Document:

<PAGE>

                                                                    EXHIBIT 4.2

                                     FORM OF

                            EQUITY WARRANT AGREEMENT

                         dated as of _____________, 2001

                                       for

                              WARRANTS TO PURCHASE

                     UP TO _________ SHARES OF COMMON STOCK

                           EXPIRING ____________, 2008

                                     between

                               USA NETWORKS, INC.

                                       and

                            THE BANK OF NEW YORK, as

                              Equity Warrant Agent

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                PAGE
<S>               <C>                                                                                           <C>

ARTICLE 1.        Definitions.............................................................................        1

ARTICLE 2.        Issuance of Equity Warrants and Execution and Delivery of Equity Warrant Certificates...        2

         2.1.     Issuance of Equity Warrants.............................................................        2
         2.2.     Form and Execution of Equity Warrant Certificates.......................................        3
         2.3.     Issuance and Delivery of Equity Warrant Certificates....................................        3
         2.4.     Temporary Equity Warrant Certificates...................................................        4
         2.5.     Payment of Taxes........................................................................        4

ARTICLE 3.        Duration and Exercise of Equity Warrants................................................        4

         3.1.     Exercise Price..........................................................................        4
         3.2.     Duration of Equity Warrants.............................................................        5
         3.3.     Exercise of Equity Warrants.............................................................        5

ARTICLE 4.        Adjustments of Number of Shares.........................................................        5

         4.1.     Adjustments.............................................................................        5
         4.2.     Statement on Warrants...................................................................        8
         4.3.     Cash Payments in Lieu of Fractional Shares..............................................        8
         4.4.     Notices to Warrantholders...............................................................        8

ARTICLE 5.        Other Provisions Relating to Rights of Holders of Equity Warrants.......................        9

         5.1.     No Rights as Holder of Common Stock Conferred by Equity Warrants or Equity Warrant
                   Certificates...........................................................................        9
         5.2.     Lost, Stolen, Destroyed or Mutilated Equity Warrant Certificates........................        9
         5.3.     Holders of Equity Warrants May Enforce Rights...........................................        9
         5.4.     Consolidation or Merger or Sale of Assets...............................................        9

ARTICLE 6.        Exchange and Transfer of Equity Warrants................................................       10

         6.1.     Equity Warrant Register; Exchange and Transfer of Equity Warrants.......................       10
         6.2.     Treatment of Holders of Equity Warrants.................................................       11
         6.3.     Cancellation of Equity Warrant Certificates.............................................       11

ARTICLE 7.        Concerning the Equity Warrant Agent.....................................................       11

         7.1.     Equity Warrant Agent....................................................................       11
         7.2.     Conditions of Equity Warrant Agent's Obligations........................................       12
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>               <C>                                                                                           <C>

         7.3.     Compliance with Applicable Laws.........................................................       14
         7.4.     Resignation and Appointment of Successor................................................       14

ARTICLE 8.        Miscellaneous...........................................................................       15

         8.1.     Amendment...............................................................................       15
         8.2.     Notices and Demands to the Company and Equity Warrant Agent.............................       15
         8.3.     Addresses for Notices...................................................................       15
         8.4.     Governing Law...........................................................................       16
         8.5.     Governmental Approvals..................................................................       16
         8.6.     Reservation of Shares of Common Stock...................................................       16
         8.7.     Covenant Regarding Shares of Common Stock...............................................       16
         8.8.     Persons Having Rights Under Agreement...................................................       16
         8.9.     Delivery of Prospectus..................................................................       17
         8.10.    Headings................................................................................       17
         8.11.    Counterparts............................................................................       17
         8.12.    Inspection of Agreement.................................................................       17
</TABLE>

                                      -ii-
<PAGE>

                  THIS EQUITY WARRANT AGREEMENT (the "AGREEMENT"), dated as of
______________2001, between USA Networks, Inc., a Delaware corporation (the
"COMPANY"), and Bank of New York, a New York corporation, as warrant agent (the
"EQUITY WARRANT AGENT").

                  WHEREAS, pursuant to the Amended and Restated Agreement and
Plan of Recapitalization and Merger, by and among the Company, Expedia, Inc.
("EXPEDIA"), Taipei, Inc. ("TAIPEI"), Microsoft Corporation, and Microsoft
E-Holdings, Inc., dated as of July 15, 2001, the Class B Common Stock of
Expedia, if issued, will be converted into the right to receive certain of the
Company's equity securities (the "USA EQUITY SECURITIES") in the merger of
Taipei with and into Expedia;

                  WHEREAS, the USA Equity Securities include warrants (the
"EQUITY WARRANTS" or, individually, an "EQUITY WARRANT") representing the right
to purchase shares of the common stock, par value $.01 per share, of the Company
(the "COMMON STOCK"), such Equity Warrants to be evidenced by certificates
herein called the "EQUITY WARRANT CERTIFICATES";

                  WHEREAS, the Company desires the Equity Warrant Agent to
assist the Company in connection with the issuance, exchange, cancellation,
replacement and exercise of the Equity Warrants, and in this Agreement wishes to
set forth, among other things, the terms and conditions on which the Equity
Warrants may be issued, exchanged, cancelled, replaced and exercised; and

                  WHEREAS, the Company has duly authorized the execution and
delivery of this Agreement to provide for the issuance of Equity Warrants to be
exercisable at such times and for such prices, and to have such other
provisions, as shall be fixed as hereinafter provided.

                  NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto agree as follows:

                                   ARTICLE 1.

                                  DEFINITIONS

                   "CLOSING PRICE" for each Trading Day shall be the last
reported sales price regular way, during regular trading hours, or, in case no
such reported sales takes place on such day, the average of the closing bid and
asked prices regular way during regular trading hours, for such day, in each
case on The Nasdaq Stock Market or, if not listed or quoted on such market, on
the principal national securities exchange on which the shares of Common Stock
are listed or admitted to trading or, if not listed or admitted to trading on a
national securities exchange, the last sale price regular way for the Common
Stock as published by the National Association of Securities Dealers Automated
Quotation System ("NASDAQ"), or if such last sale price is not so published by
NASDAQ or if no such sale takes place on such day, the mean between the closing
bid and asked prices for the Common Stock as published by NASDAQ. If the Common
Stock is not publicly held or so listed or publicly traded, "Closing Price"
shall mean the Fair Market Value per share as determined in good faith by the
Board of Directors of the Company or, if such

<PAGE>

determination cannot be made, by a nationally recognized independent investment
banking firm selected in good faith by the Board of Directors of the Company.

                  "COMMON STOCK" shall have the meaning set forth in the
recitals hereto.

                  "CURRENT MARKET PRICE" shall have the meaning set forth in
Section 4.1(d).

                  "EQUITY WARRANT REGISTER" shall have the meaning set forth in
Section 6.1.

                  "EXERCISE DATE" shall have the meaning set forth in Section
3.3(a).

                  "EXERCISE PRICE" shall have the meaning set forth in Section
3.1.

                  "EXPIRATION DATE" means 5:00 p.m. New York City time on
____________, 2008.

                  "FAIR MARKET VALUE" means the amount that a willing buyer
would pay a willing seller in an arm's length transaction.

                  "FORMED, SURVIVING OR ACQUIRING CORPORATION" shall have the
meaning set forth in Section 5.4.

                  "HOLDER" means the person or persons in whose name such Equity
Warrant Certificate shall then be registered as set forth in the Equity Warrant
Register to be maintained by the Equity Warrant Agent pursuant to Section 6.1
for that purpose.

                  "NON-ELECTING SHARE" shall have the meaning set forth in
Section 5.4.

                  "OFFICER'S CERTIFICATE" shall have the meaning set forth in
Section 7.2(e).

                  "PROSPECTUS" shall have the meaning set forth in Section 8.9.

                  "SALE TRANSACTION" shall have the meaning set forth in Section
5.4.

                  "TIME OF DETERMINATION" shall have the meaning set forth in
Section 4.1(d).

                  "TRADING DAY" shall mean a day on which the securities
exchange utilized for the purpose of calculating the Closing Price shall be open
for business or, if the shares of Common Stock shall not be listed on such
exchange for such period, a day on which The Nasdaq Stock Market is open for
business.

                                   ARTICLE 2.

                  ISSUANCE OF EQUITY WARRANTS AND EXECUTION AND
                     DELIVERY OF EQUITY WARRANT CERTIFICATES

         2.1. ISSUANCE OF EQUITY WARRANTS. Equity Warrants may be issued by the
Company from time to time, together with or separately from the other USA Equity
Securities.

                                      -2-
<PAGE>

         2.2. FORM AND EXECUTION OF EQUITY WARRANT CERTIFICATES.

                  (a) The Equity Warrants shall be evidenced by the Equity
Warrant Certificates, which shall be in registered form and substantially in the
form set forth as Exhibit A attached hereto. Each Equity Warrant Certificate
shall be dated the date it is countersigned by the Equity Warrant Agent and may
have such letters, numbers or other marks of identification and such legends or
endorsements printed, lithographed or engraved thereon as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any
law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange on which the Equity Warrants may be
listed, or to conform to usage, as the officer of the Company executing the same
may approve (his execution thereof to be conclusive evidence of such approval).
Each Equity Warrant Certificate shall evidence one or more Equity Warrants.

                  (b) The Equity Warrant Certificates shall be signed in the
name and on behalf of the Company by its Chairman, its Vice Chairman, its Chief
Executive Officer, President or a Vice President (any reference to a Vice
President of the Company herein shall be deemed to include any Vice President of
the Company whether or not designated by a number or a word or words added
before or after the title "Vice President") under its corporate seal, and
attested by its Secretary or an Assistant Secretary. Such signatures may be
manual or facsimile signatures of the present or any future holder of any such
office and may be imprinted or otherwise reproduced on the Equity Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Equity
Warrant Certificates.

                  (c) No Equity Warrant Certificate shall be valid for any
purpose, and no Equity Warrant evidenced thereby shall be deemed issued or
exercisable, until such Equity Warrant Certificate has been countersigned by the
manual or facsimile signature of the Equity Warrant Agent. Such signature by the
Equity Warrant Agent upon any Equity Warrant Certificate executed by the Company
shall be conclusive evidence that the Equity Warrant Certificate so
countersigned has been duly issued hereunder.

                  (d) In case any officer of the Company who shall have signed
any Equity Warrant Certificate either manually or by facsimile signature shall
cease to be such officer before the Equity Warrant Certificate so signed shall
have been countersigned and delivered by the Equity Warrant Agent, such Equity
Warrant Certificate nevertheless may be countersigned and delivered as though
the person who signed such Equity Warrant Certificate had not ceased to be such
officer of the Company; and any Equity Warrant Certificate may be signed on
behalf of the Company by such person as, at the actual date of the execution of
such Equity Warrant Certificate, shall be the proper officer of the Company,
although at the date of the execution of this Agreement such person was not such
an officer.

