportionately in connection
   with any adjustment described in Section 10(a).

(iv) If an Option is cancelled in the same fiscal year of the Company in which
   it was granted (other than in connection with a transaction described in
   Section 11, the cancelled 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.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

(a) STOCK OPTION AGREEMENT. Each Grant under the Plan shall be evidenced by a
   Stock Option Agreement between the Optionee and the Company. Such Option
   shall be subject to all applicable terms and conditions of the Plan and may
   be subject to any other terms and conditions that are not inconsistent with
   the Plan and that the Committee deems appropriate for inclusion in a Stock
   Option Agreement. The provisions of the various Stock Option Agreements
   entered into under the Plan need not be identical. A Stock Option Agreement
   may provide that new Options will be granted automatically to the Optionee
   when he or she exercises the prior Options. The Stock Option Agreement shall
   also specify whether the Option is initially intended to be an ISO or an NSO.

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(b) NUMBER OF SHARES. Each Stock Option Agreement shall specify the number of
   Shares that are subject to the Option and shall provide for the adjustment of
   such number in accordance with Section 10.

(c) EXERCISE PRICE. An Option's Exercise Price shall be established by the
   Committee and set forth in a Stock Option Agreement. To the extent required
   by applicable law the Exercise Price of an ISO shall not be less than 100% of
   the Fair Market Value (110% for 10-Percent Shareholders) of a Share on the
   date of Grant. In the case of an NSO, a Stock Option Agreement may specify an
   Exercise Price that varies in accordance with a predetermined formula while
   the NSO is outstanding.

(d) EXERCISABILITY AND TERM. Each Stock Option Agreement shall specify the date
   when all or any installment of the Option is to become exercisable. Unless
   the Committee provides otherwise, vesting of Options granted hereunder shall
   be tolled during any unpaid leave of absence. The Stock Option Agreement
   shall also specify the term of the Option; provided that the term of an ISO
   shall in no event exceed ten (10) years from the date of Grant. An ISO that
   is granted to a 10-Percent Shareholder shall have a maximum term of five (5)
   years. No Option can be exercised after the expiration date provided in the
   applicable Stock Option Agreement. A Stock Option Agreement may provide for
   accelerated exercisability in the event of the Optionee's death, disability
   or retirement or other events and may provide for expiration prior to the end
   of its term in the event of the termination of the Optionee's service. A
   Stock Option Agreement may permit an Optionee to exercise an Option before it
   is vested, subject to the Company's right of repurchase over any Shares
   acquired under the unvested portion of the Option (an "early exercise"),
   which right of repurchase shall lapse at the same rate the Option would have
   vested had there been no early exercise. In no event shall the Company be
   required to issue fractional Shares upon the exercise of an Option.

     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
     Committee 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. 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 10 of the Plan.

(e) TERMINATION OF RELATIONSHIP AS A KEY EMPLOYEE. If an Optionee ceases to be a
   Key Employee, such 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 the 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 thirty (30) days following the Optionee's termination.
   If,

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   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 Committee, the Option shall
   terminate, and the Shares covered by such Option shall revert to the Plan.

(f) DISABILITY OF OPTIONEE. If an Optionee ceases to be a Key Employee as a
   result of the Optionee's Disability, the Optionee may exercise his or her
   Option within such period of time as is specified in the Option Agreement to
   the extent 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 twelve (12) months
   following the Optionee's termination. 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 herein, the Option shall terminate, and the Shares covered by such
   Option shall revert to the Plan.

(g) DEATH OF OPTIONEE. If an Optionee dies while a Key Employee, the Option may
   be exercised within such period of time as is specified in the Option
   Agreement to the extent that the Option is vested on the date of death (but
   in no even later than the expiration of the term of such Option as set forth
   in the Option Agreement) by the Optionee's estate or by a person who acquires
   the right to exercise the Option by bequest or inheritance. In the absence of
   a specified time in the Option Agreement, the Option shall remain exercisable
   for twelve (12) months following the Optionee's termination. If, at the time
   of death, the Optionee is not vested as to the entire Option, the Shares
   covered by the unvested portion of the Option shall immediately revert to the
   Plan. 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.

(h) BUYOUT. The Committee 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 Committee shall establish and communicate to the Optionee at the time
   that such offer is made.

(i) MODIFICATIONS OR ASSUMPTION OF OPTIONS. Within the limitations of the Plan,
   the Committee may modify, extend or assume outstanding options or may accept
   the cancellation of outstanding options (whether granted by the Company or by
   another issuer) in return for the grant of new Options for the same or a
   different number of Shares and at the same or a different Exercise Price. The
   foregoing notwithstanding, no modification of an Option shall, without the
   consent of the Optionee, alter or impair his or her rights or obligations
   under such Option.

(j) TRANSFERABILITY OF OPTIONS. Except as otherwise provided in the applicable
   Stock Option Agreement and then only to the extent permitted by applicable
   law, no Option shall be transferable by the Optionee other than by will or by
   the laws of descent and distribution.

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   Except as otherwise provided in the applicable Stock Option Agreement, an
   Option may be exercised during the lifetime of the Optionee only by the
   Optionee or by the guardian or legal representative of the Optionee. No
   Option or interest therein may be assigned, pledged or hypothecated by the
   Optionee during his lifetime, whether by operation of law or otherwise, or be
   made subject to execution, attachment or similar process.

(k) NO RIGHTS AS STOCKHOLDER. An Optionee, or a transferee of an Optionee, shall
   have no rights as a stockholder with respect to any Common Stock covered by
   an Option until such person becomes entitled to receive such Common Stock by
   filing a notice of exercise and paying the Exercise Price pursuant to the
   terms of such Option.

(l) RESTRICTIONS ON SHARE TRANSFER. An Option Agreement may provide that any
   Shares issued upon exercise of an Option shall be subject to such rights of
   repurchase, rights of first refusal and other transfer restrictions as the
   Committee may determine. Such restrictions shall apply in addition to any
   restrictions that may apply to holders of Shares generally and shall also
   comply to the extent necessary with applicable law.

SECTION 7. PAYMENT FOR OPTION SHARES.

(a) GENERAL RULE. The entire Exercise Price of Shares issued upon exercise of
   Options shall be payable in cash at the time when such Shares are purchased,
   except as follows:

(i) In the case of an ISO granted under the Plan, payment shall be made only
   pursuant to the express provisions of the applicable Stock Option Agreement.
   The Stock Option Agreement may specify that payment may be made in any
   form(s) described in this Section 7.

(ii) In the case of an NSO granted under the Plan, the Committee may in its
   discretion, at any time accept payment in any form(s) described in this
   Section 7.

(b) SURRENDER OF STOCK. To the extent that this Section 7(b) is applicable,
   payment for all or any part of the Exercise Price may be made with Shares
   which have already been owned by the Optionee for such duration as shall be
   specified by the Committee. Such Shares shall be valued at their Fair Market
   Value on the date when the new Shares are purchased under the Plan.

(c) PROMISSORY NOTE. To the extent that this Section 7(c) is applicable, payment
   for all or any part of the Exercise Price may be made with a full-recourse
   promissory note.

(d) OTHER FORMS OF PAYMENT. To the extent that this Section 7(d) is applicable,
   payment may be made in any other form that is consistent with applicable
   laws, regulations and rules, including a cashless exercise program
   implemented by the Company in connection with the Plan.

                                       9
<PAGE>

SECTION 8. TERMS AND CONDITIONS FOR AWARDS OF RESTRICTED STOCK AND STOCK UNITS.

(a) TIME, AMOUNT AND FORM OF AWARDS. Awards under this Section 8 may be granted
   in the form of Restricted Stock in the form of Stock Units, or in any
   combination of both. Restricted Stock or Stock Units may also be awarded in
   combination with ISOs, NSOs or SARs, and such an Award may provide that the
   Restricted Stock or Stock Units will be forfeited in the event that the
   related ISOs, NSOs or SARs are exercised.

(b) AGREEMENTS. Each Award of Restricted Stock or Stock Units under the Plan
   shall be evidenced by a Restricted Stock Agreement or Stock Unit Agreement
   between the Participant and the Company. Such Awards shall be subject to all
   applicable terms and conditions of the Plan and may be subject to any other
   terms and conditions that are not inconsistent with the Plan and that the
   Committee deems appropriate for inclusion in the applicable Agreement. The
   provisions of the various Agreements entered into under the Plan need not be
   identical.

(c) PAYMENT FOR RESTRICTED STOCK OR STOCK UNIT AWARDS. Restricted Stock or Stock
   Units may be issued with or without cash consideration under the Plan.