         2.3. ISSUANCE AND DELIVERY OF EQUITY WARRANT CERTIFICATES. At any time
and from time to time after the execution and delivery of this Agreement, the
Company may deliver Equity Warrant Certificates executed by the Company to the
Equity Warrant Agent for countersignature. Except as provided in the following
sentence, the Equity Warrant Agent shall thereupon countersign and deliver such
Equity Warrant Certificates to or upon the written

                                      -3-
<PAGE>

request of the Company. Subsequent to the original issuance of an Equity Warrant
Certificate evidencing Equity Warrants, the Equity Warrant Agent shall
countersign a new Equity Warrant Certificate evidencing such Equity Warrants
only if such Equity Warrant Certificate is issued in exchange or substitution
for one or more previously countersigned Equity Warrant Certificates evidencing
such Equity Warrants or in connection with their transfer, as hereinafter
provided.

         2.4. TEMPORARY EQUITY WARRANT CERTIFICATES. Pending the preparation of
a definitive Equity Warrant Certificate, the Company may execute, and upon the
order of the Company the Equity Warrant Agent shall countersign and deliver,
temporary Equity Warrant Certificates that are printed, lithographed,
typewritten, mimeographed or otherwise produced, substantially of the tenor of
the definitive Equity Warrant Certificates in lieu of which they are issued and
with such appropriate insertions, omissions, substitutions and other variations
as the officer executing such Equity Warrant Certificates may determine, as
evidenced by his execution of such Equity Warrant Certificates.

                  If temporary Equity Warrant Certificates are issued, the
Company will cause definitive Equity Warrant Certificates to be prepared without
unreasonable delay. After the preparation of definitive Equity Warrant
Certificates, the temporary Equity Warrant Certificates shall be exchangeable
for definitive Equity Warrant Certificates upon surrender of the temporary
Equity Warrant Certificates at the corporate trust office of the Equity Warrant
Agent. Upon surrender for cancellation of any one or more temporary Equity
Warrant Certificates, the Company shall execute and the Equity Warrant Agent
shall countersign and deliver in exchange therefor definitive Equity Warrant
Certificates representing the same aggregate number of Equity Warrants. Until so
exchanged, the temporary Equity Warrant Certificates shall in all respects be
entitled to the same benefits under this Agreement as definitive Equity Warrant
Certificates.

         2.5. PAYMENT OF TAXES. The Company will pay all stamp and other duties,
if any, to which this Agreement or the original issuance, or exercise, of the
Equity Warrants or Equity Warrant Certificates may be subject under the laws of
the United States of America or any state or locality; PROVIDED, HOWEVER, that
the Holder, and not the Company, shall be required to pay any stamp or other tax
or other governmental charge that may be imposed in connection with any transfer
involved in the issuance of the Common Stock where the Holder designates the
shares to be issued in a name other than the name of the Holder; and in the
event that any such transfer is involved, the Company shall not be required to
issue any Common Stock (and the purchase of the shares of Common Stock issued
upon the exercise of such Holder's Equity Warrant shall not be deemed to have
been consummated) until such tax or other charge shall have been paid or it has
been established to the Company's satisfaction that no such tax or other charge
is due.

                                   ARTICLE 3.

                    DURATION AND EXERCISE OF EQUITY WARRANTS

         3.1. EXERCISE PRICE. Each Equity Warrant shall entitle the Holder
thereof to purchase one share of Common Stock for $35.10 (the "EXERCISE PRICE"),
subject to the terms herein. The number of shares of Common Stock which shall be
purchasable upon the payment of the Exercise Price shall be subject to
adjustment pursuant to Article 4 hereof.

                                      -4-
<PAGE>

         3.2. DURATION OF EQUITY WARRANTS. Each Equity Warrant may be exercised
at any time up to the Expiration Date. Each Equity Warrant not exercised at or
before the Expiration Date shall become void, and all rights of the Holder of
such Equity Warrant thereunder and under this Agreement shall cease.

         3.3. EXERCISE OF EQUITY WARRANTS.

                  (a) The Holder of an Equity Warrant shall have the right, at
its option, to exercise such Equity Warrant and purchase one share of Common
Stock during the period referred to in Section 3.2, subject to adjustment
pursuant to Article 4 hereof. Except as may be provided in an Equity Warrant
Certificate, an Equity Warrant may be exercised by completing the form of
election to purchase set forth on the reverse side of the Equity Warrant
Certificate, by duly executing the same, and by delivering the same, together
with payment in full of the Exercise Price, in lawful money of the United States
of America, in cash or by certified or official bank check or by bank wire
transfer, to the Equity Warrant Agent. Except as may be provided in an Equity
Warrant Certificate, the date on which such Equity Warrant Certificate and
payment are received by the Equity Warrant Agent as aforesaid shall be deemed to
be the date on which the Equity Warrant is exercised and the relevant shares of
Common Stock are issued (the "EXERCISE DATE").

                  (b) Upon the exercise of an Equity Warrant, the Company shall,
as soon as practicable, issue, to or upon the order of the Holder of such Equity
Warrant, the shares of Common Stock to which such Holder is entitled, registered
in such name or names as may be directed by such Holder.

                  (c) Unless the Equity Warrant Agent and the Company agree
otherwise, the Equity Warrant Agent shall deposit all funds received by it in
payment of the Equity Warrant Price for Equity Warrants in the account of the
Company maintained with it for such purpose and shall advise the Company by
telephone by 5:00 P.M., New York City time, of each day on which a payment of
the Exercise Price for Equity Warrants is received of the amount so deposited in
its account. The Equity Warrant Agent shall promptly confirm such telephone
advice in writing to the Company.

                  (d) The Equity Warrant Agent shall, from time to time, as
promptly as practicable, advise the Company of (i) the number of Equity Warrants
exercised as provided herein, (ii) the instructions of each Holder of such
Equity Warrants with respect to delivery of the Common Stock issued upon
exercise of such Equity Warrants to which such Holder is entitled upon such
exercise, and (iii) such other information as the Company shall reasonably
require. Such advice may be given by telephone to be confirmed in writing.

                                   ARTICLE 4.

                         ADJUSTMENTS OF NUMBER OF SHARES

         4.1. ADJUSTMENTS. The number of shares of Common Stock purchasable upon
the exercise of the Equity Warrants shall be subject to adjustment as follows:

                                      -5-
<PAGE>

                  (a) In case the Company shall (A) pay a dividend or make a
distribution on its Common Stock in shares of Common Stock, (B) subdivide its
outstanding shares of Common Stock into a greater number of shares, (C) combine
its outstanding shares of Common Stock into a smaller number of shares, or (D)
issue by reclassification, recapitalization or reorganization of its Common
Stock any shares of capital stock of the Company, then in each such case the
number of shares of Common Stock issuable upon exercise of an Equity Warrant
shall be equitably adjusted so that the Holder of any Equity Warrant thereafter
surrendered for conversion shall be entitled to receive the number of shares of
Common Stock or other capital stock of the Company which such Holder would have
owned or been entitled to receive immediately following such action had such
Equity Warrant been exercised immediately prior to the occurrence of such event.
An adjustment made pursuant to this subsection 4.1(a) shall become effective
immediately after the record date, in the case of a dividend or distribution, or
immediately after the effective date, in the case of a subdivision, combination
or reclassification. If, as a result of an adjustment made pursuant to this
subsection 4.1(a), the Holder of any Equity Warrant thereafter exercised shall
become entitled to receive shares of two or more classes of capital stock or
shares of Common Stock and other capital stock of the Company, the Board of
Directors (whose determination shall be in its good faith judgment and shall be
described in a statement filed by the Company with the Equity Warrant Agent)
shall determine the allocation of the Exercise Price between or among shares of
such classes of capital stock or shares of Common Stock and other capital stock.

                  (b) In case the Company shall issue options, rights or
warrants to holders of its outstanding shares of Common Stock entitling them
(for a period expiring within 45 days after the record date mentioned below) to
subscribe for or purchase shares of Common Stock or other securities convertible
or exchangeable for shares of Common Stock at a price per share of Common Stock
less than the Current Market Price (as determined pursuant to subsection (d) of
this Section 4.1) (other than pursuant to any stock option, restricted stock or
other incentive or benefit plan or stock ownership or purchase plan for the
benefit of employees, directors or officers or any dividend reinvestment plan of
the Company in effect at the time hereof or any other similar plan adopted or
implemented hereafter, it being agreed that none of the adjustments set forth in
this Section 4.1 shall apply to the issuance of stock, rights, warrants or other
property pursuant to such benefit plans), then the number of shares of Common
Stock issuable upon exercise of an Equity Warrant shall be adjusted so that it
shall equal the product obtained by multiplying the number of shares of Common
Stock issuable upon exercise of an Equity Warrant immediately prior to the date
of issuance of such rights or warrants by a fraction of which the numerator
shall be the number of shares of Common Stock outstanding on the date of
issuance of such rights or warrants (immediately prior to such issuance) plus
the number of additional shares of Common Stock offered for subscription or
purchase and of which the denominator shall be the number of shares of Common
Stock outstanding on the date of issuance of such rights or warrants
(immediately prior to such issuance) plus the number of shares which the
aggregate offering price of the total number of shares so offered would purchase
at such Current Market Price. Such adjustment shall be made successively
whenever any rights or warrants are issued, and shall become effective
immediately after the record date for the determination of stockholders entitled
to receive such rights or warrants; PROVIDED, HOWEVER, in the event that all the
shares of Common Stock offered for subscription or purchase are not delivered
upon the exercise of such rights or warrants, upon the expiration of such rights
or warrants the number of shares of Common Stock issuable upon exercise of an
Equity Warrant shall be readjusted to the

                                      -6-
<PAGE>

number of shares of Common Stock issuable upon exercise of an Equity Warrant
which would have been in effect had the numerator and the denominator of the
foregoing fraction and the resulting adjustment been made based upon the number
of shares of Common Stock actually delivered upon the exercise of such rights or
warrants rather than upon the number of shares of Common Stock offered for
subscription or purchase. In determining whether any security covered by this
Section 4.1(b) entitles the holders to subscribe for or purchase shares of
Common Stock at less than such Current Market Price, and in determining the
aggregate offering price of such shares of Common Stock, there shall be taken
into account any consideration received by the Company for the issuance of such
options, rights, warrants or convertible or exchangeable securities, plus the
aggregate amount of additional consideration (as set forth in the instruments
relating thereto) to be received by the Company upon the exercise, conversion or
exchange of such securities, the value of such consideration, if other than
cash, to be determined by the Board of Directors in its good faith judgment
(whose determination shall be described in a statement filed by the Company with
the Equity Warrant Agent).