(d) FORM AND TIME OF SETTLEMENT OF STOCK UNITS. Settlement of vested Stock Units
   may be made in the form of (i) cash, (ii) Shares or (iii) any combination of
   both. The actual number of Stock Units eligible for settlement may be larger
   or smaller than the number included in the original Award, based on
   predetermined performance factors. Methods of converting Stock Units into
   cash may include (without limitation) a method based on the average Fair
   Market Value of Shares over a series of trading days. Vested Stock Units may
   be settled in a lump sum or in installments. The distribution may occur or
   commence when all vesting conditions applicable to the Stock Units have been
   satisfied or have lapsed, or it may be deferred to any later date. The amount
   of a deferred distribution may be increased by an interest factor or by
   dividend equivalents. Until an Award of Stock Units is settled, the number of
   such Stock Units shall be subject to adjustment pursuant to Section 10.

(e) VESTING CONDITIONS. Each Award of Restricted Stock or Stock Units shall
   become vested, in full or in installments, upon satisfaction of the
   conditions specified in the applicable Agreement. An Agreement may provide
   for accelerated vesting in the event of the Participant's death, Disability
   or retirement or other events.

(f) ASSIGNMENT OR TRANSFER OF RESTRICTED STOCK OR STOCK UNITS. Except as
   provided in Section 13, or in a Restricted Stock Agreement or Stock Unit
   Agreement, or as required by applicable law, a Restricted Stock or Stock Unit
   Award granted under the Plan shall not be anticipated, assigned, attached,
   garnished, optioned, transferred or made subject to any creditor's process,
   whether voluntarily, involuntarily or by operation of law. Any act in
   violation of this Section 8(f) shall be void. However, this Section 8(f)
   shall not preclude a Participant from designating a beneficiary who will
   receive any outstanding Restricted Stock or Stock Unit Awards in the event of
   the Participant's death, nor shall it preclude a transfer of Restricted Stock
   or Stock Unit Awards by will or by the laws of descent and distribution.

                                       10
<PAGE>

(g) DEATH OF STOCK UNITS RECIPIENT. Any Stock Units Award that becomes payable
   after the Award recipient's death shall be distributed to the recipient's
   beneficiary or beneficiaries. Each recipient of a Stock Units Award under the
   Plan shall designate one or more beneficiaries for this purpose by filing the
   prescribed form with the Company. A beneficiary designation may be changed by
   filing the prescribed form with the Company at any time before the
   recipient's death. If no beneficiary was designated or if no designated
   beneficiary survives the recipient, then any Stock Units Award that becomes
   payable after the recipient's death shall be distributed to the recipient's
   estate.

(h) TRUSTS. Neither this Section 8 nor any other provision of the Plan shall
   preclude a Participant from transferring or assigning Restricted Stock to (a)
   the trustee of a trust that is revocable by such Participant alone, both at
   the time of the transfer or assignment and at all times thereafter prior to
   such Participant's death, or (b) the trustee of any other trust to the extent
   approved in advance by the Committee in writing. A transfer or assignment of
   Restricted Stock from such trustee to any person other than such Participant
   shall be permitted only to the extent approved in advance by the Committee in
   writing, and Restricted Stock held by such trustee shall be subject to all of
   the conditions and restrictions set forth in the Plan and in the applicable
   Restricted Stock Agreement, as if such trustee were a party to such
   Agreement.

(i) VOTING AND DIVIDEND RIGHTS. The holders of Restricted Stock awarded under
   the Plan shall have the same voting, dividend and other rights as the
   Company's other stockholders. A Restricted Stock Agreement, however, may
   require that the holders of Restricted Stock invest any cash dividends
   received in additional Restricted Stock. Such additional Restricted Stock
   shall be subject to the same conditions and restrictions as the Award with
   respect to which the dividends were paid. Such additional Restricted Stock
   shall not reduce the number of Shares available under Section 5.

(j) STOCK UNITS VOTING AND DIVIDEND RIGHTS. The holders of Stock Units shall
   have no voting rights. Prior to settlement or forfeiture, any Stock Unit
   awarded under the Plan may, at the Committee's discretion, carry with it a
   right to dividend equivalents. Such right entitles the holder to be credited
   with an amount equal to all cash dividends paid on one Share while the Stock
   Unit is outstanding. Dividend equivalents may be converted into additional
   Stock Units. Settlement of dividend equivalents may be made in the form of
   cash, in the form of Shares, or in a combination of both. Prior to
   distribution, any dividend equivalents which are not paid shall be subject to
   the same conditions and restrictions as the Stock Units to which they attach.

(k) CREDITORS' RIGHTS. A holder of Stock Units shall have no rights other than
   those of a general creditor of the Company. Stock Units represent an unfunded
   and unsecured obligation of the Company, subject to the terms and conditions
   of the applicable Stock Unit Agreement.

(l) PERFORMANCE BASED RESTRICTED STOCK. The Committee, in its discretion, also
   may make discretionary Grants of Restricted Stock to Employees. Any Grant of
   Restricted Stock made pursuant to this Section 8(l) will be subject to the
   achievement of performance objectives

                                       11
<PAGE>

   established by the Committee. Such performance objectives shall be
   established pursuant to the requirements of Code Section 162(m). The
   performance objectives with respect to any performance periods (which may be
   up to thirty-six (36) months in duration) shall be based upon the Company's
   (and/or a business unit's) earnings, earnings per share, revenue, expenses,
   margin or return on equity, as well as any individual performance objectives
   which the Committee may establish, and shall be calculated in accordance with
   the formula established for such performance period. An Employee shall only
   be entitled to receive a Grant of Restricted Stock pursuant to this Section
   8(l) upon attainment of the pre-established performance objectives. Before
   any Shares of Restricted Stock are issued with respect to a performance
   period, the Committee shall certify in writing that the performance
   objectives for such period have been satisfied. In no event shall the
   Committee grant to any Employee more than 1,500,000 Shares of Restricted
   Stock under this Section 8(l) in any fiscal year of the Company.

SECTION 9. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.

     (a)  SAR AGREEMENT. Each Award of a SAR under the Plan shall be evidenced
     by a SAR Agreement between the Optionee and the Company. Such SAR shall be
     subject to all applicable terms of the Plan and may be subject to any other
     terms that are not inconsistent with the Plan. The provisions of the
     various SAR Agreements entered into under the Plan need not be identical.
     SARs may be granted in consideration of a reduction in the Optionee's other
     compensation.

     (b)  NUMBER OF SHARES. Each SAR Agreement shall specify the number of
     Shares to which the SAR pertains and shall provide for the adjustment of
     such number in accordance with Section 10.

     (c)  EXERCISE PRICE. Each SAR Agreement shall specify the Exercise Price. A
     SAR Agreement may specify an Exercise Price that varies in accordance with
     a predetermined formula while the SAR is outstanding.

     (d)  EXERCISABILITY AND TERM. Each SAR Agreement shall specify the date
     when all or any installment of the SAR is to become exercisable. The SAR
     Agreement shall also specify the term of the SAR. A SAR Agreement may
     provide for accelerated exercisability in the event of the Optionee's
     death, Disability or retirement or other events and may provide for
     expiration prior to the end of its term in the event of the termination of
     the Optionee's Service. SARs may also be awarded in combination with
     Options, Restricted Stock or Stock Units, and such an Award may provide
     that the SARs will not be exercisable unless the related Options,
     Restricted Stock or Stock Units are forfeited. A SAR may be included in an
     ISO only at the time of Grant but may be included in an NSO at the time of
     Grant or at any subsequent time, but not later than six months before the
     expiration of such NSO.

     (e)  EXERCISE OF SARS. If, on the date when a SAR expires, the Exercise
     Price under such SAR is less than the Fair Market Value on such date but
     any portion of such SAR has not been exercised or surrendered, then such
     SAR shall automatically be deemed to

                                       12
<PAGE>

     be exercised as of such date with respect to such portion. Upon exercise of
     a SAR, the Optionee (or any person having the right to exercise the SAR
     after his or her death) shall receive from the Company (i) Shares, (ii)
     cash or (iii) a combination of Shares and cash, as set forth in the SAR
     Agreement. The amount of cash and/or the Fair Market Value of Shares
     received upon exercise of SARs shall, in the aggregate, be equal to the
     amount by which the Fair Market Value (on the date of surrender) of the
     Shares subject to the SARs exceeds the Exercise Price.

     (f)  MODIFICATION OR ASSUMPTION OF SARS. Within the limitations of the
     Plan, the Committee may modify, extend or assume outstanding SARs or may
     accept the cancellation of outstanding SARs (whether granted by the Company
     or by another issuer) in return for the grant of new SARs for the same or a
     different number of Shares and at the same or a different Exercise Price.
     The foregoing notwithstanding, no modification of a SAR shall, without the
     consent of the Optionee, alter or impair his or her rights or obligations
     under such SAR.

SECTION 10. PROTECTION AGAINST DILUTION.

(a) ADJUSTMENTS. In the event of a subdivision of the outstanding Shares, a
   declaration of a dividend payable in Shares, a combination or consolidation
   of the outstanding Shares (by reclassification or otherwise) into a lesser
   number of Shares, a recapitalization, a spin-off or a similar occurrence, the
   Committee shall make such adjustments as it, in its sole discretion, deems
   appropriate in one or more of:

(i) the number of Shares available for future Awards under Section 5;

(ii) the number of Shares covered by each outstanding Award; or

(iii) the Exercise Price under each outstanding SAR or Option.

(b) PARTICIPANT RIGHTS. Except as provided in this Section 10, a Participant
   shall have no rights by reason of any issue by the Company of stock of any
   class or securities convertible into stock of any class, any subdivision or
   consolidation of shares of stock of any class, the payment of any stock
   dividend or any other increase or decrease in the number of shares of stock
   of any class.

SECTION 11. EFFECT OF DISSOLUTION, MERGER OR SALE.

(a) DISSOLUTION OR LIQUIDATION. In the event of the proposed dissolution or
   liquidation of the Company, the Committee shall notify each Optionee as soon
   as practicable prior to the effective date of such proposed transaction. The
   Committee in its discretion may provide for an Optionee to have the right to
   exercise his or her Option until fifteen (15) 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 Committee may
   provide that any

                                       13
<PAGE>

   Company repurchase option applicable to any Share purchased upon exercise of
   an Option shall lapse as to all such Shares, provided the proposed
   dissolution liquidation takes place at the time and in the manner
   contemplated. To the extent it has not been previously exercised, an Option
   will terminate immediately prior to the consummation of such proposed action.

(b) 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, each outstanding Option shall be assumed or an equivalent option
   substituted by the successor corporation or a Parent or Subsidiary of the
   successor corporation. In the event that the successor corporation refuses to
   assume or substitute for the Option, the Optionee shall fully vest in and
   have the right to exercise the Option, including Shares as to which it would
   not otherwise be vested or exercisable. If an Option becomes fully vested and
   exercisable in lieu of assumption or substitution in the event of a merger or
   sale of assets, the Committee shall notify the Optionee in writing or
   electronically that the Option shall be fully exercisable for a period of
   fifteen (15) days from the date of such notice, and the Option shall
   terminate upon the expiration of such period. For the purposes of this
   paragraph, the Option shall be considered assumed if, following the merger or
   sale of assets, the option confers the right to purchase or receive, for each
   Share subject to the Option immediately prior to the merger or sale of
   assets, the consideration (whether stock, cash, or other securities or
   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 Committee may,
   with the consent of the successor corporation, provide for the consideration
   to be received upon the exercise of the Option, for each Share subject to the
   Option, 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.

SECTION 12. LIMITATIONS ON RIGHTS.

(a) RETENTION RIGHTS. Neither the Plan nor any Award granted under the Plan
   shall be deemed to give any individual a right to remain an Employee,
   Consultant or Director of the Company, a Parent, a Subsidiary or an
   Affiliate. The Company and its Parents, Subsidiaries and Affiliates reserve
   the right to terminate the Service of any person at any time, and for any
   reason, subject to applicable laws, the Company's Certificate of
   Incorporation and Bylaws and a written employment agreement (if any).

(b) STOCKHOLDERS' RIGHTS. A Participant shall have no dividend rights, voting
   rights or other rights as a stockholder with respect to any Shares covered by
   his or her Award prior to the issuance of a stock certificate for such
   Shares. No adjustment shall be made for cash dividends or other rights for
   which the record date is prior to the date when such certificate is issued,
   except as expressly provided in Section 10.

                                       14
<PAGE>

(c) REGULATORY REQUIREMENTS. Any other provision of the Plan notwithstanding,
   the obligation of the Company to issue Shares under the Plan shall be subject
   to all applicable laws, rules and regulations and such approval by any
   regulatory body as may be required. The Company reserves the right to
   restrict, in whole or in part, the delivery of Shares pursuant to any Award
   prior to the satisfaction of all legal requirements relating to the issuance
   of such Shares, to their registration, qualification or listing or to an
   exemption from registration, qualification or listing.

SECTION 13. WITHHOLDING TAXES.

(a) GENERAL. A Participant shall make arrangements satisfactory to the Company
   for the satisfaction of any withholding tax obligations that arise in
   connection with his or her Award. The Company shall not be required to issue
   any Shares or make any cash payment under the Plan until such obligations are
   satisfied.

(b) SHARE WITHHOLDING. If a public market for the Company's Shares exists, the
   Committee may permit a Participant to satisfy all or part of his or her
   withholding or income tax obligations by having the Company withhold all or a
   portion of any Shares that otherwise would be issued to him or her or by
   surrendering all or a portion of any Shares that he or she previously
   acquired. Such Shares shall be valued at their Fair Market Value on the date
   when taxes otherwise would be withheld in cash. Any payment of taxes by
   assigning Shares to the Company may be subject to restrictions, including,
   but not limited to, any restrictions required by rules of the Securities and
   Exchange Commission.

SECTION 14. DURATION AND AMENDMENTS.

(a) TERM OF THE PLAN. The Plan, as set forth herein, shall become effective on
   the date of its adoption by the Board, subject to the approval of the
   Company's stockholders. No Options or SARs shall be exercisable until such
   stockholder approval is obtained. In the event that the stockholders fail to
   approve the Plan within twelve (12) months after its adoption by the Board,
   any Awards made shall be null and void and no additional Awards shall be
   made. To the extent required by applicable law, the Plan shall terminate on
   the date that is ten (10) years after its adoption by the Board and may be
   terminated on any earlier date pursuant to Section 14(b).

(b) RIGHT TO AMEND OR TERMINATE THE Plan. The Board may amend or terminate the
   Plan at any time and for any reason. The termination of the Plan, or any
   amendment thereof, shall not affect any Award previously granted under the
   Plan. No Awards shall be granted under the Plan after the Plan's termination.
   An amendment of the Plan shall be subject to the approval of the Company's
   stockholders only to the extent required by applicable laws, regulations or
   rules.

                                       15
<PAGE>

SECTION 15. EXECUTION.

         To record the adoption of the Plan by the Board, the Company has caused
         its duly authorized officer to execute this Plan on behalf of the
         Company.
                                             STARMEDIA NETWORK, INC.

                                                     By
                                                       -------------------------
                                                     Title
                                                          ----------------------

                                       16<PAGE>

                                                                   EXHIBIT 10.1

                                                                      APPENDIX A
                               USA NETWORKS, INC.

                      2000 STOCK AND ANNUAL INCENTIVE PLAN

SECTION 1.  Purpose; Definitions

      The purpose of the Plan is to give the Corporation a competitive advantage
in attracting, retaining and motivating officers and employees and to provide
the Corporation and its subsidiaries with a stock plan providing incentives more
directly linked to the profitability of the Corporation and increases in
shareholder value.

      For purposes of the Plan, the following terms are defined as set forth
below:

      (a) "AFFILIATE" means a corporation or other entity controlling,
controlled by or under common control with the Corporation.

      (b) "AWARD" means a Stock Appreciation Right, Stock Option, Restricted
Stock, Performance Unit or Bonus Award.

      (c) "AWARD CYCLE" shall mean a period of consecutive fiscal years or
portion thereof designated by the Committee over which Performance Units are to
be earned.

      (d) "BOARD" means the Board of Directors of the Corporation.

      (e) "BONUS AWARD" means an annual bonus award made pursuant to Section 10.

      (f) "CAUSE" means, except as otherwise determined by the Committee
pursuant to an Award agreement, the willful and continued failure on the part of
a participant substantially to perform his employment duties in any material
respect, or such other events as shall be determined by the Committee; provided,
that "Cause" includes, without limitation: (i) the plea of guilty or nolo
contendere to, or conviction for, the commission of a felony offense by a
participant; (ii) a material breach by a participant of a fiduciary duty owed to
the Corporation or any of its subsidiaries; (iii) a material breach by a
participant of any nondisclosure, non-solicitation or non-competition obligation
owed to the Corporation or any of its subsidiaries; and (iv) the willful or
gross neglect by a participant of his employment duties. The Committee shall
have the sole discretion to determine whether "Cause" exists, and its
determination shall be final.