                  (c) In case the Company shall, by dividend or otherwise,
distribute to all holders of its outstanding Common Stock, evidences of its
indebtedness or assets (including securities and cash, but excluding any regular
periodic cash dividend of the Company and dividends or distributions payable in
stock for which adjustment is made pursuant to subsection (a) of this Section
4.1) or rights or warrants to subscribe for or purchase securities of the
Company (excluding those referred to in subsection (b) of this Section 4.1),
then in each such case the number of shares of Common Stock issuable upon
exercise of an Equity Warrant shall be adjusted so that the same shall equal the
product determined by multiplying the number of shares of Common Stock issuable
upon exercise of an Equity Warrant immediately prior to the record date of such
distribution by a fraction of which the numerator shall be the Current Market
Price as of the Time of Determination, and of which the denominator shall be
such Current Market Price less the Fair Market Value on such record date (as
determined by the Board of Directors in its good faith judgment, whose
determination shall be described in a statement filed by the Company with the
stock transfer or conversion agent, as appropriate) of the portion of the
capital stock or assets or the evidences of indebtedness or assets so
distributed to the holder of one share of Common Stock or of such subscription
rights or warrants applicable to one share of Common Stock. Such adjustment
shall become effective immediately after the record date for the determination
of stockholders entitled to receive such distribution.

                  (d) For the purpose of any computation under subsections (b)
and (c) of this Section 4.1, the "CURRENT MARKET PRICE" per share of Common
Stock on any date shall be deemed to be the average of the daily Closing Prices
for the shorter of (A) 10 consecutive Trading Days ending on the day immediately
preceding the applicable Time of Determination or (B) the period commencing on
the date next succeeding the first public announcement of the issuance of such
rights or warrants or such distribution through such last day prior to the
applicable Time of Determination. For purposes of the foregoing, the term "TIME
OF DETERMINATION" shall mean the time and date of the record date for
determining stockholders entitled to receive the rights, warrants or
distributions referred to in Section 4.1(b) and (c).

                  (e) In any case in which this Section 4.1 shall require that
an adjustment in the amount of Common Stock or other property to be received by
a Holder upon exercise of an Equity Warrant be made effective as of a record
date for a specified event, the Company may

                                      -7-
<PAGE>

elect to defer until the occurrence of such event the issuance to the Holder of
any Equity Warrant exercised after such record date the Common Stock or other
property issuable upon such exercise over and above the shares of Common Stock
issuable upon such exercise prior to such adjustment, PROVIDED, HOWEVER, that
the Company shall deliver to such Holder a due bill or other appropriate
instrument evidencing such Holder's right to receive such additional shares of
Common Stock or other property, if any, upon the occurrence of the event
requiring such adjustment.

                  (f) No adjustment in the number of shares of Common Stock
issuable upon exercise of an Equity Warrant shall be required to be made
pursuant to this Section 4.1 unless such adjustment would require an increase or
decrease of at least 1% of such number; PROVIDED, HOWEVER, that any adjustments
which by reason of this subsection (f) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 4.1(f) shall be made to the nearest cent or to
the nearest 1/1000th of a share, as the case may be. Except as set forth in
subsections 4.1(a), (b), and (c) above, the number of shares of Common Stock
issuable upon exercise of an Equity Warrant shall not be adjusted as a result of
the issuance of Common Stock, or any securities convertible into or exchangeable
for Common Stock or carrying the right to purchase any of the foregoing, in
exchange for cash, property or services.

         4.2. STATEMENT ON WARRANTS. Irrespective of any adjustment in the
amount of Common Stock issued upon exercise of an Equity Warrant, Equity
Warrants theretofore or thereafter issued may continue to express the same
number and kind of shares as are stated in the Equity Warrants initially
issuable pursuant to this Agreement.

         4.3. CASH PAYMENTS IN LIEU OF FRACTIONAL SHARES. No fractional shares
or scrip representing fractions of shares of Common Stock shall be issued upon
exercise of the Equity Warrants. If more than one share of Equity Warrants shall
be exercised at one time by the same Holder, the number of full shares of Common
Stock issuable upon exercise thereof shall be computed on the basis of the
aggregate number of shares of Common Stock issuable. In lieu of any fractional
interest in a share of Common Stock which would otherwise be deliverable upon
the exercise of such Equity Warrants, the Company shall pay to the Holder of
such Equity Warrants an amount in cash (computed to the nearest cent) equal to
the Closing Price on the Exercise Date (or the next Trading Day if such date is
not a Trading Day) multiplied by the fractional interest that otherwise would
have been deliverable upon exercise of such Equity Warrants.

         4.4. NOTICES TO WARRANTHOLDERS. Upon any adjustment of the amount of
Common Stock issuable upon exercise of an Equity Warrant pursuant to Section
4.1 (but not for any fractional cumulation as described in Section 4.1(f)), the
Company within 30 days thereafter shall (i) cause to be filed with the Equity
Warrant Agent an Officer's Certificate (as defined hereinafter) setting forth
the amount of Common Stock issuable upon exercise of an Equity Warrant after
such adjustment and setting forth in reasonable detail the method of calculation
and the facts upon which such calculations are based, which certificate, absent
manifest error and any failure to comply with Section 4.1 (other than failures
that are de minimis in nature), shall be conclusive evidence of the correctness
of the matters set forth therein, and (ii) cause to be

                                      -8-
<PAGE>

given to each of the registered Holders at his address appearing on the Equity
Warrant Register (as defined hereinafter) written notice of such adjustments by
first-class mail, postage prepaid.

                                   ARTICLE 5.

                 OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS
                               OF EQUITY WARRANTS

         5.1. NO RIGHTS AS HOLDER OF COMMON STOCK CONFERRED BY EQUITY WARRANTS
OR EQUITY WARRANT CERTIFICATES. No Equity Warrant or Equity Warrant Certificate
shall entitle the Holder to any of the rights of a holder of Common Stock,
including, without limitation, voting, dividend or liquidation rights.

         5.2. LOST, STOLEN, DESTROYED OR MUTILATED EQUITY WARRANT CERTIFICATES.
Upon receipt by the Company and the Equity Warrant Agent of evidence reasonably
satisfactory to them of the ownership of and the loss, theft, destruction or
mutilation of any Equity Warrant Certificate and of indemnity (other than in
connection with any mutilated Equity Warrant certificates surrendered to the
Equity Warrant Agent for cancellation) reasonably satisfactory to them, the
Company shall execute, and the Equity Warrant Agent shall countersign and
deliver, in exchange for or in lieu of each lost, stolen, destroyed or mutilated
Equity Warrant Certificate, a new Equity Warrant Certificate evidencing a like
number of Equity Warrants of the same title. Upon the issuance of a new Equity
Warrant Certificate under this Section, the Company may require the payment of a
sum sufficient to cover any stamp or other tax or other governmental charge that
may be imposed in connection therewith and any other expenses (including the
fees and expenses of the Equity Warrant Agent) in connection therewith. Every
substitute Equity Warrant Certificate executed and delivered pursuant to this
Section in lieu of any lost, stolen or destroyed Equity Warrant Certificate
shall represent a contractual obligation of the Company, whether or not such
lost, stolen or destroyed Equity Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to the benefits of this Agreement
equally and proportionately with any and all other Equity Warrant Certificates,
duly executed and delivered hereunder, evidencing Equity Warrants of the same
title. The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement of
lost, stolen, destroyed or mutilated Equity Warrant Certificates.

         5.3. HOLDERS OF EQUITY WARRANTS MAY ENFORCE RIGHTS. Notwithstanding any
of the provisions of this Agreement, any Holder may, without the consent of the
Equity Warrant Agent, enforce and may institute and maintain any suit, action or
proceeding against the Company suitable to enforce, or otherwise in respect of
his right to exercise his Equity Warrants as provided in the Equity Warrants and
in this Agreement.

         5.4. CONSOLIDATION OR MERGER OR SALE OF ASSETS. For purposes of this
Section 5.4, a "SALE TRANSACTION" means any transaction or event, including any
merger, consolidation, sale of assets, tender or exchange offer,
reclassification, compulsory share exchange or liquidation, in which all or
substantially all outstanding shares of the Company's Common Stock are converted
into or exchanged for stock, other securities, cash or assets or following which
any remaining outstanding shares of Common Stock fail to meet the listing
standards imposed by each of the New York Stock Exchange, the American Stock
Exchange and the Nasdaq National Market at

                                      -9-
<PAGE>

the time of such transaction, but shall not include any transaction the primary
purpose of which is the reincorporation of the Company in another U.S.
jurisdiction so long as in such transaction each share of Convertible Preferred
Stock shall convert into an equity security of the successor to the Company
having identical rights as the Equity Warrant. If a Sale Transaction occurs,
then lawful provision shall be made by the corporation formed by such Sale
Transaction or the corporation whose securities, cash or other property will
immediately after the Sale Transaction be owned, by virtue of such Sale
Transaction, by the holders of Common Stock immediately prior to the Sale
Transaction, or the corporation which shall have acquired such securities of the
Company (collectively the "FORMED, SURVIVING OR ACQUIRING CORPORATION"), as the
case may be, providing that each Equity Warrant then outstanding shall
thereafter be exercisable for the kind and amount of securities, cash or
other property receivable upon such Sale Transaction by a holder of the
number of shares of Common Stock that would have been received upon exercise
of such Equity Warrant immediately prior to such Sale Transaction assuming
such holder of Common Stock did not exercise his rights of election, if any,
as to the kind or amount of securities, cash or other property receivable
upon such Sale Transaction (provided that, if the kind or amount of
securities, cash or other property receivable upon such Sale Transaction is
not the same for each share of Common Stock in respect of which such rights
of election shall not have been exercised ("NON-ELECTING SHARE"), then for
the purposes of this Section 5.4 the kind and amount of securities, cash or
other property receivable upon such Sale Transaction for each Non-Electing
Share shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-Electing Shares). At the option of USA, in lieu of the
foregoing, USA may require that in a Sale Transaction each Holder of an
Equity Warrant shall receive in exchange for each such Equity Warrant a
security of the Formed, Surviving or Acquiring Corporation having
substantially equivalent rights, other than as set forth in this Section 5.4,
as the Equity Warrant. Notwithstanding anything to the contrary herein, there
will be no adjustments pursuant to Article 4 hereof in case of the issuance
of any shares of our stock in a Sale Transaction except as provided in this
Section 5.4. The provisions of this Section 5.4 shall similarly apply to
successive Sale Transactions; PROVIDED, HOWEVER, that in no event shall a
Holder of an Equity Warrant be entitled to more than one adjustment pursuant
to this Section 5.4 in respect of a series of related transactions.

                                   ARTICLE 6.

                    EXCHANGE AND TRANSFER OF EQUITY WARRANTS

         6.1. EQUITY WARRANT REGISTER; EXCHANGE AND TRANSFER OF EQUITY WARRANTS.
The Equity Warrant Agent shall maintain, at its corporate trust office or at 385
Rifle Camp Road, Reorganization Services Department, 5th Floor, West Paterson,
New Jersey 07424, a register (the "EQUITY WARRANT REGISTER") in which, upon the
issuance of Equity Warrants, and, subject to such reasonable regulations as the
Equity Warrant Agent may prescribe, it shall register Equity Warrant
Certificates and exchanges and transfers thereof. The Equity Warrant Register
shall be in written form or in any other form capable of being converted into
written form within a reasonable time.

                  Except as provided in the following sentence, upon surrender
at the corporate trust office of the Equity Warrant Agent or at 385 Rifle Camp
Road, Reorganization Services Department, 5th Floor, West Paterson, New Jersey
07424, Equity Warrant Certificates may be

                                      -10-
<PAGE>

exchanged for one or more other Equity Warrant Certificates evidencing the same
aggregate number of Equity Warrants of the same title, or may be transferred in
whole or in part. A transfer shall be registered and an appropriate entry made
in the Equity Warrant Register upon surrender of an Equity Warrant Certificate
to the Equity Warrant Agent at its corporate trust office or at 385 Rifle Camp
Road, Reorganization Services Department, 5th Floor, West Paterson, New Jersey
07424 for transfer, properly endorsed or accompanied by appropriate instruments
of transfer and written instructions for transfer, all in form satisfactory to
the Company and the Equity Warrant Agent. Whenever an Equity Warrant Certificate
is surrendered for exchange or transfer, the Equity Warrant Agent shall
countersign and deliver to the person or person entitled thereto one or more
Equity Warrant Certificates duly executed by the Company, as so requested. The
Equity Warrant Agent shall not be required to effect any exchange or transfer
which will result in the issuance of an Equity Warrant Certificate evidencing a
fraction of an Equity Warrant. All Equity Warrant Certificates issued upon any
exchange or transfer of an Equity Warrant Certificate shall be the valid
obligations of the Company, evidencing the same obligations, and entitled to the
same benefits under this Agreement, as the Equity Warrant Certificate
surrendered for such exchange or transfer.

                  No service charge shall be made for any exchange or transfer
of Equity Warrants, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any such exchange or transfer, in accordance with Section 2.5 hereof.

         6.2. TREATMENT OF HOLDERS OF EQUITY WARRANTS. Every Holder of an Equity
Warrant, by accepting the Equity Warrant Certificate evidencing the same,
consents and agrees with the Company, the Equity Warrant Agent and with every
other Holder of Equity Warrants that the Company and the Equity Warrant Agent
may treat the record holder of an Equity Warrant Certificate as the absolute
owner of such Equity Warrant for all purposes and as the person entitled to
exercise the rights represented by such Equity Warrant.

         6.3. CANCELLATION OF EQUITY WARRANT CERTIFICATES. In the event that the
Company shall purchase, redeem or otherwise acquire any Equity Warrants after
the issuance thereof, the Equity Warrant Certificate shall thereupon be
delivered to the Equity Warrant Agent and be canceled by it. The Equity Warrant
Agent shall also cancel any Equity Warrant Certificate (including any mutilated
Equity Warrant Certificate) delivered to it for exercise, in whole or in part,
or for exchange or transfer. Equity Warrant Certificates so canceled shall be
delivered by the Equity Warrant Agent to the Company from time to time, or
disposed of in accordance with the instructions of the Company.

                                   ARTICLE 7.

                       CONCERNING THE EQUITY WARRANT AGENT

         7.1. EQUITY WARRANT AGENT. The Company hereby appoints The Bank of New
York as Equity Warrant Agent of the Company in respect of the Equity Warrants
upon the terms and subject to the conditions set forth herein; and The Bank of
New York hereby accepts such appointment. The Equity Warrant Agent shall have
the powers and authority granted to and conferred upon it in the Equity Warrant
Certificates and hereby and such further powers and

                                      -11-
<PAGE>

authority acceptable to it to act on behalf of the Company as the Company may
hereafter grant to or confer upon it. All of the terms and provisions with
respect to such powers and authority contained in the Equity Warrant
Certificates are subject to and governed by the terms and provisions hereof.

         7.2. CONDITIONS OF EQUITY WARRANT AGENT'S OBLIGATIONS. The Equity
Warrant Agent accepts its obligations set forth herein upon the terms and
conditions hereof, including the following, to all of which the Company agrees
and to all of which the rights hereunder of the Holders shall be subject:

                  (a) COMPENSATION AND INDEMNIFICATION. The Company agrees to
         pay the Equity Warrant Agent from time to time such compensation for
         its services as the Company and the Equity Warrant shall agree in
         writing and to reimburse the Equity Warrant Agent for reasonable
         out-of-pocket expenses (including reasonable counsel fees) incurred by
         the Equity Warrant Agent in connection with the services rendered
         hereunder by the Equity Warrant Agent. The Company also agrees to
         indemnify the Equity Warrant Agent for, and to hold it harmless
         against, any loss, liability or expenses (including the reasonable
         costs and expense of defending against any claim of liability) incurred
         without negligence or bad faith on the part of the Equity Warrant Agent
         arising out of or in connection with its appointment as Equity Warrant
         Agent hereunder.

                  (b) AGENT FOR THE COMPANY. In acting under this Agreement and
         in connection with any Equity Warrant Certificate, the Equity Warrant
         Agent is acting solely as agent of the Company and does not assume any
         obligation or relationship of agency or trust for or with any Holder.

                  (c) COUNSEL. The Equity Warrant Agent may consult with counsel
         reasonably satisfactory to it, and the advice of such counsel shall be
         full and complete authorization and protection in respect of any action
         taken, suffered or omitted by it hereunder in good faith and in
         accordance with the advice of such counsel.

                  (d) DOCUMENTS. The Equity Warrant Agent shall be protected and
         shall incur no liability for or in respect of any action taken,
         suffered or omitted by it in reliance upon any notice, direction,
         consent, certification, affidavit, statement or other paper or document
         reasonably believed by it to be genuine and to have been presented or
         signed by the proper parties.

                  (e) OFFICER'S CERTIFICATE. Whenever in the performance of its
         duties hereunder the Equity Warrant Agent shall reasonably deem it
         necessary that any fact or matter be proved or established by the
         Company prior to taking, suffering or omitting any action hereunder,
         the Equity Warrant Agent may (unless other evidence in respect thereof
         be herein specifically prescribed), in the absence of bad faith on its
         part, rely upon a certificate signed by the Chairman, the Vice
         Chairman, the Chief Executive Officer, the President, a Vice President,
         the Treasurer, and Assistant Treasurer, the Secretary or an Assistant
         Secretary of the Company (an "OFFICER'S CERTIFICATE") delivered by the
         Company to the Equity Warrant Agent.

                                      -12-
<PAGE>

                  (f) ACTIONS THROUGH AGENTS. The Equity Warrant Agent may
         execute and exercise any of the rights or powers hereby vested in it or
         perform any duty hereunder either itself or by or through its attorneys
         or agents, provided, however, that reasonable care shall be exercised
         in the selection and continued employment of such attorneys and agents.

                  (g) CERTAIN TRANSACTIONS. The Equity Warrant Agent, and any
         officer, director or employee thereof, may become the owner of, or
         acquire interest in, any Equity Warrant, with the same rights that he,
         she or it would have if it were not the Equity Warrant Agent, and, to
         the extent permitted by applicable law, he, she or it may engage or be
         interested in any financial or other transaction with the Company and
         may serve on, or as depositary, trustee or agent for, any committee or
         body of holders of any obligations of the Company as if it were not the
         Equity Warrant Agent.

                  (h) NO LIABILITY FOR INTEREST. The Equity Warrant Agent shall
         not be liable for interest on any monies at any time received by it
         pursuant to any of the provisions of this Agreement or of the Equity
         Warrant Certificates, except as otherwise agreed with the Company.

                  (i) NO LIABILITY FOR INVALIDITY. The Equity Warrant Agent
         shall incur no liability with respect to the validity of this Agreement
         (except as to the due execution hereof by the Equity Warrant Agent) or
         any Equity Warrant Certificate (except as to the countersignature
         thereof by the Equity Warrant Agent).

                  (j) NO RESPONSIBILITY FOR COMPANY REPRESENTATIONS. The Equity
         Warrant Agent shall not be responsible for any of the recitals or
         representations contained herein (except as to such statements or
         recitals as describe the Equity Warrant Agent or action taken or to be
         taken by it) or in any Equity Warrant Certificate (except as to the
         Equity Warrant Agent's countersignature on such Equity Warrant
         Certificate), all of which recitals and representations are made solely
         by the Company.

                  (k) NO IMPLIED OBLIGATIONS. The Equity Warrant Agent shall be
         obligated to perform only such duties as are specifically set forth
         herein, and no other duties or obligations shall be implied. The Equity
         Warrant Agent shall not be under any obligation to take any action
         hereunder that may subject it to any expense or liability, the payment
         of which within a reasonable time is not, in its reasonable opinion,
         assured to it. The Equity Warrant Agent shall not be accountable or
         under any duty or responsibility for the use by the Company of any
         Equity Warrant Certificate countersigned by the Equity Warrant Agent
         and delivered by it to the Company pursuant to this Agreement or for
         the application by the Company of the proceeds of the issuance or
         exercise of Equity Warrants. The Equity Warrant Agent shall have no
         duty or responsibility in case of any default by the Company in the
         performance of its covenants or agreements contained herein or in any
         Equity Warrant Certificate or in case of the receipt of any written
         demand from a Holder with respect to such default, including, without
         limiting the generality of the foregoing, any duty or responsibility to
         initiate or attempt to initiate any proceedings at law or otherwise or,
         except as provided in Section 8.2 hereof, to make any demand upon the
         Company.

                                      -13-
<PAGE>

         7.3. COMPLIANCE WITH APPLICABLE LAWS. The Equity Warrant Agent agrees
to comply with all applicable federal and state laws imposing obligations on it
in respect of the services rendered by it under this Agreement and in connection
with the Equity Warrants, including (but not limited to) the provisions of
United States federal income tax laws regarding information reporting and backup
withholding. The Equity Warrant Agent expressly assumes all liability for its
failure to comply with any such laws imposing obligations on it, including (but
not limited to) any liability for failure to comply with any applicable
provisions of United States federal income tax laws regarding information
reporting and backup withholding.

         7.4. RESIGNATION AND APPOINTMENT OF SUCCESSOR.

                  (a) The Company agrees, for the benefit of the Holders of the
Equity Warrants, that there shall at all times be an Equity Warrant Agent
hereunder until all the Equity Warrants are no longer exercisable.

                  (b) The Equity Warrant Agent may at any time resign as such
agent by giving written notice to the Company of such intention on its part,
specifying the date on which its desired resignation shall become effective,
subject to the appointment of a successor Equity Warrant Agent and acceptance of
such appointment by such successor Equity Warrant Agent, as hereinafter
provided. The Equity Warrant Agent hereunder may be removed at any time by the
filing with it of an instrument in writing signed by or on behalf of the Company
and specifying such removal and the date when it shall become effective. Such
resignation or removal shall take effect upon the appointment by the Company, as
hereinafter provided, of a successor Equity Warrant Agent (which shall be a
banking institution organized under the laws of the United States of America, or
one of the states thereof and having an office or an agent's office in the
Borough of Manhattan, the City of New York) and the acceptance of such
appointment by such successor Equity Warrant Agent. In the event a successor
Equity Warrant Agent has not been appointed and has not accepted its duties
within 90 days of the Equity Warrant Agent's notice of resignation, the Equity
Warrant Agent may apply to any court of competent jurisdiction for the
designation of a successor Equity Warrant Agent.