      (g) "CHANGE IN CONTROL" and "CHANGE IN CONTROL PRICE" have the meanings
set forth in Sections 11(b) and (c), respectively.

      (h) "CODE" means the Internal Revenue Code of 1986, as amended from time
to time, and any successor thereto.

      (i) "COMMISSION" means the Securities and Exchange Commission or any
successor agency.

      (j) "COMMITTEE" means the Committee referred to in Section 2.

      (k) "COMMON STOCK" means common stock, par value $.01 per share, of the
Corporation.

      (l) "CORPORATION" means USA Networks, Inc., a Delaware corporation.

      (m) "COVERED EMPLOYEE" means a participant designated prior to the grant
of shares of Restricted Stock, Performance Units or Bonus Awards by the
Committee who is or may be a "covered employee"

                                      A-1
<PAGE>

within the meaning of Section 162(m)(3) of the Code in the year in which
Restricted Stock or Performance Units are expected to be taxable to such
participant.

      (n) "DISABILITY" means, except as otherwise determined by the Committee in
an Award Agreement, permanent and total disability as determined under
procedures established by the Committee for purposes of the Plan.

      (o) "EARLY RETIREMENT" means retirement from active employment with the
Corporation, a subsidiary or Affiliate pursuant to the early retirement
provisions of the applicable pension plan of such employer.

      (p) "EBITDA" means for any period, the consolidated earnings (losses) of
the Corporation before extraordinary items and the cumulative effect of
accounting changes, as determined by the Corporation in accordance with GAAP,
and before interest (expenses or income), taxes, depreciation, amortization,
non-cash gains and losses from sales of assets other than in the ordinary course
of business and non-cash expense charged against earnings resulting from the
application of accounting for business combinations in accordance with
Accounting Principles Board Opinion No. 16 ("APB No. 16").

      (q) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended
from time to time, and any successor thereto.

      (r) "FAIR MARKET VALUE" means, as of any given date, the last reported
sales price of the Common Stock in the over-the-counter market, as reported by
NASDAQ (or, if the Common Stock is listed on a national securities exchange, as
reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national security exchange on which the
Common Stock is listed or admitted to trading) on the last preceding date or, if
there are no reported sales on that date, on the last day prior to that date on
which there are such reported sales.

      (s) "INCENTIVE STOCK OPTION" means any Stock Option designated as, and
qualified as, an "incentive stock option" within the meaning of Section 422 of
the Code.

      (t) "NONQUALIFIED STOCK OPTION" means any Stock Option that is not an
Incentive Stock Option.

      (u) "NORMAL RETIREMENT" means retirement from active employment with the
Corporation, a subsidiary or Affiliate at or after age 65.

      (v) "PERFORMANCE GOALS" means the performance goals established by the
Committee in connection with the grant of Restricted Stock, Performance Units or
Bonus Awards. In the case of Qualified-Performance Based Awards, (i) such goals
shall be based on the attainment of one or any combination of the following:
specified levels of earnings per share from continuing operations, EBITDA,
operating income, revenues, return on operating assets, return on equity,
profits, total shareholder return (measured in terms of stock price appreciation
and/or dividend growth), and/or stock price, with respect to the Corporation or
such subsidiary, division or department of the Corporation for or within which
the participant performs services and that are intended to qualify under Section
162(m)(4)(c) of the Code 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. Such Performance Goals also may be based upon the attaining
of specified levels of Corporation performance under one or more of the measures
described above relative to the performance of other corporations.

      (w) "PERFORMANCE UNITS" means an award made pursuant to Section 8.

      (x) "PLAN" means the USA Networks, Inc. 2000 Stock and Annual Incentive
Plan, as set forth herein and as hereinafter amended from time to time.

                                      A-2
<PAGE>

      (y) "PLAN YEAR" means the calendar year or, with respect to Bonus Awards,
the Corporation's fiscal year if different.

      (z) "QUALIFIED PERFORMANCE-BASED AWARD" means an Award designated as such
by the Committee at the time of grant, based upon a determination that (i) the
recipient 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 Awards and (ii) the Committee
wishes such Award to qualify for the Section 162(m) Exemption.

      (aa) "RESTRICTED STOCK" means an award granted under Section 7.

      (bb) "RETIREMENT" means Normal or Early Retirement.

      (cc) "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.

      (dd) "STOCK APPRECIATION RIGHT" means a right granted under Section 6.

      (ee) "STOCK OPTION" means an option granted under Section 5.

      (ff) "TERMINATION OF EMPLOYMENT" means the termination of the
participant's employment with the Corporation and any subsidiary or Affiliate. A
participant employed by a subsidiary or an Affiliate shall also be deemed to
incur a Termination of Employment if the subsidiary or Affiliate ceases to be
such a subsidiary or an Affiliate, as the case may be, and the participant does
not immediately thereafter become an employee of the Corporation or another
subsidiary or Affiliate. Temporary absences from employment because of illness,
vacation or leave of absence and transfers among the Corporation and its
subsidiaries and Affiliates shall not be considered Terminations of Employment.

      In addition, certain other terms used herein have definitions given to
them in the first place in which they are used.

            SECTION 2.  Administration

      The Plan shall be administered by the Compensation/Benefits Committee or
such other committee of two or more directors as the Board may from time to time
designate (the "COMMITTEE"), which shall be appointed by and serve at the
pleasure of the Board.

      The Committee shall have plenary authority to grant Awards pursuant to the
terms of the Plan to officers and employees of the Corporation and its
subsidiaries and Affiliates.

      Among other things, the Committee shall have the authority, subject to the
terms of the Plan:

      (a)   To select the officers and employees, to whom Awards may from time
to time be granted;

      (b)   Determine whether and to what extent Incentive Stock Options,
Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock,
Performance Units and Bonus Awards or any combination thereof are to be granted
hereunder;

      (c)   Determine the number of shares of Common Stock to be covered by each
Award granted hereunder;

      (d)   Determine the terms and conditions of any Award granted hereunder
(including, but not limited to, the option price (subject to Section 5(a)), any
vesting condition, restriction or limitation (which may be related to the
performance of the participant, the Corporation or any subsidiary or Affiliate)
and any

                                      A-3
<PAGE>

vesting acceleration or forfeiture waiver regarding any Award and the shares of
Common Stock relating thereto, based on such factors as the Committee shall
determine;

      (e)   Modify, amend or adjust the terms and conditions of any Award, at
any time or from time to time, including but not limited to Performance Goals;
provided, however, that the Committee may not adjust upwards the amount payable
to a designated Covered Employee with respect to a particular award upon the
satisfaction of applicable Performance Goals;

      (f)   Determine to what extent and under what circumstances Common Stock
and other amounts payable with respect to an Award shall be deferred; and

      (g)   Determine under what circumstances an Award may be settled in cash
or Common Stock under Sections 5(j), 8(b)(i), 10(b), and 11(a)(iii).

      The Committee shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan as it shall
from time to time deem advisable, to interpret the terms and provisions of the
Plan and any Award issued under the Plan (and any agreement relating thereto)
and to otherwise supervise the administration of the Plan.

      The Committee may act only by a majority of its members then in office,
except that the members thereof may (i) delegate to an officer of the
Corporation the authority to make decisions pursuant to paragraphs (c), (f),
(g), (h) and (i) of Section 5 (provided that without approval by the Board 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) and (ii)
authorize any one or more of their number or any officer of the Corporation to
execute and deliver documents on behalf of the Committee. Any action permitted
to be taken by the Committee under the Plan may be taken by the full Board in
its discretion, and in such case the Board shall be treated as the Committee
hereunder.

      Any determination made by the Committee or pursuant to delegated authority
pursuant to the provisions of the Plan with respect to any Award shall be made
in the sole discretion of the Committee or such delegate at the time of the
grant of the Award or, unless in contravention of any express term of the Plan,
at any time thereafter. All decisions made by the Committee or any appropriately
delegated officer pursuant to the provisions of the Plan shall be final and
binding on all persons, including the Corporation and Plan participants.

            SECTION 3.  Common Stock Subject To Plan

      The total number of shares of Common Stock reserved and available for
grant under the Plan shall be 20,000,000. No participant may be granted Awards
pursuant to the Plan covering in excess of 16,000,000 shares of Common Stock
over the life of the Plan. Shares subject to an Award under the Plan may be
authorized and unissued shares or may be treasury shares.