                  (c) In case at any time the Equity Warrant Agent shall resign,
or shall be removed, or shall become incapable of acting, or shall be adjudged
bankrupt or insolvent, or make an assignment for the benefit of its creditors or
consent to the appointment of a receiver or custodian of all or any substantial
part of its property, or shall admit in writing its inability to pay or meet its
debts as they mature, or if a receiver or custodian of it or all or any
substantial part of its property shall be appointed, or if any public officer
shall have taken charge or control of the Equity Warrant Agent or of its
property or affairs, for the purpose of rehabilitation, conservation or
liquidation, a successor Equity Warrant Agent, qualified as aforesaid, shall be
appointed by the Company by an instrument in writing, filed with the successor
Equity Warrant Agent. Upon the appointment as aforesaid of a successor Equity
Warrant Agent and acceptance by the latter of such appointment, the Equity
Warrant Agent so superseded shall cease to be the Equity Warrant Agent
hereunder.

                  (d) Any successor Equity Warrant Agent appointed hereunder
shall execute, acknowledge and deliver to its predecessor and to the Company an
instrument accepting such appointment hereunder, and thereupon such successor
Equity Warrant Agent, without any further

                                      -14-
<PAGE>

act, deed or conveyance, shall become vested with all the authority, rights,
powers, trusts, immunities, duties and obligations of such predecessor with like
effect as if originally named as Equity Warrant Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then unpaid, shall
thereupon become obligated to transfer, deliver and pay over, and such successor
Equity Warrant Agent shall be entitled to receive all moneys, securities and
other property on deposit with or held by such predecessor, as Equity Warrant
Agent hereunder.

                  (e) Any corporation into which the Equity Warrant Agent
hereunder may be merged or converted or any corporation with which the Equity
Warrant Agent may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Equity Warrant Agent shall be a party,
or any corporation to which the Equity Warrant Agent shall sell or otherwise
transfer all or substantially all of the assets and business of the Equity
Warrant Agent, provided that it shall be qualified as aforesaid, shall be the
successor Equity Warrant Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

                                   ARTICLE 8.

                                  MISCELLANEOUS

         8.1. AMENDMENT.

                  (a) This Agreement and the Equity Warrants may be amended by
the Company and the Equity Warrant Agent, without the consent of the Holders of
Equity Warrants, for the purpose of curing any ambiguity, or of curing,
correcting or supplementing any defective or inconsistent provision contained
herein or therein or in any other manner which the Company may deem to be
necessary or desirable and which will not materially and adversely affect the
interests of the Holders of the Equity Warrants.

                  (b) The Company and the Equity Warrant Agent may modify or
amend this Agreement and the Equity Warrant Certificates with the consent of the
Holders of not fewer than a majority in number of the then outstanding
unexercised Equity Warrants affected by such modification or amendment, for any
purpose; PROVIDED, HOWEVER, that no such modification or amendment that shortens
the period of time during which the Equity Warrants may be exercised, or
increases the per share Exercise Price, or otherwise materially and adversely
affects the exercise rights of the holders or reduces the percentage of holders
of outstanding Equity Warrants the consent of which is required for modification
or amendment of this Agreement or the Equity Warrants, may be made without the
consent of each Holder affected thereby.

         8.2. NOTICES AND DEMANDS TO THE COMPANY AND EQUITY WARRANT AGENT. If
the Equity Warrant Agent shall receive any notice or demand addressed to the
Company by any Holder pursuant to the provisions of the Equity Warrant
Certificate, the Equity Warrant Agent shall promptly forward such notice or
demand to the Company.

         8.3. ADDRESSES FOR NOTICES. Any communications from the Company to the
Equity Warrant Agent with respect to this Agreement shall be addressed to The
Bank of New York, 385 Rifle Camp Road, Reorganization Services Department, 5th
Floor, West Paterson, New Jersey

                                      -15-
<PAGE>

07424; any communications from the Equity Warrant Agent to the Company with
respect to this Agreement shall be addressed to USA Networks, Inc., 152 West
57th Street, New York, NY 10019, Attention: General Counsel; or such other
addresses as shall be specified in writing by the Equity Warrant Agent or by the
Company.

         8.4. GOVERNING LAW. This Agreement and the Equity Warrants shall be
governed by the laws of the State of New York applicable to contracts made and
to be performed entirely within such state.

         8.5. GOVERNMENTAL APPROVALS. The Company will from time to time use all
reasonable efforts to obtain and keep effective any and all permits, consents
and approvals of governmental agencies and authorities and the national
securities exchange on which the Equity Warrants may be listed or authorized for
trading from time to time and filings under the United States federal and state
laws, which may be or become requisite in connection with the issuance, sale,
trading, transfer or delivery of the Equity Warrants, and the exercise of the
Equity Warrants.

         8.6. RESERVATION OF SHARES OF COMMON STOCK. The Company covenants that
it will at all times reserve and keep available, free from preemptive rights
(other than such rights as do not affect the ownership of shares issued to a
Holder), out of the aggregate of its authorized but unissued shares of Common
Stock or its issued shares of Common Stock held in its treasury, or both, for
the purpose of effecting exercises of Equity Warrants, the full number of shares
of Common Stock deliverable upon the exercise of all outstanding Equity Warrants
not theretofore exercised and on or before taking any action that would cause an
adjustment resulting in an increase in the number of shares of Common Stock
deliverable upon exercise above the number thereof previously reserved and
available therefor, the Company shall take all such action so required. For
purposes of this Section 8.6, the number of shares of Common Stock which shall
be deliverable upon the exercise of all outstanding Equity Warrants shall be
computed as if at the time of computation all outstanding Equity Warrants were
held by a single holder. Before taking any action which would cause an
adjustment reducing the price per share of Common Stock issued upon exercise of
the Equity Warrants below the then par value (if any) of such shares of Common
Stock, the Company shall take any corporate action which may, in the opinion of
its counsel, be necessary in order that the Company may validly and legally
issue fully paid and non-assessable shares of Common Stock at such Exercise
Price.

         8.7. COVENANT REGARDING SHARES OF COMMON STOCK. All shares of Common
Stock which may be delivered upon exercise of the Equity Warrants will upon
delivery be duly and validly issued and fully paid and non-assessable, free of
all liens and charges and not subject to any preemptive rights (other than
rights which do not affect the Holder's right to own the shares of Common Stock
to be issued), and prior to the Exercise Date the Company shall take any
corporate action necessary therefor. The issuance of all such shares of Common
Stock shall, to the extent permitted by law, be registered under the Securities
Act of 1933, as amended.

         8.8. PERSONS HAVING RIGHTS UNDER AGREEMENT. Nothing in this Agreement
expressed or implied and nothing that may be inferred from any of the provisions
hereof is intended, or shall be construed, to confer upon, or give to, any
person or corporation other than the Company, the Equity Warrant Agent and the
Holders any right, remedy or claim under or by reason of this

                                      -16-
<PAGE>

Agreement or of any covenant, condition, stipulation, promise or agreement
hereof; and all covenants, conditions, stipulations, promises and agreements in
this Agreement contained shall be for the sole and exclusive benefit of the
Company and the Equity Warrant Agent and their successors and of the Holders of
Equity Warrant Certificates.

         8.9. DELIVERY OF PROSPECTUS. The Company will furnish to the Equity
Warrant Agent sufficient copies of a prospectus or prospectuses relating to the
Common Stock deliverable upon exercise of any outstanding Equity Warrants (each
a "PROSPECTUS"), and the Equity Warrant Agent agrees to deliver to the Holder of
the Equity Warrant, prior to or concurrently with the delivery of the Common
Stock issued upon the exercise thereof, a copy of the Prospectus relating to
such Common Stock.

         8.10. HEADINGS. The descriptive headings of the several Articles and
Sections and the Table of Contents of this Agreement are for convenience only
and shall not control or affect the meaning or construction of any of the
provisions hereof.

         8.11. COUNTERPARTS. This Agreement may be executed by the parties
hereto in any number of counterparts, each of which when so executed and
delivered shall be deemed to be an original; but all such counterparts shall
together constitute but one and the same instrument.

         8.12. INSPECTION OF AGREEMENT. A copy of this Agreement shall be
available at all reasonable times at the principal corporate trust office of the
Equity Warrant Agent, for inspection by the Holders of Equity Warrants.

                                      -17-

<PAGE>

                IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed, all as of the day and year first above written.

                                             USA NETWORKS, INC.

                                             By
                                                 -------------------------------

                                                 -------------------------------
                                                  [Printed Name and Title]

Attest:

Name:
         ------------------------------------

Title:
         ------------------------------------

                                             -----------------------------------
                                             The Bank of New York

                                             By
                                                 -------------------------------

                                                 -------------------------------
                                                  [Printed Name and Title]

Attest:

Name:
         ------------------------------------

Title:
         ------------------------------------

                                      -18-
<PAGE>

                                                                       EXHIBIT A

                                    SPECIMEN

                                               CUSIP

                                      FACE

No. W __                                           Equity Warrants

                           EQUITY WARRANT CERTIFICATE
                               USA NETWORKS, INC.

                  This Warrant Certificate certifies that ______________________
_____________________________________________________________________________,
or registered assigns, is the registered Holder of Equity Warrants (the "Equity
Warrants") to purchase Common Stock, par value $0.01 per share, of USA Networks,
Inc., a Delaware corporation (the "Company"). Each Equity Warrant entitles the
Holder to purchase from the Company one fully paid and non-assessable share of
Common Stock, par value $0.01 per share, of the Company ("Common Stock") at any
time on or before 5:00 p.m. New York City time ___________, 2008, at the
exercise price (the "Exercise Price") of $35.10 payable in lawful money of the
United States of America upon surrender of this Equity Warrant Certificate and
payment of the Exercise Price at the office or agency of the Warrant Agent in
the City of New York, the State of New York, upon such conditions set forth
herein and in the Equity Warrant Agreement (as hereinafter defined). Payment of
the Exercise Price must be made in lawful money of the United States of America,
in cash or by certified check or bank draft or bank wire transfer payable to the
order of the Company. The number of Shares which may be purchasable upon
exercise of the Equity Warrants is subject to adjustment upon the occurrence of
certain events set forth in the Equity Warrant Agreement.

                  By acceptance of this Equity Warrant Certificate, each Holder
agrees to be bound by the terms of the Equity Warrant Agreement.

                  Reference is hereby made to the further provisions of this
Equity Warrant Certificate set forth on the reverse hereof and such further
provisions shall for all purposes have the same effect as though fully set forth
at this place. Capitalized defined terms used herein have the same meaning as in
the Equity Warrant Agreement.

                  This Equity Warrant Certificate shall not be valid unless
countersigned by the Equity Warrant Agent, as such term is used in the Equity
Warrant Agreement.

<PAGE>

                  IN WITNESS WHEREOF, USA Networks, Inc. has caused this Equity
Warrant Certificate to be duly executed under its corporate seal.

                                                 USA NETWORKS, INC.

                                                 By:
                                                       -------------------------

Attest:

----------------------------

Countersigned:

The Bank of New York, as Equity Warrant Agent

By
  --------------------------------
      Authorized Signature

                                      -2-
<PAGE>

                                     REVERSE

                           EQUITY WARRANT CERTIFICATE

                               USA NETWORKS, INC.

                  The Equity Warrants evidenced by this Equity Warrant
Certificate are part of a duly authorized issue of Equity Warrants issued
pursuant to a Warrant Agreement dated as of ___________, 2001 (the "Equity
Warrant Agreement"), duly executed and delivered by the Company to The Bank of
New York (the "Equity Warrant Agent"), which Equity Warrant Agreement is hereby
incorporated by reference in and made a part of this instrument and is hereby
referred to for a description of the rights, limitation of rights, obligations,
duties and immunities thereunder of the Equity Warrant Agent, the Company and
the Holders (the words "Holders" or "Holder" meaning the registered Holders or
registered Holder) of the Equity Warrants.

                  Equity Warrants may be exercised to purchase shares of Common
Stock of the Company, par value $.01 per share ("Common Stock") upon such terms
and conditions as are set forth in the Equity Warrant Agreement at any time on
or before 5:00 p.m. New York City time on __________, 2008, at the Exercise
Price set forth on the face hereof. The Holder of Equity Warrants evidenced by
this Equity Warrant Certificate may exercise them by surrendering the Equity
Warrant Certificate, with the form of election to purchase set forth hereon
properly completed and executed, together with payment of the Exercise Price at
the office of the Equity Warrant Agent in the City of New York in the State of
New York. In the event that upon any exercise of Equity Warrants evidenced
hereby the number of Equity Warrants exercised shall be less than the total
number of Equity Warrants evidenced hereby, there shall be issued to the Holder
hereof or his assignee a new Equity Warrant Certificate evidencing the number of
Equity Warrants not exercised. Nothing contained in the Equity Warrant Agreement
or in this Equity Warrant Certificate shall be construed as conferring upon the
Holders thereof the right to vote, to receive dividends or other distributions,
to exercise any preemptive right or to consent or to receive notice as
shareholders in respect of meetings of shareholders for the election of
Directors of the Company or any other matter, or any other rights whatsoever as
shareholders of the Company.

                  The Equity Warrant Agreement provides that upon the occurrence
of certain events, the number of shares of Common Stock issuable upon exercise
of an Equity Warrant may, subject to certain conditions, be adjusted.

                  Equity Warrant Certificates, when surrendered at the office of
the Equity Warrant Agent in the City of New York in the State of New York by the
registered Holder thereof in person or by a legal representative duly authorized
in writing or by registered mail, return receipt requested, may be exchanged, in
the manner and subject to the limitations provided in the Equity Warrant
Agreement, but without payment of any service charge, for another Equity Warrant
Certificate or Equity Warrant Certificates of like tenor evidencing in the
aggregate a like number of Equity Warrants and registered in the name of such
registered Holder.

<PAGE>

                  Upon due presentment for registration of transfer of this
Equity Warrant Certificate at the office of the Equity Warrant Agent in the City
of New York in the State of New York or by registered mail, return receipt
requested, a new Equity Warrant Certificate or Equity Warrant Certificates of
like tenor and evidencing in the aggregate a like number of Equity Warrants
shall be issued to the transferee(s) in exchange for this Equity Warrant
Certificate, subject to the limitations provided in the Equity Warrant
Agreement, without charge except for any tax or other governmental charge
imposed in connection therewith.

                  The Company and the Equity Warrant Agent may deem and treat
the registered Holder(s) hereof as the absolute owner(s) of this Equity Warrant
Certificate (notwithstanding any notation of ownership or other writing hereon
made by anyone), for the purpose of any exercise hereof, and of any distribution
to the Holder(s) hereof, and for all other purposes, and neither the Company nor
the Equity Warrant Agent shall be affected by any notice (other than a duly
presented registration of transfer in accordance with the previous paragraph) to
the contrary and shall not be bound to recognize any equitable or other claim to
or interest in such Equity Warrant on the part of any other person.

                                       -2-
<PAGE>

                               USA NETWORKS, INC.

                              ELECTION TO PURCHASE

USA NETWORKS, INC.
152 West 57th Street
New York, NY 10019

         The undersigned hereby irrevocably elects to exercise the right of
purchase represented by this Equity Warrant Certificate for ________ Equity
Warrants, and to purchase thereunder the shares of Common Stock (the "Shares")
provided for therein, and requests that certificates for the Shares be issued in
the name of:

             (Please Print Name, Address and Social Security Number)

If said number of Equity Warrants to be exercised shall not be all of the Equity
Warrants evidenced by this Equity Warrant Certificate, the undersigned requests
that a new Equity Warrant Certificate for the balance of the Equity Warrants be
registered in the name of the undersigned or his Assignee as below indicated and
delivered to the address stated below:

         Dated:  ________________, 200_

         Name of Equity Warrant Holder or
            Assignee (Please Print): ___________________________________________

         Address: ______________________________________________________________

         Signature: ____________________________________________________________
                      (Signature must conform to name of Holder as specified on
                       the face of the Equity Warrant Certificate)

         Signature Guaranteed:    _____________________________________
                                    Signature of Guarantor

<PAGE>

                                   ASSIGNMENT

                    (To be executed by the registered Holder
                       if such Holder desires to transfer
                                Equity Warrants.)

   FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

            --------------------------------------------------------
                     (Print name and address of transferee)

______ Equity Warrants, evidenced by this Equity Warrant Certificate, together
with all right, title and interest therein, and does hereby irrevocably
constitute and appoint ______________________________ Attorney, to transfer the
within Equity Warrant Certificate on the books of the Company, with full power
of substitution. If said number of Equity Warrants to be transferred shall not
be all of the Equity Warrants evidenced by this Equity Warrant Certificate, the
assignor and assignee agree that such Attorney shall submit this Equity Warrant
Certificate to the Company and request that New Equity Warrant Certificates for
the applicable number of Equity Warrants be registered in the names of the
undersigned as below indicated and delivered to the addresses below:

Dated:

                                      Signature:
-------------------------------                  -------------------------------
(Insert Social Security or                       (Signature must conform to name
Identifying Number of                            of holder as specified on the
 Assignee)                                       face of the Equity Warrant
                                                 Certificate)

Address of Assignor (if necessary):
                                    ----------------------------------------

Address of Assignee (if necessary):
                                    ----------------------------------------

Signature Guaranteed:

-----------------------------------
     Signature of Guarantor<Page>

                                                                    EXHIBIT 10.1

                                     FORM OF

                          REGISTRATION RIGHTS AGREEMENT

      REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of December
[__], 2001, by and between Expedia, Inc., a Washington corporation (the
"COMPANY"), and USA Networks, Inc., a Delaware corporation ("USA").

                              W I T N E S S E T H:

      WHEREAS, USA, the Company, Taipei, Inc., a wholly owned subsidiary of USA
("MERGER SUB"), Microsoft Corporation and Microsoft E Holdings, Inc., have
entered into the Amended and Restated Agreement and Plan of Recapitalization and
Merger, dated as of July 15, 2001 (the "MERGER AGREEMENT"), providing for, among
other things, the Transactions on the terms and subject to the conditions set
forth therein (capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to such terms in the Merger Agreement);

      WHEREAS, pursuant to Section 8.15 of the Merger Agreement, the Company has
agreed to grant to USA the registration rights set forth herein with respect to
the Registrable Securities (as defined herein);

      NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration given to each party hereto, the receipt of which is
hereby acknowledged, the parties agree as follows:

1.    REGISTRATION RIGHTS

1.1   DEFINITIONS

      For purposes of this Agreement, the following terms have the following
meanings:

      "COMPANY CLASS B COMMON STOCK" means shares of Company Class B common
stock, par value $.01 per share, of the Company;

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

      "SECURITIES ACT" means the Securities Act of 1933, as amended.

      "FORM S-3" means such form under the Securities Act as in effect on the
date hereof or any registration form under the Securities Act subsequently
adopted by the SEC that similarly permits inclusion or incorporation of
substantial information by reference to other documents filed by the Company
with the SEC.

      "HOLDER" means USA, any controlled subsidiary of USA or any person who is
added as a party pursuant to the terms of this Agreement, and any assignee
thereof. USA and any

<Page>

subsequent Holder under this Agreement shall be set forth on SCHEDULE A to this
Agreement (except in the case of any controlled subsidiary of USA).

      "LOSSES" have the meaning assigned to that term in Section 1.9(a).

      "REGISTER," "REGISTERED," and "REGISTRATION" refer to a registration
effected by preparing and filing a registration statement in compliance with the
Securities Act and the declaration or order of effectiveness of such
registration statement or document.

      "REGISTRABLE SECURITIES" means (i) the Company Class B Common Stock, (ii)
any common stock or other securities of the Company acquired from the Company
following the date hereof that are or become publicly listed on a national
securities exchange or quoted on the Nasdaq National Market, and (iii) any
common stock or other securities of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued
as) a dividend or other distribution with respect to, or in exchange for or in
replacement of, any of the securities described under clauses (i) or (ii), in
each case owned by a Holder and excluding in all cases, however, any Registrable
Securities sold by a person in a transaction in which its rights under this
Agreement are not assigned.

      "SEC" means the Securities and Exchange Commission.

      "VIOLATION" has the meaning assigned to that term in Section 1.9(a).

1.2   REQUEST FOR REGISTRATION

      (a) If the Company shall receive at any time a written request from USA
(and/or other Holders that have been assigned registration rights in accordance
with the terms hereof) that the Company file a registration statement (a
"Registration Statement") under the Securities Act covering the registration of
the Registrable Securities at an aggregate proposed offering price (before
deduction of underwriting discounts and commissions) of at least $50,000,000 (or
if USA or the Holder requesting registration owns Registrable Securities
aggregating to less than $50,000,000, all Registrable Securities then owned by
USA or such Holder, provided in the case of a Holder other than USA, that such
requesting Holders in the aggregate represent at least 30% of the
then-outstanding Registrable Securities owned by all Holders), then the Company
shall, within 20 days after the receipt of such request, give written notice of
such request to all other Holders, if any, and shall, subject to the limitations
set forth below, use its reasonable best efforts to effect as soon as
practicable the registration under the Securities Act of all Registrable
Securities that USA and/or the other Holders, if any, request to be registered
in a written request to be given within 20 days of the mailing of such notice by
the Company. The Company shall use its reasonable best efforts to keep the
Registration Statement continuously effective for the period beginning on the
date on which the Registration Statement is declared effective and ending on the
earlier of (i) the first date that there are no Registrable Securities covered
by such Registration Statement, and (ii) the first anniversary thereof. During
the period during which the Registration Statement is effective, the Company
shall supplement or make amendments to the Registration Statement, if required
by the Securities Act or if reasonably requested by USA or any underwriter of
Registrable Securities, including to reflect any specific plan of distribution
or method of sale, and shall use its reasonable best efforts to have such
supplements and amendments declared effective, if required, as soon as
practicable after filing; PROVIDED, that the

<Page>

Company may suspend the effectiveness of such Registration Statement (for up to
90 days in any 12-month period) if and for so long as the Board of Directors of
the Company determines that such registration would require premature disclosure
of material information relating to a pending corporate development. If the
Company makes the determination contained in the proviso of the preceding
sentence, an executive officer of the Company shall certify such conclusion in
writing to USA, providing a reasonable explanation of the basis therefor.
Nothing herein shall be interpreted as affecting the right of the Holder to sell
all or any Registrable Shares in compliance with Rule 144 or 145.