      If any shares of Restricted Stock are forfeited for which the participant
did not receive any benefits of ownership (as such phrase is construed by the
Commission or its staff), or if any Stock Option (and related Stock Appreciation
Right, if any) terminates without being exercised, or if any Stock Appreciation
Right is exercised for cash, shares subject to such Awards shall again be
available for distribution in connection with Awards under the Plan.

      In the event of any change in corporate capitalization (including, but not
limited to, a change in the number of shares of Common Stock outstanding), such
as a stock split or a corporate transaction, such as any merger, consolidation,
separation, including a Spin-off, or other distribution of stock or property of
the Corporation, any reorganization (whether or not such reorganization comes
within the definition of such term in Section 368 of the Code) or any partial or
complete liquidation of the Corporation, the Committee or Board may make such
substitution or adjustments in the aggregate number and kind of shares reserved
for issuance under the Plan and the maximum limitation upon Awards to be granted
to any participant, in

                                      A-4
<PAGE>

the number, kind and option price of shares subject to outstanding Stock Options
and Stock Appreciation Rights, in the number and kind of shares subject to other
outstanding Awards granted under the Plan and/or such other equitable
substitution or adjustments as it may determine to be appropriate in its sole
discretion; provided, however, that the number of shares subject to any Award
shall always be a whole number. In the event of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization or
liquidation, the Board shall be authorized to cause the Corporation to issue or
assume stock options, whether or not in a transaction to which Section 424(a) of
the Code applies, by means of substitution of new stock options for previously
issued stock options or an assumption of previously issued stock options. In
such event, the aggregate number of shares of the Stock available for issuance
under Awards under Section 3 will be increased to reflect such substitution or
assumption.

            SECTION 4.  Eligibility

      Persons who serve or agree to serve as officers, employees, directors or
consultants of the Corporation (including prospective officers or employees),
its subsidiaries and Affiliates who are responsible for or contribute to the
management, growth and profitability of the business of the Corporation, its
subsidiaries and Affiliates are eligible to be granted Awards under the Plan.

            SECTION 5.  Stock Options

      Stock Options may be granted alone or in addition to other Awards granted
under the Plan and may be of two types: Incentive Stock Options and Nonqualified
Stock Options. Any Stock Option granted under the Plan shall be in such form as
the Committee may from time to time approve.

      The Committee shall have the authority to grant any participant Incentive
Stock Options, Nonqualified Stock Options or both types of Stock Options (in
each case with or without Stock Appreciation Rights); provided, however, that
grants hereunder are subject to the aggregate limit on grants to individual
participants set forth in Section 3. Incentive Stock Options may be granted only
to employees of the Corporation and its "subsidiaries" and "parent", if any
(within the meaning of Section 424(f) of the Code). To the extent that any Stock
Option is not designated as an Incentive Stock Option or even if so designated
does not qualify as an Incentive Stock Option, it shall constitute a
Nonqualified Stock Option.

      Stock Options shall be evidenced by option agreements, the terms and
provisions of which may differ. An option agreement shall indicate on its face
whether it is intended to be an agreement for an Incentive Stock Option or a
Nonqualified Stock Option. The grant of a Stock Option shall occur on the date
the Committee by resolution selects an individual to be a participant in any
grant of a Stock Option, determines the number of shares of Common Stock to be
subject to such Stock Option to be granted to such individual and specifies the
terms and provisions of the Stock Option. The Corporation shall notify a
participant of any grant of a StockOption, and a written option agreement or
agreements shall be duly executed and delivered by the Corporation to the
participant. Such grant shall become effective upon the date of grant (subject
to conditions set forth therein), and the execution of the option agreements(s)
may occur following the grant of the Stock Option.

      Stock Options granted under the Plan shall be subject to the following
terms and conditions and shall contain such additional terms and conditions as
the Committee shall deem desirable:

      (a)   OPTION PRICE. The option price per share of Common Stock purchasable
under a Stock Option shall be determined by the Committee and set forth in the
option agreement, and shall not be less than the Fair Market Value of the Common
Stock subject to the Stock Option on the date of grant.

      (b)   OPTION TERM. The term of each Stock Option shall be fixed by the
Committee, but no Incentive Stock Option shall be exercisable more than 10 years
after the date the Incentive Stock Option is granted.

                                      A-5
<PAGE>

      (c)   EXERCISABILITY. Except as otherwise provided herein, Stock Options
shall be exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Committee. If the Committee provides
that any Stock Option is exercisable only in installments, the Committee may at
any time waive such installment exercise provisions, in whole or in part, based
on such factors as the Committee may determine. In addition, the Committee may
at any time accelerate the exercisability of any Stock Option.

      (d)   METHOD OF EXERCISE. Subject to the provisions of this Section 5,
Stock Options may be exercised, in whole or in part, at any time during the
option term by giving written notice of exercise to the Corporation specifying
the number of shares of Common Stock subject to the Stock Option to be
purchased.

      Such notice shall be accompanied by payment in full of the purchase price
by certified or bank check or such other instrument as the Corporation may
accept. If approved by the Committee, payment, in full or in part, may also be
made in the form of unrestricted Common Stock already owned by the optionee of
the same class as the Common Stock subject to the Stock Option (based on the
Fair Market Value of the Common Stock on the date the Stock Option is
exercised); provided, however, that, in the case of an Incentive Stock Option
the right to make a payment in the form of already owned shares of Common Stock
of the same class as the Common Stock subject to the Stock Option may be
authorized only at the time the Stock Option is granted.

      In the discretion of the Committee, payment for any shares subject to a
Stock Option may also be made by delivering a properly executed exercise notice
to the Corporation, together with a copy of irrevocable instructions to a broker
to deliver promptly to the Corporation the amount of sale or loan proceeds from
shares of Common Stock owned by the optionee necessary to pay the purchase
price, and, if requested, to pay the amount of any federal, state, local or
foreign withholding taxes. To facilitate the foregoing, the Corporation may
enter into agreements for coordinated procedures with one or more brokerage
firms.

      In addition, in the discretion of the Committee, payment for any shares
subject to a Stock Option may also be made by instructing the Committee to
withhold a number of such shares having a Fair Market Value on the date of
exercise equal to the aggregate exercise price of such Stock Option.

      No shares of Common Stock shall be issued until full payment therefor has
been made. An optionee shall have all of the rights of a shareholder of the
Corporation holding the class or series of Common Stock that is subject to such
Stock Option (including, if applicable, the right to vote the shares and the
right to receive dividends), when the optionee has given written notice of
exercise, has paid in full for such shares and, if requested, has given the
representation described in Section 14(a).

      (e)   NONTRANSFERABILITY OF STOCK OPTIONS. No Stock Option shall be
transferable by the optionee other than (i) by will or by the laws of descent
and distribution; or (ii) in the case of a Nonqualified Stock Option, pursuant
to (a) a qualified domestic relations order (as defined in the Code, or the
regulations thereunder), (b) a gift to such optionee's immediate family or other
specified individuals or entities, whether directly or indirectly or by means of
a trust, partnership, limited liability corporation or otherwise, if expressly
permitted under the applicable option agreement or (c) a gift to a charitable
organization, if expressly permitted under the applicable option agreement. All
Stock Options shall be exercisable, subject to the terms of this Plan, during
the optionee's lifetime, only by the optionee or any person to whom the Stock
Option is transferred by will or the laws of descent and distribution or, in the
case of a Nonqualified Stock Option, pursuant to a qualified domestic relations
order or a gift permitted under the applicable option agreement. For purposes of
this Section 5(e), "immediate family" shall mean, except as otherwise defined by
the Committee, the optionee's spouse, children, siblings, stepchildren,
grandchildren, parents, stepparents, grandparents, in-laws and persons related
by legal adoption. Such transferees may transfer a Stock Option only by will or
the laws of descent and distribution.

      (f)   TERMINATION BY DEATH. Unless otherwise determined by the Committee
(in the option agreement or otherwise), if an optionee's Termination of
Employment is by reason of death, any Stock

                                      A-6
<PAGE>

Option held by such optionee may thereafter be exercised, to the extent then
exercisable, or on such accelerated basis as the Committee may determine, for a
period of one year (or such other period as the Committee may specify in the
option agreement) from the date of such death or until the expiration of the
stated term of such Stock Option, whichever period is the shorter.