      (b) The Company shall not be obligated to effect more than one
registration under this Section 1.2 in any 12-month period.

1.3   COMPANY REGISTRATION

      If the Company proposes to register (including for this purpose a
registration effected by the Company for shareholders other than the Holders)
any of its common stock or other securities under the Securities Act in
connection with the public offering of such securities solely for cash (other
than a registration relating solely to the sale of securities to participants in
a Company stock plan, a registration relating to a corporate merger,
reorganization or other transaction under Rule 145 of the Securities Act or a
registration on any form that does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of Registrable Securities), the Company shall, at each such
time, promptly give each Holder of Registrable Securities written notice of such
registration. Upon the written request of each such Holder given within 20 days
after the mailing of such notice by the Company, the Company shall use
commercially reasonable efforts to cause to be registered under the Securities
Act all of the Registrable Securities that each such Holder has requested to be
registered. In the event that the Company decides for any reason not to complete
the registration of shares of its common stock other than Registrable
Securities, the Company shall have no obligation under this Section 1.3 to
continue with the registration of Registrable Securities. Any request pursuant
to this Section 1.3 to register Registrable Securities as part of an
underwritten public offering of common stock shall specify that such Registrable
Securities are to be included in the underwriting on the same terms and
conditions as the shares of common stock otherwise being sold through
underwriters under such registration.

1.4   OBLIGATIONS OF THE COMPANY

      Whenever required under this Agreement to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

      (a)   Prepare and file with the SEC such amendments and supplements to
            such registration statement and the prospectus used in connection
            with such registration statement as may be necessary to comply with
            the provisions of the Securities Act with respect to the disposition
            of all securities covered by such registration statement.

      (b)   Take all lawful action such that each of (i) the registration
            statement and any amendment thereto does not, when it becomes
            effective, contain an untrue

<Page>

            statement of material fact or omit to state a material fact required
            to be stated therein or necessary to make the statements therein, in
            light of the circumstances under which they were made, not
            misleading and (ii) any prospectus, and any amendment or supplement
            thereto, does not at any time during the Effective Period, as
            applicable, include an untrue statement of a material fact or omit
            to state a material fact required to be stated therein or necessary
            to make the statements therein, in light of the circumstances under
            which they were made, not misleading.

      (c)   Prior to the filing with the SEC of any registration statement
            (including any amendments thereto) and the distribution or delivery
            of any prospectus (including any supplements thereto) pursuant to
            this Agreement, provide draft copies thereof to the Holders and
            reflect in such documents all such comments as USA and its counsel
            (as long as USA is a Holder) reasonably may propose.

      (d)   Furnish to the Holders such copies of a prospectus, including a
            preliminary prospectus, in conformity with the requirements of the
            Securities Act, and such other documents as they may reasonably
            request to facilitate the disposition of all securities covered by
            such registration statement.

      (e)   Use its reasonable best efforts to register and qualify the
            securities covered by such registration statement under such other
            securities or blue sky laws of such jurisdictions as shall be
            reasonably requested by the Holders, and do any and all other acts
            and things which may be reasonably necessary or advisable to enable
            the Holders to consummate the public sale or other disposition in
            such jurisdictions, provided that the Company shall not be required
            to qualify to do business or to file a general consent to service of
            process in any such states or jurisdictions.

      (f)   In the event of any underwritten public offering, enter into and
            perform its obligations under an underwriting agreement, in usual
            and customary form, with the managing underwriter(s) of such
            offering. Each Holder participating in such registration shall also
            enter into and perform its obligations under such an agreement.

      (g)   Notify each Holder of Registrable Securities covered by such
            registration statement, during the time when a prospectus is
            required to be delivered under the Securities Act, of the happening
            of any event as a result of which the prospectus included in such
            registration statement, as then in effect, includes an untrue
            statement of a material fact or omits to state a material fact
            required to be stated therein or necessary to make the statements
            therein not misleading in the light of the circumstances then
            existing.

      (h)   At the request of any Holder selling Registrable Securities in such
            registration, furnish on the date that such Registrable Securities
            are delivered to the underwriters for sale in connection with such
            registration (i) an opinion, dated such date, of legal counsel
            representing the Company for the purposes of such

<Page>

            registration, in form and substance as is customarily given by
            Company counsel to underwriters in an underwritten public offering,
            addressed to the underwriters and (ii) a letter, dated such date,
            from the independent certified public accountants of the Company, in
            form and substance as is customarily given by independent certified
            public accountants to underwriters in an underwritten public
            offering, addressed to the underwriters.

      (i)   List the Registrable Securities being registered on any national
            securities exchange or quotation system on which a class of the
            Company's equity securities is listed.

      (j)   Take all such other lawful actions reasonably necessary to expedite
            and facilitate the disposition by the Holders of their Registrable
            Securities in accordance with the intended methods therefor provided
            in the prospectus which are customary for issuers to perform under
            the circumstances.

      (k)   In the event of an underwritten offering, promptly include or
            incorporate in a prospectus supplement or post-effective amendment
            to the registration statement such information as the managing
            underwriters reasonably agree should be included therein and to
            which the Company does not reasonably object and make all required
            filings of such prospectus supplement or post-effective amendment as
            soon as practicable after it is notified of the matters to be
            included or incorporated in such prospectus supplement or
            post-effective amendment.

      (l)   Provide a transfer agent and registrar for the securities being
            registered and a CUSIP number, not later than the effective date of
            the registration statement.

1.5   FURNISH INFORMATION

      It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Agreement that the selling Holders shall
furnish to the Company such information regarding themselves, the Registrable
Securities held by them and the intended method of disposition of such
securities as shall be reasonably required to effect the registration of their
Registrable Securities and shall execute such documents, customary for a
registration of the type contemplated, in connection with such registration as
the Company may reasonably request.

1.6   INSPECTION OF RECORDS

      The Company shall make reasonably available for inspection by the Holders,
any underwriter participating in any disposition pursuant to a registration
statement prepared under this Agreement, and any attorney, accountant or other
agent retained by a Holder or any such underwriter all relevant financial and
other records, and pertinent corporate documents and properties of the Company,
and cause the Company's officers, directors and employees to supply all
information reasonably requested by a Holder or any such underwriter, attorney,
accountant

<Page>

or agent in connection with such registration statement, in each case, as is
customary for similar due diligence examinations; PROVIDED, HOWEVER, any party
receiving such information shall enter into a customary confidentiality
agreement with the Company to the effect that all records, information and
documents that are designated in writing by the Company, in good faith, as
confidential, proprietary or containing any material non-public information
shall be kept confidential by the Holder and any such underwriter, attorney,
accountant or agent, unless such disclosure is made pursuant to judicial process
in a court proceeding (after first giving the Company an opportunity promptly to
seek a protective order or otherwise limit the scope of the information sought
to be disclosed) or is required by law, or such records, information or
documents become available to the public generally or through a third party not
in violation of an accompanying obligation of confidentiality; provided further
that the foregoing shall be conducted in a manner which does not disrupt in any
significant respect the conduct by the Company of its business. Such inspection
and information gathering shall, to the maximum extent possible, be coordinated
on behalf of the Holders and the other parties entitled thereto by one firm of
counsel designated by and on behalf of the Holders, which counsel shall be
reasonably satisfactory to the Company.

1.7   EXPENSES OF REGISTRATION

      (a)   In connection with any registration pursuant to Section 1.2, the
            Company shall be responsible for all fees, disbursements and
            out-of-pocket expenses and costs incurred by the Company in
            connection with the preparation of the Registration Statement and in
            complying with applicable securities and blue sky laws (including,
            without limitation, all attorney's fees of the Company), and Holders
            shall be responsible for all printing costs, listing fees, SEC
            filing fees, underwriting fees, and/or brokerage discounts, fees and
            commissions, if any, applicable to the Registrable Securities being
            registered and the fees and expenses of their respective counsels.

      (b)   In connection with any registration pursuant to Section 1.3, the
            Company shall be responsible for the payment of all expenses of the
            registration, with the exception of (i) underwriting discounts and
            commissions, which shall be paid by the Company, the Holders and any
            other selling holders of the Company's securities in proportion to
            the aggregate value of the securities offered for sale by each of
            them, and (ii) the fees and expenses of more than one law firm
            acting as counsel to the selling Holders selected by a majority in
            interest of the selling Holders, which additional counsel, if any,
            shall be paid by the Holder or Holders that engage such counsel. The
            expenses to be paid by the Company shall include, without
            limitation, all registration, filing and qualification fees,
            printing and accounting fees, and the fees and disbursements of
            counsel for the Company.

1.8   UNDERWRITING REQUIREMENTS

<Page>

      (a)   In the event that the Holders desire to use an underwriter in
            connection with any sales of Registrable Securities hereunder, USA
            shall select such underwriter, which shall be reasonably acceptable
            to Expedia.

      (b)   The Company shall not be required under Section 1.3 to include any
            of the Holders' securities in an underwritten offering of the
            Company's securities unless such Holders accept the terms of the
            underwriting as agreed upon between the Company and the underwriters
            selected by it. If the underwriters advise the Company that
            marketing factors require a limitation on the number of shares,
            including Registrable Securities, to be included in such offering,
            then the Company shall so advise all Holders of Registrable
            Securities that would otherwise have been underwritten pursuant to
            Section 1.3, and the number of shares, including Registrable
            Securities, that may be included in the registration shall be
            apportioned first to the Company, then pro rata among the selling
            Holders according to the total amount of Registrable Securities held
            by such Holders at the time of registration, then pro rata among any
            other selling shareholders according to the total amount of
            securities otherwise entitled to be included therein owned by each
            such other selling shareholder, or in such other proportions as
            shall mutually be agreed to by such selling shareholders; provided
            that in no event shall the amount of securities of the selling
            Holders included in the registration be reduced below 30% of the
            total amount of securities included in such registration.

1.9   INDEMNIFICATION

      In the event any Registrable Securities are included in a registration
statement under this Agreement:

      (a)   To the fullest extent permitted by law, the Company will indemnify
            and hold harmless each Holder and each person, if any, who controls
            such Holder within the meaning of the Securities Act or the Exchange
            Act, against all expenses (including legal fees and costs), losses,
            claims, damages (including settlement amounts) or liabilities (joint
            or several) (collectively, "LOSSES") to which they may become
            subject under the Securities Act, the Exchange Act or other federal
            or state law, insofar as such Losses arise out of or are based upon
            any of the following statements, omissions or violations
            (collectively, a "VIOLATION"): (i) any untrue statement or alleged
            untrue statement of a material fact contained in such registration
            statement, including any preliminary prospectus or final prospectus
            contained therein, or any amendments or supplements thereto, (ii)
            the omission or alleged omission to state therein a material fact
            required to be stated therein, or necessary to make the statements
            therein, in light of the circumstances under which they were made,
            not misleading, or (iii) any violation or alleged violation by the
            Company of the Securities Act, the Exchange Act, any state
            securities law or any rule or regulation promulgated under the
            Securities Act, the Exchange Act or any state securities law. The
            Company will reimburse (as incurred) each such Holder, underwriter
            or controlling person for any Losses reasonably incurred by them in
            connection with investigating or defending any Violations; provided,
            however, that the indemnity agreement contained in this

<Page>

            Section 1.9(a) shall not apply to amounts paid in settlement of any
            claims for Violations if such settlement is made without the consent
            of the Company, which consent shall not be unreasonably withheld,
            nor shall the Company be liable in any such case for any Losses to
            the extent that such Losses arise out of or are based upon a
            Violation that occurs in reliance upon and in conformity with
            written information furnished expressly for use in connection with
            such registration by, or on behalf of, any such Holder, underwriter
            or controlling person.

      (b)   To the fullest extent permitted by law, each selling Holder will
            indemnify and hold harmless the Company and its officers and
            directors and each other Holder selling securities in such
            registration statement, and any person who controls any of the
            foregoing within the meaning of the Securities Act or the Exchange
            Act, against any Losses to which the Company or such officer,
            director or other selling Holder or controlling person may become
            subject under the Securities Act, the Exchange Act or other federal
            or state law, insofar as such Losses arise out of or are based upon
            any Violation that occurs in reliance upon and in conformity with
            written information furnished by, or on behalf of, such Holder
            expressly for use in connection with such registration; and each
            such Holder will reimburse (as incurred) any Losses reasonably
            incurred by the Company or its officers or directors or other
            selling Holders or controlling persons in connection with
            investigating or defending any Violations; provided, however, that
            (i) the indemnity agreement contained in this Section 1.9(b) shall
            not apply to amounts paid in settlement of any claims for Violations
            if such settlement is made without the consent of the Holder, which
            consent shall not be unreasonably withheld and (ii) the obligations
            of such Holders shall be limited to an aggregate amount equal to the
            gross proceeds before deducting for expenses and commissions to each
            such Holder of Registrable Securities sold as contemplated herein.

      (c)   Promptly after receipt of notice of the commencement of any action
            (including any governmental action), an indemnified party will, if a
            claim is to be made against any indemnifying party under this
            Section 1.9, deliver to the indemnifying party a written notice of
            the commencement, and the indemnifying party shall have the right to
            participate in, and, to the extent the indemnifying party so
            desires, jointly with any other indemnifying party similarly
            notified, to assume the defense thereof with counsel mutually
            satisfactory to the parties; provided, however, that an indemnified
            party shall have the right to retain its own counsel, with the fees
            and expenses to be paid by the indemnifying party, if, in the
            opinion of counsel for the indemnified party, representation of such
            indemnified party by the counsel retained by the indemnifying party
            would be inappropriate due to actual or potential differing
            interests between such indemnified party and any other party
            represented by such counsel in the proceeding. The failure to
            deliver written notice to the indemnifying party within a reasonable
            period of time after notice of the commencement of any such action
            shall relieve such indemnifying party of any liability to the
            indemnified party under this Section 1.9 only to the extent such
            failure actually prejudices its ability to defend such action, but
            the omission to deliver written notice to the indemnifying party
            will not relieve it of

<Page>

            any liability that it may have to any indemnified party otherwise
            than under this Section 1.9.

      (d)   If the indemnification provided for in this Section 1.9 is held by a
            court of competent jurisdiction to be unavailable to an indemnified
            party with respect to any Losses, then the indemnifying party, in
            lieu of indemnifying such indemnified party, shall contribute to the
            amount paid or payable by such indemnified party as a result of such
            Losses in such proportion as is appropriate to reflect the relative
            fault of the indemnifying party on the one hand and of the
            indemnified party on the other in connection with the Violations
            that resulted in such Losses as well as any other relevant equitable
            considerations; provided, that, in no event shall any contribution
            by a Holder under this Section 1.9(d) exceed the gross proceeds
            before expenses and commissions to each such Holder, except in the
            case of willful fraud by such Holder. The relative fault of the
            indemnifying party and of the indemnified party shall be determined
            by reference to, among other things, whether the Violation resulting
            in such Losses relates to information supplied by the indemnifying
            party or by the indemnified party and the parties' relative intent,
            knowledge, access to information, and opportunity to correct or
            prevent such Violation.

      (e)   The obligations of the Company and Holders under this Section 1.9
            shall survive the completion of any offering of Registrable
            Securities and the termination of Registration Rights pursuant to
            Section 1.13.

1.10  REPORTS UNDER THE SECURITIES ACT

      With a view to making available to the Holders the benefits of SEC Rule
144 promulgated under the Securities Act and any other rule or regulation of the
SEC that may at any time permit a Holder to sell securities of the Company to
the public without registration or pursuant to a registration on Form S-3, the
Company agrees to use commercially reasonable efforts to:

      (a)   Make and keep public information available, as those terms are
            understood and defined in SEC Rule 144, at all times after 90 days
            from the effective date of the first registration statement filed by
            the Company for the offering of its securities to the general
            public;

      (b)   Take such action as is necessary to enable the Holders to utilize
            Form S-3 for the sale of their Registrable Securities, such action
            to be taken as soon as practicable after the end of the fiscal year
            in which the first registration statement filed by the Company for
            the offering of its securities to the general public is declared
            effective;

      (c)   File with the SEC in a timely manner all reports and other documents
            required of the Company under the Securities Act and the Exchange
            Act; and

<Page>

      (d)   Furnish to any Holder, so long as the Holder owns any Registrable
            Securities, promptly upon request (i) a written statement by the
            Company that it has complied with the reporting requirements of the
            Exchange Act, or that it qualifies as a registrant whose securities
            may be resold pursuant to Form S-3 (at any time after it so
            qualifies), (ii) a copy of the most recent annual or quarterly
            report of the Company and such other reports and documents so filed
            by the Company, and (iii) such other information as may be
            reasonably requested in availing any Holder of any rule or
            regulation of the SEC that permits the selling of any such
            securities without registration or pursuant to such Form S-3.

1.11  ASSIGNMENT OF REGISTRATION RIGHTS; SENIORITY

      The rights to cause the Company to register Registrable Securities
pursuant to this Agreement may be assigned by a Holder to a transferee or
assignee of such securities who shall, upon such transfer or assignment, be
deemed a "Holder" under this Agreement; provided that prior to such transfer the
transferee agrees to be bound by the terms and conditions of this Agreement and
that the Company is, within a reasonable period of time after such transfer,
furnished with written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are
being assigned.

      The Company, without the consent of USA, shall not grant any registration
rights to another Person that would result in such person having a priority over
USA in connection with any request for registration by USA hereunder (or a
request by USA to be included in a Company registration pursuant to Section
1.3).

1.12  TERMINATION OF REGISTRATION RIGHTS

      The registration rights granted under this Agreement shall terminate with
respect to a Holder (i) automatically on the termination of the Merger
Agreement, in accordance with its terms, or (ii) at such time as a Holder no
longer holds any Registrable Securities.

2.    MISCELLANEOUS

2.1   NOTICES

      Any notice required or permitted under this Agreement shall be given in
writing and shall be deemed effectively given (a) upon personal delivery to the
party to be notified, (b) upon confirmation of receipt by fax by the party to be
notified, (c) one business day after deposit with a reputable overnight courier,
prepaid for overnight delivery and addressed as set forth in (d), or (d) three
days after deposit with the United States Post Office, postage prepaid,
registered or certified with return receipt requested and addressed to the party
to be notified at the addresses and fax numbers (as applicable) specified in the
Merger Agreement.

2.2   AMENDMENTS AND WAIVERS

<Page>

      Any term of this Agreement may be amended and the observance of any term
may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and
USA.

2.3   GOVERNING LAW; JURISDICTION; VENUE; JURY TRIAL

      (a)   This Agreement shall be governed and construed exclusively in
            accordance with the laws of the State of Delaware, without regard to
            any applicable conflicts of law principles.

      (b)   Each party hereto irrevocably submits to the jurisdiction of any
            Delaware state court or any federal court sitting in the State of
            Delaware in any action arising out of or relating to this Agreement,
            and hereby irrevocably agrees that all claims in respect of such
            action may be heard and determined in such Delaware state or federal
            court. Each party hereto hereby irrevocably waives, to the fullest
            extent it may effectively do so, the defense of an inconvenient
            forum to the maintenance of such action or proceeding. The parties
            hereto further agree, to the extent permitted by law, that final and
            unappealable judgment against any of them in any action or
            proceeding contemplated above shall be conclusive and may be
            enforced in any other jurisdiction within or outside the United
            States by suit on the judgment, a certified copy of which shall be
            conclusive evidence of the fact and amount of such judgment.

      (c)   To the extent that any party hereto has or hereafter may acquire any
            immunity from jurisdiction of any court or from any legal process
            (whether through service or notice, attachment prior to judgment,
            attachment in aid of execution, execution or otherwise) with respect
            to itself or its property, each party hereto hereby irrevocably
            waives such immunity in respect of its obligations with respect to
            this Agreement.

      (d)   Each party hereto waives, to the fullest extent permitted by
            applicable laws, any right it may have to a trial by jury in respect
            of any action, suit or proceeding arising out of or relating to this
            Agreement. Each party hereto certifies that it has been induced to
            enter into this Agreement by, among other things, the mutual waivers
            and certifications set forth above in this Section 2.3.

2.4   SUCCESSORS AND ASSIGNS

      The terms and conditions of this Agreement shall inure to the benefit of,
be enforceable by, and be binding on the respective successors and assigns of
the parties as provided herein.

2.5   SEVERABILITY

      If one or more provisions of this Agreement are held to be unenforceable
under applicable law, such provision shall be excluded from this Agreement, and
the balance of this

<Page>

Agreement shall be interpreted as if such provision were so excluded and shall
be enforceable in accordance with its terms.

2.6   ENTIRE AGREEMENT; COUNTERPARTS

      This Agreement constitutes the entire agreement between the parties about
its subject and supersedes all prior agreements and understandings, both written
and oral, among the parties with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, which together shall
constitute one instrument.

<Page>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
      the date first above written.

                                    COMPANY

                                    EXPEDIA, INC.

                                    --------------------------------------------
                                    By:    Richard N. Barton
                                    Its:   President and Chief Executive Officer

                                    Address:    13810 SE Eastgate Way, Suite 400
                                                Bellevue, WA 98005
                                    Fax:        (425) 564-7242
                                    Telephone:  (425) 564-7314

                                    HOLDER

                                    USA NETWORKS, INC.

                                    --------------------------------------------
                                    By:    Julius Genachowski
                                    Its:   Senior Vice President, General
                                           Counsel and Secretary
                                    Address:    152 West 57th Street
                                                New York, NY  10019
                                    Fax:        (212) 314-7329
                                    Telephone:  (212) 314-7330

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]