      (g)   TERMINATION BY REASON OF DISABILITY. Unless otherwise determined by
the Committee (in the option agreement or otherwise), if an optionee's
Termination of Employment is by reason of Disability, any Stock Option held by
such optionee may thereafter be exercised by the optionee, to the extent it was
exercisable at the time of termination, or on such accelerated basis as the
Committee may determine, for a period of 3 years from the date of such
Termination of Employment or until the expiration of the stated term of such
Stock Option, whichever period is the shorter; provided, however, that if the
optionee dies within such period, any unexercised Stock Option held by such
optionee shall, notwithstanding the expiration of such period, continue to be
exercisable to the extent to which it was exercisable at the time of death for a
period of 12 months from the date of such death or until the expiration of the
stated term of such Stock Option, whichever period is the shorter. In the event
of Termination of Employment by reason of Disability, if an Incentive Stock
Option is exercised after the expiration of the exercise periods that apply for
purposes of Section 422 of the Code, such Stock Option will thereafter be
treated as a Nonqualified Stock Option.

      (h)   TERMINATION BY REASON OF RETIREMENT. Unless otherwise determined by
the Committee (in the option agreement or otherwise), if an optionee's
Termination of Employment is by reason of Retirement, any Stock Option held by
such optionee may thereafter be exercised by the optionee, to the extent it was
exercisable at the time of such Retirement, or on such accelerated basis as the
Committee may determine, for a period of 5 years from the date of such
termination of employment or until the expiration of the stated term of such
Stock Option, whichever period is the shorter; provided, however, that if the
optionee dies within such period any unexercised Stock Option held by such
optionee shall, notwithstanding the expiration of such period, continue to be
exercisable to the extent to which it was exercisable at the time of death for a
period of 12 months from the date of such death or until the expiration of the
stated term of such Stock Option, whichever period is the shorter. In the event
of Termination of Employment by reason of Retirement, if an Incentive Stock
Option is exercised after the expiration of the exercise periods that apply for
purposes of Section 422 of the Code, such Stock Option will thereafter be
treated as a Nonqualified Stock Option.

      (i)   OTHER TERMINATION. Unless otherwise determined by the Committee (in
the option agreement or otherwise): (A) if an optionee incurs a Termination of
Employment for Cause, all Stock Options held by such optionee shall thereupon
terminate; and (B) if an optionee incurs a Termination of Employment for any
reason other than death, Disability, Retirement or Cause, any Stock Option held
by such optionee, to the extent then exercisable, or on such accelerated basis
as the Committee may determine, may be exercised for the lesser of 3 months from
the date of such Termination of Employment or the balance of such Stock Option's
term; provided, however, that if the optionee dies within such three-month
period, any unexercised Stock Option held by such optionee shall,
notwithstanding the expiration of such 3-month period, continue to be
exercisable to the extent to which it was exercisable at the time of death for a
period of 12 months from the date of such death or until the expiration of the
stated term of such Stock Option, whichever period is the shorter.
Notwithstanding the foregoing, unless otherwise determined by the Committee (in
the option agreement or otherwise), if an optionee incurs a Termination of
Employment at or after a Change in Control (as defined Section 11(b)), other
than by reason of death, Disability or Retirement, any Stock Option held by such
optionee shall be exercisable for the lesser of (1) 6 months and one day from
the date following such Termination of Employment, and (2) the balance of such
Stock Option's term. In the event of Termination of Employment, if an Incentive
Stock Option is exercised after the expiration of the exercise periods that
apply for purposes of Section 422 of the Code, such Stock Option will thereafter
be treated as a Nonqualified Stock Option.

      (j)   CASHING OUT OF STOCK OPTION. On receipt of written notice of
exercise, the Committee may elect to cash out all or part of the portion of the
shares of Common Stock for which a Stock Option is being exercised by paying the
optionee an amount, in cash or Common Stock, equal to the excess of the Fair

                                      A-7
<PAGE>

Market Value of the Common Stock over the option price times the number of
shares of Common Stock for which the Option is being exercised on the effective
date of such cash-out.

      (k)   CHANGE IN CONTROL CASH-OUT. Notwithstanding any other provision of
the Plan, during the 60-day period from and after a Change in Control (the
"Exercise Period"), unless the Committee shall determine otherwise at the time
of grant, an optionee shall have the right, whether or not the Stock Option is
fully exercisable and in lieu of the payment of the exercise price for the
shares of Common Stock being purchased under the Stock Option and by giving
notice to the Corporation, to elect (within the Exercise Period) to surrender
all or part of the Stock Option to the Corporation and to receive cash, within
10 days of such notice, in an amount equal to the amount by which the Change in
Control Price per share of Common Stock on the date of such election shall
exceed the exercise price per share of Common Stock under the Stock Option (the
"Spread") multiplied by the number of shares of Common Stock granted under the
Stock Option as to which the right granted under this Section 5(k) shall have
been exercised. Notwithstanding the foregoing, if the exercise of any right
granted pursuant to this Section 5(k) would make a Change in Control transaction
ineligible for pooling of interests accounting under APB No. 16 that but for
this Section 5(k) would otherwise be eligible for such accounting treatment, the
Committee shall have the ability to substitute the cash payable pursuant to this
Section 5(k) with Common Stock (or shares of common stock of the entity
surviving the Change in Control transaction, or its parent corporation, if
applicable) with a Fair Market Value equal to the cash that would otherwise be
payable hereunder.

            SECTION 6.  Stock Appreciation Rights

      (a)   GRANT AND EXERCISE. Stock Appreciation Rights may be granted in
conjunction with all or part of any Stock Option granted under the Plan. In the
case of a Nonqualified Stock Option, such rights may be granted either at or
after the time of grant of such Stock Option. In the case of an Incentive Stock
Option, such rights may be granted only at the time of grant of such Stock
Option. A Stock Appreciation Right shall terminate and no longer be exercisable
upon the termination or exercise of the related Stock Option.

      A Stock Appreciation Right may be exercised by an optionee in accordance
with Section 6(b) by surrendering the applicable portion of the related Stock
Option in accordance with procedures established by the Committee. Upon such
exercise and surrender, the optionee shall be entitled to receive an amount
determined in the manner prescribed in Section 6(b). Stock Options which have
been so surrendered shall no longer be exercisable to the extent the related
Stock Appreciation Rights have been exercised.

      (b)   TERMS AND CONDITIONS. Stock Appreciation Rights shall be subject to
such terms and conditions as shall be determined by the Committee, including the
following:

            (i) Stock Appreciation Rights shall be exercisable only at such time
      or times and to the extent that the Stock Options to which they relate are
      exercisable in accordance with the provisions of Section 5 and this
      Section 6.

            (ii) Upon the exercise of a Stock Appreciation Right, an optionee
      shall be entitled to receive an amount in cash, shares of Common Stock or
      both, in value equal to the excess of the Fair Market Value of one share
      of Common Stock over the option price per share specified in the related
      Stock Option multiplied by the number of shares in respect of which the
      Stock Appreciation Right shall have been exercised, with the Committee
      having the right to determine the form of payment.

            (iii) Stock Appreciation Rights shall be transferable only to
      permitted transferees of the underlying Stock Option in accordance with
      Section 5(e).

            (iv) Upon the exercise of a Stock Appreciation Right, the Stock
      Option or part thereof to which such Stock Appreciation Right is related
      shall be deemed to have been exercised for the purpose of the limitation
      set forth in Section 3 on the number of shares of Common Stock to be

                                      A-8
<PAGE>

      issued under the Plan, but only to the extent of the number of shares in
      respect of which the Stock Appreciation Right has been exercised.

            SECTION 7.  Restricted Stock

      (a)   ADMINISTRATION. Shares of Restricted Stock may be awarded either
alone or in addition to other Awards granted under the Plan. The Committee shall
determine the officers and employees 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 participant (subject to the aggregate limit on grants to individual
participants set forth in Section 3), 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 7(c).

      The Committee may, prior to grant, condition the vesting of Restricted
Stock upon the attainment of Performance Goals. The Committee may, in addition
to or instead of requiring satisfaction of Performance Goals, condition vesting
upon the continued service of the participant. The provisions of Restricted
Stock Awards (including the applicable Performance Goals) need not be the same
with respect to each recipient.

      (b)   AWARDS AND CERTIFICATES. Shares of Restricted Stock shall be
evidenced in such manner as the Committee 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 stock
            represented hereby are subject to the terms and conditions
            (including forfeiture) of the USA Networks, Inc. 2000 Stock and
            Annual Incentive Plan and a Restricted Stock Agreement. Copies of
            such Plan and Agreement are on file at the offices of USA Networks,
            Inc."

The Committee may require that the certificates evidencing such shares be held
in custody by the Corporation 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) Subject to the provisions of the Plan and the Restricted Stock
      Agreement referred to in Section 7(c)(vi), during the period, if any, set
      by the Committee, commencing with the date of such Award for which such
      participant'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
      participant shall not be permitted to sell, assign, transfer, pledge or
      otherwise encumber shares of Restricted Stock; provided, that the
      foregoing shall not prevent a participant from pledging Restricted Stock
      as security for a loan, the sole purpose of which is to provide funds to
      pay the option price for Stock Options. Within these limits, the Committee
      may provide for the lapse of restrictions based upon period of service in
      installments or otherwise and may accelerate or waive, in whole or in
      part, restrictions based upon period of service or upon performance;
      provided, however, that in the case of Restricted Stock subject to
      Performance Goals granted to a participant who is a Covered Employee, the
      applicable Performance Goals have been satisfied.

            (ii) Except as provided in this paragraph (ii) and Section 7(c)(i)
      and the Restricted Stock Agreement, the participant shall have, with
      respect to the shares of Restricted Stock, all of the

                                      A-9
<PAGE>

      rights of a stockholder of the Corporation 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 Committee in the applicable Restricted
      Stock Agreement and subject to Section 14(e) of the Plan, (1) cash
      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, (2) 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 and (3) dividends payable in shares of
      a subsidiary of the Corporation upon a Spin-off transaction shall be held
      as restricted shares subject to the vesting provisions of the underlying
      Restricted Stock.

            (iii) Except to the extent otherwise provided in the applicable
      Restricted Stock Agreement and Sections 7(c)(i), 7(c)(iv) and 11(a)(ii),
      upon a participant's Termination of Employment 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 participant.

            (iv) In the event of a participant's Retirement or a participant's
      involuntary Termination of Employment (other than for Cause), the
      Committee shall have the discretion to waive, in whole or in part, any or
      all remaining restrictions (other than, in the case of Restricted Stock
      with respect to which a participant is a Covered Employee, satisfaction of
      the applicable Performance Goals unless the participant's employment is
      terminated by reason of death or Disability) with respect to any or all of
      such participant's shares of Restricted Stock.

            (v) If and when any applicable Performance Goals are satisfied and
      the Restriction Period expires without a prior forfeiture of the
      Restricted Stock, unlegended certificates for such shares shall be
      delivered to the participant upon surrender of the legended certificates.

            (vi) Each Award shall be confirmed by, and be subject to, the terms
      of a Restricted Stock Agreement.

            SECTION 8.  Performance Units

      (a)   Performance Units may be awarded either alone or in addition to
other Awards granted under the Plan. The Committee 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 participant
(subject to the aggregate limit on grants to individual participants set forth
in Section 3), the duration of the Award Cycle and any other terms and
conditions of the Award, in addition to those contained in Section 8(b).

      The Committee may condition the settlement of Performance Units upon the
continued service of the participant, 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 recipient.

      (b)   TERMS AND CONDITIONS. Performance Units Awards shall be subject to
the following terms and conditions:

            (i) Subject to the provisions of the Plan and the Performance Units
      Agreement referred to in Section 8(b)(vi), Performance Units may not be
      sold, assigned, transferred, pledged or otherwise encumbered during the
      Award Cycle. At the expiration of the Award Cycle, the Committee shall
      evaluate the Corporation'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 participant which have been earned, and
      the Committee may then elect to deliver (1) a

                                      A-10
<PAGE>

      number of shares of Common Stock equal to the number of Performance Units
      determined by the Committee 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 and Sections 8(b)(iii) and 11(a)(iii), upon a
      participant's Termination of Employment 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 Units Award shall be
      forfeited by the participant.

            (iii) Except to the extent otherwise provided in Section 11(a)(iii),
      upon a participant's Termination of Employment (other than for Cause), or
      in the event of a participant's Retirement, the Committee shall have the
      discretion to waive, in whole or in part, any or all remaining payment
      limitations (other than, in the case of Performance Units with respect to
      which a participant is a Covered Employee, satisfaction of any applicable
      Performance Goals unless the participant's Termination of Employment is by
      reason of death or Disability) with respect to any or all of such
      participant's Performance Units.

            (iv) A participant may elect to further defer receipt of the
      Performance Units payable under an Award (or an installment of an Award)
      for a specified period or until a specified event, subject in each case to
      the Committee's approval and to such terms as are determined by the
      Committee (the "Elective Deferral Period"). Subject to any exceptions
      adopted by the Committee, such election must generally be made prior to
      commencement of the Award Cycle for the Award (or for such installment of
      an Award).

            (v) 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 8(b)(i) hereof shall
      be made to the participant.

            (vi) Each Award shall be confirmed by, and be subject to, the terms
      of a Performance Unit Agreement.

            SECTION 9.  Tax Offset Bonuses

      At the time an Award is made hereunder or at any time thereafter, the
Committee may grant to the participant receiving such Award the right to receive
a cash payment in an amount specified by the Committee, to be paid at such time
or times (if ever) as the Award results in compensation income to the
participant, for the purpose of assisting the participant to pay the resulting
taxes, all as determined by the Committee and on such other terms and conditions
as the Committee shall determine.

            SECTION 10. Bonus Awards

      (a)   Determination of Awards. The Committee shall determine the total
amount of Bonus Awards for each Plan Year. Prior to the beginning of the Plan
Year (or such later date as may be prescribed by the Internal Revenue Service
under Section 162(m) of the Code), the Committee shall establish Performance
Goals for Bonus Awards for the Plan Year; provided, that such Performance Goals
may be established at a later date for participants who are not Covered
Employees. Bonus amounts payable to any individual participant with respect to a
Plan Year will be limited to a maximum of $10 million. To the extent provided by
the Committee, a participant may elect to defer receipt of amounts payable under
a Bonus Award for a specified period, or until a specified event, subject in
each case to the Committee's approval and to such terms as are determined by the
Committee.

      (b)   Payment of Awards. Bonus Awards under the Plan shall be paid in
cash or in shares of Common Stock (valued at Fair Market Value as of the date of
payment) as determined by the Committee, as soon as practicable following the
close of the Plan Year, but in any event within 90 days

                                      A-11
<PAGE>

following the close of the Plan Year. The Bonus Award for any Plan Year to any
participant may be reduced or eliminated by the Committee in its discretion.

      (c)   Termination of Employment. A participant shall not be entitled to
receive payment of a Bonus Award, unless the annual Performance Goals for the
Plan Year are satisfied or as otherwise set forth in Section 11, if at any time
prior to the end of the Plan Year the participant has a Termination of
Employment for any reason other than death or Disability.

            SECTION 11. Change In Control Provisions

      (a)   IMPACT OF EVENT. Notwithstanding any other provision of the Plan to
the contrary, upon a Change in Control:

            (i) Any Stock Options and Stock Appreciation Rights outstanding as
      of the date of such Change in Control, and which are not then exercisable
      and vested, shall become immediately fully exercisable and vested.

            (ii) The restrictions and deferral limitations applicable to any
      Restricted Stock shall immediately lapse, and such Restricted Stock shall
      become free of all restrictions and become fully vested and transferable
      to the full extent of the original grant.

            (iii) All Performance Units shall be considered to be immediately
      earned and payable in full, and any deferral or other restriction shall
      lapse and such Performance Units shall be settled in cash or shares of
      Common Stock, as determined by the Committee, as promptly as is
      practicable.

            (iv) To the extent determined by the Committee, Bonus Awards may be
      paid in whole or in part to participants notwithstanding the attainment of
      Performance Goals.

      (b)   DEFINITION OF CHANGE IN CONTROL. For purposes of the Plan, unless
otherwise provided in an option agreement or other agreement relating to an
Award, a "Change in Control" shall mean the happening of any of the following
events:

            (i) The acquisition by any individual entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than
      Barry Diller, Liberty Media Corporation, Universal Studios, Inc. and their
      respective Affiliates (a "Person") of beneficial ownership (within the
      meaning of Rule 13d-3 promulgated under the Exchange Act) of equity
      securities of the Corporation representing more than 50% of the voting
      power of the then outstanding equity securities of the Corporation
      entitled to vote generally in the election of directors (the "Outstanding
      Corporation Voting Securities"); provided, however, that for purposes of
      this subsection (i), the following acquisitions shall not constitute a
      Change of Control: (A) any acquisition by the Corporation, (B) any
      acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by the Corporation or any corporation controlled by the
      Corporation, or (C) any acquisition by any corporation pursuant to a
      transaction which complies with clauses (A), (B) and (C) of subsection
      (iii); or

            (ii) Individuals who, as of February 22, 2000, constitute the Board
      (the "Incumbent Board") cease for any reason to constitute at least a
      majority of the Board; provided, however, that any individual becoming a
      director subsequent to February 22, 2000, whose election, or nomination
      for election by the Corporation's shareholders, was approved by a vote of
      at least a majority of the directors then comprising the Incumbent Board
      shall be considered as though such individual were a member of the
      Incumbent Board, but excluding, for this purpose, any such individual
      whose initial assumption of office occurs as a result of an actual or
      threatened election contest with respect to the election or removal of
      directors or other actual or threatened solicitation of proxies or
      consents by or on behalf of a Person other than the Board; or

                                      A-12
<PAGE>

            (iii) Approval by the stockholders of the Corporation of a
      reorganization, merger or consolidation or sale or other disposition of
      all or substantially all of the assets of the Corporation or the purchase
      of assets or stock of another entity (a "Business Combination"), in each
      case, unless immediately following such Business Combination, (A) all or
      substantially all of the individuals and entities who were the beneficial
      owners of the Outstanding Corporation Voting Securities immediately prior
      to such Business Combination will beneficially own, directly or
      indirectly, more than 50% of the then outstanding combined voting power of
      the then outstanding voting securities entitled to vote generally in the
      election of directors of the corporation resulting from such Business
      Combination (including, without limitation, a corporation which as a
      result of such transaction owns the Corporation or all or substantially
      all of the Corporation's assets either directly or through one or more
      subsidiaries) in substantially the same proportions as their ownership,
      immediately prior to such Business Combination of the Outstanding
      Corporation Voting Securities, (B) no Person (excluding Barry Diller,
      Liberty Media Corporation, Universal Studios, Inc. and their Affiliates,
      any employee benefit plan (or related trust) of the Corporation or such
      corporation resulting from such Business Combination) will beneficially
      own, directly or indirectly, more than a majority of the combined voting
      power of the then outstanding voting securities of such corporation except
      to the extent that such ownership of the Corporation existed prior to the
      Business Combination and (C) at least a majority of the members of the
      board of directors of the Corporation resulting from such Business
      Combination will have been members of the Incumbent Board at the time of
      the initial agreement, or action of the Board, providing for such Business
      Combination; or

            (iv) Approval by the stockholders of the Corporation of a complete
      liquidation or dissolution of the Corporation.

      (c)   CHANGE IN CONTROL PRICE. For purposes of the Plan, "Change in
Control Price" means the higher of (i) the highest reported sales price, regular
way, of a share of Common Stock in any transaction reported on the New York
Stock Exchange Composite Tape or other national exchange on which such shares
are listed or on NASDAQ during the 60-day period prior to and including the date
of a Change in Control or (ii) if the Change in Control is the result of a
tender or exchange offer or a Business Combination, the highest price per share
of Common Stock paid in such tender or exchange offer or Business Combination;
provided, however, that in the case of Incentive Stock Options and Stock
Appreciation Rights relating to Incentive Stock Options, the Change in Control
Price shall be in all cases the Fair Market Value of the Common Stock on the
date the right set forth in Section 5(k) is exercised. To the extent that the
consideration paid in any such transaction described above consists all or in
part of securities or other noncash consideration, the value of such securities
or other noncash consideration shall be determined in the sole discretion of the
Board.

            SECTION 12. Term, Amendment And Termination

      The Plan will terminate 10 years after the effective date of the Plan;
provided, that the Plan Awards outstanding as of such date shall not be affected
or impaired by the termination of the Plan.

      The Board may amend, alter, or discontinue the Plan, but no amendment,
alteration or discontinuation shall be made which would impair the rights of an
optionee under a Stock Option or a recipient of a Stock Appreciation Right,
Restricted Stock Award, Performance Unit Award or Bonus Award theretofore
granted without the optionee's or recipient's consent. In addition, no such
amendment shall be made without the approval of the Corporation's stockholders
to the extent such approval is required by law or agreement.

      The Committee may amend the terms of any Stock Option or other Award
theretofore granted, prospectively or retroactively, but no such amendment shall
impair the rights of any holder of such Award without the holder's consent.

                                      A-13
<PAGE>

      Subject to the above provisions, the Board shall have authority to amend
the Plan to take into account changes in law and tax and accounting rules as
well as other developments, and to grant Awards which qualify for beneficial
treatment under such rules without stockholder approval.

            SECTION 13. Unfunded Status Of Plan

      It is presently intended that the Plan constitute an "unfunded" plan for
incentive and deferred compensation. The Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver Common Stock or make payments; provided, however, that unless the
Committee otherwise determines, the existence of such trusts or other
arrangements shall be consistent with the "unfunded" status of the Plan.

            SECTION 14. General Provisions

      (a)   The Committee may require each person purchasing or receiving
shares pursuant to an Award to represent to and agree with the Corporation in
writing that such person is acquiring the shares without a view to the
distribution thereof. The certificates for such shares may include any legend
which the Committee deems appropriate to reflect any restrictions on transfer.

      Notwithstanding any other provision of the Plan or agreements made
pursuant thereto, the Corporation shall not be required to issue or deliver any
certificate or certificates for shares of Common Stock under the Plan prior to
fulfillment of all of the following conditions:

            (1) Listing or approval for listing upon notice of issuance, of such
      shares on NASDAQ or on the New York Stock Exchange, Inc., or such other
      securities exchange as may at the time be the principal market for the
      Common Stock;

            (2) Any registration or other qualification of such shares of the
      Corporation under any state or federal law or regulation or the
      maintaining in effect of any such registration or other qualification
      which the Committee shall, in its absolute discretion upon the advice of
      counsel, deem necessary or advisable; and

            (3) Obtaining any other consent, approval, or permit from any state
      or federal governmental agency which the Committee shall, in its absolute
      discretion after receiving the advice of counsel, determine to be
      necessary or advisable.

      (b)   Nothing contained in the Plan shall prevent the Corporation or any
subsidiary or Affiliate from adopting other or additional compensation
arrangements for its employees.

      (c)   Adoption of the Plan shall not confer upon any employee any right
to continued employment, nor shall it interfere in any way with the right of the
Corporation or any subsidiary or Affiliate to terminate the employment of any
employee at any time

      (d)   No later than the date as of which an amount first becomes
includible in the gross income of the participant for federal income tax
purposes with respect to any Award under the Plan, the participant shall pay to
the Corporation, or make arrangements satisfactory to the Corporation regarding
the payment of, any federal, state, local or foreign taxes of any kind required
by law to be withheld with respect to such amount. Unless otherwise determined
by the Corporation, withholding obligations may be settled with Common Stock,
including Common Stock that is part of the Award that gives rise to the
withholding requirement. The obligations of the Corporation under the Plan shall
be conditional on such payment or arrangements, and the Corporation and its
Affiliates shall, to the extent permitted by law, have the right to deduct any
such taxes from any payment otherwise due to the participant. The Committee may
establish such procedures as it deems appropriate, including making irrevocable
elections, for the settlement of withholding obligations with Common Stock.

                                      A-14
<PAGE>

      (e)   Reinvestment of dividends in additional Restricted Stock at the
time of any dividend payment with respect to Restricted Stock shall only be
permissible if sufficient shares of Common Stock are available under Section 3
for such reinvestment (taking into account then outstanding Stock Options and
other Awards). (f) The Committee shall establish such procedures as it deems
appropriate for a participant to designate a beneficiary to whom any amounts
payable in the event of the participant's death are to be paid or by whom any
rights of the participant, after the participant's death, may be exercised.

      (g)   In the case of a grant of an Award to any employee of a subsidiary
or other Affiliate of the Corporation, the Corporation may, if the Committee so
directs, issue or transfer the shares of Common Stock, if any, covered by the
Award to the subsidiary or such other Affiliate, for such lawful consideration
as the Committee may specify, upon the condition or understanding that the
subsidiary will transfer the shares of Common Stock to the employee in
accordance with the terms of the Award specified by the Committee pursuant to
the provisions of the Plan.

      (h)   The Plan and all Awards made and actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware,
without reference to principles of conflict of laws.

            SECTION 15. Effective Date Of Plan

      The Plan shall be effective as of February 22, 2000, the date it was
approved by the Board, subject to later approval by the Corporation's
stockholders; provided, however, that no Awards may be exercised or paid out
prior to receipt of such stockholder approval.

                                      A-15

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